Ahmad Fazrin Bin Salleh - 1047DCM113
Zulhilmi Bin Yussof
- 1037DCM612
Yusri Bin Ahmad
-
Introduction
EBay Inc. is an American multinational internet
consumer-to-consumer corporation, headquartered in San Jose, California. It was
founded in 1995, and became a notable success story of the dot-com bubble; it
is now a multi-billion dollar business with operations localized in over thirty
countries. The company manages eBay.com, an online auction and shopping website
in which people and businesses buy and sell a broad variety of goods and
services worldwide. In addition to its auction-style selling’s, the website has
since expanded to include "Buy It Now" standard shopping; shopping by
UPC, ISBN, or other kind of SKU (via Half.com); online classified
advertisements (via Kijiji or eBay Classifieds); online event ticket trading
(via StubHub ); online money transfers (via PayPal ) and other services.
EBay popularized the concept of buying and selling online,
and both individuals and commercial enterprises list items for sale. There is
no charge to browse the site or make bids and purchases, but there is a fee to
list items. If an item is purchased, the seller pays eBay an additional fee.
Millions of items are offered, and billions of dollars’ worth of merchandise is
sold every year through this service. Launched in 1995, eBay has made numerous
acquisitions over the years, including the PayPal payment service in 2002 and
the Skype voice over IP (VoIP) service in 2005.
Objective
There must be a solution of all problems that need to be
resolved.
1. Online sales
can help buyers to see all the goods are sold in more detail. Online goodies
will be included other types of goods, price, color, and so on.
2. Sale online
can save time for someone to get the desired goods. Furthermore, nowadays
people are very busy job.
Problem Statement
1. All the emails
describe slightly different problems but a sudden flurry of incoming mail on
the same topic is usually evidence that something is awry.
2. The most
notable problem reported was that the filter on search that gives UK based
items prominence isn’t working, meaning that items from overseas were getting
an equal chance of eyeballs on eBay.co.uk. Now, I’ve not been able to replicate
that.
3. The payments
space as a whole seems to be heating up at an accelerating pace recently and
Amazon, with more than 200 million e-commerce accounts complete with credit
card numbers and a trusted brand, could, to quote a 1990’s Jeff Bezos, get big
fast and challenge eBay's (EBAY) PayPal for payments dominance.
4. The wagons are
circling around Paypal and with the loss of Marcus, its larger strategy and
market position should be questioned. Recent weakness in eBay stock, off 18%
from its March highs even as the broader market continues to make new all-time
highs, is probably anticipating a deteriorating outlook for the business.
Strategy
This discussion is about how to win items on eBay, while
paying the lowest price possible. Most bidders automatically assume the best
bidding strategy is to place a low bid in at the last minute of the auction,
but this may not always be the best strategy. Below is an exploration of the
pros and cons of different bidding strategies.
Bid Sniping
Bid sniping is probably the most obvious bidding strategy.
Bid sniping involves placing a bid as late as possible within the auction
closing time, typically within the last few minutes or seconds of an auction.
The underlying ideology is that your bid will go unnoticed and competing
bidders will not have a chance to reciprocate and bid higher since there is not
much time left. This strategy is somewhat flawed. First, eBay uses an automatic
bid increment system. For example, the winning bid on an auction may appear to
be $100. However, it is possible the winning bidder actually has a bid of $500,
and so your bid of $150 will only raise the current selling price to $155
(assuming $5 increments). The danger in using the bid sniping strategy is your
last minute bid may still be under the current bidder's highest bid. In such a
case, your bid sniping will only increase the price the winning bidder pays,
while you lose out on the item. Secondly, bid sniping is awfully risky
especially when you wait for the last few seconds of an auction closing time.
Your internet connection could suddenly drop out; or, perhaps eBay requests you
to enter your password to confirm your bid, only to discover you entered the
wrong password and the auction ended in the meantime. There are numerous
variables that could go wrong, causing you to miss your chance to bid on the
item. Thirdly, bid sniping typically misleads other prospective buyers into
thinking a particular item will sell for a lot less than normal. Since all the
bidders wait till the last second, the current winning bid price may appear to
be abnormally low and as a result attract more bid snipers, creating even more
competition and driving the selling price higher. While bid sniping may be
effective in some cases, there are a lot of variables that go unnoticed.
Proxy Bidding
Since eBay's bidding system is based on an automatic
incremental system, proxy bidding is extremely easy on eBay. Proxy bidding
essentially means placing your highest bid in upfront (the highest amount you
are willing to pay), and eBay will automatically bid on your behalf up to the
highest amount specified in increments. eBay automatically places the lowest
bid possible, while at the same time making sure you are still the winning
bidder. No one but eBay knows your highest bid, so there is no danger of a
seller attempting to get you to pay more for an item by placing competing bids
just below your highest bid. Proxy bidding works great as you can put your
highest bid in right away and sit back and let eBay do the rest for you. If you
are outbid, you can always insert another higher bid later on. In any case,
proxy bidding is a very safe and easy way to bid on eBay. Simply determine the
highest amount you are willing to pay for an item and place your bid in the
auction as early as possible and eBay will automatically bid on your behalf up
to the highest amount you are willing to pay (if necessary). Proxy bidding is
one of the more effective and successful bidding strategies. If you lose out on
an item, the only reason possible is the item sold for more than you were
willing to pay (assuming you put your bid in as the maximum amount you were
willing to pay upfront). On some occasions you may find yourself outbid, only
to discover the winning bid was one increment, or $5 over your highest bid.
This can be disappointing, so you may still want to keep an eye near the closing
time in case you get outbid.
Low-ball Bidding
Some bidders have high hopes of winning high-ticket items at
ridiculously low prices. Because of eBay's listing fee structure, many sellers
often start the opening bid at values under $9.99 in order to pay lower listing
fees. So a $2,000 laptop (estimated value) may have an opening bid of $9. Some
buyers are misled and think they can purchase the expensive laptop at a winning
bid of $9. Thus, these buyers scour eBay for all the expensive items with low
opening bids and right away place the first opening bid at the lowest price
possible. These buyers will do this repeatedly to have as many as 100 or more
low-ball bids on items simultaneously. eBay is a near perfect marketplace where
buyers compete to win items, paying the maximum price each buyer is willing to
pay for items. Therefore it is extremely unreasonable to expect a $2,000 laptop
to sell for an opening bid of $9 (it is almost impossible for such an
occurrence).
Buy it Now
You may also consider eliminating bidding altogether and
look only for items offered with Buy it Now prices in your price range. eBay
has a unique Buy it Now feature that is visible on most auctions (when a seller
specifies) based upon a price a seller has predetermined. In some cases, you
may find a real bargain using a Buy it Now price. Or, you may be in a hurry to
purchase an item and need it right away so the Buy it Now option allows you to
win an item quickly without having to wait days for an auction to end. Keep in
mind the Buy it Now price automatically disappears on all auctions once the
first bid is placed (or the reserve price is met on a reserve auction). Once
the Buy it Now option disappears, you will no longer be able to utilize it (it
is against eBay policy to request a seller to sell an item outside of an eBay
transaction using a "Buy it Now" price). So how can you find these
Buy it Now bargains before another buyer places the first bid? eBay has a
unique Favorite Search feature, which automatically notifies you of items matching
a specified search by e-mail on a daily basis. Since most Buy it Now prices do
not last long, you can easily snag a Buy it Now price by permitting eBay to
automatically e-mail you listings of a particular search. To setup a favorite
search, simply run a search on eBay and select the "Save Search"
option on a search page. You can then request eBay to e-mail you when new, hot
items are listed matching your search criteria.
Bid Nibbling
Bid nibbling is arguably the most ideal strategy. Bid
nibbling, as it suggests, involves occasionally or gradually placing bids on a
single item, attempting to be the winning.bidder the majority of the time. You
do not have to bid your highest price upfront, rather just enough to outbid the
current winning bidder. When buyers collectively "nibble" on an item
by bidding in small increments, the resulting effect tends to ward off other
prospective buyers, by driving the price up earlier in the auction closing
timeframe to a more reasonable, yet under market value level. As mentioned in
the discussion of bid sniping above, low winning bids on items often attract
more competition, making it more difficult to win an item. On the reverse side,
a higher winning bid (still under market value) often wards off the non-serious
bidders or low-ball bidders that do not actually have intentions of seriously
bidding on an item. Therefore, gradually placing bids on an item much like a
fish nibbling on bait, allows one to successfully remain the winning bidder
while warding off other prospective bidders, reducing the competition and
increasing your chances of winning the item. This bidding strategy may sound
counter intuitive.
Conclusion
1-Ebay is a good way to sell yours good.
2- It an easy way to do business and it very effective.
3- People can be retailer.
Future
The predictions for ebay for the next 1-3 years. Our see an
end coming to auctions. Our see more and more small sellers migrating to
Facebook and other social networking selling. I see the almost complete
elimination of small sellers of any length of time from eBay (newbie sellers
will continue to be lured in, but after PayPal jail and low DSRs, they won't
stick around either). Legal investigations and lawsuits will result in eBay top
brass parachuting out; eBay will possibly "flip" after stock value
nosedives due to the investigations. Amazon, Alibaba and Etsy will all benefit
enormously from this. EBay will become almost entirely a platform for big box
retailers, Chinese sellers and high volume sellers doing BINs. It will be
globally much more successful than it will be here in this country where the
demographic of both buyers and sellers will have shifted dramatically.
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