Q1: eBay is one of the only major Internet "pure plays" to consistently make a profit from its inception. What is eBay's business model? Why has it been so successful?
eBay is a general consumer auction, much like an english auction where highest bidder wins. It is so successful because you can buy just about anything on there and its all in the comfort of your own home.
Q2: Other major web sites, like Amazon.com and Yahoo!, have entered the auction marketplace with far less success than eBay. How has eBay been able to maintain its dominant position?
The general consesus on forums is that Amazon is where the scam artists purchace electronic goods.... However its safe to presume that eBay is the most popular as it is so much bigger in size, and when you think of online auction you think of eBay automatically. It has that popularity and world-wide acceptance. Plus, it is the biggest online auction site, with the widest range of products for sale.
Q3: What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?
Out of personal experience from a family member, there are scam artists who wil email you with fake paypal emails saying that such an amount is in your account when infact it is not. They ask you to transfer money to them through western union money transfer and it appears that that is in your paypal however it is not. A good lesson to learn that to read an email that is legitimate will have verification codes and the ABN number on every email.
I know a few people who have been caught out and lost money (hundreds!) through this, and people who have picked it up straight away. It is not uncommon for an overseas person to want to purchase your goods so naturally people think they're just making a sale. In this scenario, ebay only asks you to report the person who you think is pulling a dodgy act. Paypay asks you to forward suspicious emails to spoo@paypal.com. However, once money has been sent to these fraudsters, you cannot get it back.
Therefore there is not much you can do, nor that eBay can do about it. You just have to be aware that they are out there and know the signs when you are selling something yet they ask you to pay them..?!
Q4: eBay makes every effort to conceptualize its users as a community (as opposed to, say "customers" or "clients"). What is the purpose of this conceptual twist and does eBay gain something by doing it?
Creating the sense of community can create a repect for others online - they're all trying to buy or sell something or run a business. Therefore you're not just an average customer, you are entering a community and have rights to uphold and expect peoiple to do the same to you. If the experience is not one of "yet another client of eBay" then you feel more satisfied with using the site to buy and sell goods. It keeps the people coming back, and perhaps why eBay is the most successful site at online auctions.
Q5: eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?
The amount of people that flow through eBay, whether they're looking to buy or looking to snoop at whats on the market, is a huge amount and the sitings of products for sale will get plenty of coverage (perhaps a type of advertising?) creating a great landscape for the business vendor to sell his wares. If you ask someone "do you know where i could find this", they often repy with "have you had a look at eBay?"... well i know my dad does anyway.
Q6. I have a few businesses, and I have used eBay for about 12 years on and off. Currently I have about 600 books listed on eBay (seller name ozrural). I stopped selling on eBay for a few years but they changed the rules this July and it is viable again (for me). What do you think changed?
They incorporated more security for payment methods for both buyers and sellers, using BPay for example.
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