HistoryThis company was founded in 1995 in SanJose, CA by Iranian-American computer programmerPierre Omidyar. It was originally called AuctionWeb.In 1997, the company was renamed to Ebay andreceived $6.7 million in funding from BenchmarkCapital. In March 1998, Ebay had 30 employees, halfa million users and revenues of $4.7 million in the US.By early 2008, the company was worldwide, hadhundreds of millions of registered users, 15,000+employees, and revenues of almost $7.7 billion.
Structure of the CompanyEbay is a consumer-to-comsumer company,meaning consumers facilitate transactions and sellthings to other consumers. It is a decentralizednetwork where users/nodes are able to join or leaveat any time they would like. Users alsocommunicate/interact with each other on this website.
Complementary Products/Services -CompetitorsAmazon allows users to purchase items, like Ebay.However, Amazon doesn’t offer these products throughauctions. Ebay offers it’s “buy it now” option, which is similarto Amazon. In a way, I think Ebay has an upper hand becauseyou can purchase and bid on things, whereas, Amazon onlyallows people to purchase. Also, another similar service ishow each site makes suggestions to users for things theymight like based on searches and/or recent purchases.Amazon and Ebay both allow customers to rate sellers. Ebayalso allows sellers to rate buyers, which allows sellers toknow if this buyer is legitimate.Overstock.com is similar to both of these sites, in thatit also allows consumers to purchase items. Although this sitedoesn’t allow you to bid on items either.
PartnersO Pay PalO Ebay has acquiredcompanies likeCraigslist, Skype,and a Germanwebsite calledbrands4friends
Complementary Products/Services -PartnersCraigslist is very similar to Ebay, inthat it allows consumers to sell things toeach other. It doesn’t do it through auctions,but rather through classified ads, meaningthe ads are organized into categories whereyou can look for what you want.
User BaseO As of June 30, 2012, eBay had 104.8million active users according to theirlatest financial report.
Collaborate, Coordinate, &CompeteEbay collaborates with Paypal. This allows them to giveusers an easier way to pay for the products that they purchase onthe website and helps protect their customer’s information whenmaking purchases. This makes people feel more comfortablebecause there is so much fraud and identity theft present intoday’s society.Ebay coordinates with sellers to allow them to use theirwebsite to sell/buy things. Sellers can create their “store” to selltheir products to people. Some people make stores that sell likeitems, for example, DVDs. Other people sell random items thatthey are trying to get rid ofEbay competes by making changes and offering thingsthat competitors don’t. Like mentioned before, Ebay allowscustomers to buy things via an auction, which none of theircompetitors offer. Sometimes when utilizing these auctions youcan get things cheaper than purchasing it in a store or from one ofthe competitors, which will help attract people.
Assets/ToolsO Sellers rate buyers and vice versa. This helpspeople feel like they can trust the people they buyfrom.O When you go back to their homepage it gives youitems that are similar to what you have previouslysearched for.O An asset is pay pal because it ensures safepurchasing and makes people feel safe whenusing their cards to buy things. This is a hugeasset because without this it could hurt theirbusiness. With so much identity theft today, whowould want a stranger having their credit cardinformation.O They offer global shipping, which helps anyoneaccess the items.
FundingO The only information that I could find onfunding for Ebay was that the companyreceived $6.7 Million in funding fromBenchmark Capital in 1997.
RevenueEbay has several ways of generatingrevenue. They use broker fees. Ebay charges alisting fee and then also charges for selling theitem once it is sold. As of November 2012, theytake $0.10 to $2 (based on the opening price)for the listing and 9% of the sale. An interestingway they are able to earn more revenue is bygetting more people to use pay pal becauseaccording to Wikipedia, when someone whoinitially set up their pay pal account throughebay uses their pay pal for a non-Ebaytransaction, Ebay earns offsite revenue.
Intellectual PropertyEbay has a statement on theirwebsite stating that they work very hard toprotect intellectual property. They don’t allowpeople to use intellectual property, such ascopyrighted material, in an unlawful way.The Ebay name and logo are registeredtrademarks in the US and internationally.They don’t allow the sale, register, or use ofthe domain names.
DistributionEbay distributes consumer-to-consumer, which means consumers sell anddistribute to other consumers. Also, I cansee that they distribute through long tailsbecause they offer a large number uniqueitems, but sells relatively small quantities ofthem.
Personalized and CustomizedResultsEbay offers customized and personalresults on their site. When you search foritems on the site they save what you havesearched for and when you return to the sitethe homepage offers related items that youmay like.
Works CitedO “Ebay”. Wikipedia. Web. 18 June 2013.<http://en.wikipedia.org/wiki/EBay#Profit_and_transactions>O “Ebay inc”. Yahoo. Web. 18 June 2013.<http://finance.yahoo.com/q/co?s=EBAY>