Craigslist’s Case Essay
2. How does Craigslist differ from the eBay marketplace?
3.What is the business model for craigslist? Craigslist is an online adposting, it provides classifieds and forums for jobs and other products or services while eBay is an auction website and it is easier to customize your posting on eBay. Moreover there is no advertising on Craigslist while on eBay’s home page you find several links promoting other websites or brands. Most of Craigslist’s users are Amercian while eBay is well-known in the whole world and counts 240 millions members against 30 millions for Craigslist.
Thus the potential market is higher on eBay. And with craigslist you actually have to meet your buyer or seller which can be an advantage or a disadvantage but one thing is for sure, it limits your potential sales/purchases to your geographic area (country or region depending on the size). Even if it limits the potential sales/purchases to local people, it is easier and cheaper to sell or buy heavy stuff to local people because you do not have to pay for transport and you can try it.
The features also differ since Craigslist mainly deals with advertising a product or sercive whereas eBay’s main features are all about buying and selling. Besides, Craigslist also provides job offers. Both websites are safe but they do not use the same safety methods. On the one hand, eBay has implemented a customers’ feedback system to enable people to know the sellers and on the other hand, on www. craigslist. om there is a heavy registration process to avoid people misusing the site. Finally Craigslist is free excepted job postings while eBay is not free. However, even if these two websites are different, one should bear in mind that eBay owns 25% from Craigslist. According to Craigslist’s founder, Craig Newmark, the website does not have any business model. He considers its classified site a community service to give people a break and treat them like you want to be treated.
Nevertheless, theoretically speaking, the website has a broad target and offers people to post ads for free thus we can assume that Craigslist’s business model is a hybrid strategy combining low price and differentiation in comparison with its auction websites’ competitors such as eBay.
4. The design of Craigslist has changed seemingly little in the last decade. What impact has this had on the overall usability and popularity of the site? The fact that Craigslist’s design did not really change over the last years makes the website easy to use and understand. It clearly makes the access easier and thus it makes the postings easier and faster. It can also help creating brand loyalty since customers are used to dealing with the website, they perfectly know how to use it and do not loose time finding the way to post an ad or to consult it.
5. How does Craig Newmark plan to take advantage of Web 2. 0 trends for his own business?
- http://recomparison. com/comparisons/100646/ebay-vs-craigslist/
- http://itc. conversationsnetwork. org/shows/detail330. html
- www. craigslist. org
- http://www. charlierose. com/view/interview/8605