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E - C O M M E R C EI N N O V A T I V E I N T E R N A T I O N A L C O L L E G E

AGENDA

Company Overview, Mission & Vision

History

Business Model

Value Proposition

Revenue Model

Competition

Challenges and Opportunities

Conclusion

COMPANY OVERVIEW

An online auction platform to facilitate transaction between buyer and seller of goods and services.

Mission & Vision:

eBay`s Vision is to provide a global online trading platform where practically anyone can trade practically anything.

HISTORY

Founded by Pierre Omidyar San Jose in 1995.

Incorporated in 1996 in California.

First third party agreement in 1997.

Employees: 27,770 (2011).

Active users: 97million Globally.

Revenue (last year) US$ 11.651 billion

Value of Goods Sold $2,000+ per second

BUSINESS MODEL

Online person-to-person trading community.

Sellers list items for sale and buyers bid for it.

Highest bidder and seller contact each other.

Buyer transfers the fund and seller arrange for its shipment.

VALUE PROPOSITION

Seller

- Broad Market

- Lower Distribution cost

- Higher Margins

- Customer Retention

Buyer

- High Bargaining Power

- Convenient

- Saves time and money

REVENUE MODELFees for the seller to post the item, any promotion activities

and final sale commission.

Advertising revenue - 2% of TR

Selling profit is approx 9% of TR

Major money comes from listing and trading services -89% of TR

Free browsing and bidding

EBAY PRODUCTS

COMPETITION

Major Competitors

*Amazon *AOL

* Wal-Mart

Traditional stores

*Zalora *Sephora

*Mysale * Lelong

OPPORTUNITIES

- High Bargaining Power

- No barriers to entry

- Increasing competition

- Technological obstacles

- Buyers and Sellers fraud

Challenges

- Internet usage- Market Penetration- New Markets

CONCLUSION

The E-commerce industry has become a major player in the global retail environment. E-Bays large operating history has allowed the company to build a social capital of internet buyers and sellers that has now become its competitive advantage.

THE END

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