|
| eBay is leading the way in Internet
auctions. The Internet brings together a larger number of both buyers and
sellers and has opened the way for individuals to trade on a global scale
(see box).
eBay has taken a number of steps to increase confidence and reduce risks. Buyers and sellers are rated by the other party and these rating are available to prospective buyers and sellers. Goods are insured by eBay up to a maximum value against non delivery and they also offer an arbitration service. Payments are usually made direct between buyer and seller but eBay has helped the process by linking up with on-line payment systems such as PayPal. Both parties registered with PayPal each giving their credit card or bank account details. Payment is then done via PayPal who keep the account details confidential. Sellers receiving money can keep their PayPal account in credit and use the account to pay for goods that they later buy. |
eBay Highlights Global Price Differentials
The author need to purchase additional SyQuest SparQ disk cartridges that are no longer manufactured. A visit to eBay US showed a wide number of sellers with fewer buyers with the result that the bids were low, under $3 each. On eBay UK there were few sellers but many buyers, so bids were typically £10 ($14). The author purchased 10 disks from the US for $30 incurring $30 postage and plans to sell 5 disks at £10 each (£50 / $70) that will cover his cost. |
| eBay charges sellers a listing fee plus commission on all successful sales. Additional fees are payable for value added services such as reserve prices, bold text on the listing page, being placed at the top of the category listing, being mentioned on the home page, insertion in a pictorial gallery, appearing in the featured gallery, and multiple category listing. | eBay provides a number of monitoring and communication services. All bids are e-mailed to both sellers and bidders and likewise to the winning bidder and the seller at the end of the auctions. All auctions have a set time period of up to 10 days. Bidders can have eBay notify them by email when a particular item is placed in an auction. Users can setup their own "My eBay" page to monitor all auctions that are of interest. |
| From an initial plain auction eBay now offers Dutch auctions (where a number of similar items are auctioned with the multiple winners all paying the same lowest bid of those winners) and or Private auctions where bidders remain anonymous. | eBay is increasingly attracting trade sellers who see it as an alternative distribution channel. They can use the reserve option to avoid making a loss and now they make use of a new facility called Buy It Now. With this, sellers can stipulate a price at which they will sell to the first person matching that price provided there has at that point in time been no bids for the item. |
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