1) eBay is one of the only major Internet "pure plays" to consistently make a profit from its inception. What is eBay's business model? Why has it been so successful?
eBay is an online auction and shopping website that was founded in America
eBay has been very successful largely due to the large established community of registered users that use eBay. eBay has a code of conduct and a set of rules that control transactions and the subsequent communications. These processes create trust and fairness within the eBay community.
2) There are a number of other online auction sites in Australia
Two Australian auction sites are:
GraysOnline (http://www.graysonline.com/):
GraysOnline is an Australian online retail and auction company that offering a range of consumer, industrial and commercial goods, direct from manufacturers and distributors.
BidMate (http://www.bidmate.com.au/):
Founded in 2007 with the intention of providing Australia Geelong , Australia
I’ve heard of GraysOnline, but hadn’t heard of BidMate. I think that both sites are popular, in their own regard, but they aren’t as big as eBay and this is because eBay established itself very early in the “dotcom” boom and used that momentum to expand its operations. eBay is currently more popular because it was first and built its client base early.
3) What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?
eBay has developed a range of guideline, rules and policies to ensure that fraudulent activities are minimised. When they do occur eBay has also built a system that ensures they do not go undetected or unpunished. The feedback system is one ways eBay promotes honesty and trust in its community. If fraudulent activity happens then “eBayer” (buyer or seller) risks of receiving negative feedback. This feedback can be viewed by all other eBay members and is an effective deterrent to any dishonest activity as negative feedback can result in poor sales. eBay also has systems, like software, that provides protection for account holders. eBay also offers online help and a reporting line where members can report suspicious activity.
eBay also recommends the use of PayPal (which is owned by eBay). PayPal’s merchant facilities are used to counteract fraudulent activities such as protection of members’ private information, protection against unauthorised payments from a user account, dispute resolution services and PayPal buyer protection service on eBay.
eBay members are susceptible to threats such as “phishing” which is the use of fake emails claiming to be from a particular organisation. These emails are sent to site members with the intention of obtaining their banking details and other sensitive information illegally.
eBay also recommends the use of PayPal (which is owned by eBay). PayPal’s merchant facilities are used to counteract fraudulent activities such as protection of members’ private information, protection against unauthorised payments from a user account, dispute resolution services and PayPal buyer protection service on eBay.
eBay members are susceptible to threats such as “phishing” which is the use of fake emails claiming to be from a particular organisation. These emails are sent to site members with the intention of obtaining their banking details and other sensitive information illegally.
4) eBay makes every effort to conceptualise its users as a community (as opposed to, say "customers" or "clients"). What is the purpose of this conceptual twist and does eBay gain something by doing it?
Please refer to the answer provided for Question 1.
5) eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?
eBay provides businesses with brand and product exposure. This exposure is quite broad and reaches a quite a large number of market segments. eBay also offers a relatively low cost structure and can eliminate large physical overhead costs. eBay also allows the seller a variety of choices in shopping methods, which can have a impact of pricing levels (i.e. fixed pricing or auction).
Top 10 eBay scams and how to avoid them:
BBC: eBay Fraud
More eBay Fraud
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