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					         eBay
Presented by Viktória Guzmits
• HOW DID IT START?
• WHAT ABOUT THE ITEMS?
• HOW DOES IT WORK?
• WHERE DOES PROFIT COME FROM?
• eBay SPECIAL…
    eBay.com
       online auction and shopping website
       people and businesses
       buy and sell a broad variety of goods
        and services

In addition to its original U.S. website,
established localized websites in 30 other
countries
ORIGINS
   Was founded as AuctionWeb in San
    Jose, California, in 1995

   By French-born Iranian computer
    programmer Pierre Omidyar

   In 1997, received app. $5 million
    funding from Benchmark Capital
    venture capital firm
ORIGINS
   Story: to help Omidyar's fiancée
    trade Pez Candy dispensers
          fabricated by a PR manager in 1997 to interest the
           media

   The very first item sold: a broken laser
    pointer for $14.83.
   Astonished, Omidyar contacted the winning
    bidder to ask if he understood that the laser
    pointer was broken.
   In his responding email, the buyer explained:
    ’’I'm a collector of broken laser pointers.’’
ORIGINS
   First third-party licensing deal: with a
    company called Electronic Travel
    Auction, selling plane tickets and other
    travel products
WHY eBay.com?
   Originally, the site belonged to Echo
    Bay Technology Group (Omidyar's
    consulting firm)

   He tried to register the domain
    name echobay.com, but found it
    already taken

   So he shortened it to eBay.com
ITEMS
   Collectibles
   Decor
   Appliances
   Computers
   Furnishings
   Equipment
   Vehicles
   Services and intangibles
   Other miscellaneous items
    RESTRICTIONS AND PROHIBITIONS

   In its earliest days: essentially
    unregulated

   However, as the site grew, it became
    necessary to restrict or forbid auctions for
    various items
          man offered one of his kidneys for auction
          people and even entire towns listed, often as a
           joke or to gain free publicity
RESTRICTIONS AND PROHIBITIONS

   The company removes auctions that
    violate its terms of service agreement

   Some of the restrictions relate to the US
    site, while others apply to specific
    European sites

   Regional laws and regulations may
    apply to the seller or the buyer
MOST COMMON RESTRICTED
CATEGORIES
   Tobacco
   Alcohol
   Drugs
   Nazi paraphernalia
   Bootleg recordings
   Firearms and ammunition
   Used underwear
   Forged, Illegal, Stolen, or Confidential Documents
   Human parts and remains
   Live animals
   Certain copyrighted works or trademarked items
   Lock-picking tools, accessories
   Lottery tickets or any other gambling items
   Military hardware
         AUCTION TYPES
   Auction-style listings allow the seller to offer items for sale for a
    specified number of days. The seller can establish a reserve price.

   Fixed Price format allows the seller to offer one or more items for sale
    at a Buy It Now price. Buyers who agree to pay that price win the
    auction immediately without entering a bid.

   Fixed Price format with Best Offer allows the seller to accept best
    offers. If a buyer submits a best offer, the seller either rejects or accepts
    it. If the best is not satisfactory, a seller may submit a counter offer to
    the buyer. It is not available in every category. Sellers must also meet
    specific requirements.

   Dutch Auctions allow the seller to offer two or more identical items in
    the same auction. Bidders can bid for any number from one item up to
    the total number offered. Simply, the best offer in terms of price and nr
    of items wins.
    Ceased in May 2009.
BIDDING
   The winning bidder pays the second-
    highest bid plus one bid increment
    amount (i.e. some small predefined amount
    relative to the bid size), instead of simply
    the second-highest bid.

   However, since the bid increment
    amounts are relatively insignificant
    compared to the bid size, they are not
    considered strategically.
PROFIT
   eBay generates revenue from a
    complex fee system all based on
    various factors and scales
   Fees to:
          list a product (Insertion Fee)
          product sales (Final Value Fee)
          several optional extras

          Plus: own PayPal fees
    PROFIT
   Under current U.S. law, most states cannot
    require sellers located outside the state to
    collect a sales tax, making deals more
    attractive to buyers
   Most sellers that operate as a full time
    business do follow state tax regulations on
    their eBay transactions
   eBay requires sellers to include the VAT fees in
    their listing price and not as an add-on
          thus eBay profits by collecting fees based on what
           governments tax for VAT
           eBay SPECIAL - CHARITY
   eBay allows sellers to donate a portion of their
    auction proceeds to a charity of the seller's
    choice.
   Some high-profile charity auctions have been
    advertised
          furniture manufacturer to raise over $35,000 for Ronald
           McDonald House by auctioning off beds signed by
           celebrities
eBay SPECIAL – UNUSUAL
SALE ITEMS


 In January 2006, a British man sold an
 unwanted brussels sprout left over from
 his Christmas dinner for £1550 in aid of
 cancer research
eBay SPECIAL – UNUSUAL
SALE ITEMS
 In June 2005, the wife of a British radio
 DJ sold his Lotus Esprit sports car with
 a Buy It Now price of 50 pence after
 she heard him flirting with model Jodie
 Marsh on air.

 The car was sold within 5 minutes, and
 it was requested that the buyer pick it
 up the same day
eBay SPECIAL – UNUSUAL
SALE ITEMS
 In May 2005, a Volkswagen Golf that
 had previously been registered to
 Joseph Ratzinger (then a cardinal, who
 had since been elected pope and chose
 the regnal name Benedict XVI) was sold
 on eBay's German site for €188,938.88
 ($277,171.12 USD).

 The winning bid was made by an online
 casino, known for their outrageous
 eBay purchases.
eBay SPECIAL – UNUSUAL
SALE ITEMS

 Water that was said to have been left in
 a cup Elvis Presley once drank from was
 sold for $455.

 The few tablespoons came from a
 plastic cup Presley sipped at a concert
 in North Carolina in 1977
eBay SPECIAL – UNUSUAL
SALE ITEMS


 One of the tunnel boring
 machines involved in the construction of
 the Channel Tunnel was auctioned on
 eBay in 2004
By Zsuzsanna Nagy
   e-commerce business
                             About Paypal
   payments and money transfers
    through Internet

   electronic alternative to checks
    and money orders

   account can be funded with an
    electronic debit from a bank
    account or by a credit card

   The recipient of a PayPal transfer
    can either request a check from
    PayPal, establish their own PayPal
    deposit account or request a
    transfer to their bank account.

   A payment intermediary service
               About Paypal
   payment processing for online vendors,
    auction sites, and other commercial users

   transaction fee for receiving money

   fees charged depend on the currency used,
    the payment option used, the country of the
    sender, the country of the recipient, the
    amount sent and the recipient's account type

   eBay purchases : foreign transaction fee
                    About Paypal
   October 2002: acquired by
    eBay for $1.5 billion

   headquarters are in San
    Jose, California, United
    States

   significant operations in
    Omaha, Nebraska;
    Scottsdale, Arizona; and
    Austin, Texas in the U.S.,
    Chennai, Dublin, Berlin and
    Tel-Aviv

   July 2007: Luxembourg-
    based bank.
Online                     Business now
                            operates in 190

   The domain               markets, 13
    paypal.com               countries
    attracted at least      manages over 184

    260 million visitors     million accounts,
    annually by 2008         more than 73 million
                             of them active
                            funds in 19
                             currencies
Safety and protection policies

   PayPal Buyer Protection Policy: customers
    may file a buyer complaint within 45 days if
    they did not receive an item or if the item
    they purchased was significantly not as
    described

   Seller Protection Policy: protect the seller
    from certain kinds of chargebacks or
    complaints if seller meets certain conditions
Security key
          additional precaution

          modified login process

          ID and password, then
           press the button on the
           security key and enter
           the six-digit number
           generated by it.

          If an account is subject
           to unauthorized use,
           PayPal puts the "Limited
           Access" designation
THANK YOU FOR YOUR
    ATTENTION

				
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