1. WELCOME TO MY PRESENTATION
ON
A D U A D O M A K W A D W O
I I C 1 2 0 8 0 1 9 4 6 D B A S 4
E - C O M M E R C E
I 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
2. AGENDA
Company Overview, Mission & Vision
History
Business Model
Value Proposition
Revenue Model
Competition
Challenges and Opportunities
Conclusion
3. 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.
4. 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
5. 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.
6. VALUE PROPOSITION
Seller
- Broad Market
- Lower Distribution cost
- Higher Margins
- Customer Retention
Buyer
- High Bargaining Power
- Convenient
- Saves time and money
7. REVENUE MODEL
Fees 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
10. OPPORTUNITIES
- High Bargaining Power
- No barriers to entry
- Increasing competition
- Technological obstacles
- Buyers and Sellers fraud
Challenges
- Internet usage
- Market Penetration
- New Markets
11. 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.