external image ebay.png

Description:

eBay.com is an online shopping website that allows individuals and companies to auction, buy, and sell just about any product, object, or service. eBay Inc., an American internet consumer-to-consumer corporation administers eBay.com. Dot-com bubble established eBay in 1995, unaware that it would become a multi-billion dollar business and one of their most impressive success stories. Since its launch over 15 years ago, eBay has expanded across the globe to thirty countries.

eBay generates revenue from charging its users different fees. Among these include a fee for listing an item, as well as a fee whenever an item is sold (Final Value Fee). There are also several optional adornment fees. In the US, eBay's fees range from $0.10 to $4 for a basic listing without adornments.

Applications:

Among the many products that eBay hosts are decor, appliances, electronics, furniture, automobiles, collectibles, antiques, domain names, books and more. Millions of these items are bought, sold, and listed daily. Items can either be bought immediately at a fixed price through the "Buy It Now" option or by auction style where the buyer bids on the item during a specific time period set by the seller.

To encourage safe purchasing, eBay acquired PayPal in 2002 for $1.5 billion dollars.PayPal is the preferred method of payment for over half of eBay's users. There are even certain categories such as "Video Games" and "Health & Beauty" that only accept PayPal as a payment method.

Half.com, a subsidiary of eBay, allows the sellers to sell items at fixed prices with a UPC code or ISBN. The items on Half.com are limited to books, textbooks, music, movies, video games, and video game consoles. There are no fees for listing an item to be sold; rather, the company takes a commission of every completed transaction. The percentage ranges from 5% to 10%.

Terminology:

  • Auction-style listings: a seller can have several listings for a specified time period
  • Fixed price format: a seller has one or more items at a set price, or "Buy It Now"
  • PayPal: a safe way to purchase items; categories such as 'Video Games" and "Health & Beauty" are required to use this form of payment


Related Links:

eBay
http://en.wikipedia.org/wiki/EBay
http://en.wikipedia.org/wiki/Half.com
PayPal
half.com
http://en.wikipedia.org/wiki/Electronic_commerce