eBay's Performance Gap: PayPal, Strategies, and Data Analysis

This report provides an analysis of the performance gaps faced by eBay, particularly focusing on the limitations associated with the mandatory use of PayPal for sellers. The report identifies the discrepancy between the expected benefits of PayPal, such as increased safety and convenience, and the actual challenges encountered, including fraudulent activities and intellectual property violations. It recommends that eBay implement diverse payment options to cater to different customer preferences and introduce a direct online marketplace to complement its auction-based model. The report further discusses the advantages and disadvantages of gathering large quantities of data, highlighting the diversity and effective market trend determination benefits, while also acknowledging complexities in analysis and decision-making. The report recommends segregating large datasets based on factors and collecting data from authentic sources to enhance analysis quality and reliability. The insights provided offer valuable recommendations for eBay to improve its business strategies and address its performance gaps.

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Introduction
Determination of the performance gap is important for the contemporary business entities
due to the fact that it helps in identifying the potential gaps in the business processes and
practices. Moreover, evaluation of the performance gaps will also help in determining the long
term business strategies accordingly. This paper will discuss about the performance gaps in eBay
as in the recent time, this company is one of most turbulent ones and with having a few issues. In
the case of them, the major performance gap was the difference between the expectation and
actual result of using PayPal (Schneider & Spieth, 2013). This is due to the reason that it is
required for the sellers of eBay to use PayPal payment gateway in selling their products through
the portal. However, in the real situation, it is identified that this policy is having number of
limitations including the fraudulent activities being faced by the sellers and violations of the
intellectual properties. This can be concluded that even though, the use of PayPal is made for the
increased safety and convenience of the sellers, but in the real conditions, it caused issues and
challenges for them (Wang, Hahn & Sutrave, 2016).
This paper will further discuss about the recommended steps that should be taken in
managing the performance gaps being faced by eBay. In addition, this paper will also discuss
about the advantages and disadvantages of gathering large quantities of data and on the basis of
that, a few recommended steps will be discussed.
Recommended steps for eBay
It is recommended that eBay should initiate different payment options for the sellers as
well as for the buyers. This is due to the reason that different sellers and buyers are having
different sets of preferences for payment and this should be provided to them. On the other hand,

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it should also be noted that initiation of the different and diverse sets of payment options will
also ensure that each of the different sets of customers will get satisfied and fulfilled. It is also
recommended that eBay should introduce the direct online marketplace apart from their auction
based business model. This is due to the reason that in the recent time, online marketplace is
having the maximum popularity among the customers.
Advantages and disadvantages of gathering large quantities of data
The major advantage of gathering large quantities of data is the diversity due to the fact
that the more will be the quantities of data; the more will be the diverse content for analysis. This
will further ensure that the analysis will be more authentic and reliable. On the other hand,
another major advantage of gathering large quantities of data is the effective determination of the
market trend (Fan & Bifet,2013). This is due to the reason that the more will be the quantities of
data, the more effective and efficient will be the process of determining the market conditions.
The probability of overlooking of any market forces will be less with the analysis of large
quantities of data.
On the other hand, it should also be noted that there are few disadvantages also to be
faced due to the gathering of large quantities of data. One of the major disadvantages is the
complexities involved in the process. This is due to the reason that analysis of different and
diverse sets of data will involve complex process. This will create issues for the involved
stakeholders along with being more time consuming. Therefore, the involved time in the data
analysis process will get increased (Kaisler et al., 2013). Moreover, the large quantities of data
will also cause difficulties in building the consensus in the decision making process. This is due

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to the reason that with the availability of the large quantities of data, the consensus will be
difficult to build and different alternatives will get emerged.
Recommended steps
It is recommended that large quantities of data should be segregated on the basis of
different factors. This will help to analyze the data with similar sets of factors and elements.
Thus, the probability of emergence of difficulties in consensus building will get reduced with
having uniform types of available data. In addition, it is also recommended that data should be
collected from the authentic sources because of the fact that if the large quantities of data can be
gathered from the authentic sources, then the quality of the analysis will be more enhanced.
Moreover, the reliability of the data analysis process will also be more with the collection of the
data from authentic sources.

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Reference
Schneider, S., & Spieth, P. (2013). Business model innovation: Towards an integrated future
research agenda. International Journal of Innovation Management, 17(01), 1340001.
Fan, W., & Bifet, A. (2013). Mining big data: current status, and forecast to the future. ACM
sIGKDD Explorations Newsletter, 14(2), 1-5.
Kaisler, S., Armour, F., Espinosa, J. A., & Money, W. (2013, January). Big data: Issues and
challenges moving forward. In 2013 46th Hawaii International Conference on System
Sciences (pp. 995-1004). IEEE.
Wang, Y., Hahn, C., & Sutrave, K. (2016, February). Mobile payment security, threats, and
challenges. In 2016 second international conference on mobile and secure services
(MobiSecServ) (pp. 1-5). IEEE.