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EBay[1] is one of the largest Online Auctions that exist within the World Wide Web. It is based of a 24hr online auction Online Auctions system, whereby users (with a registered account) can browse through the various fields and sub-fields of listed items and place bids on selected items. The online auction has a global reach, extending across 26 leading nations, including, America, Hong Kong, Sweden, United Kingdom and Germany. The popularity of Ebay [2] as a medium for sales has risen since the early 2000’s, with a gradual growth in revenue and profit ratings, to portray its success within the online market place. EBay [3] boosters have claimed that in terms of revenue growth, eBay [4] is among the fastest-growing companies of all time. (http://en.wikipedia.org/wiki/)
EBay [5] unlike most online stores does not directly handle payments or distribute the goods sold on the site, relying predominantly on the interactions and exchanges between the seller and buyer of the auctioned item. EBay [6] Generates revenue through sellers, who pay a submission fee to list items on the website. The rate of this fee is dependant on the starting price of the item listed plus various other advertising features supplied by eBay [7], to enhance the visual aspects of the sales page (these include: subtitles, picture galleries, Gallery stylizing options, font styles etc.).
EBay’s [8] sales and profits have risen since 2000, with statistics showing a successful incline in ebays online market share. Statistics retrieved from Plunkett's E-Commerce & Internet Business Almanac[9], detailed that in 2004 eBay generated approximately $3,271,309 in sales profits. Further statistics provided by “Plunkett's E-Commerce & Internet Business Almanac�? [10]detailed that eBay’s sales revenue has increased steadily through out the 2000-2004 period.
The Success of eBay [11] within across the global market place, has lead the way for further expansions within the online chain, expanding towards countries such as, China, South Korea, Spain and Switzerland.
EBay’s [12] success within the online market has been dependant on the uniqueness of its service. The service offers people the ability to connect and source items too and from various users and places across the globe. Whitman states that the success of EBay’s [13] franchise is also due to the implemented business model. Whitman explains that eBay’s [14] returns based investment philosophy, based around building costs behind revenues and focusing future goals towards profit making (Krishnamurthy, 2001).
Wikipedia, (2005), Ebay, http://en.wikipedia.org/wiki/Ebay, (accessed on: /10/2005)
Plunkett Research Ltd: when you need accurate, timely innovative information,(2005), Plunkett's E-Commerce & Internet Business Almanac: Sample profile,
http://www.plunkettresearch.com/technology/ecommerce_sample.htm [15] (accessed on: 6/10/2005)
Krishnamurthy. S (2001), Case#3: EBay-A business History, Ecommerce managment: text and cases (accessed on: 7/10/2005)
Modified by: --Clinton Wong 09:54, 28 Oct 2005 (EST)
