E-COMMERCE ASSIGNMENT 1

eBay.in

SEPTEMBER 16, 2016

SUBMITTED TO :
MR. AMAN NAGPA L
E-COMMERCE FACULTY , DFT, NIFT KGR
SUBMITTED BY :
IPSHITA, PREETI & SRIJA
BFT SEM-V
 Assignment 1

Submitted by:
Ipshita , Preeti and Srija
BFT, Semester 5

Executive summary:

Company: ebay.in which went live in 2011

Managing company: eBay India Private Limited, 14th Floor, North Block, R-TECH Park, Western Express
Highway, Goregaon (East), Mumbai 400063, Maharashtra, India.

eBay Inc. (NASDAQ: EBAY) is a global commerce and payments leader, providing a robust platform
where merchants of all sizes can compete and win. Founded in 1995 in San Jose, Calif., eBay Inc.
connects millions of buyers and sellers and enabled $205 billion* of commerce volume in 2013. We do
so through eBay, one of the world's largest online marketplaces, which allows users to buy and sell in
nearly every country on earth; through PayPal, which enables individuals and businesses to securely,
easily and quickly send and receive digital payments; and through eBay Enterprise, which enables
omnichannel commerce, multichannel retailing and digital marketing for global enterprises in the U.S.
and internationally. We also reach millions through specialized marketplaces such as StubHub, the
world's largest ticket marketplace, and eBay classifieds sites, which together have a presence in more
than 1,000 cities around the world. For more information about the company and its global portfolio of
online brands, visit www.ebayinc.com

eBay India (www.eBay.in ),Indias leading eCommerce marketplace, is Indias largest online shopping
website where thousands of Indian merchants list a wide range of products across Electronics,
Lifestyle, Media and Collectibles categories. eBay India has 2.1 million active users from 4,306 cities in
India. eBay India is a 100% subsidiary of eBay Inc.
INTRODUCTION:
eBay India, a wholly-owned subsidiary of the world's top online market-place eBay Inc of US, is trying
to bring small retailers to its platform. The company has formed a separate division to develop this
channel of sellers who are expected to garner bulk of eBay's future revenues from India.

Incidentally, eBay's value proposition to small retailers is that its platform throws up opportunities of
huge cross-border sales. "Given the organised retail boom and aggressive pricing, most small retailers
are finding it diffi-cult to grow their business. Hence, "there's immense opportunity to chan-nelise
them into eBay's online platform," said Ambareesh Murty, director (category management), eBay
India.

While some tiny retailers are already on the eBay India platform, this is the first time the company's
going flat out to bring them on board. "They now account for some 20% of total sales for eBay India,
but we expect that to grow at a much faster clip with the new initiatives in place," said Mr Murty.

The company plans to approach some 35,000 small retailers this year. "Some of the ethnic Indian
products sold by these retailers have wide ac-ceptance in overseas markets. Other products have
proved popular in the domestic market. We are showcasing some of these cases to the targeted small
retailers," Mr Murty said.

Incidentally, eBay India sees much of its growth coming from B& C class towns. About 25-30% of
buyers on eBay India come from B&C class towns and that number is doubling every year. "The
increased pace of computer and broadband penetration in these markets will further spur things and
we expect this segment to account for about half of our user-base in five years," said Mr Murty.

eBay has over two million registered users in India with about 1500 trans-actions per day. There are
three formats to sell the products and services across 2500 categories -- auction, fixed price and
classifieds. The domes-tic e-commerce market is doubling every year, and is slated to grow to Rs 2300
crore this fiscal from Rs 1180 crore in the earlier year.
SECTION 1:

Understanding eBay.in

The company established its brand as being an entity that connects people (with selling things as a by-
product of that emphasis). The company began to move beyond auctioning collectibles and moved into
an array of upscale markets where the average sale price (ASP) is higher. Average sales price is crucial
to the companys transaction fee income.
In 1997 the company received approximately $6 million in venture capital from Benchmark Capital. The
company went public in 1998. Today the company has revenues exceeding $7 billion annually and
boasts over 15,000 employees.

1. Product mix:

PayPal is an online transaction business allowing payments and financial transfers to be made
through the internet. PayPal is an alternative to offline transaction methods such as checks and
money orders.
eBay offers a marketplaces for the sale of goods and services. It also provides online payment and
communication services to individuals and businesses.
Products on sale at Ebay include millions of collectibles, dcor, appliances, computers, furnishings,
equipment vehicles and other miscellaneous items are listed, bought, or sold, daily.
Bill Me Later is an Ebay service that provides convenient and secure payment method designed for
purchasing on the web or over the phone.
Rent.com is an Ebay subsidiary which is a first pay-for-performance online rental site, a business
model that outperformed competitors who went with subscriptions, listing fees, or costs-per-lead
revenue models The company charges the property manager when a verified lease is produced
through the site.
Shopping.com is an online community Owned by Ebay it provides a price comparison service and
operates webpages in the USA, United Kingdom, France, Germany and Australia.
StubHub is a subsiiary of Ebay which acts as an online marketplace for buyers and sellers of tickets
to sporting, concert and theater events.
Skype is an economical communication tool owned by Ebay. The company provides free video
calling , free chat with other Skype members, free instant messaging and call to landlines at low
rates.
Half.com is a subsidiary of Ebay, Inc in which sellers offer items at fixed prices, usually items that
have a ISBN, UPC or database file indicators as opposed to rare, old or collectible items. The items
 available on half.com are limited to textbooks, music, movies, video games, and video game
consoles.

2. Price :

Ebay, Inc. recently changed some of its pricing policies, dictating different listing fees from
frequent and occasional sellers.
EBay, Inc. Every Day eliminated upfront listing fees (for auctions only, not Buy It Now), and instead
charges 9-percent of the final sale price, up to $50.
Ebay, Inc. employs a quality click pricing model which pays affiliates "by the click", just like
AdSense.
Sellers are charged when an item is listed on eBay a nonrefundable Insertion Fee is charged, which
ranges between 30 cents and $3.30, depending on the sellers opening bid on the item.
Sellers pay a fee for additional listing options to promote the item, such as highlighted or bold
listing.
A final sale price fee is charged to a seller at the end of an auction. This fee generally ranges from
1.25% to 5% of the final sale price.

3. Place:

New Ebay users can find answers to procedural questions by utilizing the companys Answer
Center located at http://pages.ebay.com/community/answercenter/index.html
Ebay provides an international site visibility feature which allows some listings created on
eBay.com to be posted on international sites (such as the U.K. site). Buyers on these sites will see
the listings exactly as you originally post them on the U.S. site.
Ebays Seller Information Center aids participants by offering information on getting started,
growth strategies and shippinghttp://pages.ebay.com/sellerinformation/

4. Promotions:

There are eBay Coupons, eBay discounts, eBay Promotional codes, and an eBay bargains page at
DealTaker.com
The eBay Bucks Rewards Program gives those who use PayPal on Ebay 2% back on qualifying
purchases participants get a rewards certificate at the start of each calendar quarter for the
amount of eBay Bucks they accumulated in the previous quarter. They have 30 days to spend it on
any eBay listing with PayPal.
 EBay Radio provides traders and eBay community members with the latest in news and views
from around the eBay world and covers major eBay events like the annual Ebay Live Conference.

5. Process:
Participants who list an item on eBay, are charged an insertion fee. If the item sells, youre also
charged a final value fee. The basic cost of selling an item is the insertion fee plus the final value
fee. The basic fee structure depends on the type of listingauction-style or fixed price format
you use.
Ebay provides helpful information to facilitate the use of its services at Ebay University
http://pages.ebay.com/sellerinformation/starting/university.html.
Ebay facilitates transactions by providing Daily Deals which highlight discounted prices parties
can sign up to receive a Daily Deals Alert.

6. People:

Founder & Chairman

of Board

Margaret C. Whitman

Chief Technology Senior Vice President,

Senior Vice President, Senior Vice President,
Senior Vice President, Officer and Senior Corporate President, eBay
Finance and Chief Legal Affairs, General President, PayPal
Human Resources Vice President, Global Communications, Global Marketplaces
Financial Officer Counsel and Se
P eBay Inc

User Experience & VP Engineering and

Disruptive Innovation
Design Research

Advertising (SPG) Internet Marketing PR and Community

Marketplace
Rent Seller Experience
Adjacencies
7. Physical evidence:
The front display screen of home page is continuously changing according to many upcoming
festivals or sale.
Proper utilization of area of homepage for various products,
Search option is provided to reduce the browsing time, thus enhancing the customer experience
Easy to navigate thus giving user friendly experience
The special offer like sale is properly highlighted with suitable graphic designs and logos,
Prices and offers are quoted for every displayed product to generate interest,
Enough space is given to terms and conditions thus giving first time user, confidence to shop online.
SECTION 2
Shopping Comparison: In a recent study on the online customers in metros by digitalgalleryindia.com,
this is the comparative study between the top online websites. The study ranks eBay at # 27 according
to Alexa Page Rank whereas its counterparts such as flipkart and amazon are ranked 6 & 8 respectively.
 Comparison of shopping at online portal and physical retail establishment
Parameters online portal
market Market Space (Virtual)
Quality of Merchandise Difficult to jugde the quality
of product, but with branded
products the problem is
minimised
Fit/size Brands have different size
parameters and size sets,
sizing chart is often placed on
product pagee
Convenience More convenient in terms of
reachability, 24X7
availability, but requires
technology and feel of
product is not possible.
Time consumption Flexibility and easy approach,
but may have to learn how to
browse (for 1st time users)
Frequency of shopping Can be more because of
convenience to shop and
wide variety of goods
available.
Availability of variety Can keep more variety on
display, but has to maintain
the inventory in warehouse
(of self and /or of supplier)
Risk factor Risk in terms of not desired
quality/quantity, late
delivery, returns
Comparison of eBay with Amazon :
Parameters eBay
Brick and mortar
Market Place (Physical)
Quality can be judged directly
without any hurdle.
User has a chance to try on the
garment, hence no fit issues
after buying
Restriction on the time of
purchase, Store location is a
decision factor, Product
handling is the best advantage
in this category, rice can be
negotiated.
Takes time for purchase,
depends on the proximity to
the market place
Depends on the urgency of
shopping, or the shopping
behaviour of customer
Variety depends on Space
availability and positioning
Comparitively less risky but
slowly loosing market to online
stores
Amazon
Product details explained in better way Needs to be user friendly.
Style Blogs User has to register to receive Has various blogs like Style Spot,
newsletters which suggests current trends
and styles.
use of technology User can bid real-time over No out-of-the-box use of
products technology

Products Sells mostly well-known

Also has a presence of private
brands, used and lables
Purchase policy 100% cash back or credit
If you file for a return: (get an
system or exchange offer immediately, ship your
item for free, get an
Amazon.com Gift Card
presence of celeb no articles, but a user can "Style Stop", articles on the
articles login for the newsletters latest celebs style
Daily visits (as on 31,222,406 282,108,622(Source:
13/6/13) digitalgalleryindia.com)

Comparison of Mall Vs High Street stores:

Parameters Malls High Streets shops

business Stores depend on mall for Stores work independently
business
Footfall and visitors are mostly browsers more serious customers
conversion
Extra costs maintenance and security of Store owner has to do these
shop is taken care by mall works,
operator
Customer quality wider range for customer in a particular store may be one of
the same category the kind in the vicinity
other benefits parking space is enough parking is the major problem
Customer All solutions in one roof Customised solutions
convenience
Service Self service facility A more personalised service
Customer profile shop owners have a general Store owners are more aware of
overview of the customers the customers and their buying
visiting patterns
Positioning more youth oriented brands caters to more mature audience
Recommendations:

Even though eBay is most well-known online auction company in the world, eBay doesnt pay
dividends on their stock.
It has weak promotional and marketing activities.
The company relies too much on word of mouth advertising, assuming everyone already knows
about eBay.
System breakdown affects trading activities.
ANNEXURE:
1) Price chart for men and women clothing:

MEN WOMEN

295- Ethnic 399-

T-Shirts (1368) Polo T-Shirts (83) 3999 Wear (8178) Kurtis (384) 3499
Round Neck T- 299- 499-
Shirts (475) 1299 Sarees (2943) 24999
349- Dress 275-
Henley T-shirt (14) 1799 Materials (1411) 5600
319- Salwars & 299-
V-Neck Tshirts (133) 1999 suits (2692) 11279

Ties & 169- 119-

Cufflinks (2608) Ties (1237) 1699 Dupattas (17) 875
399- Tops & 250-
Cufflinks (1371) 2250 shirts (1411) 2499
349-
Dresses (649) 22768
499- 235-
Jeans (254) Slim Fit Jeans (105) 2900 Lingerie (373) Bras (54) 659
495- Night 399-
Skinny Fit Jeans (24) 1999 Wear (247) 2499
649-
Regular Fit Jeans (34) 1199 Panties (1) 429
429- 900-
Narrow Fit Jeans (4) 1199 Shapewear (2) 4819
349-
Straight Fit Jeans (1) 599 Camisoles (13) 999
Lingerie 995-
Comfort Fit Jeans (1) 1099 Sets (56) 1499

Inner 299- Trousers &

Wear (1974) Briefs (1449) 599 Shorts (102) Trousers (0)
249- 279-
Vests (301) 999 Shorts (17) 769
 249- 179-
Boxers (153) 1495 T-Shirts (406) 2499

Ethnic 499- Winter Winter Jackets& 999-

Wear (99) Kurtas (81) 5099 Wear (59) hoodies (59) 2400
Dhoti Pant (2) 1095
445-
Sherwanis (16) 2195
Caps & 195- Sports 230-
Hat(943) Hats (795) 1095 Wear (19) 10099
487- Socks & 150-
Caps (148) 649 Stockings (7) 899

Coat 4134-
&Jackets (258) Leather Jackets (203) 18800
1024-
Casual Jackets (55) 15990