EBay Project for Sybca 3sem

8/11/2019 EBay Project for Sybca 3sem

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ebayYashwantrao Chavan Maharashtra

Open University S.Y.B.C.A

By,Prerak Chetan DedhiaPRN: P201302437Rahul Sameer Shah

PRN: P201302442


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ERTIFI TE

This is to certify that the research work entitled, ebayIs an original

work carried out By Mr. Prerak Chetan Dedhia & Mr. Rahul Sameer

Shah. Under Study Center guidance. Further, it is certified that this

work has not been submitted for the awarded of any other degree or

diploma of this university or any other university either in part or in

full.

Coordinator of Study Center Examination Controller

Place: Thane

Date: Study Center Seal


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Acknowledgement

We take this opportunity to express our profound gratitude and

deep regards to our PRINCIPAL, RAJENDRA KALEfortheir exemplary guidance, monitoring and constantencouragement throughout the course of this thesis. Theblessing, help and guidance given by them time to time shall carryus a long way in the journey of life on which we are about toembark.

We also take this opportunity to express a deep sense of

gratitude toSANDESH KARADE SIR & UJWALACHAUDHARI MISS, for their cordial support, valuable

information and guidance, which helped us in completing this taskthrough various stages.

We are obliged to staff members of CROWN COMPUTERS,for the valuable information provided by them in their respectivefields. We are grateful for their cooperation during the period ofmy assignment.

Lastly, we thank almighty, our family and friends for their constantencouragement without which this assignment would not bepossible.


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INDEXIntroduction.

History.

Logo.

Item.

Bidding.

Shipping.

Profit & transactions.Acquisitions.

Use of economic.

Controversy and criticism.Bibliography.


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IntroductionEBay Inc. is an American multinational internet

consumer-to-consumer corporation, headquartered

in San Jose, California. It was founded in 1995; it is

now a multi-billion

dollar business with

operations localized

in over thirty

countries. Thecompany manages

eBay.com, an online

auction and

shopping website in

which people and

businesses buy andsell a broad variety of goods and services worldwide.

In addition to its auction-style sellings, the website

has since expanded to include "Buy It Now" standard

shopping; online classified advertisements; online

event ticket trading; online money transfers

(via PayPal) and other services.
http://en.wikipedia.org/wiki/File:Ebayheadquarters.jpg


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HistoryEarly YearsAuction Web was founded in San Jose, California, onSeptember 3, 1995, by French-born Iranian-American computerprogrammer PierreOmidyar (born on June 21,1967).One of the first items soldon Auction Web was a

broken laser pointer for $14.83. Infact it resulted in the hiring ofChris Agarpao as eBay's first employee to handle thenumber of cheques coming in for fees.

Jeffrey Skoll was hired as the first president of thecompany in early 1996. In November 1996, eBay enteredinto its first third-party licensing deal, with a companycalled Electronic Travel Auction. Originally, the sitebelonged to Echo Bay Technology Group, Omidyar'sconsulting firm. Omidyar had tried to register the domainname echobay.com, but found it already taken bythe Echo Bay Mines, a gold mining company, so heshortened it to his second choice, eBay.com.

Meg Whitman was hired as eBay President and CEO inMarch 1998. eBay went public on September 21, 1998,

and both Omidyar and Skoll became instant billionaires.

2000's
http://en.wikipedia.org/wiki/File:Pomidyarji.jpg


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As the company expanded product categoriesbeyond collectibles into almost any saleable item,business grew quickly. In February 2002, the

company purchasediBazar; a similarEuropean auction website founded in 1998and thenbought PayPal onOctober 14, 2002.

By early 2008, thecompany hadexpanded worldwide,counted hundreds ofmillions of registeredusers, 15,000+employees and

revenues of almost$7.7 billion. On March31, 2008 John Donahoe was selected to becomePresident and CEO. In late 2009, eBay completedthe sale of Skype for $2.75 billion, but will still own30% equity in the company.

2010s

In July 2010, eBay was suedfor $3.8 billion by XPRTVentures that accused eBayof stealing information shared


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in confidence by the inventors on XPRT's ownpatents, and incorporated it into features in its ownpayment systems, such as PayPal Pay Later and

PayPal Buyer Credit.

On December 20, 2010, eBay acquired German onlineshopping club, brands4friends.de, for 150 million($197 million), strengthening the company's interestsin the fashion industry in Europe.

On September 26, 2013, eBayacquired Braintree for US$800million, with the intention tocontinue running it as a separateservice.

Logo

19952012
http://en.wikipedia.org/wiki/File:EBay_logo.svghttp://en.wikipedia.org/wiki/File:EBay_former_logo.svghttp://en.wikipedia.org/wiki/File:EBay_logo.svghttp://en.wikipedia.org/wiki/File:EBay_former_logo.svghttp://en.wikipedia.org/wiki/File:EBay_logo.svghttp://en.wikipedia.org/wiki/File:EBay_former_logo.svg


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2012present


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ItemsMillions of collectibles, decor, appliances, computers,furnishings, equipment, domain names, vehicles, andother miscellaneous items are listed, bought, or solddaily on eBay. In 2006, eBay launched its Business &Industrial category, breaking into the industrial surplus

business. Generally, anythingcan be auctioned on the site aslong as it is not illegal and doesnot violate the eBay Prohibitedand Restricted Items policy.Services and intangibles can besold, too. Large internationalcompanies, such as IBM, selltheir newest products and offer

services on eBay using competitive auctions and fixed-priced storefronts. the site. The German version, eBay

Express Germany, was also opened in 2006 and closed in2008.

eBay maintains a number of specialty sites including thediscussion boards, groups, answer center, chat rooms,and reviews and guides. eBay's mobile offerings includeSMS alerts, a WAP site, Java ME clients, and mobileapplications for Windows Phone, Android OS and AppleiPhone.
http://en.wikipedia.org/wiki/File:PayPal_San_Jose_Headquarters.jpg


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Unusual itemsMany unusual items have been placed for sale on

eBay, including at least two previouslyundiscovered species, including the Coelopleurusexquisitus sea urchin. A man even offered to sellhis life on eBay.

Prohibited or restricted itemsIn its earliest days, eBay was

essentially unregulated.However, as the site grew, itbecame necessary to restrictor forbid auctions for variousitems. Note that some of therestrictions relate toeBay.com (the U.S. site),

while other restrictions apply to specific European sites

(such as Nazi paraphernalia). Regional laws andregulations may apply to the seller or the buyer.Generally, if the sale or ownership of an item is regulatedor prohibited by one or more states, eBay will not permitits listing. Among the hundred or so banned or restrictedcategories:

Tobacco & Alcohol. Drugs and drug

paraphernalia. Nazi paraphernalia. Bootleg recordings.

Firearms and ammunition.

Various types of knivesare also forbidden.

Police and emergencyservice vehicular


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Bidding

Auction-style listingsSeller ratings

Charity auctions

Auction-style listingsBidding on eBay (old or new)'s auction-style listingis called proxy bidding and is essentially equivalentto a Vickrey auction, with the following exceptions.

The winning bidder pays the second-highest bidplus one bid increment amount (that is, somesmall predefined amount relative to the bid size),

instead of simply the highest bid. However, sincethe bid increment amounts are relativelyinsignificant compared to the bid size, they arenot considered from a strategic standpoint.

The highest bidder's bid is sealed, as in a Vickreyauction.


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Seller ratingsIn 2008, eBay began using detailed seller ratingswith four different categories. When leavingfeedback, buyers are asked to rate the seller ineach of these categories with a score of one to five

stars, with fivebeing the highestrating and one thelowest. Unlike theoverall feedbackrating, theseratings areanonymous;neither sellers norother users learnhow individualbuyers rated theseller. The listingsof sellers with a

rating of 4.3 or below in any into the four ratingcategories appear lower in search results. PowerSellers are required to have scores in eachcategory above 4.5.

Charityauctions


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Using Mission Fish as an arbiter, eBay allows sellersto donate a portion of their auction proceeds to acharity of the seller's choice. The program is called

eBay Giving Works in the US, and eBay for Charity inthe UK. eBay provides a partial refund of seller feesfor items sold through charity auctions. As of March 4,2010, $154 million has been raised for U.S. nonprofitsby the eBay Community since eBay Giving Worksbegan in 2003.

Some high-profile charity auctions have beenadvertised on the eBay home page, and have raisedlarge amounts of money in a short time. For example,a furniture manufacturer raised over $35,000for Ronald McDonald House by auctioning off bedsthat had been signed by celebrities.

To date the highest successful bid on a single item forcharity was for the annual "Power Lunch" withinvestor Warren Buffett at the famous Smith &Wollensky Steakhouse in New York. The winning bidwas $2.63 million.


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ShippingBefore an auction, eBay lets sellers choose

which shipping options to offer regularmail, express mail, or courier service. Thewebsite lets buyers choose which option toaccept.

Since 2012, eBay hasalso allowed US sellersto opt into its Global

Shipping Program. Theprogram works asfollows: Each sellerdecides whether or notto opt into theprogram. If a seller

opts in, and a non-USbuyer buys an itemfrom the seller, then the buyer pays an additionalfee to Pitney Bowes. The seller ships the item toa Pitney Bowes facility in the US. After receivingthe item, Pitney Bowes forwards it to the buyer.The program enhances the selection available to

buyers, but can considerably increase buyers'costs on low-value items.

Profit and transactions


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EBay generates revenue from various fees. TheeBay fee system is quite complex; there are fees tolist a product and fees when the product sells

(Final Value Fee), plus several optional adornmentfees, all based on various factors and scales. As ofNovember 2012, the U.S. based eBay.com takes$0.10 to $2 (based on the opening or reserve price)as an insertion fee for a basic auction-style listingwithout any adornments, and 10% of the totalamount of the sale (price of the item plus shipping

charges) as a final value fee. Fixed-price listingshave an insertion fee of $0.30, and the final valuefee varies based on category and total amount ofthe sale (e.g. 13% for DVDs & Movies up to$50). The UK based ebay.co.uk takesfrom GBP 0.15 to a maximum rate of GBP 3 per100 for an ordinary listing and from 0.75 percent

to 10% (writing as of June 2009) of the final price.Reduced Final Value Fees are available to businessregistered customers. In addition, eBay ownsthe PayPal payment system that has fees of itsown.

Acquisitions


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Skype

EBay Inc. acquired Skype in 2005 and significantlyexpanded its customer base to more than 480 million

registered users worldwide. To focus on its core e-commerce and payments businesses, eBay Inc. sold amajority stake in Skype in November 2009, retaining aminority investment in the company.In May 2011,Microsoft announced that it had acquired Skype for$8.5 billion.

CraigslistIn the summer of 2004, eBayacknowledged that it hadacquired 25% of classifiedlistings website, Craigslist.


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EBay spokesman Hani Durzy stated that the "investment wasreally for learning purposes; it gives us access to learn howthe classified market online works."

In March 2005, eBay launched the classifieds service Kijiji. InApril 2008, eBay sued Craigslist to "safeguard its four-yearfinancial investment", claiming that in January 2008,Craigslist took actions that "unfairly diluted eBay's economicinterest by more than 10%."Craigslist countersued in May2008 "to remedy the substantial and ongoing harm to faircompetition" that Craigslist claims is constituted by eBay'sactions as a Craigslist shareholder. In September 2010,Delaware Judge William Chandler ruled that the actions of

Craigslist were unlawful, and that the actions taken byCraigslist founders Jim Buck master and Craig Newmark had"breached their fiduciary duty of loyalty", and restoredeBay's stake in the company to 28.4% from a diluted level of24.85%. EBay spokesman Michael Jacobson stated "We arevery pleased that the court gave eBay what it sought fromthe lawsuit.

Use of economic.As eBay is a huge, publicly visible market, it has createda great deal of interest from economists, who have usedit to analyze many aspects of buying and sellingbehavior, auction formats, etc., and compare these withprevious theoretical and empirical findings.

Michael Goal, Chairman of the Computer Information

Systems department ofthe W. P. Carey Schoolof Business at ArizonaState University,published an academiccase based on eBays


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big data management and use. In the case, Goaldiscusses how eBay is a data-driven company whichprocesses 50 petabytes of data a day.

EBay uses a system that allows different departments inthe company to check out data from their data mart intosandboxes for analysis. According to Goal, eBay hasalready experienced significant business successesthrough its data analytics. To continue improving thebusiness through data-driven decision making, eBayemploys 5,000 data analysts.


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Controversy and criticism.

eBay has its share of controversy, including cases of

fraud, its policy of requiring sellers to use PayPal, andconcerns over

forgeries and

intellectual property

violations in auction

items. There are also

issues of hownegative feedback

after an auction can

offset the benefits of

using eBay as a

trading platform. eBay

has also beencriticised for not

paying its share of UK

tax: the Sunday Timesreported in October 2012 that

eBay pays only 1.2m in tax on sales of over 800m.


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Bibliography.

EBay Project for Sybca 3sem

Documents

Transcript of EBay Project for Sybca 3sem