In just a few years, online auction company eBay went from a little dot.com company to one of the biggest business stories in America while some others aution company went into bankcruptcy.
Two years ago, there were an estimated 50 million people worldwide using the Web site. Two years later, no one could have predicted that within two years , the number of eBay users would more than double, to more than 125 million worldwide today. Those people are buying and selling more than $1,000 worth two years ago, there were an estimated 50 million people worldwide using the web site of goods every second. It makes alot of them amaze and curious about the success of eBay.
There are reporters interviewed Pierre Omidyar(founder of eBay) about the success story of eBay. He told the press that eBay really allows people to often times connect with some very fond and special early childhood memories. It could be anything from collecting baseball cards to toy soldiers to Barbie dolls to doll houses, and so forth. It also allows people to make that connection and relive a lot of those very vivid and very fond memories that they have from an earlier period of time. Another factor to consider, he thinks, is that people really enjoy the experience of the shopping bazaar. They consumers enjoy the hunt. The consumers enjoy looking around for merchandise. The other component is that he believes the consumers love the competition of the bidding process. He further said that everybody likes to get a bargain, and everybody in some way, shape, or form, likes to haggle a little bit over the price. And the eBay auction format allows users to do that.The other thing is that as it has grown and become a very practical place to buy and sell collectibles or commodities.
But what about the views from others. To most of the eBay user, eBay trust and safety team is dedicated to making eBay a safe and reliable place to trade. eBay works behind the scenes to develop the technology and skills to fight fraud and empower the community to understand and conduct safe trading practices. eBay also strives for a level playing field and information transparency, enabling economic opportunity for the community and encouraging open, honest and accountable transactions. Feedbacks obtained proved that products on sales are of good quality and in very reasonable price. One customer, in the name of Reverend Steve Hance claimed " I got an album for a lot less than I would have paid for it in a second-hand shop in London".
Besides that, cost control is also the main factor of success. eBay’s founder, Pierre Omidyar and his team were the operators. They manage the enterprise with their own skills in order to keep their overheads low. Meanwhile, profits are generated from commission on sales.
Furthermore eBay is also a success legend because it can reach globally to hundred thousands of people enabling them to make a business of their own. eBay who gains access to a global market place can reach to more potential buyers than locally and with profits keep pouring in.
Other s factor is that the fees systems practiced by eBay that makes all sellers and buyers love this website. The listing fees charged is to keep the items in eBay fresh. It also enables sellers to sell their items, similar to an auction. Starting from the lowest price to let each bidder offer higher price, this will prevent sellers from pricing items too high or too low. While the auction fees charged are charged by eBay only at each successful sales and charged slightly higher then the item’s minimum charge.
In the nutshell, eBay is believed to continue to perform well and profit keep pouring in for the next few years and continue to become the dominant company in the e-commerce world.
The followings are the additional information for eBay:
The weird world of eBay:
- eBay is the number one e-commerce site in the world, receiving 121,520 'hits' a minute and 175m searches a day. Every day it receives 10m bids and accounts for a third of all British internet traffic.
- Manchester United players are no longer allowed to sign shirts at the gates of the training ground because so many were being sold on eBay.
- eBay was founded nine years ago by Frenchborn computer-systems developer Pierre Omidyar who was trying to find plastic spring-loaded Pez sweet dispensers for his collector girlfriend Pam. He put an advert on the internet, got a huge response, and today they're both multimillionaires.
- Bristol University student Rosie Reid, 18, auctioned her virginity on eBay last year. She received 400 bids and accepted one of £8,400.
- More than 21 million items are on sale worldwide on the site at the moment, with three million new ones offered for auction every day. Goods are traded in more than 45,000 categories, ranging from antiques to stamps and video games.
- A man from Sevenoaks, Kent, sparked uproar when he put his own kidney up for sale on eBay to raise money for treatment for his daughter, who has cerebral palsy. He was spared when a group of fundraisers promised him £30,000. Several other eBayers have tried selling organs but have been stopped by eBay.
- £1bn worth of clothes and accessories were sold on eBay last year.
- A man once sold his own soul for £11.61. He promised to send the buyer an ownership document.
- A car is sold on eBay every four minutes.
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