MARK20100 Chapter Notes - Chapter 11: Stubhub, Shopping.Com, Ebay
Document Summary
Case 11: ebay: why has ebay succeeded as an on-line auction marketplace while so many others have failed? ebay has succeeded as an on-line auction marketplace because of how efficiently it links sellers and buyers. It relies on people being innately good so that buyers trust the sellers they meet on the website. It also created a pricing revolution by allowing buyers to determine what they will pay for an item. This gives buyers more control over the process. ebay has also made several acquisitions that have set itself apart from competitors, such as the acquisition of paypal: evaluate ebay"s fee structure. Why and how? ebay"s fee structure is optimal because of the way the fee percentages decline with increases in price. This attracts high volume sellers rather than sellers of low priced items. Ultimately, the fee structure is how ebay earns revenue since ebay does not own any inventory: discuss donahoe"s" vision for ebay.
