Critical analysis: the eBay commercial market
Ebay was one of the most appreciated companies during the Puntocom boom, and although it has reached huge success since then, it has not been exempt from challenges, including a world recession, growing competition by Google and Amazon.com and a series of difficulties as it expands to difficult markets, such as China.
In addition, the characteristics that differentiate the eBay model from the rest of the Internet models, and that from our point of view make it unique and successful are among others; Its diversification of income, its operational and financial scalability, its efficiency of the markets, the added value that delivers to the seller and the buyer, and ease of use.
For years, buyers and vendors have used eBay as an informal guide to value the market. Even when a company with a new design of some product wanted to know the common price of any article, from a copier to a new DVD player, I reviewed it on EBAY.
The online market was also attractive to economists, who used it to analyze price setting theories and compare them with real purchase and sale behaviors.
Companies are currently worried about setting prices based on the value perceived by consumers since they want to differentiate themselves from other companies, in the book "Marketing address" of Kotler Keller it is mentioned that "the price is the only element of the mixture of marketing that produces income; Other elements generate costs.”There are many people are reassessing the price of products and/or services they want to pay. In the book "Marketing address" of Kotler Keller it is mentioned that "the price is not just a number on a label". Consumers also perceive that reduced prices and come to think that the product can be damaged, defective and in other cases when the high price thinks that the product is not worth buying.
In the book "Marketing address" of Kotler Keller it is mentioned that "people interpret prices in different ways. Consider consumer psychology involved in the purchase of a simple pair of jeans and a shirt."
Likewise, all these are related to each other in a model that has as its principle its adaptability to the requirements of its users. EBAY exists exclusively thanks to a group of collectors who in 1995-1996 carried out a group of visionaries a tool to solve a specific problem they had. This tool evolved to what we know today as eBay.
Ebay’s success resulted in a true revolution in pricing because it allowed buyers to determine what they would pay for an article; The result is convenient for both parties, as customers have control and receive the best possible price and sellers obtain good margins due to efficiency and wide range of the site.
This evolution occurred thanks to small major decisions that marked the company and the model in general. From our point of view some of these decisions were; Charge for the service from the zero minute and develop marketing strategies called "Revenue Hering".
Both strategies took care of the company’s scarce resources, the first, generating profits from the beginning, and the second, developing a cheap and high efficiency marketing.
In the book "Marketing Directorate" by Kotler Keller it is mentioned that "the main reason why retailers adopt the low price method every day is that discounts and constant promotions are expensive and have eroted the confidence of consumers In the prices that publish in a regular basis. On the other hand, consumers also have less time and patience to be able to practice traditional purchasing behaviors, such as keeping up special prices or cutting discount coupons.
Finally, after this study we can say that, if nothing extraordinary happens, the future of Ebay is huge. We see it present worldwide, with hundreds of millions of users and directly involved in people’s day to day.
Leave feedback