eCommerce: Situation Analysis of eBay Essay Sample

I. Executive Summary
eBay Inc. is an American transnational cyberspace person-to-person corporation that manages eBay. com which an online auction and a shopping web site. It was founded by Pierre Omidyar in September1995. eBay’s major rivals are Amazon. com. Yahoo Auctions. and uBid. We. the instance analysts. analyzed what are the state of affairss of the company internally and externally. We used Competitive Profile Matrix. SWOT Analysis. and we compared eBay. com to Amazon. com ( closest rival ) utilizing their fiscal ratios. We recommended three alternate solutions to get by up the jobs that eBay Inc. facing. We recommended three alternate solutions that can assist to work out the jobs confronting by eBay Inc. __________________________________ . However. we choose ____________________

II. Situation Analysis
A. Environment
Economic conditions and tendencies
Market size is expected to be $ 1 billion in 2005 from merely $ 665 million users in 2002 ; this population growing denotes an addition of possible clients for on-line auctions and retailing in general. In add-on. Forrester Research forecasted e-commerce grosss to be $ 6. 79 trillion in 2004 from merely $ 170 billion in 1999. a 4000 % addition. This exponential betterment signifies an economic roar for on-line concerns. Cultural and societal values and tendencies

The altering life styles of people suggest an increasing demand for the convenience offered by on-line auctions and retailing. Peoples are now excessively busy to hold clip to travel out and store. Knowing the power of the cyberspace. they turn to their computing machines alternatively when they are looking for something they want or need. Political and legal issues

Deceitful actions from auction users pose as a menace towards eBay’s answerability. Auctions intended to victimize bidders may be posted and remain active until detected and deleted by the disposal.

Summary of environmental chances and menaces
Opportunities
* Increasing users of the cyberspace
* Market development in new and emerging markets
* Changing life styles of people.
* Market incursion in current markets
* Improving foreign markets particularly in Asia

Menaces
* Success greatly attracts competition
* Attacks by illegal patterns may go on
* Credit card charges can’t be controlled by eBay
* Transportation and courier systems could be hapless.
* The hazard for future revenue enhancement

Deductions for Strategy Development
Based on the determined menaces and chances. eBay can utilize the undermentioned schemes: market development. market incursion. and acquisitions and confederations. Market Development in new and emerging markets in Asia. Latin America. and Eastern Europe can be targeted to maximise possible gross. Since eBay is on-line. the company is more than capable of making such markets. eBay can utilize Market Penetration to heighten the characteristics and functionality of their web site and spread out value added services. Furthermore. eBay is financially capable. the house can utilize Acquisitions and Alliances on other companies ( e. g. Paypal. Skype. hunt engines. on-line payment systems. etc. ) that could supply purchase to their existing services. To farther lessening cost. confederations can be made with the same. provided that both companies benefit. B. Industry

Categorization and definition of industry
eBay Inc. manages eBay. com is an on-line auction. An on-line auction is a procedure of purchasing and merchandising of goods by offering them up for command. taking commands. and so selling the point to the highest bidder which held over on the Internet. Online auctions worked the same ways as traditional auctions. the lone difference is the procedure occurred over the cyberspace instead than at a specific location. There are three basic classs of on-line auctions: business-to-business. business-to-customer. and person-to-person. eBay. com is a person-to-person auction. Analysis of bing rivals

In the CPM. eBay has the highest mark followed by Amazon Auctions. and Yahoo Auctions. uBid has the lowest mark. We ranked each factor based on the information in the instance survey. The graduated table ranged from 1-4. with 1- major failing. 2- minor failing. 3- minor strength. and 4- major strength. Four cardinal factors were on top: measure of purchasers and Sellerss. client service. trade name name. and planetary distribution. eBay strengths are convenience. client service. trade name name. planetary distribution. and measure of purchasers & A ; Sellerss. While its failings are after velocity of dealing and mistake rate. This analysis shows that eBay is in front of all the others. However. Amazon. com is the closest rival of eBay. com. COMPETITIVE PROFILE MATRIX

Analysis of possible new entrants
eBay Inc. is a really profitable company so it attracts new possible rivals looking to accomplish net incomes. Using on-line auction or online retailing is more less expensive and hassle-more free for both purchasers and Sellerss than the traditional ways. So. it truly attracts new houses and retail merchants to travel into e-commerce. It may pull new entrants nevertheless. the menace of new entrants is really low. It would be impossible for a new entrants to make the position that eBay. com already maintains and additions. eBay. com bargains and sells about anything new or used assortment of goods and services worldwide. eBay Inc. has been in the cyberspace market place since 1995 ; it would be really hard for a new entrant in the industry to raise adequate capital to even vie with eBay. com. Furthermore. It would besides be really hard for a new entrant to derive economic systems of graduated table associated as the other bing rivals in the industry already have done. Even though. It is easy presents to start-up your ain e-business as engineering progresss but for new entrants to vie on the same degree of eBay. com would be an unachievable. Analysis of replacement merchandises

The menace of replacement merchandises is high. With the exclusion of engineering. there are rather a batch of options to eBay’s merchandises and services offered. Traditional auctions and retailing can replace to online auctions and retailing. Not all people are utilizing the cyberspace as a agency of their concern minutess because some of them are more comfy in traditional ways. Although. eBay offers assorted new and used goods. there are still many companies had both physical and on-line shops act as a replacement for eBay. com. eBay. com’s merchandises and services can be purchased all over on the cyberspace ; they are merely spread out among different web sites like Amazon. com. Yahoo Auction and uBid. There are besides companies had web sites wherein. you can straight seek their offered merchandises and services which are more dependable such as Wal-Mart. Kmart. Target. Sears. JCPenney. and Office Depot. There are some people who are more comfy to shop or buy in physical shops. Although. people are more technology-oriented. there some still utilizing the traditional retailing and auctions. eBay’s offerings can be substituted so easy. but the physical shops and web sites of other companies may non offer the same quality of client service and convenience to its clients at eBay. com has done. Analysis of providers

On-line Sellerss were categorized into three groups: insouciant. hobbyist & A ; aggregators. and power & A ; corporate Sellerss. First. insouciant Sellerss used eBay as a replacement for a classified ad listing or a garage sale to dispose of points they no longer wanted and some of them used eBay to raise money for some new undertaking. Following. hobbyist and aggregator Sellerss were typically dealt in a limited class of goods and looked eBay as a manner to sell the selected point in their aggregation to others who might desire them. They besides used a scope of traditional and on-line mercantile establishments to make their mark market. Last. power and corporate Sellerss were little to moderate-sized concerns that favored eBay as a primary distribution channel for their goods and frequently sold 10s of 1000s of money’s worth of goods every month on eBay. They were responsible for 80 % of eBay’s entire concern. The dickering power of providers is a menace. A menace non merely to eBay Inc. but in the full industry. Suppliers or Sellerss have a higher power given that eBay. com can non vie with them because eBay. com doesn’t tally any production workss. Then. eBay. com truly value their providers or marketer but received no particular interventions and this is applicable to all even little or big. Analysis of purchasers

Online auction purchasers were categorized into three groups: deal huntsmans. hobbyist and aggregator purchasers. and professional purchasers. First. deal hunter’s chief aim was to happen a great trade. They were thought to do up merely 8 % of active online users but 52 % of eBay visitants. Next. hobbyist and aggregator purchasers used auctions to seek for specific goods that had a high value to them personally. They were really peculiar with both monetary value and quality. Last. professional purchasers were looking for a manner to assist incorporate costs and seeking alone points to supplement their stock list. The lone difference of professional purchasers was their association with commercial endeavors. So. for eBay Inc. their purchasers are really of import for them because they are the grounds for their success. The dickering power of purchasers is a menace. eBay. com’s clients have the pick of purchasing the merchandises and services they desire on the 100s of 1000s of other retail web sites on the cyberspace. If eBay. com does non offer low or satisfactory monetary values so the client will seek on the cyberspace until they find that low and satisfactory monetary value. The best thing about eBay. com that they provided first-class client service tactics so the clients are satisfied and does non do purchases elsewhere online. Summary of industry chances and menaces

Opportunities:
* Peoples tend to be more trade name loyal when it comes to online shopping
* Rapid growing in cyberspace usage
* Expand more internationally
* Large base of providers and clients throughout the universe
* Long-run industry growing
* Potential new markets like in Asia
* Technological development
* Fast turning market
* Market development

Menaces:
* Rapid growing of major rivals peculiarly Amazon. com
* Increasing figure of online shops
* Bargaining power of purchasers and providers
* Substitute merchandises
* eBay’s success attracts more rivals
* Some people prefer the traditional auctions and retailing Implication for scheme development

With the rapid growing of major rivals ( e. g. Amazon. com ) and increasing figure of on-line shops. rapid growing in cyberspace usage and possible new markets. eBay can utilize Market Development scheme to make the possible market through new users and in order for them to keep their planetary growing enterprise. and reinforce selling. Furthermore. Market development in a new and emerging markets like China and India is a immense chance. eBay should take the chance that people. presents. are more dependent in seeking or purchasing things on the cyberspace. Furthermore. through the usage of this scheme. eBay can acquire big of providers and clients worldwide. eBay is still in the turning stage so they should concentrate more on technological development since they are utilizing the cyberspace. C. Organization

Aims and restraints
Aims:
* To make the aim of $ 3billion in one-year grosss by the year-end 2005
* A gross border mark above 80 %
* Target runing border of 30-35 per centum.
* To supply a planetary trading platform where practically anyone can merchandise practically anything.
* To engage person who has an first-class quality in a given place

Constraints:
* Analysts were concerned about whether eBay could prolong its phenomenal growing.
* Higher compensation for competitory and knowing employees with high place in the organisation.
* High care for a dominant participant in the auction market Financial status

The net hard currency used in puting activities in 2004 chiefly the purchase of belongings and equipment. and acquisitions. Purchases of belongings and equipment in 2004 related chiefly to purchases of computing machine equipment and package to back up our site operations. client support and international enlargement. In Cash expended for acquisitions. cyberspace of hard currency acquired. totaled about $ 1. 0 billion in 2004. In hard currency acquisitions included the acquisition of Mobile. de. Baazee. com. and Marktplaats. nl. every bit good as an extra ownership involvement in Internet Auction Co. In the analysis of fiscal statements. its current ratio is 2. 7 that shows liquidness place is stronger than other companies in the same industry and this is a mark of no possible problem. The profitableness ratios of eBay show that its return on entire assets and return on common equity is 10 % and 11 % severally eBay’s 10 % return is non good. It is evidently better to hold a much higher return on assets because finally. management’s determination is to utilize a great trade of debt. Stakeholders expect more to gain a return on their money because of 11 % above than the major rival. | eBay. com| Amazon. com|

Liquidity Ratio ( Current ) | 2. 7| 1. 58|
Profitability Ratio| | |
Tax return of Assetss ( ROA ) | 0. 10| 0. 18|
Return of Equity ( ROE ) | 0. 11| -2. 59|
Last. one of the hazards that may impact the good fiscal of eBay is the exposure to fluctuations in currency exchange rates. Net grosss outside the United States accounted for about 42 % of net grosss in 2004. Because the company conducts a important and turning part of concern outside the United States but study consequences in U. S. dollars. If the U. S. dollar weakens against foreign currencies. as it did in 2004. the interlingual rendition of these foreign-currency-denominated minutess will ensue in increased cyberspace grosss. operating disbursals. and net income. Management doctrine

Specific elements of eBay’s concern theoretical account that the company peculiarly recognized as cardinal to its success. * The fact that it was the largest on-line trading forum. with a critical mass of purchasers. Sellerss. and points listed for sale. * It’s compelling and entertaining trading environment. which had strong values. established regulations. and procedures that facilitated communicating and trade between purchasers and Sellerss. * Established trust and safety plans such as SafeHarbor. This plan provided guidelines for trading. aided in deciding differences. and warned and suspended ( both temporarily and for good ) users who violated eBay’s regulations. * Cost-efficient. convenient trading.

* Strong community affinity.
* An intuitive user interface that was easy to understand. arranged by subjects. and to the full automated. Organizational civilization
Many of us know really good about eBay company. a universe celebrated auction company in the universe. founded by Pierre Omidyar. The house establishes connectivity non merely in external but besides internal. Organization invariably maintains the good flow of repute they had as a dominant participant in the auction market. Furthermore. they besides value everyone particularly their possible employees who had a large part to the organisation by giving a satisfactory compensation that would be them productive in the organisation.

As a dominant participant in the auction market. they preferred English linguistic communication as their primary linguistic communication because aided them to pass on good internationally. They believe that giving a faster. dependable. and easy for individual to individual dealing would take their users successful in trading and besides it would travel through for the company success excessively. Summary of the houses strengths and failings

Strengths:
* Well known on-line auction company in the universe
* Publicly traded
* Partnership with international companies
* Over 250 confederations
* Zero stock list held by the company

Failings:
* Weak promotional and selling activities
* eBay does non pay dividends on their stock
* Some client experience the web site is cluttered

Deductions for scheme development
In distribution system. really is great because they give a certain regulations to be followed in order to hold a just trade. Furthermore. they provide a trust and safety plans such as SafeHarbor. This plan provided guidelines for trading. aided in deciding differences. and warned and suspended ( both temporarily and for good ) users who violated eBay’s regulations. So it seems sounds great to be with eBay’s users for get downing an enterprise for gaining money for exchange object to other users for a existent trade and it creates connectivity on it. D. Marketing Strategy

Aims and restraints
Market Penetration
Aims:
* To broaden the scope of merchandises offered by developing new merchandise classs. * To offer a more local spirit to eBay’s offerings by establishing over 60 regional sites. * To complement the new offerings by offering or presenting new eBay shops. * To let big Sellerss to more expeditiously sell their merchandises through an understanding with Accenture. Constraints:

* Not all classs that are freshly created by eBay will be patronized or entertained by clients.

Horizontal Diversification
Aims:
* EBay considered developing a loyal vibrant trading community to be a basis of its concern theoretical account. * Created EBay University to assist acknowledge that many new users might non acquire the most out of their eBay experience and trusting to present new enterprisers to the community. * EBay launched the digital chance plan for seniors to develop and convey in 1 million seniors by 2005. * To further a sense of community among eBay users.

* To supply a guideline for trade and information to assist decide user differences. and respond to studies of abuse of the eBay service by establishing Safeharbor. Constraints:
* The feedback forum was non ever sufficient to guarantee honestness and unity among bargainers. * Deceitful activities represented a important danger to eBay’s hereafter.

Merchandise Development
Aims:
* To add services by offering a assortment of pre and station trade services to heighten the user experience and supply an terminal to stop trading experience. * To ease a individual to individual recognition card payments by geting Paypal and other companies. * To offer recognition card payments scam less and incorporate portion of the trading experience. Constraints:

* PayPal was merely available to users in 38 states sing that eBay serves more than the given figure states.

Market Development
Aims:
* To seek growing chances in international markets in an attempt to make a planetary trading community. * To farther spread out its planetary range by geting Germany’s largest online individual to individual trading site. * To set up an Asiatic presence by organizing a joint venture with NEC to establish eBay Japan. Constraints:

* Increase in the figure of competitors’ local and international online retail shops.

Analysis of gross revenues. net incomes. and market portion
The predicted 3 billion one-year gross of eBay’s top direction reaches its declared ends a twelvemonth early. By spread outing eBay to international operations. it truly helps the part of net income particularly by take downing revenue enhancements in 2004 compared to prior old ages. However. the care of its success doesn’t warrant to pull off the profitableness in close hereafter because of intense competition as the market leader. Though it is adequately differentiated from their rivals and possesses approximately 70 % of the on-line auction market portion. rivals may follow more aggressive pricing policies and may offer services for free that unable eBay to vie reasonably. Analysis of mark market ( s )

Basically. eBay’s mark market is any participants in on-line auctions. eBay serves participants who either prefer to be a marketer or a purchaser. These participants could be bargain huntsmans. hobbyist/collector purchasers. professional purchasers. insouciant Sellerss. hobbyist/collector Sellerss and corporate and power Sellerss. The deal hunters’ aim is to happen a great trade. Hobbyist and aggregator purchasers used auctions to seek for specific goods that had a high value to them personally. Professional purchasers like deal huntsmans are looking for a manner to assist incorporate costs and besides seek alone points to supplement their stock list. Casual Sellerss use eBay for classified ad listing or a garage sale to dispose points they no longer wanted. Hobbyist and aggregator Sellerss on the other manus dealt in a limited class of goods and looked to eBay as a manner to sell selected points in their aggregations to others who might desire them. And in conclusion. power and corporate Sellerss who favored eBay as a primary distribution channel for their goods and frequently sold 10s of 1000s of dollars’ worth of goods every month on the site. Analysis of marketing mix variables

Merchandise
eBay is a individual to individual trading community and is ab initio conceived as an on-line auction site. An on-line auction is a service in which auction users or participants sell or command for merchandises or services via the Internet. Virtual auctions facilitate on-line activities between purchasers and Sellerss in different locations or geographical countries. The service offered can either be in concern to concern. concern to consumer or individual to individual auctions. The merchandises being sold from their web site are personally owned by the Sellerss registered in eBay and non straight from eBay. Promotion

eBay markets through the cyberspace. which is an indirect merchandising to give a better service for eBay’s clients. they acquired a figure of companies in order to hold a smooth running concern dealing between eBay and its clients and every bit good as eBay’s Sellerss and purchasers. Monetary value

Their monetary value scope depends on what merchandises the marketer really sells. But there are fees to be paid such as bear downing Sellerss for naming their goods and services and a committee on all gross revenues. Topographic point

The existent topographic point where the command is done is on the cyberspace. Sellers and purchasers go to www. ebay. com. All the selling is done online. on their web site. Peoples
EBay exists and became successful because of Pierre Omidyar. Besides. with the aid of Margaret Whitman. eBay has become as successful for the past old ages and until today. However. eBay will non be eBay if it wasn’t for their employees working for a better eBay. Procedure

EBay acquired several companies to better function their clients such as Paypal. Accenture and etc. Not merely that. they launched several plans such as the application plan interface and developer plan to let other companies use eBay’s commercialism engine and engineering to construct new sites. They besides went and had a market developed in different states such as Germany and Japan. They besides created a feedback forum where clients can show their feelings and ideas about eBay. Not merely that. but they besides created eBay university that travelled around the universe to keep seminars. Summary of marketing strategy’s strength and failings

Strengths:
* eBay expanded its company when they acquired a figure of companies. * They developed new successful merchandise classs where 10 of those had gross ware gross revenues of over $ 1 billion. * eBay had market development in topographic points all over the universe. * Added services to make client value to heighten the user experience and supply an terminal to stop trading experience by offering a pre and station trade services. Constraints:

* Acquisition can be hazardous because many things can travel incorrect with even a well-laid program to turn by geting: Cultures may collide. cardinal employees may go forth. synergisms may neglect to emerge. assets may be less valuable than perceived. and costs may skyrocket instead than fall. * Market development increases the figure of rivals. * The acquisitions of eBay to other companies are limited merely to some of the states they are providing. Deductions for scheme development

eBay should travel for market incursion to increase the market portion of their merchandises or services in present markets through greater selling attempts. Such as their acquisition of PayPal. they should do it available in all states and non merely to some. seeing their capablenesss. In that manner. they didn’t merely aid themselves. but PayPal could besides profit from it. And since the feedback forum was non ever sufficient to guarantee honestness and unity among bargainers. they could carry on on-line studies to cognize what the clients think of eBay’s services. eBay has been geting organisations. Though geting is a good manner to spread out. acquisitions have hazards. Just like geting an organisation in Germany. civilizations may collide. And their relationship may hold troubles and may stop up with a case. eBay should besides assist their clients increase their fraud consciousness. One manner is by seting up guidelines and tips on their web site so that clients will be cognizant of things they should and should non make.

E. Problems Found in Situation Analysis
Statement of primary job
eBay’s growing had been great and it created high outlooks among investors or Sellerss. As old ages passed. the market conditions of eBay became slow. Because of this. eBay must pull new clients or markets to go on its current growing without stretching itself excessively thin. eBay has sustained a competitory advantages in the on-line auction market. but now it must reassign this success to extra enlargement in the international markets. Even with the beef uping competition. analysts estimated that eBay controlled about 85 % of the consumer-to-consumer on-line auction market and 64 % of entire on-line auction gross portion. Evidence of job:

In the twelvemonth 2003. the mean transition rate ( the figure of auctions that were completed successfully ) was about 51 % . a rate that held steady over the last two old ages. And. this is threatened by supply instabilities. Consequence of job:

If the slow conditions of eBay continue. Sellerss will happen another web site where they can sell or offer their merchandises. This possibility of losing some of their Sellerss will be a large advantage for their rivals. Statement of secondary job:

eBay’s growing had been outstanding. This impressive path record. coupled with the advancement they had made in making their declared ends had created high outlooks among investors. These exalted outlooks began to do some concern as eBay’s domestic nucleus market of on-line auction gross revenues began to demo some warning signals. Analysts were besides concerned with how much more incursion ebay could accomplish. Too many Sellerss as comparison to purchasers. Evidence of job:

eBay was confronting increasing dissatisfaction by some of its largest corporate Sellerss. Some corporate Sellerss were sing important trouble with selling a big volume of goods. on the site while keeping a sufficient net income border. eBay didn’t have enough purchaser demand to absorb important measures of a individual good. Consequence of job:

In many classs. as the figure of Sellerss grew. supply was get downing to outstrip demand. Many big Sellerss such as Motorola and Circuit City abandon selling on eBay and to seek for extra gross revenues mercantile establishments. III. Strategic Alternatives for Solving Problems

Description of strategic alternate 1
Market DEVELOPMENT
eBay Inc. can develop a market in new and emerging markets like Asia ( e. g. states like China and India ) . Latin America. and Eastern Europe to maximise possible gross. The outgrowth of new markets creates a good chance to capture a larger market portion in the industry. and easier for eBay to present new merchandises. Customers in an emerging markets are going richer and have more leisure clip than old coevalss. eBay uses the cyberspace to make their markets. eBay should take the advantage that people. presents. are more dependent in seeking or purchasing things on the cyberspace. Benefits of alternate 1

* Maintain planetary growing enterprise
* Reinforce selling
* Can acquire big base of providers and clients
* Increase market portion
* New geographic markets
Cost of alternate 1
* Too much cost to derive new new client
* Development failure may go on
Description of strategic alternate 2
DIVERSITION ( CONGLOMERATE AND CONCENTRIC STRATEGETIES )
eBay is financially capable. the house can get other companies ( e. g. Paypal. Skype. hunt engines. online banking. etc. ) that could supply purchase to their existing services. To farther lessening cost. confederations can be made with the same. provided that both companies benefit. The intent of this scheme is to let the company to develop new markets and enter lines of concern that can be a great aid to keep their market growing. Benefits of alternate 2

* Expand the organization’s operations by adding markets. merchandises. services or phases of production of the bing concern
* Maintain planetary growing enterprise
* Efficiency additions
* Control markets by vouching gross revenues and distribution
* Take advantage of bing expertness
Cost of alternate 2
* May consequence in decelerating growing in its nucleus concern
* Additional direction costs
* Diversification through acquisition may ensue in failure
* May consequence in negative synergisms

Market Penetration
eBay Inc. can capitalise on Market Penetration to heighten the characteristics and functionality of their web site and spread out value added services. This will assist them to turn more where focal points on selling bing merchandises into bing markets. Since eBay has a great fiscal status. They can carry on pricing schemes. on-line advertisement. gross revenues publicities and price reduction rates.

* Maintain or increase market portion of current merchandises
* Secure laterality of growing markets
* Restructure a mature market by driving out rivals
* Increase use by bing clients
* Can bring on a rhythm of monetary value lucifers by viing organisations that may ensue in lower industry-wide grosss
* Lack of consequences
* Saturated market

IV. Choice of Strategic Alternative and Implementation Statement of the selected scheme
The recommended schemes are ACA 1: Market Development and ACA2: Diversification ( Concentric and Conglomerate Strategies ) . We recommend ACA 1 because it will make a good chance to capture a larger market portion in the industry. Through this. they can spread out more globally. keep the planetary growing enterprise. reinforce selling and can acquire big base of Sellerss and purchasers. We besides recommend ACA 2 because it could supply purchase to their existing services. It allows eBay to develop new markets and enter line of concern that can be a great advantage to keep as a taking on-line auction in the industry.

Justification for choice of scheme
Based on their fiscal status. the schemes recommended will non hold an consequence on their fundss. These schemes are proven that will assist them to increase or to keep their planetary growing in the industry. Addition to that. they can hold a larger market portion than to their rivals particularly Amazon. com enchantress seeking to acquire in front of eBay. com. Since the bargaining power of providers a purchaser are high. they can utilize these schemes to acquire a big base of possible providers and possible purchasers. Description of execution of scheme

In market development. eBay can develop a market in new and emerging markets like Asia ( peculiarly China and India ) . Latin America. and Eastern Europe. These markets are going richer and most of the people are in cyberspace usage. But before that. eBay should carry on market research to garner informations on providers and clients. and possible providers and clients for determinations doing. In spread outing internationally. eBay should cognize the cultural attitude about e-commerce. There are some people do non prefer on-line shopping. Entering into a new market. eBay should follow with the local Torahs and ordinances in exports and in selling. eBay should see technological development like in velocity of minutess. selling new applications or plans. making criterions for the industry and hire online expertness to pull more possible providers and clients.

eBay should set securities to guarantee that no deceitful activities can go on during the procedure. In variegation scheme. eBay can get or can hold confederations with other companies like PayPal. eBay and PayPal have a alone chance to monetise merchandiser services and platform offerings by integrating PayPal payment services and the eBay market place offerings. eBay should besides follow with its regulations and ordinances so that misinterpretations will non happen. eBay can get other on-line shops like Shopping. com. a monetary value comparing service that allows persons to see different monetary value lists for specific merchandises. This is a great advantage for eBay to pull more possible purchasers since eBay is non the lone one in e-commerce.