Sample marketing essay on eBay market analysis
eBay Market Analysis
The growth of eBay as a global online marketplace is a factor accrued to numerous operation strategies of the avenue. Most of the users of the online web-based platform explored the avenue at an earlier phase when it was a revolutionary player in the commerce world. What began as an online platform has expanded to its current capacity where firms, corporations, and ordinary people utilize the avenue on a daily basis hence its accrued growth to the world’s largest online marketplace (MacMillan, 2009). The success of the marketplace is attributed to various factors.
eBay’s success is based on the fact, the online marketplace created a pricing revolution. The online marketplace introduced a strategy that allows buyers to determine one’s desired price quotation. Furthermore, suppliers and sellers prefer the option since the platform exposes the individuals on a global scale in an efficient manner (Holahan, 2008). Small business such as production industries among other firms gradually utilized the platform based on its accrued benefits. eBay commodity pricing strategy is an effective means of selling commodities since clients can also purchase the commodity on various fixed price offers. Suppliers, retailers, and other sellers can offer best offer alternatives where the buyer may counter offer accept or reject the proposal
The firm’s current fee structure is conclusive as it enables more than a million members to earn a living from the platform transactions. MacMillan, (2009) asserts the platform earns revenue by imposing transaction fees on all the transactions. The firm’s effective commodity sale strategy ensures the firm does not purchase an exclusive right of a producer rather it avails an arena for a potential seller to exhibit one’s products. The transaction levied in most transactions is so low that it creates an incentive for more sellers to explore the alternative over other mediums. eBay is the only online marketplace that diversifies with numerous entities such as the sale of collectibles among other services.
EBay passionate enthusiasts are cherished within the organization procedures. Holahan, (2008) acknowledges the Voice of the Customer program is a technique employed by the firm under which, numerous suppliers and buyers are questioned about shoppers experience at the online platform. Moreover, the interviewed segment gains an opportunity to recommend strategies that can boost the service. Although most of the intended communications are channeled through teleconferencing facilities, the firms make sure the conferences occur twice in a week, and hence customers feel in control of the firm operations in one way or another.
In a bid to foster and focus on the firm’s growth, the firm has bought and sold several of its controlling interests. For instance, the firm partly sold its controlling shares in Skype, an online communication platform. Also, it bought Shopping.com, Stub Hub among other businesses to reduce competition and increase its prescience in foreign markets (MacMillan, 2009). One notable fact is that since its inception, the online firm has achieved tremendous growth and established itself in over 39 countries. The firm though a pioneer in the online marketing sector, has faced numerous challenges such as the American recession during its operation lifetime. The current leadership is determined to commit in investment technologies in an aim to better buyer-seller interconnection. The strategy has proved useful since by adopting better and capable mobile applications integrated with prestigious communication brands such Apple, the online firm has grown to a reputable position among the top online market platforms.
Douglas MacMillan. (2009). Can eBay Get Its Tech Savvy Back? BusinessWeek, June 22, 2009, pp. 48–49;
Cattherine Holahan. (2008) eBay’s New Tough Love CEO. BusinessWeek, February 4, 2008, pp. 58–59;
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