Ebay: In a League by Itself

EBay: In a League by Itself

This case tells the long story about how eBay developed and grew obtaining market leader status through the whole process.

When thinking back to this case the issue that I think is most important to eBay's process is their willingness to talk with their customers about improving the service and the website. One example of improving the service showed up on C-306 of the case. It took place "when eBay introduced a feature that referred losing bidders to similar auctions from other eBay sellers, eliciting a strong outcry from the community. Sellers demanded to know why eBay was stealing their sales ..."

One man complained in his listing how "eBay's new policy of screwing the folks who built them." Basically, this complaint caught the attention of Omidyar and Whiteman, who ended up meeting with the seller in his own home. After meeting with the man for 45 minutes, eBay decided they needed to change their policy. I think that this type of approach eBay gives really attracts more users. Finding out exactly what they think and showing that the company appreciates and recognizes there business is so important.

EBay then recognized that many of their new users do not get most out of eBay. In hopes of introducing and teaching eBay to new entrepreneurs, the company launched eBay University in 2000. The seminars lasted two days and the company traveled around to various cities to teach new ebayers skills and tactics to being successful users. Again, this shows people how important they are to the company.

Personally, I found that these were wonderful ways to get a loyal customer base. If a company gives listens to the people and produces a good or service that is demanded or displays a perceived need, people will purchase that good or service. The case gave some statistics on how a very small group of people or businesses make most of the profit for eBay. It is critical to focus and listen to this group and fulfill their needs.

EBay continued to stay ahead of the competition by offering new methods of payment, ease of finding products, developing the feedback forum, security, and communication to the buyer or seller. The company acquired Paypal to offer secure fast payments, while making a third of their revenue. This acquisition became a clear benefit to go along with their soaring business. A simple and quick way to send money to an ordinary average user made the buying and selling process go faster and promoted simplicity.

Security became another hurdle that eBay crossed. With the acquisition of Paypal, eBay