Hello everyone…

…greetings from eBay‟s presenters :)

Let‟s get started…!!!

eBay: The Customer Marketplace

By: Meth Sambath & Chen Yeting

What You Will Know:

I – Introduction A – What is eBay?

B – eBay Background

C – Objective of eBay

II – External Analysis D – Consumer Analysis

E – Competitor Analysis

F – Technology Analysis

III – Internal Analysis G – Target Market

H – Segmentation & Positioning

I – 4 Ps Overview

J – SWOT Analysis

K – Other Strategies

IV – Our Conclusion

By: Meth Sambath & Chen Yeting

- eBay is the World‟s Largest Online Marketplace with

more than 116 million active users driving nearly $75

billion in sales volume in 2012. Each month, nearly 1/3

of all U.S. Internet users visit eBay. Because eBay is

all about exploration and discovery, consumers love

spending time on our site, engaging twice as long on

eBay compared to their nearest competitor.

- It is now a multi-billion dollar business with operations

localized in over thirty countries such as:

A – What is eBay?

By: Meth Sambath & Chen Yeting

B – eBay Background:

- AutionWeb was founded in San Jose, California, on September 3,

1995, by Iranian-American computer programmer Pierre Omidya at

the age of 28.

- After writing the code for the site, Omidyar launched eBay from his

home in mid-1995.

- The concept of an Internet marketplace caught on so quickly that by

the end of the year, eBay was getting a few thousand hits daily.

- In 1997, the company received $6.7 million in funding from the venture

capital firm Benchmark Capital.

- eBay went public in September 1998 at $18 per share. By early march

1999, the stock was trading approximately $282 per share!

- By January 2002, eBay had 37 million customers and $129 million in

profit.

- Based on a Case Study from IIMK in 2007, there are about 147 million

people use eBay now.

By: Meth Sambath & Chen Yeting

C – Objective of eBay:

- Pierre Omidyar founded eBay on a simple idea:

People are basically good.

- The objective of eBay was to develop the work

ethics and culture of eBay as a fun, open and

trusting environment and to keep the organization

focused on the big picture objectives and key

priorities.

- This fundamental belief created a completely new

kind of marketplace, forever transforming e-

commerce.

- In a letter to users, founder Omidyar characterized

eBay as a “grand experiment…creating an open

market that encourages honest dealings…to make it

easier to conduct business with strangers over the

Net.”

- The overall eBay aims are to increase the gross

merchandise volume and net revenues from the

eBay marketplace.

By: Meth Sambath & Chen Yeting

D – Consumer Analysis:

Community and Customer Involvement:

Everyone could be eBayer, you could be a seller or a

buyer:

- eBay was a marketplace for meeting and trading

through online auctions (B2C). Sellers posted items

and waited for bids. Upon completion of an auction,

eBay notified the seller and winning bidder via e-mail,

and provided them with each other‟s e-mail

addressed in order that shipping, handling, and

payment details might be worked out and sale

completed.

- Feedback system was created to enable members‟

evaluation of one another (any ratted feedback or

evaluation will last on your profile permanently), so

you better build a good reputation with eBay.

- An estimated 430,000 people in the United States

make all or most of their living by selling on eBay.

- Customer Services are also provided, many

community help boards are available.

By: Meth Sambath & Chen Yeting

E – Competitor Analysis:

There are so many competitors in the online auction market.

These are the main competitors of eBay:

Amazon.com, Inc.

Google Inc.

Overstock.com

By: Meth Sambath & Chen Yeting

F – Technology Analysis:

How to communicate with customers:

eBay Inc. acquired Skype in 2005 and significantly expanded its

customer base to more than 480 million registered users

worldwide. To focus on its core e-commerce and payments

businesses, eBay Inc. sold a majority stake in Skype in

November 2009, retaining a minority investment in the company.

Payment Process:

On October 3, 2002, PayPal became a wholly owned subsidiary

of eBay. PayPal enables any business or consumer with email to

send and receive Internet payments securely, conveniently and

cost-effectively. PayPal's account-based network builds on the

existing financial infrastructure of bank accounts and credit cards

to create a global payment system.

In November 1996, eBay entered into its first third-party licensing

deal, with a company called Electronic Travel Auction to use

SmartMarket Technology to sell plane tickets and other travel

products.

By: Meth Sambath & Chen Yeting

Thank you Yeting :)

By: Meth Sambath & Chen Yeting

G – Target Market &Market Segment:

Target Market:

- eBay has a very wide range of target marketing mainly

because of the wide range of product available at it‟s website.

Millions of items like collectibles, appliances, computers,

equipment and many more miscellaneous items are listed,

bought or even sold on a daily basis. In other word, eBay

generally target online auction and shopping communities.

Market Segment:

At this point, by saying Market Segment, we focus on

how eBay sorts their products and consumers, rather then

geographic, Demographic, behavior and so on.

- From the entire wide range of items available, eBay originally

was set up to promote and sell antique and collectibles. This

causes eBay to focus more on this segment market. Another

key market segment for eBay would be the car and motor

enthusiast. This is because of the unexpected popularity with

the users, which is the second most visited segment on the

site. Due to this, eBay has been focusing more on these two

segments as their primary market target.

By: Meth Sambath & Chen Yeting

G – Target Market &Market Segment:

KEY SEGEMENTS:

1 - Antiques & Collectibles:

- Started out to be selling collectibles and antiques with

auction-based online sales. These targeted markets are

usually antique lovers that are willing to bid very high for a

rare item. eBay has established them very well in the market,

which until today, antiques, and collectibles generates the

highest sales gross.

2 – Motor Lovers:

- Using credibility of leading car collector Kruse Inc., eBay

expanded its categorical offerings with eBay Motors. eBay

Motors became one of its most successful target segments

with $2,500M Global Gross Merchandise Sales in 2002.

By: Meth Sambath & Chen Yeting

H - Market Position:

- eBay's position in the ecommerce, retail, and

payments landscapes continues to change as

each of these sectors evolves.

- eBay's initial $18 target price gave way to a

steady climb, reaching a high of just over $58

per share in 2004 before embarking on a

steady decline.

- eBay handled more than $175 billion of

commerce volume in 2012 including all

merchandise sold and payments through

PayPal.

- In recent quarters, however, year over year

growth has slowed, with an increasing

proportion of overall growth coming from its

payments business and an ongoing process of

reorganization and strategic change coming to

characterize the marketplace business. Some

of the declines and difficulties in this latter

sector are due to increasing competition from

competitors, most notably Amazon.com and

Google. First

Quarter

2013

By: Meth Sambath & Chen Yeting

I – 4Ps Overview:

Products:

- PayPal is an online transaction business allowing payments

and financial transfers to be made through the internet.

- Products on sale at Ebay include millions of collectibles, décor,

appliances, computers, furnishings, equipment vehicles and

other miscellaneous items are listed, bought, or sold, daily.

- Skype is an economical communication tool owned by Ebay.

- Half.com, shopping.com, rent.com are owned by eBay

Price:

- eBay, Inc. recently changed some of its pricing policies,

dictating different listing fees from frequent and occasional

sellers.

- Sellers are charged when an item is listed on eBay a

nonrefundable Insertion Fee is charged, which ranges between

30 cents and $3.30, depending on the seller's opening bid on

the item.

- A final sale price fee is charged to a seller at the end of an

auction. This fee generally ranges from 1.25% to 5% of the

final sale price.

By: Meth Sambath & Chen Yeting

I – 4Ps Overview: Place:

- New eBay users can find answers to procedural questions by

utilizing the company‟s Answer Center located at

http://pages.ebay.com/community/answercenter/index.html

- eBay provides an international site visibility feature which

allows some listings created on eBay.com to be posted on

international sites (such as the U.K. site). Buyers on these sites

will see the listings exactly as you originally post them on the

U.S. site.

- eBays Seller Information Center aids participants by offering

information on getting started, growth strategies and shipping

http://pages.ebay.com/sellerinformation/

Promotion:

- There are eBay Coupons, eBay discounts, eBay Promotional

codes, and an eBay bargains page at DealTaker.com

- The eBay Bucks Rewards Program gives those who use

PayPal on eBay 2% back on qualifying purchases participants.

- eBay Radio provides traders and eBay community members

with the latest in news and views from around the eBay world

and covers major eBay events like the annual eBay Live

Conference.

By: Meth Sambath & Chen Yeting

J – SWOT Analysis:

SWOT Analysis of eBay is carried out to get onto the finer and intricate details that

eBay has adopted in such a shorter span of time to achieve profits in millions and

is able to maintain a customer base that is again unbelievable. The strengths of

eBay could be identified:

eBay Strengths:

- eBay is the leading global brand for online auctions.

- The company is a giant marketplace used by more than 100 million people to buy

and sell all manner of things to each other.

- The brand has grown tremendously over the decade or so since its conception.

- The company exploits the benefits of Customer Relationship Management (CRM).

- Buyers and sellers register with the company and data is collected by eBay on

individuals.

- Business-to-Consumer (B2C), then mixed with Consumer-to-Consumer (C2C)

- The term „eBay' has become a generic term for online auctions.

- Today it is common to hear that someone is „ebaying' or is an „eBayer,' or that

someone is going „to eBay.'

By: Meth Sambath & Chen Yeting

J – SWOT Analysis:

eBay Weaknesses:

- The organizations work tremendously hard to overcome fraud.

- Fraud includes counterfeit goods being marketed to unsuspecting (and

suspecting!) eBayers.

- Often the company deals with such activities very quickly and this may lead to

other forms of theft could include the redistribution of stolen goods.

- It should be pointed out that fraud and theft are problems with individuals, not

eBay.

- The weakness is that unscrupulous individuals can exploit the C2C business

model.

As with many technology companies, systems breakdowns could disturb the trading

activities of eBay. In the past both eBay and its payment brand Pay pal have

encountered shutdowns and outages. As technology improves such a weakness

is less and less of an issue

By: Meth Sambath & Chen Yeting

J – SWOT Analysis:

eBay Opportunities:

Opportunities that eBay had were tremendous and invincible. They are:

- Acquisitions provide new business strategy opportunities. eBay‟s latest venture is

it has agreed to buy online telephone company Skype Technologies in a deal

reported to be worth $2.6 billion. Skype's software lets PC users talk to each

other for free and make cut-price calls to mobiles and landlines. eBay has been

buying up firms - including payment system PayPal - in an effort to increase the

number of services it offers to consumers and keep its profits growing.

- Market development: Aspirating consumers are growing segments in many

developing nations. Countries include China and India. There, consumers are

becoming richer and have more leisure time than previous generations.

- There are also still opportunities in current markets (Market Penetration). Western

Europe and the USA still have many potential consumers that have yet to

discover the benefits of online auctions.

By: Meth Sambath & Chen Yeting

J – SWOT Analysis:

Threats for eBay :

Even a mammoth organization like eBay faces threats, which can be like

as below:

- As with many of the global Internet brands, success attracts

competition.

- International competitors competing in their domestic markets may

have the cultural experience that could give them a competitive

advantage over eBay, like China they have taobao.

- In fact eBay has found that it has met with other USA based Internet

companies when trading overseas. For example, Yahoo! Dominates

the Japanese market (eBay left Japan & Hong Kong market in 2002).

- Attack by illegal practices is a threat. As with weaknesses above, the

brand is attacked by unscrupulous individuals. For example e-mails

are sent to unsuspecting eBayers pretending to come from eBay.

By: Meth Sambath & Chen Yeting

K – Other Strategies:

There are some more strategies that eBay has been using:

1. Establishing a larger user base:

- To attract new users, eBay established relationships with more than 60 websites,

including America online which gave eBay the largest access to the largest user

base on the internet and prevented AOL from entering the auction arena.

2. eBay concentrated on local and international trading:

- EBay has local sites in 53 U.S markets they deliver distinct regional flavors and

give users the convenience of shopping locally for difficult –to ship items such as

automobiles or antique furniture. The company also built a truly global presence

with users in more than 150 nations.

3. Maintaining a strong community affinity:

- The company believes that fostering direct interaction between buyers and

sellers with similar interest had enabled it to create loyal, active community of

users, As noted earlier this emphasis on community building has been present

since eBay‟s founding.

By: Meth Sambath & Chen Yeting

Our Conclusion:

…eBay’s strategy of providing a safe trading place on the internet, the eBay

community has flourished, by not only providing an efficient medium for

people to buy or sell items directly from or to a large member of people, it’s

a forum where buyers and sellers, develop reputations and in some cases, it

can change people’s lives…

Keep it up!

By: Meth Sambath & Chen Yeting

References:

1 – Case Study from Harvard Business School

- eBay (A): The market place, September 15, 2005

2 - Wikidpedia:

- http://en.wikipedia.org/wiki/EBay

3 – Smart Insights:

- http://www.smartinsights.com/ecommerce/ecommerce-

strategy/ebay-case-study-2/

- http://www.smartinsights.com/ecommerce/ecommerce-

strategy/ebay-case-study-2/

4 – Case Study in 2007, from Indian Institute of Management

Kozhikode

5 – Agile Enterprise Analytics

http://www.cs.duke.edu/smdb10/_files/toc_data/SMDB/keynote/keynot

e.pdf

6 – Marketing Teacher:

http://www.marketingteacher.com/case-study/ebay-case-study.html

By: Meth Sambath & Chen Yeting

Thank You For Your Attention

谢谢 Xièxiè

감사합니다

By: Meth Sambath & Chen Yeting