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March 17, 2016 | Author: | Posted in logistics, mathematics and economics

Ebay – showing other ‘s how to succeed internationally

While public perception suggests that Ebay , one of the world ‘s largest person-to-person websites , entertains no competition from other online auction sites , the case study Ebay , connecting internationally , shows that Ebay does not have the monopoly on internet auction sites and that in some places like Japan for example , the company has had to withdraw their services as they could not compete by a similar venture launched by Yahoo . However , the business model operated by the company does provide a framework for success in [banner_entry_middle]

international trading through an online portal

Ebay gained its early success in the United States through offering a simplistic program that allowed individual traders to buy , sell and trade their collectibles and other items through one well-run website The idea caught on as literally millions of Americans signed up to the site , with the web portal becoming that popular that businesses too started to recognize the value of offering their goods online . The case study mentions that there were more than 430 ,000 businesses represented through Ebay at the time of writing the article , that have no other portal for taking s , or distributing their products

One of the key reasons that Ebay is so successful in the United States is because the American culture sees nothing wrong in purchasing second hand or antique items , but it is this key to success that has resulted in Ebay being less popular in other geographical regions such as Japan China and India , where purchasing second hand goods from strangers is not so common . A second factor that has assisted success in America but reduced the level of success in Japan , China and India is that a larger proportion of the American population has access to the Internet and is more comfortable with buying and selling goods online . This aspect contrasts sharply with countries like China and India in particular where the country ‘s infrastructure is not as well developed and Internet usage per head of population is not as high

Another element of Ebay ‘s success is related to the terms customization ‘ and customerization . Ebay was designed to be user friendly and allowed traders with minimal Internet skills to buy and sell their goods online . In this way it allowed for customization as traders could specify categories in which to sell their goods methods of freight or delivery and even countries the traders are prepared to ship to . Ebay is also a classic example of customerization ‘ because the focus of the site has always been to encourage higher client usage through efficient support services , an aspect that was increased with the appointment of Meg Whitman as CEO Her background in business , marketing and investment has helped radically increase the sites profitability

Ebay has managed to create a system that is seen as valuable by members of the online community . The site not only hosts auctions classified advertisement and options for business traders , it also provides a forum for discussion groups… [banner_entry_footer]

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