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 eBay is an
online
website for
shopping and
auctioning
founded by
Pierre
Omidyar

 It is one of the largest e-commerce
companies
 With more than 200 million users, eBay is
a consumer-to-consumer marketplace
 It allows people and businesses to buy
and sell goods and services, globally

 eBay utilizes a decentralized structure in
which it uses a highly interconnected
network that allows users to auction
items directly to each other
 It allows users to sell and buy goods and
services directly
 It allows buyers and sellers to rate each
other

 eBay is a self-governing, self-organizing, complex
organization
 Blends order and chaos by utilizing both centralized
and decentralized structures
 It provides order by making users log in and requiring
identification
 Doesn’t offer some type of assurance against fraud
 It has the buy now option (fixed price) which is a
unique benefit to the consumers
 It also provides mobile payment and continues to
innovate
 This allows eBay to remain stable and remain as one
of the largest marketplaces

 Key competitors:
- Amazon started off as a bookstore and
now expanded to which almost any item
searched can be purchased; though
Amazon is a key competitor, Amazon
sometimes works together with eBay
- Craigslist is a classified advertising
website for housing, jobs, and other
personal sales

 PayPal is a payment service that stores
credit card information so the user can
check out with ease
 Services for gifts and tools
 Stuff by eBay is an easy way to organize
purchases by centralizing online receipts
 Cell phone center provides services to
users such as looking for a new phone at
a great price

 eBay has customers all over the world
 User base of over 200 million
 eBay Inc. is an important associated group
within eBay that enables commerce and
investor relations
 Merchants worldwide
 Business owners and startup businesses who
rely on eBay to sell their goods and services
 Investors who have purchased stock

 Collaborative, coordinative, and
competitive in that the decentralized
structure allows people to come
together to buy and sell products and
goods worldwide
• facilitates convenient and fast
customer service
• purchased PayPal to offer a safe and
easy way to complete transactions

• Recognizes threat and competition
and strives to provide valuable service
through the use of complementary
services (Stuff by eBay)
• Convenient payment methods
(PayPal) to overcome competition
• Provides rewards (earning 2% of their
money back) through eBay bucks
• improvements and developments are
constantly made by the eBay team

 eBay provides numerous commerce
features
• PayPal – faster, safer way to pay
• GSI Commerce – leading provider of e-
commerce and interactive marketing
services
• X.Commerce – open commerce platform for
all merchants

 First funding from Bench Mark Capital in the
amount of $6,700,000
 Soon after, went public and started selling
shares on the NYSE
 Relies on crowd funding
 Relies on peer production (crowd wisdom);
draw on own local knowledge (buyers and
sellers) to facilitate a growing marketplace
 Ability to aggregate

 Relies on crowd sourcing – eBay is a
collaborative environment in which it provides
a platform for users to buy and sell to other
users directly
 User-to-User distribution – no inventory
 Personalizes and customizes for product
searches
 Provides filters for products and services such as
price, location, and top-rated sellers

 Utilizes the transaction model –
traditional model
 Profit sharing and incentives - eBay uses
broker fees – take percentage of
whatever the action is – as sellers get
most of the money, eBay gets a portion
of it because they provide the platform
for which the users can sell

 The eBay name and logo are registered
trademarks in the U.S. as well as
internationally
 The use of the name and logo are only
permitted if the specific individual or
organization has a written license
agreement

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