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Business modeL
BYVIVEK TIWARI (DM10A39) VIVEK SINGH (DM10B59)

2005 UMFK.

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Company Overview
An online auction platform that facilitates transaction between buyers and sellers of goods and services.
Mission &Vision:

eBays Vision is to provide a global online trading platform where practically anyone can trade practically anything.
2005 UMFK.

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Industry information
Total value of global e-commerce transactions - $657 b Number of users online 534 m Increased awareness among users towards the potential of internet as a trading platform. Over 27,000 different categories.
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Business Model
Seller uploads the picture and description of the item to be sold. Sale ends at predetermined time. High bidder and seller contact each other and make arrangements of shipment. Buyer sends funds to seller {money order, check, PayPal}, seller sends goods. Buyer and seller then grade each other through feedback forums.
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Business Model
eBays business model was based on creating and maintaining a person-to-person trading community. After implementing their model, eBay has been able to build strategic partnerships, continue to make innovative changes and improvements, and monitor its internal and external environments for possible future opportunities. This has given them the prestige of being the worlds largest online auction company.
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Value Proposition
Buyer
Massive Selection More convenient Saves time and money Value added

Seller
- Broadens market - Lower Distribution Cost - maximize selling price - repeat business and clientele
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Revenue model and profit

Fees for the seller to post the item, any promotion activities and final sale commission. Advertising revenue- 2% of TR Selling profit is approx 9% of TR Major money comes from listing and trading services -89% of TR
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The Growth
In 2008 REVENUE was 2.5$ billion but the revenue hit 4.7 $ billion in 2011. Heavy investment in international markets including Spain, UK 99, acquires Kruse, Inc., a company that conducts auctions and performs appraisal services and auctioneer training for classic car auctions.

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Financials
A presence in over 20 countries internationally contributes to 40% of total revenue. Main competitors, Yahoo! and Amazon have seen 65% and 61% revenue growth .

2005 UMFK.

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Acquisition of PayPal
PayPal uses existing electronic infrastructure of bank accounts and credit cards to allow small monetary exchanges online. Its convenient for small businesses and individuals, because they can collect online payments without difficult set-up. eBay acquired PayPal in 2002 and has integrated it throughout its website as a payment option for auctions.
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Velocity of trading
Processes a Pocket PC in UK very six minutes. Mobile phone every 3O seconds in Germany. A Volkswagen is sold every 25 minutes in Germany.

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eBays Revenue
00 00 00 00 Revenue ($mil.) 00 00 00 00 00 0 0
1998
2005 UMFK.

2003

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Issue of privacy and trust (assets)

EBays view and approach. Trust is facilitated by fair information and principles. Users should be provided with notice and communication, choice and control, security, authentication and enforcement. eBay has earned this trust in time by consistent service.
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EBay's tackle of security

Feedback forum- check the business practices or reputation of any buyer or seller on eBay. Escrow- inspection of the product purchased before payment is being sent. Fraud protection program- coverage of users up to $2OO. Verified rights owner program- make sure that items do not violate intellectual property rights. Neutral dispute resolution options.
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Popular Subsidiaries
Half.com- offers an organized online market place to buy and sell high quality previously owned mass market goods. EBay stores- expands the market place for sellers by allowing them to customize shopping destination to merchandise their products. EBay motors: Internets largest auction place to buy anything automotive.
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Subsidiaries services
EBay professional services- serving fast growing marketplace by providing a destination on eBay to find professionals. Ebay local trading- allow users to browse items near them and browse through local interests. Ebay premier- showcases fine art, antiques, fine wines and rare collectibles from leading auctions and dealers. Ebay live auctions- real time bidding on items being sold on sale floor.
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Competition
Major Competitors Amazon AOL Yahoo

Traditional stores
Wal-Mart Dell Macys Home Depot
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BIBLIOGRAPHY
WWW. EBAY .COM WWW. ANSWER .COM

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Questions are welcome at this time. Thank you for your continued attention..

2005 UMFK.