Nowadays, it is very common for an organization to operate its business through internet which is e-commerce. Some of the businesses have been successfully bring out and earn a huge profit through e-commerce but some are not. In this blog, I would like to discuss about an example of e-commerce success and its causes – eBay.com.
eBay.com is the world's largest online auction service whose business model is ideally suited to the Web. The headquarters is located at San Jose, California. eBay get staterd selling over the internet in 1995 by Pierre Omidyar and Jeff Skoll. Pierre Omidyar developed a software program that allowed people to list various interest and various degree items in one spot. Besides that, it also allowed people to look at sales items and bid on those items at that site. The auction process was being used as the method for establishing how merchandise is valued and eventually how it is exchanged between buyer and seller, but subsequent methods include a substantial segment of listings in the "Buy It Now" category.
There are several factors cause the successful of eBay as below:-
Good marketing strategy
The success of eBay rely on a unique formula. It derives the bulk of its revenue from fees and commissions associated with its trading services. eBay growth strategy focuses on expansion in geography and scope and on continuing innovation to enhance the variety and appeal of products on its sites. For instances, eBay has created different category of sales items which consist of colletibles, decor, appliances, computers, furnishings, equipment, vehicles, and other miscellaneous items through these years. At the same time, eBay has established localized websites in many other countries with the languages according to the countries since the year has established eBay until present.
Various kind of “childhood memories” items
Moreover, eBay allows people to always connect with some very loving and special early childhood memories. For examples, consumers can purchase their childhood toys from baseball cards to toy soldiers to Barbie dolls to doll houses, and so on at eBay. Thus, it allows people to make that connection and relive a lot of those very vivid and very fond memories that they have from an earlier period of time. Therefore, eBay attract many consumers come to bid for the items they wish to have.
Easy and convenient
Besides that, eBay acquired Voice-Over-Internet Protocol (VoIP) service provider Skype Technologies in September of 2005. Skype provides a service for free or low-cost voice calls over the internet. eBay is betting heavily that internet telephony will become an integral part of the e-commerce experience and accelerate trade on its website. Furthermore, the introduction of a “click-to-call” feature, which enables consumers to talk to merchants and advertisers directly using Skype by clicking a connection embedded in their ads. This enable the auction house to generate more revenue from its acquisition of Skype.
There are several factors cause the successful of eBay as below:-
Good marketing strategy
The success of eBay rely on a unique formula. It derives the bulk of its revenue from fees and commissions associated with its trading services. eBay growth strategy focuses on expansion in geography and scope and on continuing innovation to enhance the variety and appeal of products on its sites. For instances, eBay has created different category of sales items which consist of colletibles, decor, appliances, computers, furnishings, equipment, vehicles, and other miscellaneous items through these years. At the same time, eBay has established localized websites in many other countries with the languages according to the countries since the year has established eBay until present.
Various kind of “childhood memories” items
Moreover, eBay allows people to always connect with some very loving and special early childhood memories. For examples, consumers can purchase their childhood toys from baseball cards to toy soldiers to Barbie dolls to doll houses, and so on at eBay. Thus, it allows people to make that connection and relive a lot of those very vivid and very fond memories that they have from an earlier period of time. Therefore, eBay attract many consumers come to bid for the items they wish to have.
Easy and convenient
Besides that, eBay acquired Voice-Over-Internet Protocol (VoIP) service provider Skype Technologies in September of 2005. Skype provides a service for free or low-cost voice calls over the internet. eBay is betting heavily that internet telephony will become an integral part of the e-commerce experience and accelerate trade on its website. Furthermore, the introduction of a “click-to-call” feature, which enables consumers to talk to merchants and advertisers directly using Skype by clicking a connection embedded in their ads. This enable the auction house to generate more revenue from its acquisition of Skype.
Build up security and trustworthiness
On the other hand, eBay Motors added extra measures of protection up to $20,000. These measures combined with the standard eBay seller feedback ratings, it gave users enough security and thus attract many buyers. Now, eBay Motors includes subcategories for boats, motorcycles, parts and accessories, and etc.
Enjoying the experience of bidding
Last but not least, the other factor is perhaps people really enjoy the experience of the shopping bazaar. They enjoy the hunt and looking around for merchandise. In addtion to consumers really enjoy the competition of the bidding process. Everybody likes to get a bargain and haggle a little bit over the price. At the same time, eBay auction format allows users to do that.
After knowing the causes of eBay success, can eBay continuing growth in the future? For me, I think if eBay continue keeping the community happy and has a loyal user base which is the company’s most valuable asset will enable eBay to continue growth in the future.
2 comments:
First of all, well done for doing a good review on Ebay..
No doubt the main factor of succeed is its security during transactions of a sale.
Customers have different attitude for purchasing online and through physical store. For online purchase customer, credibility of the site and security during the transactions is the major concern for them.
Ebay can be so successful is because its able to overcome the security threat.
not just keep the consumer happy is one of the goal of eBay, but they hv 2 build a strong security, sell more n more goods to satisfied the customers' needs is also important.
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