Analysis Essay on eBay As an Information System

Analysis Essay on eBay As an Information System

This article will provide various topics regarding eBay as an information system. eBay is a very large corporation and has various levels in it that will be analyzed to the best knowledge. Topics covered will include approaches of the company on a Server-Side. This will include both hardware and software requirements for which eBay uses to operate. The next topic of analysis will include the software and hardware requirements that are necessary from the viewpoint of a client (or user) of the information system being discussed for this article. Overall, eBay is a very vast organization which keeps a lot of their operational information away from the public so some educational assumptions will be made. Regarding the lack of server-side information, some may also be slightly dated since it is the only available source to be looked at.

Server-Side Hardware Requirements

First and foremost, from researching eBay has a vast network of various technologies it utilizes hardware-wise. There was very little public information regarding the actual hardware requirements that eBay utilizes to operate. That being stated it can be assumed that this giant is currently using cloud-based systems and physical servers. eBay is taking large steps in changing its infrastructure with hardware and it ranges from building data centers, and server design. (Knorr, 2016) Of course, the most important hardware eBay is using is its physical servers since they are necessary backbones to any information system on the scale of this company. As stated above since eBay actually is creating it’s own server design it is hard to say specifically what type of servers they are utilizing hardware-wise. It can be assumed that the company is using rack-servers due to cost-effectiveness and size. Again, based on speculation these said rack-servers are most likely in server farms throughout the country and maybe even supported by third party companies in data centers. It is assumed that the company utilizes file servers, web servers, cloud-based servers, and various other servers to support all the operating systems of users and employees. It can also be assumed that the company has various backup servers for both files and web in case an emergency happens. On eBay’s scale, there are probably data centers that are solely responsible for backup if something were to occur.

Server-Side Software Requirements

eBay is currently utilizing OpenStack and Apache Kylin as software. (Knorr, 2016) From the readings it appears that Kylin is in-house software system created by eBay itself. Kylin provides SQL interfaces and OLAP. The company is also using Hadoop infrastructure utilizing things like Storm, Kafka, Spark, and even JavaScript tools RaptorJS. (Knorr,2016) The company appears to use a large amount of in-house software server-side. This is also probably required so the information system can perform some more complex tasks and take into consideration the almost insurmountable combinations of data needed daily. It should be noted that all the programs mentioned above are open source based. Based on the articles read one can surmise that a lot of this software is custom-tailored for eBay itself. It should also be noted that eBay is one of the largest users of OpenStack in the world. (Knorr, 2016) OpenStack is a cloud operating system software. Storm is most likely used to store data input of the system. Additionally, Kafka is probably used for the actual data traffic. Spark on the other hand appears to be used for data processing itself and to work synonymously with Kylin and SQL. It can be deduced that there are probably even more required and necessary software being used by eBay to support its information system.

Client-Side Hardware Requirements

On the client-side, there are several ways to access the information system provided for eBay. Some examples of hardware devices that can access eBay are tablets, desktops, laptops, and smartphones. There are no websites that could be found that specify the minimum requirements hardware-wise to access eBay. Based on this it can be assumed that in order to access the eBay website, one must have the minimum hardware requirements for a web browser. For this example, Google Chrome will be used as a benchmark for minimum software required. For Windows to run Google Chrome it must be equipped with a Pentium 4 processor or higher post 2001, have 100 mb of hard drive space, 128 MB RAM. (Decker, 2016). The Hardware requirements for Macintosh and Linux are very similar. For Macintosh chrome will only run on post 2006 intel powered macs with 100 MB of hard disk space and 128 MB of RAM as well. (Decker, 2016) The same RAM and hard disk space requirements are for Linux as well, however, Linux can run as old as a Pentium 3 processor. Overall, most people with technology can access the eBay website. In terms of required tablet and smartphone software, it was much harder to find minimum requirements for the eBay app. It can be assumed that the devices must have the hardware required to keep up with the most recent updates to the stores they are accessed by. And the hardware if accessing the website browser-wise meets or exceeds that of the minimum computer hardware requirements. Other than mentioned above there are no other extra hardware requirements outside to access the information system.

Client-Side Software Requirements

There are several required minimal software requirements client-wise to access eBay’s information system by website. This will be based on using a Google Chrome browser. It can be assumed that other web browsers will also have requirements close to this benchmark browser. For Windows, the oldest supported software is Windows XP with Service Pack 2. (Decker, 2016). For a computer running Macintosh, the minimum required operating system is X version 10.5.6 which dates from 2009. (Decker, 2016) And finally, for Linux, the minimum requirements are most distributions from 2010 and onwards. (Decker, 2016) In terms of access the information system via smartphone or tablet the required operating system will be whatever is the bare minimum to be able to access the companies app store and have the most usable up-to-date form of the application. In terms of web browsers, almost all current web browsers can access eBay’s website. No other special software is required to run the website outside of having a web browser. The two ways to access this information system on a client-side are from said website or application via smartphone or tablet.

Competitive Analysis of the System

This information system both gives a competitive advantage to those who use it and as well to the parent company that utilizes it. The overall purpose of eBay is to provide a seamless way to buy and sell goods via online. This information system as mentioned above is very tech driven and utilizes this technology to stay in competition with other companies. A good example is eBay using OpenStack technologies. Other large companies such as Facebook and Amazon also utilize such technologies within their own infrastructures. One thing that eBay does to also stay competitive is to make sure its interfaces on a client side are easy to use for buying and selling items. The one factor that keeps eBay ahead of its competition is continuing to have a simple seamless system. The easier it is for the client to be able to buy or sell items the more people that will continue to grow the company. Another small while necessary part of this information system to keep it competitive is having a smartphone and tablet app. This allows users to access their eBay accounts anywhere via cloud technology. Keeping the app up to date and easy to use adds into the part of helping maintain an edge over competition. From personal observations it seems two large competitors to eBay is Craigslist and Facebook Marketplace. However, both competitors are focusing more on a local market versus the much larger scale eBay provides for clientele. eBay overall must stay with a competitive edge because if it doesn’t then it will cease to exist. Overall, this information system is important to eBay because without it there would not be an eBay. This company also ahs to compete with Amazon and internationally with websites like Ali-Express. Luckily since vendors can set their own price via this information system it also creates a competitive edge to others since eBay will always get a cut from sellers no matter how the market runs versus competitors who work with more set values. This is also another reason eBay must stay competitive with it’s software so vendors and buyers will continue to use them.

Recommendations for Improving the System

The first recommendation for improving the system would be coding a more practical and straightforward way to sign into your account. While the log in section is available on the home page it is in a very inconvenient location. The company should probably create a prompt to log in or create an account via Java etc. for the user when they initially access the website. This may also be to help “lure new users into looking and not being forced to provide information to access content. Overall, the log in interface seems much more clunky than the rest of the website and updating the code and “login interface” could help with those who have issues seeing smaller text and to help prevent frustration in hunting down a small sign in button.

The next recommendation is that eBay program in an instant messenger-based client to their interface. A large complaint with the overall system is that communication can become significantly slower between buyer and seller with the current message system utilized by the company. The system right now works more like an email system with inboxes. An instant messenger program within the user interface would significantly speed up communication time and potentially speed buying processes for items between buyers and sellers. It will also give a competitive edge against things like Facebook marketplace since Facebook is already taking full advantage of the ability to utilize its instant messaging system. Overall there is almost no negative impact of adding this to the information system since communication becomes easier between buy and seller.

The last recommendation is a revamp to the home page design. Right now, the overall homepage is disorganized and layered with large amounts of recommended and recently viewed items. The overall home page interface is taking a shotgun approach and dropping as many categories for items to buy than necessary. Compared to amazon the interface is much more forced with items. Another addition to upgrading the home page layout and coding is potentially upgrading the AI technology for said search histories and items recommended to look at/buy. Right now, the technology seems inferior to that which Amazon is using. It appears if you search for something one time eBay will continue to bombard you with recommendations based on one search versus using algorithms to potentially order searches based on what is most likely searched versus what appears to be an easier approach of basing recommendations on most recent search. Overall these last two combined software aspects would significantly improve eBay’s traffic and create an even happier clientele base. eBay has strengths like having a “garage” for your vehicles to search for compatible parts but it needs to be laid out in a better manner or even have coding for each user that allows them to make a profile to customize their own home page for recommendations potentially.

Conclusion

At the end of the day like all things eBay has its shortcomings. However, the company continues to upgrade its information system to keep it actively competitive. It continues to leverage advantages of having very low hardware and software requirements to work. eBay places large amounts of time and money into continuing to upgrade its information system because the heart and soul of this company is the information system. Without this eBay would be added to the annals of time like companies like Blockbuster. With the amount of time and money eBay puts into its information system this is something not likely to be seen for quite some time.

References

  1. Decker, F. (2016, October 26). Google Chrome Software Requirements. Retrieved October 13, 2019, from https://smallbusiness.chron.com/google-chrome-software-requirements-48820.html.
  2. Knorr, E. (2016, March 7). What eBay looks like under the hood. Retrieved October 13, 2019, from https://www.infoworld.com/article/3041064/what-ebay-looks-like-under-the-hood.html.
  3. Sverdlik, Y. (2018, September 7). eBay Designs Own Servers, Decentralizes Data Center Strategy. Retrieved October 13, 2019, from https://www.datacenterknowledge.com/ebay/ebay-designs-own-servers-decentralizes-data-center-strategy.

Intercultural Business Competencies: Case Study of eBay

Intercultural Business Competencies: Case Study of eBay

Abstract

This report will identify the issues that eBay had to face when they encounter China market. The author will point out the main reasons which made eBay failed. Finally, the author will give recommendations in order to help eBay go through the difficulties when they entering China.

I. Introduction

eBay Inc. is an American multinational e-commerce company with headquarters in San Jose, California (eBay, 2019). eBay Inc. also owns another famous brand, Paypal – one of eBay’s main payments. By early 2008, eBay expanded worldwide and succeeded in many countries with millions of users. The company is an online auction and sales website where buyers and sellers can buy and sell their goods around the world. eBay has revolutionized the marketplace, bringing together buyers and sellers across the globe into a huge marketplace where the auction never ends. Millions of tools, equipment, computers, furniture, and millions of other items are posted, purchased, and sold every day. EBay’s revenue comes from many aspects. The first is the auction posting fee collected of the seller whether or not the product is sold. EBay then charges a fee when the product is successfully traded, plus a number of additional fees. In addition, eBay benefits from the Paypal payment system whenever a payment is made through the service. In 2002, eBay acquires EachNet, the leading trading company in China, in cash for approximately $ 180 million. Then eBay entered in China through EachNet with the hope that they will success as they did in other countries. However, eBay had to withdraw from China after operating in this market for a few years. What are the main reasons for this failure? This report will highlight the problems then give some recommendations.

II. Main Body

2.1 Lack of cultural understanding

China is a big market and requires a lot of patience. It is also a big and fierce market with loads of competitors. In order to have a chance in China, American companies must empower their affiliates so they can be responsive, autonomous, localize their businesses, and ready to fight. However, because of subjectivity, eBay has adopted their global strategy in the Chinese market and eBay has failed despite their support from EachNet. Chinese users want to talk to sellers, develop relationships, and bargain – similar to the direct shopping experience. eBay did not meet this need. Probably because they want their products to be consistent with products in the US. Soon realizing the danger, Alibaba’s founder Jack Ma created a direct competitor to eBay in China, using market understanding to compete with eBay’s international standard model. Alibaba, meanwhile, understands the minds of Chinese consumers and offers the ability to talk on its e-commerce website Taobao. Unlike eBay, Taobao is not a place for customers to compete to bid for a desired product, Taobao is a place where countless sellers can compete with each other with countless products with different service levels. As for Taobao, because Jack Ma deliberately built a free ‘online market,’ they were completely indifferent if their customers interacted with each other or used any kind of purchase method. In fact, Taobao also allows buyers and sellers to call each other, get acquainted, and even meet face-to-face to complete large orders. In addition, Taobao knows that customers tend to use their phones rather than the internet. Therefore, Taobao provided a free voicemail and messaging service between sellers and customers. This is a huge plus for Taobao when expressing its interest in customers. Although there is a competitor who understands the ‘home field’, eBay is confident that its successful model in the world will surely continue to succeed in China. eBay sellers will be charged a fee for every purchase. Customers who want to use eBay must constantly pay many large and small fees, from account registration fees to the sale of products, transaction fees… After Taobao received a lot of investment, eBay still did not believe the Taobao model was a real competitor. Part of its that confidence comes from a nearly 70% market share in the first year eBay appears in China (compared to 7% of Taobao). Taobao is still 100% free of charge, causing a series of sellers to come here to sell products because it does not cost a penny. Step by step, Taobao has become a ‘everything’ paradise in China, and that strength gradually leads to customers wishing to search and shop. Another advantage of Taobao is that they replace PayPal with AliPay and link with most domestic banks in the country to help customers with more payment options. Meanwhile, eBay’s main payment methods are PayPal, credit cards, debit cards, and checks. Small businesses do not use credit cards and debit cards, and for PayPal, they will have to pay a fee, so eBay customers and businesses have many difficulties and inconveniences to make purchase and sale transactions.

Another mistake of eBay was that eBay did not consider local talent for key positions, instead, eBay paid a huge sum of money to senior managers from Germany, Korea, and Taiwan. Loan and the US, who do not even know a Chinese word in half and do not have the full knowledge and experience of the Chinese market, will operate a market halfway around the world. On the other hand, Taobao is managed and run by Chinese managers and employees who understand the Chinese market best and the needs of their customers. One of the factors that helped Taobao score with customers is its name. Taobao – which means ‘Digging for treasures’ in Mandarin language – employs local manpower and focuses on the characteristics of Chinese culture. The company’s operators also use virtual names to simulate the characters of popular Chinese martial arts novels. EBay has spent a considerable amount of more than 100 million US dollars to sign exclusive contracts with the three largest Chinese portals Sina, Soho and Netease with the purpose of banning Taobao ads on these sites. EBay is also heavily advertised in China, from train platforms, subway stations to buses. Recognizing the needs of small and medium-sized businesses that tend to watch TV rather than access the internet, Jack Ma ran Taobao ads on all TV channels across the country.

EBay also forced EachNet to transfer the interface that was so familiar to customers to become a Chinese copy of eBay USA. Not only did it cause a lot of frustration, a significant amount of customer data could not be synchronized, causing them to decide to create new for free at Taobao, instead of re-providing the information they have filled and must Additional new charges on eBay. Another mistaken decision was to install EachNet servers in the US. The image loading speed is slow and the ‘overload’ error appears often, causing many customers to lose patience. Slow and unstable services make users frustrated and they will be left eBay EachNet. Not only that, the eBay server is always maintained at midnight on Thursday in the US time frame, but it is … 9 am in China, making this website often ‘shut down’ in the middle of the day. After moving, the Chinese eBay EachNet team lost much of its control over the page and could not make changes to existing characters or release any new characters. At that time, Taobao became a better alternative to eBay with a friendly interface, easy access, faster access speed, and completely free of charge.

Within 2 years, Taobao quickly took over eBay. By the end of 2005, eBay stopped charging users, but they could not regain the market share. And as of 2007, just 4 years after its launch, Taobao has completely outstripped eBay with more than 83% market share (compared to just 7% of eBay). Shortly thereafter, eBay decided to withdraw from China after investing nearly $ 300 million in Chinese operations.

III. Conclusion

Overall, China is a different and new market compared to other markets around the world. eBay needs to learn more about the business environment, the rules, the culture before entering the Chinese market. Not only that but also the reference to experience of American companies that have been operating in China before is also a very important factor that helps eBay know what to avoid when it wants to enter the Chinese market. In addition, eBay should not be too confident in its global success format to succeed in China because China is unlike any other market. In addition, eBay should be more open to choose management for foreign branches, eBay should choose local managers because it is they who understand everything about the market.

IV. Recommendations

According to Andrew H. – managing director of ChinaSolved (Susie, 2014), the most important step for succeeding in China is planning and researching into small print of distribution and employment contract. To be able to do that, eBay needs to investigate the Chinese market carefully from the top to the roots including regulations, rules, environments, customers, how to do business and define its market niche (Helen, H.W., 2012). The next step is to adapt and change reasonably according to the environment and to be able to attract potential customers. After entering China, eBay needs to keep up with latest news about local and government and changes in daily life.

V. Reference

  1. Helen, H.W., (2017) How EBay Failed in China. Forbes. [Online] Available at https://www.forbes.com/sites/china/2010/09/12/how-ebay-failed-in-china/ [Accessed 15 Sep 2019]
  2. Susie, G., (2014) What it takes to succeed in China. BBC Worklife. [Online] Available at https://www.bbc.com/worklife/article/20140204-succeeding-in-china [Accessed 15 Sep 2019]
  3. eBay (2019) Our History. [Online] Available at https://www.ebayinc.com/company/our-history/#timeline-year-2019 [Accessed 14 Sep 2019]
  4. Helen, H.W., (2012) The Secret of Succeeding in China. Forbes. [Online] Available at https://www.forbes.com/sites/helenwang/2012/09/28/the-secret-of-succeeding-in-china/#47c635be2bfd [Accessed 17 Sep 2019]

Reflective Essay on Online Shopping Website eBay

Reflective Essay on Online Shopping Website eBay

Most are familiar with the massive online shopping website eBay, which connects buys and sellers in a massive online marketplace. eBay hosts more than 11 million product searches per hour and has more than 1 billion products listed at any time (Smith, 2019). Like many others I have used eBay for anything from collectible books to new car parts, you can even by a new car on eBay if you wanted. The way the website works is simple; you create an account and link your payment information and address, agree to their terms of service, and then begin your search for whatever it is you are looking for. Once you have found a product that interests you, you have the option of placing a bid and competing with other buyers or simply clicking the “buy it now” button which is normally more expensive but guarantees you the item. The question posed is whether or not placing a bid on an item enters the buyer and seller into a legally binding contract; one that legally requires the buyer to complete the purchase and the seller to be legally required to accept the payment and deliver the product to the buyer.

The textbook lists four elements to a contract; Agreement, Consideration, Contractual Capacity, and Legal Object (Kubasek, Browne, Herron, Dhooge, & Barkacs, 2019, p 174). when biding on most commonplace items on eBay you are essentially entering into a contract with the seller because you are meeting all four of the contractual elements.

Agreement: During a purchase on eBay it is clear that both the seller “offeree” and the buyer “offeror” meet the agreement element of a contract. The seller takes great consideration when placing their item onto the website, they must take and post pictures, write a description, and set a minimum bid price. The buyer then battles with other buyers in an auctioned themed website where each member places their desired bid on the item, when another buyer outbids you, the website notifies you, allowing you to place another bid if you would like. Therefore, it is clear that each party is accepting the terms and neither party is entering into this contract without being forewarned and agreeing to the terms of the agreement and price set.

Consideration: The book describes consideration as “the bargained-for exchange” (Kubasek et al 2019, p 174). Meaning each party is getting something out of the deal. The seller is being paid for goods sold and the buyer is receiving that slightly used iPhone 6S as described. Should the seller fail to ship the iPhone or if the iPhone was actually a 5C then this would be a breach of contract because the buyer is not getting what he or she thought they were purchasing. Furthermore, the buyer would be in breach of contract if they had a case of buyer’s remorse, and suddenly decided they didn’t need a new iPhone and decided not to complete the purchase once they received the winning bid.

Contractual Capacity: Minors cannot enter into a legally binding contract, because they have not reached the age of consent which 18. eBay requires all of its users to create a unique account and accept their terms of use, which dictate you must be 18 years old in order to use their website. Ergo, the contractual capacity element has been met between the offeree and the offeror.

Legal Object: The final element of a legally binding contract simply dictates that the item or act in question must be legal in nature. eBay specifies in their terms of use that you cannot sell or attempt to purchase any illegal objects on their online marketplace, there is even a report button should you think an item for sale may violate the law.

As you can see a purchase on eBay clearly meets all the requirement for a valid contractual agreement between the buyer and seller. There are a few exceptions to this which eBay clearly states on their website. Such exceptions include the sale of land, automobiles and large purchases such as mobile homes or boats. So, keep that in mind next time you buy a new computer or slightly used toolset on the massive online auction site eBay.

References

  1. Kubasek, N. K., Browne, M. N., Herron, D. J., Dhooge, L. J., & Barkacs, L. L. (2019). Dynamic business law: The essentials (3rd ed.). New York, NY: McGraw-Hill Education.
  2. Smith, C. (2019, January 21). 85 Amazing eBay Stats. Retrieved from https://expandedramblings.com/index.php/ebay-stats/2/

Digital Disruption and eBay’s Transformation

Digital Disruption and eBay’s Transformation

Ebay is an American multinational e-commerce corporation. It promotes sales through its website. The eBay website involves an online auction and shopping website in which people and businesses buy and sell extensive variety of merchandise. Basically, this is a digital disruption event, which not only changes the traditional shopping trends, but also the online selling business of eBay itself. In this report, the work centred analysis (WCA) have been performed on the retail business of eBay prior and post implementation of the digital disruption events, challenges faced by the company, recommendations based on the analysis and implementation plan of the way to overcome the challenge.

Assumptions

For the newer sellers shipping on eBay can seems like a bit frighten. Well it is assumed that if I sell a lot, I’ll be spending all my time at the post office but actually it is just opposite. Then some people find out that it is hard to find out shipping costs. Well it is hard, if you are not prepared. People often complain about the lack of time but actually the lack of direction is the real problem.

Introduction

Digital disruption is the change that comes when new technologies and business models affects the value proposition of existing goods and services. It characterizes more disruptive changes in business history (Christensen, 1997). Digital disruption deals with the changes that occurs after the entry of new technologies in companies. Digital disruption is important for organizations because it is important for the competitive advantage. By understanding the digital disruption companies can keep existing customers happy as well as create opportunities for new customers. When digital disruption also signals that consumer needs are moving. This report will monologue the impacts of digital disruption introduced by eBay on the company itself and its Work Centred Analysis (WCA) prior and post to the implementation of the digital disruption events.

Introduction to the case study eBay was s first global auction platform. Millions of appliances, furnishing items, equipment, vehicles and other necessary items are listed, bought, or sold daily on eBay. Basically, anything can be auctioned on the site. Although the company has faced a lot of challenges in expanding to new markets, which indicates its eventual decrease domestically. Ultimately eBay can survive as a used good sellers because it threats from better positioned competitors. At the end of 2017 eBay has 168 million active buyers, an increase from 90 million active in 2010. Near about two-third of transactions are now international. eBay allows sellers to list items for sale on an auction and also fixed-price method giving buyers the opportunity to offer and purchase items of interest. Digitization is not anymore just an emerging trend, and it is changing the economics of globalization in several ways (Thibaut Wautelet). It is concerned with business-model innovation that enables entrants to entre markets with easy to use, but low-performing products (Christensen 2006; Christensen et al. 2015).

Work Centred Analysis (WCA) prior to the disruption event

In the digital innovation discourse, multiple related terms with various nuances, are sometimes used interchangeably (Lenger et al. 2017; Nambisan 2018). Work Centred Analysis (WCA) involves six main segments and these segments are customers, products, business process, participants, information and technology. Customers are the inward and outward buyers of the business activity. Products are the merchandise and facilities produced by the business. The business process mentions the steps involved in business. Participants are those who elaborate the business. Information refers the understanding or awareness that the business creates for the customers. At last technology is used by the business to manage the needed activities.

Problems identified

Since eBay is the one of the best marketplace for new business. However, there are some issues that many sellers can face and these issues can stop their success on the platform. Some people are selling same kind of products while the competition may work in favour of the buyer. Because some sellers are selling duplicate quality stuff which gets sold quickly while the other seller have to wait for the wise buyer to see the difference between the quality of the products. Then there are some negative or bad reviews which can hurt sellers a lot. Also when buyer does not like the quality of product then he or she has all rights to cancel the purchase and ask for refund. Then in that case seller suffer a double loss. eBay has seen more frauds done by the buyers than the sellers. These frauds include fake payments from fake PayPal account, fake reviews, negative feedback etc.

Work Centred Analysis (WCA) post implementation of the disruption event

Digital innovation has been defined narrowly, focusing on the design process (Yoo et al. 2010). eBay provides infrastructure to settle online commerce in a variety of formats. The innovation labs in eBay will give consumers the chance to explore the emerging technologies. Emerging technologies basically opens a new word of inspiration and experience. eBay is working with emerging digital trends. Due to addition of new technologies numerous customers have been satisfied. The first transformation is from Auction to “Fixed-Price” and “Buy-It-Now”. Auction worked very well in the initial stages but this format lost its propulsion easily. The second transformation is from “listing-based” to “Product-based” Structured data. Then eBay has transformed the shopping experience to be more product-based. eBay have better services for buyers. As a process, digital innovation is therefore inherently combinatorial and societal digital transformation continuously expands the available design space for digital innovation (Lyytinen and Rose 2003).

Recommendations

These following are some recommendations that helps to handle the issues faced by the company:

  1. When any seller sell an item on eBay but sometimes a customer has second thoughts and does not pay for the item then in that case the seller will able to refunded by eBay for the fee.
  2. Offer a fair return policy, it becomes easy when buyers feels confident while purchasing items on the site. So it is necessary to describe that the buyer will get refund.
  3. One of the largest barrier for new sellers is packaging. Packaging is a skill that anyone can learn with practice and patience. So learn to package and shipping items properly is also required.
  4. One of the most powerful technique is working in bulk. The sellers who can use the bulk listing technique will gain a significant benefit by saving large amount of time.
  5. Buyers on eBay are looking for separate things, some wants lowest price items and the others wants the new product But at the end of day, every clients wants to be sure they are making a purchase from a trustworthy merchant who will always supply a good quality product.

Implementation plan for the recommendations:

  1. Get more eyes on your listings, use advanced listings to create effective ad placement in well known locations across eBay and pay nothing unless the ad leads to a sale.
  2. Make customized discounts and coupons to motivate buyers to spend more in your store. Use promotions manager to improve your items.
  3. Go worldwide, to get buyers around the world. The global shipping program is a better way to expand your sales and market. Selling items globally is as easy as selling across the towns.
  4. Also an easy way to encourage eBay buyers to return to your store is to include a package insert such as business card. This plan can easily help to promote the eBay store.

Conclusion

EBay is well aware that in order to the company to maintain its competitive benefit and make it sustainable in the long term run, the company must take benefit of the changes at the corporate, organization and business level. eBay accept the five building blocks which are applied randomly throughout eBay’s history. These five building blocks are improvisation, co-adaption, regeneration, experimentation and time pacing. The company also accepts the principles of competing on the edge about strategy, organization and leadership.

References

  1. Christensen CM (1997) The innovation dilemma: when new technologies cause great firms to fail. Harvard Business School Press, Boston Christensen CM (2006) The ongoing process of building a theory of disruption. J Prod InnovManag 23(1):39–55.
  2. Christensen CM, Raynor M, McDonald R (2015) What Is disruptive innovation? In: Harvard business review. https://hbr.org/2015/12/what-is-disruptive-innovation Accessed 26 June 2018 eBay continues shift to Amazon-esque business, https://techcrunch.com/2016/10/19/ebay-continues-shift-to-amazon-esque-business/.
  3. Legner C, Eymann T, Hess T et al (2017) Digitalization: opportunity and challenge for the business and information systems engineering community. Bus Inf Syst Eng 59(4):301–308.
  4. Lyytinen K, Rose GM (2003) The disruptive nature of information technology innovations: the case of internet computing in systems development organizations. MIS Q 27(4):557–596.
  5. Nambisan S (2018) Architecture vs. ecosystem perspectives: reflections on digital innovation. Inf Organ Inf Organ 28(2):104–106.
  6. Planet Money podcast “Antitrust 3: Big Tech”https://www.ecommercebytes.com/2018/10/25/amazon-launches-auction-marketplace-to-liquidate-returns/.
  7. https://hbr.org/2015/12/what-is-disruptive-innovation
  8. https://techcrunch.com/2016/10/19/ebay-continues-shift-to-amazon-esque-business/
  9. https://techcrunch.com/2016/10/19/ebay-continues-shift-to-amazon-esque-business/
  10. https://www.ecommercebytes.com/2018/10/25/amazon-launches-auction-marketplace-to-liquidate-returns/
  11. https://www.ecommercebytes.com/2018/10/25/amazon-launches-auction-marketplace-to-liquidate-returns/