Ebay

Background of the Business

Our world has been affected by a technological explosion that created a challenge for businesses to encounter. We are more specifically pointing out e-businesses and their competition to the sudden increase of their popularity.

Some types of business have disappeared completely as online and computer-based information have taken their place. For example, new types of business have been created, such as online auctions like eBay. These typesofexisting businesses have been transformed through the use of ICT systems.Improving current business processes and business models or achieving a model of success are all the major objectives of each company.

eBay is one of the most visible, most successful companies that have found a way to implement and use technology platforms to their maximum and make a profit at it.

First named “Auctionweb” in 1995, the website was not known and didn’t attract any buyers or sellers because his founder started from a small scale, didn’t allow a wide amount of items to be offered since only collectable objects were allowed at the beginning. At that point, the company had to think to change its business model in order to make the website more profitable and go one step further byallowing more users all over the world (buyers and sellers) to participate in designing their proposal in terms of options of the transaction and thus be more and more user-friendly and transparent. According to Pierre Omidyar, the founder of the website, eBay started functioning much like a business partner. The seller pays fees for selling items on eBay. All of the business activities take place under eBay’s supervision.

Ebay’s Business Model

Their business model is based on connecting people and not selling them a good or service which is a market creator. It generates profit from the seller who is not free of charge once he puts a product into sale:

 When an item is listed on eBay, this non-refundable fee is charged. It...