October 28, 2012
Marketing Excellence – eBay 1. Why has eBay succeeded as an online auction marketplace while so many others have failed?
According to Kotler and Keller (2012, p. 411), eBay’s success began by creating a“pricing revolution”, which allowed the bidders/buyers to determine the price they were willing to pay for an item. The consumers were pleased because they felt they were in control, and received the best possible price. The sellers were also pleased because they reached a wide variety of buyers, and they ended up owing very little overhead when the deals were done (Kotler & Keller, 2012, p. 411). The reason eBay succeeded while others failed is because the others were …show more content…
402). Or, eBay could try the sealed-bid auction which would allow for bidders to only submit one secret bid without knowing the other amounts of the bids (Kotler & Keller, 2012, p. 402).
Also, eBay could always increase their percentage of commission which I would not recommend with the current economy.
3. What’s next for eBay? How does it continue to grow when it needs both buyers and sellers? Where will this growth come from?
eBay will continue to grow through innovations like its CEO, John Donahue, stated in the recent New York Times article, Behind eBay’s Comeback (Stewart, 2012). They must always concentrate on the newest technologies and what the customer wants before the customer knows it even wants it.
eBay should continue to look into other profitable business ventures such as paypal, but should continue to stay in the realm of auctioning or paying for auctioning items. They should continue to increase their business ventures in Europe and Asia. Currently, its largest market in Europe is Germany and its largest market in Asia is South Korea (Bazdan, 2011). They should focus on other wealthy countries which they have minimal presence or no presence at all.
Perhaps also, ebay should venture into the different types of auctions as I mentioned above. Some