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Monday, December 6, 2021

eBay – A Case Study


E-commerce has become a crucial part of private sectors, organizations, and government and also the consumers who address the effective and convenient process. E-commerce helps in the increase and betterment of the sales revenue, market shares, any time ease of access, accomplishing the branding goals, and most importantly provide support to the international marketplace which holds an important role in this modern technological time. In 1995 eBay was launched by Pierre Omidyar and became a popular and most successful e-commerce site, it also started online auctions, online shopping sites, giving the marketplace for both sellers and buyers to bid, list, sell and buy services and products.

It is an American Multinational company established in San Jose located in California known for sales of products and services in different aspects. More than a hundred thousand citizens of the US make their living by selling and buying on eBay and in 2009 it acquired approximately 56 million active users and also many companies like Skype, PayPal, etc. eBay believes that keeping the trust between the buyers and sellers is the only key to the success of the marketplace.

The history of the Brand

On September 3, 1995, eBay was founded by Pierre Omidyar in his San Jose Home. He had an interest in potential in E-commerce which is web-based commerce and with his marketplace, he started testing that potential which is selling goods and services in masses. Omidyar the French-born, firstly took eBay as his hobby as an additional income of extra bucks during the weekends. With the huge number of sales and growth of the sellers and buyers on his site, Omidyar’s hobby turns into a business, and soon he changes his site to a business account. 

After switching into the business account his monthly internet bill went through a drastic increase from $30-$250, which forced him to charge any amount from its users to use his site for all the transactions. Users were happy to pay the amount for using the site and eBay started growing more rapidly to a larger venture and this made Omidyar recruit his first employee named Chris Agarpao for the process checks. 

In 1996, eBay became a million-dollar e-commerce business and Jeffrey Skoll, the first president of the company was on board to steer the company for higher growth and efficiency. ‘eBay’ created two million transactions of the auction by the year 1997 and in that same year, it received $6.7 million of funding from a venture capital firm named Benchmark Capital and they changed the name of the e-commerce company officially as eBay. 

Under all the guidance and management eBay continues to be perfecting the digital consumer auction site for the next decade. With more top managers from different high-profile companies like Disney, PepsiCo it almost started selling and buying all products and goods possible.


1. Using the traditional media eBay started updating its brand positioning

Marketing Director Gareth Jones stated that there is a small impact on giving priorities to digital mediums on changing the perception of eBay. Even after knowing that our generation is all about marketing which is digitally based, he believed that the traditional way of marketing and advertisements through television is a better way for brand building and few of the regional tests have proved that television had a better impact on marketing to the people rather than any other source of medium. 

2. Marketing Strategy

eBay provides a core service that enables the sellers to list various items for selling in the auction and allows the buyers to bid and purchase any items according to their choice and interest. They also provide software tools especially for regular traders, selling managers, seller’s assistants, selling manager Pro which helps to automate the process of selling, also shipping calculator, tools for reporting, etc.

3. Objective Strategy

The main motive of eBay is to increase net revenues and the gross merchandise volume from the marketplace of eBay. They aim at some detailed objectives as follows. i. Acquisition- In the marketplace of eBay there is an increase in the number of newly registered users. ii. Activation- more the number of registered users in the eBay marketplace, there are more numbers of active buyers, bidders, and sellers. iii. Activity- increasing the value of the transaction and the volume which are conducted with each active user on the eBay marketplace. The above-mentioned strategies depend upon the local markets and it is mainly done to increase the performance efficiency in some areas.

Another strategy that is effective in attracting buyers and making more eBay sales is by using an eBay title builder tool.
Find the best keywords to use in your eBay titles. Get your listing to the top of the search result and drive more sales.

4. Growth strategy

there should be the ability for attracting both sellers and buyers, there shouldn’t be any compromise with brand recognition and customer services, there should be quality selection for goods and prices. Growth strategy is mainly focused on improving and giving a better experience to customers both sellers and buyers by enhancing their products and services and also gaining the trust for customer support, safety, etc, and also focused on implementing innovative buyer and pricing retention strategies.


The e-commerce site eBay is one of the world’s most effective and efficient marketplace and around the year more than 100 million buyers all over the world buy from millions of sellers on eBay. It has a constructed business model that believes in equality for both the sellers and buyers. Currently, it crossed Facebook in terms of valued shares of around 67 billion dollars. It can be said that eBay is the best solution for the future of e-commerce. The eBay app and website are user-friendly and have been listed in one of the popular downloads across the world.

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Kiara Dawson
Kiara Dawson comes from an Engineering background, with a specialization in Information Technology. She has a keen interest and expertise in Web Development, Data Analytics, and Research. She trusts in the process of growth through knowledge and hard work.

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