An example of an E-Commerce success and its causes

eBay recognized as one of the most popular and successful e-commerce companies. eBay Inc. is an American internet company that manages eBay.com, an online auction and shopping web site in which people and businesses buy and sell goods and services worldwide. eBay also operates an online person-to-person exchange in an auction format, permitting trading of personal items such as antiques, coins, and other items.

E-Commerce will faces lots of problems like security and privacy concerns, legal and public policy, lack of trust and others. eBay can success because it has countered the problems and gain the trust of public. eBay typically turns over user information to law enforcement without a subpoena to well-publicized seller fraud. eBay claims that their data shows that less than .01% of all transactions result in a confirmed case of fraud. eBay builds trust among its clients by using safe online transaction intermediaries such as PayPal.

eBay success because it ability to transform many fragmented, primarily local markets into global ones at a relatively low cost to its users. Global markets have become bigger due to increase of online users as broadband internet connection becomes more affordable and widespread. eBay makes money by charging fees to list a product and fees when the product sells through the site. eBay can attract large number of buyers and sellers together. With high volume of buyer and seller, eBay can charge lower compare to that website that seldom people visit. Easy remember URL is one of the main things that needed for internet business. eBay has URL that can remember easily, http://www.ebay.com/
eBay offers several types of auctions also the reason for its success. Buyers and sellers can choose the selling methods that they interest.

• Auction-style listings allow the seller to offer one or more items for sale for a specified number of days. The seller can establish a reserve price.

• Fixed Price format allows the seller to offer one or more items for sale at a Buy It Now price. Buyers who agree to pay that price win the auction immediately without submitting a bid.

• Dutch Auctions allow the seller to offer two or more identical items in the same auction. Bidders can bid for any number from one item up to the total number offered.

References:

- http://en.wikipedia.org/wiki/Ebay
- http://pages.ebay.com/storefronts/success.html


Prepared By : Tang Chee Seng