Success of eBay and its Causes

eBay is one of the success example for e-commerce and also a well-known website for everyone. It has around 13 years of history. eBay has a strong primary goal and mission is to be an online person-to-person community.



eBay's success is based on its ability to transform many fragmented, primarily local markets into global ones at a relatively low cost to its users. Nowadays, all buying and selling transaction can be make online so that it can satisfied people who always have a high demand and make sure that they are getting the items that they need. If compare to last time, it have been done through garage sales, classified advertising in local newspapers, and flea markets. However, the number of people available to complete a transaction was limited because a face-to-face meeting was typically required.


FRAUD have been mitigated through a user feedback system escrow services, so that users right are PROTECTED. These also can increase the trust of users on eBay. eBay's ability to bring a large number of buyers and sellers together is what has driven its GROWTH. The more buyers there are, the more sellers want to participate. Conversely, the more sellers there are, the more items are to buy, and the greater the attraction of the service to buyers.

eBay makes money by charging listing fees and collecting a percentage of the selling price of items sold through the site. EBay also owns PayPal, which makes money through investing its clients' assets and from transaction fees.

PayPal

eBay successfully introduced NEW MARKET, such as car sales, which many thought would not be adaptable to its business model. Although just a small portions of the world's population currently using eBay but fundamentally, it is so successful because it meets its customer's needs better than any competing service. No one else has accumulated such a large number of buyers and sellers in a single marketplace.