Swot Analysis of Ebay Essay Example

on buyers and sellers who register with them. It is noteworthy that eBay offers more products than any other retailer. Their platform-tools facilitate customer relationship management and connect sellers with buyers. Additionally, eBay maintains a dominating presence in the field of online payment, primarily through Paypal.

However, the reliance on technology inherent in the eBay model has the potential to alienate certain demographic groups. Nevertheless, it is predicted that this issue will diminish over time, resulting in minimal impact on overall success. eBay acknowledges the possibility of counterfeit products being listed on their platform, which could lead to legal challenges and negative perceptions from consumers. This concern arises from the nature of the model, where sellers are responsible for the listed items. Consequently, unscrupulous individuals can exploit the C2C business model.eBay recognizes the potential for abuse in its system and acknowledges that both buyers and sellers can engage in such behavior, which can adversely affect the business and consumers. To address this issue, eBay has implemented protected policies and procedures to safeguard both parties involved. However, the online buy/sell relationship on eBay is limited in terms of increasing marketplace activity, as it relies on the active participation of transaction participants unlike traditional retail models where retailers have more control. Unfortunately, eBay does not do a good job of controlling fraudulent or illegal auctions, as there are still numerous such auctions that aim to deceive buyers or are in violation of the law. One weakness of eBay is that sellers are able to enforce their preferred payment methods.

Scammers often prefer using payment methods like money transfers on eBay because they are not protected, resulting in buyers losing

their money and not returning to the site. Another common issue for shoppers on eBay is shipping. Sellers manipulate their product's search ranking by lowering the price and increasing the shipping cost, sometimes charging twice the product price. This tactic has driven buyers to retail stores in search of better deals. However, there are also opportunities for eBay. The acquisition of Skype enables the business to expand into communication and multi-channel operations, bringing about growth and innovation. eBay has integrated Skype into its platform, allowing buyers and sellers to communicate directly through voice chat. This integration strengthens the relationship between buyers and sellers. Additionally, eBay recognizes the opportunity to sell products quickly through traditional websites rather than auctions that may take several days to complete.

eBay recognized a need in the market and took advantage of an opportunity by creating a 'Buy it now' button. This feature allows sellers to offer their products with a fixed price and make them available for immediate purchase. Another tool called 'Make an offer' has been introduced, enabling buyers to propose a price to the seller. If the seller accepts, the transaction proceeds; otherwise, the buyer's offer is rejected. Additionally, eBay's PayPal function can contribute to growth in the financial sector. Although eBay primarily focuses on the domestic market, there is potential for expanding business-to-business transactions and securing larger contracts. Furthermore, new and emerging markets offer opportunities for market development.

Ebay has decided to localize its website globally by creating personalized websites for countries like the UK, India, and China. However, this move also presents some threats. Just like other global Internet brands, eBay's success has attracted competition. International competitors who

are already established in their domestic markets may have a cultural understanding that gives them a competitive advantage over eBay. In fact, eBay has encountered other US-based Internet companies while conducting international trade.

For instance, Yahoo! holds a dominant position in the Japanese market. The decrease in participation can be attributed to low consumer confidence in on-line systems, which is also influenced by the increasing media coverage of identity fraud and transactional fraud online. The business will be directly impacted by changing exchange rates due to its global nature. Illegal practices pose a threat and can harm the brand, as unscrupulous individuals attack its reputation. An example of such attacks is the sending of fraudulent emails to unsuspecting eBayers, pretending to be from eBay. Additionally, eBay has limited control over certain costs.

For instance, costs like delivery charges and credit card charges could be affected. In the event of fuel price hikes, consumers would bear the brunt through increased delivery and postal fees. Consequently, this may result in exorbitant overall costs for auctioned items. Similarly, if popular credit card providers like Visa or MasterCard introduce fees for online transactions, the total expense for the same goods would rise, leading to comparable outcomes. Additionally, other e-commerce platforms such as Amazon and specialty retailers contribute to the competition, while newcomers like ebid.com and madbid.com pose further challenges.