Q1: eBay is one of the only major Internet "pure plays" to consistently make a profit from its inception. What is eBay's business model? Why has it been so successful?
EBay is an online auction and shopping website in which people and business buy and sell a broad variety of goods and services worldwide. EBay business model is the broker model. EBay has been rather successful because most people have a rather good experience. EBay is a website which tries to ensure that people are being genuine. If and account seems to be fraudulent then eBay would delete their account. EBay has safety measures to ensure that people are not being ripped off.
Q2: Other major web sites, like Amazon.com and Yahoo have entered the auction marketplace with far less success than eBay. How has eBay been able to maintain its dominant position?
EBay dominates when compared to Yahoo and Amazon. The main reason behind this is, EBay allows users to sell items up for auction. If item is sold the seller gets the benefits and eBay gets their commission. Whereas, with Amazon and Yahoo, sells their product which they do have it their stock. This is the reason why eBay dominates when compared to Yahoo and Amazon.
Q3: What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?
EBay website provides security tips to the buyers and the sellers to reduce the risk. EBay recommends Pay Pal for all money transaction, as it considers this is the safest way. But if the eBay users uses any other payment method other than Pay Pal, they website consider that as a risk. The most important benefit of using Pay Pal is, if the buyer is not happy with the item purchased or if the sellers think the seller is fraudulent, Pay pal refunds the money back to the buyer. EBay users cab be exposed to Identity theft, Buyers fraud and Sellers fraud.
Q4: eBay makes every effort to conceptualize its users as a community (as opposed to, say "customers" or "clients"). What is the purpose of this conceptual twist and does eBay gain something by doing it?
EBay does make every effort to conceptualize its users as a community as it would prefer their users to visit again. EBay offers promotional deals to attract users and make them a active user by making them to buy and sell, so it benefits the user as well as the Website.
Website offers many items that are hard to purchase in a physical store. Buyers can buy products from other countries without traveling.
Q5: eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?
Online shopping is getting popular, recently. People prefer doing online shopping rather than going to a shop physically. Online shopping saves time, saves money and there are so many options. Brand name vendors would set up shops on eBay because there are countries where physical brand stores would not be available, so by selling it online it would benefits the buyer as well as the brand.