EBAY ONLINE AUCTION Group members Nashrah Hanum Zainal

EBAY – ONLINE AUCTION Group members : -Nashrah Hanum Zainal - Raja Ainul Bismi - Fathilah Aris

Introduction of e. Bay Information Details Founded: September 3, 1995 Founder: Pierre Omidyar Headquarters: San Jose, California, U. S. Area served: Worldwide Key people: Pierre Omidyar (Chairman) John Donahoe (CEO) Lorrie Norrington (President of e. Bay Marketplaces) Industry: Auctions Products: Online auction hosting, Electronic commerce, Shopping mall Pay. Pal, Skype, Gumtree, Kijiji (Now e. Bay. Classifieds), Slogan: Come to think of it, e. Bay. Whatever it is, you can get it on e. Bay. Shop victoriously! From collectibles to cars, buy and sell all kinds of items on e. Bay. Buy it, sell it, love it Website: www. ebay. com Type of site: Online auction Available in: Multilingual

FOUNDER OF EBAY: Pierre Omidyar • Items Details Race Persian Born June 21, 1967 (1967 -06 -21) (age 43) Paris, France Occupation Founder and Chairman, e. Bay Inc. Net worth US$5. 5 Billion (2009) Spouse(s) Pamela Kerr Omidyar Website pmo. vox. com (Persian: born June 21, 1967) is a French-born Iranian entrepreneur and philanthropist/economist, & the founder/chairman of the e. Bay auction site.

Early Life & Work Born in Paris, France to Iranian immigrant parents. Mother Elahé Mir-Djalali Omidyar (doctorate in linguistics at the Sorbonne, is herself a well-known academic). Father was a surgeon. Growing up in Washington, D. C. , Pierre's interest in computers began at the Potomac School, which started to increase when he was in the 9 th grade. Graduated from St. Andrew's Episcopal School in Potomac, Maryland in 1984. Graduated with a degree in computer science from Tufts University in 1988. Work for Claris, an Apple Computer subsidiary, where he helped write Mac. Draw. In 1991 he co-founded Ink Development, a pen-based computing startup that was later rebranded as an ecommerce company and renamed e. Shop.

e. Bay & Later Career The site was launched on Labor Day, Monday, September 4, 1995, as "Auction Web" It was hosted on a site Omidyar had created for information on the ebola virus. The word 'e. Bay' was made up on the fly by Omidyar when he was told that his first choice for his web site, 'echobay, ' had already been registered and later he came up with 'e. Bay. ' The service was free at first, but started charging in order to cover internet service provider costs.

AUCTION TYPES Auction-style listings: allow seller to offer 1 or more items for sale for a specified number of days. The seller can establish a reserve price. Fixed price format: allows seller to offer 1 or more items for sale at a Buy It Now price. Buyers who agree to pay that price win the auction immediately without submitting a bid. Fixed price format with best offer: allows seller to accept best offers. If a buyer submits a best offer, the seller either rejects or accepts the best offer. If the best offer is not satisfactory, a seller may submit a counter offer to the buyer. Best offer is not available for auction style listings. In addition, best offer is not available in every category. Sellers also meet specific requirements in order to sell with best offer.

Bidding Proxy bidding: bidding on e. Bay's auction-style listings. Essentially equivalent to a Vickrey auction, with the following exceptions. The winning bidder pays the second-highest bid + one bid increment amount. (i. e. , some small predefined amount relative to the bid size), instead of simply the second-highest bid. However, since the bid increment amounts are relatively insignificant compared to the bid size, they are not considered from a strategic standpoint. The current winning bid is not sealed, but instead is always displayed. However, at any given moment, the highest bidder's bid is not necessarily displayed, since this amount may be higher than the amount required to win the auction.

Seller ratings On January 24, 2010 Auctionbytes. com held an open survey. Sellers could effectively rate e. Bay itself, as well as competing auction and marketplace sites. In the survey, users were asked to rank 15 sites based on five criteria: Profitability Customer Service Communication Ease of Use Recommendation After the results were published, e. Bay had finished 13 th overall, edged out by established sites such as Amazon and Craigslist, as well as lesser-known upstarts like Atomic Mall and Ruby Lane. In individual category rankings, e. Bay was rated the worst of all the 15 sites on Customer Service and Communication, and average on Ease of Use. A number of respondents said they would have given e. Bay a rating of ten 3 to 5 years ago. e. Bay was rated twelfth out of fifteen in the Recommended Selling Venue category.

PROFIT & TRANSACTION Generates revenue: various fees The e. Bay fee system, there are fees: ü to list a product (Insertion Fee) ü fees when the product sells (Final Value Fee), ü several optional adornment fees, all based on various factors and scales. Eg. The U. S. -based e. Bay. com takes $0. 10 to $4 (based on the opening price) for a basic listing without any adornments and 8. 75% or less of the final price (as of May 2009).

Profit and transactions Current business strategy includes increasing international trade. e. Bay has already expanded to over countries including China & India. Expansion failed: Taiwan & Japan, (Yahoo!) & New Zealand, (Trade. Me) owned by the Fairfax media group is the dominant online auction website. For most listing categories, e. Bay sellers are permitted to offer a variety of payment systems such as Paypal, Paymate, Pro. Pay, and Moneybookers. Affiliate payout system that calls Quality Click Pricing, affiliates are paid an amount determined by an undisclosed algorithm. The total earnings amount is then divided by the number of clicks the affiliate sent to e. Bay and is reported as Earnings Per Click, or EPC.

Prohibited or restricted items e. Bay was essentially unregulated. Now, it became necessary to restrict or forbid auctions for various items. Some of the restrictions relate to e. Bay. com (the U. S. site), while other restrictions apply to specific European sites (such as Nazi paraphernalia). Regional laws and regulations may apply to the seller or the buyer. If the sale or ownership of an item is regulated or prohibited by one or more states, e. Bay will not permit its listing.

BUSINESS MODEL Core business for Ebay is Online Auction; selling auction transaction service through the World Wide Web, which creates diversity in typical auction business. Using the web, the bidding is more widespread, reaching far to both sellers and buyers, and a wide diversity exists in the categories and products available. The market is global and more competition is present than it would be at traditional auctions or traditional stores.

BUSINESS MODEL e. Bay did not stand alone. e. Bay not only serve their customers; sellers and bidders, but also with their respective partners. It has been partnered with other organizations to make e. Bay more ‘complete’ and attractive, such as pay. Pal for trusted payment transaction. e. Bay can be illustrates as a business that serves Customers to Customers (C 2 C), Customers to Business (C 2 B), Business to Business (B 2 B).

BUSINESS MODEL

BUSINESS MODEL

BUSINESS MODEL Security are assured.

IT APPLICATIONS • Registration System. This system is important as it gathers the users information in order to proceed the auction and as the record.

IT APPLICATIONS Transaction System Transaction system helps e. Bay in managing transaction between the bidders and classified the item based on the bidding. Transaction system is essential since it is the essence in auction business.

IT APPLICATIONS Inventory System Inventory system is important in managing inventory for e. Bay. Although e. Bay don’t exactly store physical items, but inventory system needed in order to manage inventory of each items that has been bid.

IT APPLICATIONS Shipping System Shipping system essential in managing shipping items to the winning bidder based on the correct item, address and time. This system also should align and connecting with inventory system for stating record of items in and out.

IT APPLICATIONS Payment System Payment system on the other hand manages payment. e. Bay partnered with Pay. Pal as their referred payment method.

IT APPLICATIONS e. Bay pluggins important for the ebaying experience. e. Bay partner with various popular mobile company, such as iphone and blackberry, free apps such as Auctane, Auctiva and vzaar, and even e. Bay desktop.

IT APPLICATIONS e. Bay in i. Phone application: Key Features of e. Bay i. Phone apps: Buyer alerts: Stay up to date on the status of your auctions and watched items with timely alerts. My e. Bay activity: Dashboard view of all e. Bay activity with quick access to the details Sharing: Share items on your favorite social network e. Bay Messages: View and respond to your e. Bay messages

IT APPLICATIONS e. Bay Feedback: Leave feedback scores and comments while you are on the go Paying with Pay. Pal: Pay for most transactions right from your phone using the convenience of Pay. Pal.

SUCCESS STORY • Stated in the Adam Cohen's 2002 book, The Perfect Store • January 1997 the site hosted 2, 000 auctions, compared with 250, 000 during the whole of 1996 • February 2002, the company purchased IBazar, a similar European auction web site founded in 1995 • October 14, 2002, the company bought Pay. Pal • In early 2008, the company had expanded worldwide, counted hundreds of millions of registered users, 15, 000+ employees and revenues of almost $7. 7 billion

LESSON LEARNED a) APPLICATION PROGRAM • HR • ACCOUNT&FINANCIAL DEPARTMENT • MARKETING • LOGISTIC b) E-Commerce allows diversity in making business by transparency the boundaries. e. Bay with the help of emerging IT and technologies allows e. Bay keeps competitive.

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