About ebay: target segments analysis, customers service strategy and standards, competitors. Cross-channel Strategy.

1. Oksana Troshchiev- Wissal Karoui- Cédric Jeanblanc
December 2014

2. Summary
1. About
2. Target segments analysis, customers
service strategy and standards
3. vs. Competitors
4. today

3. About

4. About
How much was it sold on eBay ?
11424,1950 mmiilllliioonn $$

5. About
Some facts about e-commerce
and
eBay:
Global e-commerce
sales will hit close to
1 trillion $ this year
Asia holds the
largest number of
web purchases
E-retail is predicted
to account for 10% of
US retail sales by
2017, thats 370
billion $
Is a global online
marketplace where
practically anyone
can trade practically
anything
Has more than 152
million active users
An item is
purchased every 2
sec. using the eBay
app.
Popular items
on eBay sell
every…
2 sec. a car
3 sec. hand-bag
5 sec. womens
clothing
9 sec. CD or
football shirt

6. About
Products &
Services
Collectibles:
Antiques, Art,
Coins, Toys &
Dolls, Memorabilia
Motor Vehicles:
Cars, Boats, Parts
Electronics:
Cameras, Cell
phones & PDAs,
Computers
Entertainment:
Movies, Music &
Games, DVD, CD,
VHS, Event Tickets
Books
Clothing
Jewelry
Shoes
Accessories
Home
Improvement:
Décor, Crafts,
Gardening…
Target
Segments
Primary target
markets are
Online
Auction &
Shopping
Key segment
is Antiques &
Collectibles
And also
Motor lovers,
Art lovers
Key figures
Total active users:
152 millions
in 39 countries
More than 300
million items for
sale
+ 6 million new
items for sale each
day, spread in to
50,000 categories
1,3 million people
living partially or
totally from eBay
sales
Competitors
Amazon
Alibaba
Groupon
Le bon coin
Priceminister

7. About
1995
Created by
Pierre
Omidyar in
USA in
California
1999
International
Development
of the
Website
2001
iBazar
Acquisition
2004-2005
Acquisition and
Creation of:
2002
PayPal
Acquisition
Rent.com
Shopping.com
and Kijiji
2008
1st marketplace
creates a Mobile
App
2010
eBay creates
an iPad App

8. Business Model

9. Target segments analysis, customers
service strategy and standards

10. eBay: Target Segments
Primary target markets are
Online Auction & Shopping communities
eBay has business strategies to target specific segments of each.
Key segment is : Antiques & Collectibles
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.
Art lovers: eBay also had a somewhat failed strategic partnership
targeting Art Collectors directly.

11. What is the eBay API?
The Application Programming Interface (API) is
the heart of the Developers Program
Normally, users buy and sell items using the eBay
online interface, interacting with eBay directly. But
with the eBay API, you communicate directly with the
eBay database in XML format. By using the API, your
application can provide a custom interface,
functionality and specialized operations.

13. Buyers:
Get the current list of eBay categories
View information about items listed on eBay
Display eBay listings on other sites
Leave feedback about other users at the conclusion of a
commerce transaction
Sellers:
Submit items for listing on eBay
Get high bidder information for items you are selling
Retrieve lists of items a particular user is currently selling
through eBay
Retrieve lists of items a particular user has bid on

14. vs. Competitors

15. Turnover : 75 billions USD
Largest internet-based company
At first : online bookstore
Jeff Bezos
Now : CD, MP3, downloads, videogames,
softwares, electronics, furnitures, jewelelry, food…

16. Turnover : 6.5 billions USD
Exponential growth
business-to-business
Jack Ma

17. Turnover : 5.3 billions USD
Japan firm
Founded in 1997
In France : Price Minister
Operating : third party which connects
supply and demand
Hiroshi Mikitani

18. deal-of-the-day website
Turnover : 2.5 billions USD
Launched in november 2008
also called flash sales : single
product for sale for a period of 24
to 36 hours
Andrew Mason

19. 120 millions USD
Created in 2006
French classified advertisements
website
First in France
The owner : Schibsted
Olivier Aizac

20. 80
70
60
50
40
30
20
10
0
Amazon Ebay Alibaba Rakuten Groupon Le bon
coin
Revenue

21. today

22. Strategic position
Cross-channel Strategy
Improve Create a user better experience:
customer
1.To simplify experience
and improve
1.Try to create value
differentiation with
online buying experience
2.To make online
competitors
shopping faster, easier
2.To increase buyer
satisfaction and and fun
loyalty

23. Strategic position
Communication and media strategy
The last campaign tagline is :
« anywhere you go, anything you see,
you can be inspired by the things
around you and those things can be
instantly shoppable on
»

25. PESTEL ANALYSIS
 Political
 Economic
 Social
 Technological
 Legal
 Environment

26. Political
Globalization
able to break into a new market which previously closed
challenges from foreign competitors
 High government investment on ICT infrastructure
faster, better and more reliable internet access user
 Marketplace Fairness Act
US state sales tax
Increase the price of a product or service
people would probably stop buying
internet retail sales could decrease by up to 24% (Austan Goolsbee,
2000)
 Government Intervention
China’s internet regulators have made it difficult for foreigners to
participate fully, giving local Chinese e-retailers an advantage from the
offset (Dean, The Wall Street Journal, 2006)

27. Economic
 Exchange rate
 conduct significant business outside United
States but profitability is reported in US
dollar
 Global economic condition
 weak economic condition would limit the
growth of revenue
 change in consumer purchase pattern

28. Social
 Lifestyle and attitudes change from a country to another
they have to set different target, product or consumer
categories
* eBay failed to break into China market,
 Increase in online social networking
people are rely on internet
can get everything easily from online shopping
an opportunity to increase market share

29. Technological
 Growth of internet
 Low barriers of entry
 more competitors
 growth of internet user will increase public online consumption
 Rapid development of high-speed network service
 Third party online payment system
 PayPal
 provide an easy and secure way to make and receive payment online
 reduce the risks of transaction

30. Legal
Developed strategy have to comply with different
legal locally and internationally
The European Sales of Goods Act
Data protection act in UK
Federal Trade Commission in USA
EU Electronic Commerce Directive
The Electronic Signatures Law
Increase the use of e-commerce of both consumers
and business
ensure a certain level of security in online shopping
costs for online business

31. Environment
Global warming and pollution
awareness increase globally
more online shopping
have to be more ‘green’ to attract
consumer
eg: eco-packaging, work environment

32. Strengths
Weaknesses
Opportunities
Threats

33. S
W
O
T
A firm known everywhere
Lots of counterfeiting
E-commerce traffic grows every year
Arrival of some serious competitors from
Asia : Alibaba and Rakuten

34. Thank You