A Report on eBay

This report critically analyzes eBay's impact on e-commerce, highlighting two factors for which the company excels at and one factor for which the company is criticized for. The report discusses eBay's customer trust and brand image, diversity and inclusion, and frauds and scams issues. It also provides an overview of eBay's history, services, and strategies.

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A REPORT ON EBAY
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A REPORT ON EBAY
Executive Summary
The purpose of this report is to critically analyze the multinational e-commerce business,
eBay. The company has created a major impact in the selling of online goods and services. It
began as an online platform that allowed efficient peer-to-peer trading in an auction kind of
manner. The online auction site gave a virtual space on the internet for customers to buy, sell and
even trade any kind of items from almost any category available. This report will highlight two
factors for which the company excels at and one factor for which the company is criticized for.

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Table of Contents
1. Introduction.........................................................................................................................................3
2. eBay.....................................................................................................................................................3
2.1. Customer Trust and Brand Image................................................................................................4
2.2. Diversity and Inclusion.................................................................................................................4
2.3. Frauds and Scams........................................................................................................................6
3. Conclusion...........................................................................................................................................7

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1. Introduction
eBay as a multinational business is built on the factors such as commerce, trust and
opportunities. Their goal is to connect millions of people together each and every day on a
locality, nationality and worldwide basis by the means of various websites whose key factors
include payments, communication and commerce. This process has been beneficial for the
company in many ways, especially for their countless customers throughout the world. The huge
amount of information and assets which is kept up and stored inside the company all through
each unique geographical regions enables them to make opportunities for the organization and
the clients. The strategy is finished by bundling the essential things together and utilizing them in
an approach to offer an incentive to those surrounding them.
2. eBay
eBay is known as one of the leading online marketing website which was founded by
Pierre M.Omidyarand in 1995. Since then, it has become one for the largest and the most popular
e-commerce website known to people. eBay provided all the key facts like other e-commerce
websites, however eBay introduced the auction system which is still not incorporated by other
major competitors (Ambrus, Ishii and Burns 2013). In addition to its original auction-style sales,
the website has since developed new manner of new ways by including buy it now shopping,
shopping by UPC, ISBN, or other kind of SKU details, classified ads, ticket trading of events,
and other services. It was previously offered by online money transfers via PayPal.

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2.1. Customer Trust and Brand Image
eBay and Amazon can be considered the two best front liners for any kind of e-commerce
conversation. One of the most beneficial advantages of eBay over Amazon includes that anybody
can create their account and they can begin to sell their goods without any kind of prior
experience (Haucap and Heimeshoff 2014). As a company, eBay uses their customers as sellers
to attract more customers. As a company standpoint, this increases their marketing and brand
name and at the same time it holds on the existing customers while attaching more people. No
matter what the product or service is, eBay has developed multiple category channels to sell the
products. The brand name acts as a global reach even to move unusual items that are not
demanded in everyday life but just kept for show. There are lot of products that can be visible on
eBay, which is every effective for window shopping.
Even product details like pictures, detailed descriptions and the identity and background
of the owner is also provided. This has given eBay a brand image unlike any other e-commerce
businesses. When a person sees the same kind of item, side by side and know what each one of
them are being sold for. The most effective way eBay has made an impact on the buyers is the
way they handle business to lower down the barriers regarding buying and selling. This method
has brought a huge global awareness to business overall. The marketing strategies have laid the
path for new economic opportunities to develop ideas to begin cultural understandings between
two or more countries (Seaman 2015).

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2.2. Diversity and Inclusion
eBay as a company takes diversity very seriously. To the company, people from all walks
of life deserve the opportunity to be heard and included. To them, does not matter if it is gender,
or political views or where a person is from. They focus on their employees to be comfortable
when they work. The company made efforts to diversify its work environment, at USA most of
the work population is white however the overall workforce of the company includes Asians,
Blacks, Hispanics and many more (Ye et al 2013). The company has over than 33,000
employees throughout the world. Even the company’s payment division, PayPal shares a very
similar workforce. The company is very much dedicated to the diversity and inclusion matter and
even focus on making and maintaining an environment where people can understand their full
potential and work without any setbacks. The management encourages a very creative and
diverse work environment that is also characterized by the respect for the employees and the
background they represent and also promotes the knowledge of each individual. (Zhang, Bian
and Zhu 2013)
Companies are undertakes initiatives to be effective, along with preparing and keeping
the best workers, the administration esteems the assorted variety of their representatives and the
customers they serve. Regardless it is a non-benefit or a private association, figuring out how to
perceive and use contrasts can profit your association. For most organizations, it includes
making a comprehensive association where the distinctions surprisingly are regarded, esteemed,
and used towards accomplishing a shared objective (Przepiorka 2013). Understanding assorted
variety in an association makes better working connections and stays away from
miscommunication in light of social contrasts and obliviousness about different gatherings.

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2.3. Frauds and Scams
Organizations work painfully to overcome fraud. However the eBay does leave itself
open to a number of fraudulent activities (Hui et al 2016). But the company acts with the issue
very quickly. These incorporate mediocre merchandise being showcased to obscure individuals
who utilize the site. Different types of scams could incorporate the redistribution of stolen
products. Make it realized that extortion and theft are issues with untouchables not eBay. The
shortcoming is that insidious people can abuse the client to client business stage (Ayres, Banaji
and Jolls 2015). Numerous organizations, frameworks breakdowns could aggravate the
exchanging exchange of eBay on day by day bases. eBay and PayPal have endured shutdowns
and aggregate breakdown. As innovation enhances for the better shortcoming will be less an
issue.
There were times when there were security breaches within the organizations. On the
month of May 2014, there was a major breach when consumer database was accessed and
username, phone numbers, password and physical address was exposed and stolen. People who
use eBay and had personal accounts were advised to change their passwords to prevent any kind
of data breach (El-Kenawy, El-Desoky and Sarhan 2014). Even though no kind of financial
database were exposed, but still it was a major blow towards the company’s goodwill and
security. Since at that time PayPal used to store all the financial information, financial
information were intact. Ever since that incident, eBay has improved its security and made
encrypted data to defend from hackers (Liu, Cao and Wong 2013).

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3. Conclusion
Therefore from the above discussion, it can be conclude that eBay realizes that in order
for the organization to keep up its upper hand and make it reasonable over the long run, the
organization must exploit the progressions at the corporate, at hierarchical and business levels.
eBay grasps the five building blocks which are connected at random through eBay's history:
creativity, co-adaption, recovery, experimentation and time pacing as obvious by the systems
talked about. The organization likewise grasps the standards of contending on the edge about
system, association and initiative. There has been a time when the repudiated company has dealt
with setback such as frauds and scams, which in turn gave advantage to their competitors like
Amazon or Walmart. However, though ethical and user-friendly means, people still use the e-
commerce websites to their advantage.

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References
Haucap, J. and Heimeshoff, U., 2014. Google, Facebook, Amazon, eBay: Is the Internet driving
competition or market monopolization?. International Economics and Economic Policy, 11(1-2),
pp.49-61.
Ye, Q., Xu, M., Kiang, M., Wu, W. and Sun, F., 2013. In-depth analysis of the seller reputation
and price premium relationship: a comparison between eBay US and Taobao China. Journal of
Electronic Commerce Research, 14(1), p.1.
Seaman, C.B., 2015. Permanent Injunctions in Patent Litigation After eBay: An Empirical Study.
Iowa L. Rev., 101, p.1949.
Ambrus, A., Ishii, Y. and Burns, J., 2013. Gradual bidding in ebay-like auctions.
Ayres, I., Banaji, M. and Jolls, C., 2015. Race effects on eBay. The RAND Journal of
Economics, 46(4), pp.891-917.
Przepiorka, W., 2013. Buyers pay for and sellers invest in a good reputation: More evidence
from eBay. The Journal of Socio-Economics, 42, pp.31-42.
Hui, X., Saeedi, M., Shen, Z. and Sundaresan, N., 2016. Reputation and regulations: evidence
from ebay. Management Science, 62(12), pp.3604-3616.
Zhang, Y., Bian, J. and Zhu, W., 2013. Trust fraud: A crucial challenge for China’s e-commerce
market. Electronic Commerce Research and Applications, 12(5), pp.299-308.

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El-Kenawy, E.S.M.T., El-Desoky, A.I. and Sarhan, A.M., 2014. Bidder Strategy System For
Online Auctions Trust measurement. International Journal of Computer Science Issues (IJCSI),
11(5), p.76.
Liu, Z., Cao, Z. and Wong, D.S., 2013, November. Blackbox traceable CP-ABE: how to catch
people leaking their keys by selling decryption devices on ebay. In Proceedings of the 2013
ACM SIGSAC conference on Computer & communications security (pp. 475-486). ACM.