MARKETING REPORT ON EBAY.edited

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1 MARKETING REPORT ON EBAY By (Name) Course Professor University City and state Date

2 Marketing Report on eBay Introduction Since its founding in 1995, eBay has developed into one of the world's leading e- commerce companies, leading online auctions and taking the lead as the most extensive online marketplace. With over 150 million active listings and over 105 million users in 37 countries, eBay has an unmatched presence and impact in online retail. Its distinct business strategy, serving as a middleman between buyers and sellers, initially made it stand out, and its development has kept it that way. This report aims to assess eBay's present position in the market through a thorough SWOT analysis. By examining the organization's advantages, disadvantages, possibilities, and threats, this report offers a comprehensive picture of eBay's place in the ever-changing e-commerce industry. Furthermore, the analysis will examine the principal service marketing obstacles that eBay is anticipated to face over the next three years. SWOT Analysis of eBay a) Strengths With over 150 million live listings and over 105 million active members in 37 countries, eBay is undoubtedly the most extensive online marketplace in the world. eBay has unmatched power and influence over other online businesses due to its massive user base. Its innovative business strategy, which uses auctions as a middleman between buyers and sellers, has led the way in online trade ( Jurevicius, 2023). Since eBay has few direct competitors, this approach continues to give it a competitive edge, especially when competing against industry titans like Amazon. Economies of scale are a fundamental part of eBay's business model. eBay effectively serves over 100 million users despite initial huge investments in Customer Relationship Management (CRM) and IT, making it the largest online marketplace with no incremental costs. Additionally, one of eBay's main advantages is its localization plan. eBay

3 connects nicely with a wide range of international markets by operating in 37 countries and customizing each marketplace to include local product offerings and language, a feat that other global online marketplaces cannot match. PayPal's connection as eBay's payment processor adds an additional degree of power. By streamlining the payment processing for almost all eBay transactions, this solution guarantees a flawless shopping experience for customers. Businesses benefit from this connection by collecting fees more frequently, and buyers benefit from PayPal's easy and safe online payment system (Jurevicius, 2023). Furthermore, eBay has developed a respectable brand currently worth $11 billion, winning the confidence and trust of customers worldwide. b) Weaknesses eBay has many drawbacks despite its advantage over time; the sharp rise in seller feee is one of the most urgent issues that has caused many sellers, particularly those who deal in lower-priced goods, to suffer from thin profit margins due to eBay's exorbitant fees this situation negatively impacts eBay's relationship with sellers on. It might even push them to use other marketplaces (Jurevicius, 2023). The absence of a well-defined expansion plan by eBay is another shortcoming. The need for a well-defined plan for maintaining expansion raises questions regarding the company's future. eBay's inability to adjust to changing consumer preferences and market trends results from top management's ambivalence about launching new goods and services or becoming a retailer. c) Opportunities eBay has multiple chances to capitalize on its advantages and overcome disadvantages. PayPal's widely-accepted and convenient payment system allows eBay to enter this expanding market, which presents a significant growth channel given the rise in mobile shoppers. eBay may also consider becoming a retailer by leveraging its enormous online marketplace, current IT infrastructure, and CRM systems to take on rival Amazon.

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4 Another opportunity is the possibility of diversifying its services portfolio through acquisitions ( El-Ebiary, 2021, Pg 6532). Through deliberate acquisitions, eBay might expand its range of products, growing its clientele and market share. In addition, eBay has the potential to pursue unexplored markets by extending its online marketplaces into developing economies such as Asia and Europe, which would support its current development trajectory. d) Threats Various risks could hinder eBay's future growth. Online security issues, particularly those about PayPal's storage of private user data, put it in danger of identity theft and erode consumer loyalty. Regional low-cost online merchants are a concern because they can lure customers away from eBay with their specialized product offerings, expedited and less expensive shipping, and in-depth local market knowledge (El-Ebiary, 2021, Pg 6534). Furthermore, the increasing prevalence of Amazon in the virtual marketplace heightens rivalry and presents a significant risk to eBay's market share. Furthermore, vulnerabilities arise from currency rate swings that affect overseas companies' profits, especially when the dollar gains value relative to other currencies, which affects eBay's revenue streams. Identification of Key Service Marketing Challenges for the Next 3 Years 1. Weaknesses Exorbitant Fees: Sellers have long expressed worry about eBay's fee structure, which negatively affects their ability to make a profit, particularly on items with lower prices. This difficulty might make sellers less inclined to post items on eBay, impacting the variety and accessibility of products offered on the marketplace ( Bhasin, 2019). Furthermore, eBaisnin will likely lose sellers to rival platforms with cheaper fees, which could affect its market share. Lack of a Clear Growth Strategy: eBay's future trajectory seriously needs a well- defined growth strategy. The company's direction must be clarified because it is unsure if it

5 should become a retailer or launch new goods and services (Bhasin, 2019). This uncertainty may make it more difficult for eBay to adjust to evolving market conditions, technology breakthroughs, or changes in consumer behavior, which could impede its growth relative to more adaptable and progressive rivals. 2. Threats Online Security Risks: There is a significant risk of online security breaches because eBay's payment system, PayPal, handles sensitive consumer data. Security breaches can potentially harm eBay's brand seriously and undermine user confidence ( Senadzo, 2019, p. 773). As a result, merchants and customers worried about the security of their financial and personal information may decide to refrain from doing business with you. Regional Low-Cost Online Retailers' Competition: Thanks to their localized knowledge, expedited and less expensive shipping, and enhanced market awareness, regional low-cost online retailers have become strong rivals (Shastri, 2021). Due to their ability to meet unique local needs and tastes, these businesses may attract customers away from eBay by providing more individualized and practical purchasing experiences. Amazon's Expanding Online Presence: eBay faces a severe threat from Amazon's growing online presence. eBay faces more competition from Amazon as it expands its product line, improves customer service, and streamlines its operations (Shastri, 2021). eBay's market position and growth prospects may be jeopardized if buyers and sellers are drawn to Amazon by virtue of its well-known brand, extensive product selection, and effective delivery systems. Analysis of Threats Through Service Marketing Theoretical Principles and Recommendations a) Online Security and Trust

6 Theories of service marketing place a strong emphasis on the importance of relationships and trust in consumer interactions. Trust is essential to eBay, particularly when it comes to PayPal's security, as it handles sensitive consumer data. Establishing and preserving trust is essential for bringing in new businesses and keeping existing ones. Relationship Marketing: By establishing solid, enduring bonds with its users, eBay can use relationship marketing techniques. It calls for open communication, tailored interactions, and ongoing engagement (Compton et al., 2021, Pg 9). Customers will feel more at ease if you inform them regularly about security measures like encryption techniques, two- factor authentication, and frequent security checks. Trust-Building Strategies: It is critical to have more security in place. EBay should invest in state-of-the-art technology and robust security measures to secure user data. Building trust can be facilitated by informing people about security changes and breaches, if any (Compton et al., 2021, p. 8). eBay's dedication to user safety will be exhibited by creating a specialized customer support team to resolve security concerns rapidly. It is recommended that eBay implement a continual improvement culture regarding its security. Conducting routine audits, updates, and partnerships with cybersecurity specialists is imperative. Additionally, individuals can be empowered to protect their information by learning about recommended practices for internet security. b) Competition from Regional Retailers Concepts from service marketing like localization and personalization are essential to eBay's strategy of fending off local competitors. Improving Local Presence: eBay should improve its local presence by comprehending particular regional requirements and preferences ( Compton et al., 2021, p. 16). It entails modifying product offerings and marketing tactics to consider regional languages, customs, and preferences. Regional alliances and distribution systems can also help increase client happiness and reach.

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7 Increasing Shipping Efficiency: Local merchants are frequently the best at shipping more quickly and affordably. eBay may combat this by investing in shipping and logistics improvements, expediting procedures, and shortening delivery times. You can draw in additional business by providing incentives like free or heavily discounted shipping for specific products or areas ( Compton et al., 2021, p. 14). Diversifying Product Offerings: Based on local demand, eBay can expand its product range to serve particular markets better. eBay can gain a competitive advantage by researching specialty goods or services that appeal to regional customers. c) Amazon's Growing Dominance To challenge Amazon's hegemony in the service marketing space, differentiation, and innovation are essential concepts. Distinctive Selling Propositions (USPs): eBay must recognize and highlight the unique qualities and services that make it stand out from Amazon ( Baker El-Ebiary et al., 2022, Pg 377). It might emphasize eBay's global reach, rare or collectible items, or its auction-based business model. Highlighting these distinctive features may draw in a different kind of clientele. Innovation in Services: eBay must constantly innovate its services to remain competitive and relevant. It can entail adding new functionalities, improving the user experience, implementing AI-powered recommendation systems, or adding new payment options (Baker El-Ebiary et al., 2022, Pg 378). Innovation should be customer-focused, emphasizing enhancing the general buying experience. Improving Customer Experience: eBay can stand out by offering excellent customer service and tailored experiences. It involves proactive involvement to understand better and meet client needs, user-friendly interfaces, and effective issue resolution. Conclusion

8 In conclusion, eBay's SWOT analysis shows that its unmatched advantages in terms of market penetration, business strategy, and brand recognition are balanced by disadvantages, including rising costs and an unclear expansion plan. It is critical to recognize the concerns of increased competition and security risks while identifying opportunities in mobile shopping, market development, and service diversification. By reevaluating its charge schedule and encouraging a solid expansion plan, eBay may minimize vulnerabilities while capitalizing on strengths like its vast marketplace and PayPal's credibility. Through innovation, market expansion, and improved security measures, eBay may leverage possibilities to strengthen its position and maintain a competitive advantage in the ever- changing global marketplace. References Baker El-Ebiary, Y.A., Ghanem, W.A.H., Saany, S.I.A., Rose, A.N.M., Jusoh, J.A. and Hassan, H., 2022. A Comparative Study of eBay and Amazon Electronic Commerce Platforms. In Proceedings of International Conference on Emerging Technologies and

9 Intelligent Systems: ICETIS 2021 (Volume 1) (pp. 371-380). Springer International Publishing. https://link.springer.com/chapter/10.1007/978-3-030-82616-1_32 Bhasin, H. 2019. SWOT Analysis of eBay - eBay SWOT Analysis Explain. Marketing91. https://www.marketing91.com/swot-analysis-of-ebay/ . Compton, J., Freier, A., Patdu, A., Phuvasate, N., Rostami, F. and Rostami (2021). eBay Strategic Analysis and Recommendation. https://pdxscholar.library.pdx.edu/cgi/viewcontent.cgi? article=2816&context=etm_studentprojects . El-Ebiary, Y.A.B., 2021. eBay e-Commerce Platform Opportunities and Obstacles. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(10), pp.6531- 6536. https://www.turcomat.org/index.php/turkbilmat/article/view/5505 Jurevicius, O. 2023. eBay Company SWOT Analysis - SM Insight. Strategic Management Insight. https://strategicmanagementinsight.com/swot-analyses/ebay-swot-analysis/ . Senadzo, P.K., 2019. How E-Security and E-Trust Impact on E-Service Quality in Online Shopping: A case of eBay United Kingdom. Journal of Research in Marketing (ISSN: 2292–9355), 10(2), pp.772–784. https://techmindresearch.org/index.php/jorm/article/view/767 Shastri, A. 2021. Detailed SWOT Analysis of eBay | IIDE. https://iide.co/case-studies/swot- analysis-of-ebay/ .

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