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online marketing of ebay

Online Marketing on ebay
INTRODUCTIO
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Dr.jyothirmayi Degree College(MBA),Adoni Dept.Of
Management Page 1
Online Marketing on ebay
INTRODUCTION
Focusing on the practical application of the techniques and marketing activities of a
certain company or usiness! This usiness discipline encompasses "arketing management is
a road scope of the study of marketing! marketing planning and strategy# orientations# and
processes needed in attaining company goals y providing value to clients! $ince it has a
%ide coverage involving all factors required to satisfy customers# marketing management
must e all&pervasive and part of every employee's scope of %ork# from the suordinates to
those in the higher management!

The prime of o(ect of production is its consumption! The movement of
product from producer to consumer is an important function of marketing! It is the oligation
of the producer to make goods availale at right place# at right time right price and in right
quantity!

) "arketing has an impact on the firm# its supplies# its customers# and others
affected y the firm's choices!*

Dr.jyothirmayi Degree College(MBA),Adoni Dept.Of
Management Page
Online Marketing on ebay
"arketing $trategy+
In the field of marketing# once a usiness is finally ale to adequately profile its
customers and competitors# along %ith its competitiveness in a particular industry# marketing
managers can design "arketing $trategies that are important in capitali,ing on company
profits and resources! Important strategic decisions in marketing are grounded on specific
o(ectives such as that of ma-imi,ing revenue# market share# and level of profitaility!
In attaining the marketing o(ectives# a company must determine the
specific market segments targeted for the particular usiness! .ith a specific selection of
target customer segments# company resources are ma-imi,ed instead of eing put to %aste
and revenue increases susequently! /dditionally# companies are also ale rand their
usiness %ith a key enefit that distinguishes the company from the rest of its competitors!
The central idea ehind marketing is the idea that a firm or other entity
%ill create something of value to one or more customers %ho# in turn# are %illing to pay
enough to make the venture %orth%hile considering opportunities costs! 0alue can e created
in a numer of different %ays!
No% the question arises ho% the organi,ation can reach the end customer or
consumer1 2y %hat means %e can reach the end customers1 /fter producing goods ho% the
customers should get them1 3o% the organi,ation should e enefited1
Dr.jyothirmayi Degree College(MBA),Adoni Dept.Of
Management Page !
Online Marketing on ebay
These all questions oppose the organi,ation after creating value to goods or
services! $o# the eneficial part to this is )C3/NN45$ OF DI$TRI2UTION!*
)The chain of usinesses or intermediaries through %hich a good or service
passes until it reaches the end consumer is termed as* Distriution Channel*! / distriution
channel can include %holesalers# retailers# distriutors and even the internet! Channels are
roken into direct and indirect forms# %ith a 6direct6 channel allo%ing the consumer to uy
the good from the manufacturer and an 6indirect6 channel allo%ing the consumer to uy! The
process of making goods availale to the consumer needs effective channel of distriution!
Therefore# it is the path taken y the goods in its movement!
ON5IN4 "/R74TIN8+
Online shopping is a gro%ing area of technology! 4stalishing a store on the
Internet# allo%s for retailers to e-pand their market and reach out to consumers %ho may not
other%ise visit the physical store! The convenience of online shopping is the main attraction
for the consumers! Unique online payment systems offer easy and safe purchasing from other
individuals! 4lectronic consumers e-hiit different uying ehaviors such as9 cart
aandonment! The enefits of shopping online also come %ith potential risks and dangers that
consumers must e a%are of! In the future# %e can e-pect online stores to improve their
technology tremendously# allo%ing for an easier and a more realistic shopping e-perience!
Over the years# shoppers have increasingly turned to online shopping that is simply
shopping over the Internet and making payments through online transactions like Internet
anking and :ay:al or conventional methods of payment via fund transfer! I am sure most of
you %ould agree that online shopping has rought aout convenience in purchasing items
from not (ust your o%n country ut all over the %orld %ith (ust a fe% clicks
Dr.jyothirmayi Degree College(MBA),Adoni Dept.Of
Management Page "
Online Marketing on ebay
Online shopping or online retailing is a form of electronic
commerce %herey consumers directly uy goods or services from a seller over the Internet
%ithout an intermediary service! /n online shop# e&shop# e&store# Internet shop# %e&shop#
%e&store# online store# or virtual store evokes the physical analogy of uying products or
services at a ricks&and&mortar retailer or shopping centre! The process is called usiness&to
consumer ;2s premier online properties and the corporate home of a
numer of successful Internet rands! .ith nearly ?AA million active users# e2ay>s core
marketplace site hosts millions of retail and %holesale transactions in some KA countries
every day!
Core Businesses, Figures, and Numbers
3eadquartered in $an Jose# California# e2ay corporation has t%o core usinesses# a
payments usiness of %hich :ay:al is the flagship rand and platform and a marketplaces
usiness of %hich the e2ay %esite along %ith its various international versions are the
flagship rand! .hile e2ay formerly also had a third core usiness in the communications
space %ith $kype# %hich it acquired in s ma(ority stake in $kype %as sold to a consortium of investors in late s soft%are lets :C users talk to each other for free and make cut&price
calls to moiles and landlines! e2ay has een uying up firms & including payment
system :ay:al & in an effort to increase the numer of services it offers to consumers
and keep its profits gro%ing!
• Ne% and emerging markets provide opportunities ;"arket Development=! Countries
include China and India! There# consumers are ecoming richer and have more leisure
time than previous generations! Aspirating consumers are a gro%ing segment in many
developing nations!
Dr.jyothirmayi Degree College(MBA),Adoni Dept.Of
Management Page &
Online Marketing on ebay
• There are also still opportunities in current markets ;"arket :enetration=! .estern
4urope and the U$/ still have many potential consumers that have yet to discover the
enefits of online auctions! Rememer products have life cycles that eventually come
to an end# and such products are ideal for selling and uying on e2ay!
&(reats)
• /s %ith many of the gloal Internet rands# success attracts competition! International
competitors competing in their domestic markets may have the cultural e-perience
that could give them a competitive advantage over e2ay! In fact e2ay has found that it
has met %ith other U$/&ased Internet companies %hen trading overseas! For
e-ample# HahooU dominates the Japanese market!
• /ttack y illegal practices is a threat! /s %ith %eaknesses aove# the rand is attacked
y unscrupulous individuals! For e-ample e&mails are sent to unsuspecting e2ayers
pretending to come from e2ay! 5ogos and the design of the pages look authentic!
3o%ever they are designed so that you input private information that the thieves can
use to take pass%ords and identifications! &so e%areU
• $ome costs cannot e controlled y e2ay! For e-ample delivery charges and credit
card charges! If fuel prices %ere to rise# the cost is passed on to the consumer in terms
of delivery and postal fees! This could make the overall cost of an auctioned item too
e-pensive! $imilarly# if a credit card company such as 0isa or "asterCard imposed a
charge for online transaction# the total cost of the same items %ould increase %ith
similar consequences!
Founded in $eptemer ?@@E# e2ay ;Nasdaq+ 42/H= is The .orld>s Online "arketplaceV
for the sale of goods and services y a diverse community of individuals and small
usinesses! Today# the e2ay community includes more than a hundred million registered
memers from around the %orld! :eople spend more time on e2ay than any other online site#
making it the most popular shopping destination on the Internet!
eBay is an!
Dr.jyothirmayi Degree College(MBA),Adoni Dept.Of
Management Page '
Online Marketing on ebay
• ' Plae &o Buy! 8et nearly anything you need or %ant at prices etter than you
can find in traditional rick&and&mortar or even online stores! Though there are lots of
rotten deals on e2ay# too# the careful consumer can al%ays come out ahead!
• ' Plae &o Sell! .hether you>re a i-&o- retailer or (ust an average Joe ;or
Jane= cleaning out your garage# nearly anything you list on 4ay %ill sell if you>re
fle-ile enough aout the price! e2ay>s gloal reach can even move unusual items that
aren>t in demand in your o%n neighorhood# turning paper%eights into cash
• ' Meeting Plae, Not ' Store! e2ay doesn>t actually sell any goods itself!
/ll of the goods on e2ay are sold and delivered y third party sellers that are neither
employed y# nor have any other relationship %ith# e2ay itself! Instead# e2ay>s
usiness is to give entrepreneurs and sellers a place to reach uyers# and to give
uyers access to the %orld>s largest collection of things for sale!
• ' Plae &o S(op! 2ecause of the immense variety of things that can e found
for sale on e2ay# many memers have discovered that e2ay is one of the est places
in the %orld to %indo% or comparison shop! The millions of item listening created y
sellers often include photos# detailed descriptions# and o%ner e-periences! 2ecause
you can see lots of the same item side&y&side in various conditions and kno% %hat
each one sold or is selling for# e2ay gives you insight into the real market value or
6street value6 of most types of goods around the %orld!
• ' Plae &o Collet! e2ay is the %orld>s largest marketplace for rare# discontinued#
collectile# or hard&to&find items# no matter %hat the type or price! .hether you>re looking
for turn&of&the&century o- cameras# hand&made 0ictorian doilies# $oviet army service
medals# or ?@LAs vintage arcade games# e2ay %ill give you a etter selection than (ust
aout anyone else any%here!
• ' "ebsite! There is no physical e2ay store! Founded in $an Jose ut no% operated
from several cities# e2ay>s service e-ists entirely online# and all aspects of usiness other
than the delivery of ought and sold items themselves are typically handled through the
e2ay %esite!
Dr.jyothirmayi Degree College(MBA),Adoni Dept.Of
Management Page !(
Online Marketing on ebay
• Free #or buyers and ine*pensive #or sellers! It costs nothing to ecome
an e2ay memer# to shop for goods# or to purchase goods from e2ay sellers! $ellers pay a
minimal amount to list items for sale# and another small percentage of the value %hen an
item is sold! There are no monthly fees or other hidden costs!
• Green! e2ay is has proven to e a oon to the environment! "illions of tons of goods
that %ould other%ise go into landfills or more resource&intensive recycling programs
instead find ne% homes every year thanks to e2ay! $ome of these goods include consumer
electronics items like computer parts and moile phones that release to-ic sustances once
they>re discarded and e-posed to the environment!
• Soially $esponsible!. 2ecause e2ay eliminates middlemen and lo%ers arriers
to uying and selling# potters in rural "e-ico and ead %eavers in central /sia can sell
hand&made goods directly and ine-pensively to a massive gloal audience! This rings
ne% economic opportunities to developing areas and increases cultural understanding
et%een populations! e2ay has ecome one of the %orld>s most interesting and e-citing
trans&national amassadors
• +ike &(e $eal "orld ,n Many "ays! Just as you>ll encounter oth honest
and dishonest people in the real %orld# you>ll find oth honest people and crooks on e2ay!
Thankfully# e2ay>s site includes a selection of tools like the feed ack system hat are
designed to help you to remain safe as an e2ay memer!
In short# since e2ay>s founding in ?@@E it has ecome the %orld>s
largest place to uy and sell# a community of hundreds of millions of regular people# small
usinesses# and even ig usinesses from all of the seven continents! "illions of items of
every kind imaginale# in every condition imaginale# change hands every day on e2ay for
prices ranging from one cent to hundreds of thousands or even millions of dollars ;or pounds#
or other forms of currency=!
/ccording to e2ay>s mission statement 6e2ay>s mission is to provide a
gloal trading platform %here practically anyone can trade practically anything!6
Dr.jyothirmayi Degree College(MBA),Adoni Dept.Of
Management Page !1
Online Marketing on ebay
2y nearly any measure# e2ay has succeeded at its mission eyond its
%ildest dreams# and it has done so almost entirely in the online universe! 2ut don>t take my
%ord for it! 0isit eBay and e-plore one of the largest success stories of the Internet! Then
(oin e2ay to start shopping for great deals on your favorite items or to start turning your old
(unk into fresh cash!
42/H 0$ /"/TON+
$o let's compare! The iggest comparison# of course# is the financial comparison! I hear
all the time ho% much more e-pensive it is to sell on F2/! It isn't! "ost e2ay sellers only
compare their e2ay selling fees to their F2/ fees and this is a very incomplete comparison!
The vast ma(ority of transactions on e2ay ;I'd estimate @LO= are paid for via :ay:al# so for a
complete comparison you really have to include :ay:al fees! Once you include those fees# the
t%o marketplaces are very close to even!
Of course# each seller and each category %ill have unique fees# so the e-act difference can
only e compared y each seller! 3ere is a link to the e2ay fee structure :ay:al fees# and
/ma,on fees!
Dr.jyothirmayi Degree College(MBA),Adoni Dept.Of
Management Page !
Online Marketing on ebay
In my e-perience# %hen you nail it do%n# you end up %ith a very similar percentage of
your sales! For simplicity's sake I figure ue) By #ull
desription o# item and #ree s(ipping options too ustomers got motivated) 'nd t(ere are ot(er
#ators also)
2. "(at is t(e main reason you visit eBay/
Browsin" Partic#lar item $omparison o prices Other
&'B+E0
 

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