WEEK 9
ONLINE AUCTIONS
Q1: eBay is one of the only major Internet "pure plays" to consistently make a profit from its inception. What is eBay's business model? Why has it been so successful?
Ebay is a brokerage, or, put more precisely, an Auction Broker (meaning it bring buyers and sellers together to facilitate transactions).
it has been so successful because it is relatively cheap and easy to become a buyer or seler on ebay. The convenience of being able to buy and sell (cheaply, as it is an action) anywhere in the world.

Q2: Other major web sites, like Amazon.com and Yahoo!, have entered the auction marketplace with far less success than eBay. How has eBay been able to maintain its dominant position?
To start sell and buy from ebay you have to have account, so if you are not registered you can't do any transaction in eBay. Second, providing feedback through the feedback column in relation to your experience. If believe that’s is a very good advantage to proctect both seller and buyer. Hence, you can report the instance to eBay and they will follow up. Also, traders might pretend to be someone else. And the last important point is arranging the ebay through web secure bank PayPal.

Q3: What method does eBay use to reduce the potential for fraud among traders on its site? What kinds of fraud, if any, are eBay users most susceptible?
The types of fraud eBay users are susceptible to are:· Identity thief· Sellers fraud· Buyers fraud· Fraudulent emails
The security centre tells consumers and sellers about what to do to reduce risk such as using Paypal. This is a function which eBay trusts and has a protection element for buyers and consumers.

Q4: eBay makes every effort to conceptualize its users as a community (as opposed to, say "customers" or "clients"). What is the purpose of this conceptual twist and does eBay gain something by doing it?
"It’s very important that both buyers and sellers take a vested interest in the overall soundness of eBay as a transactions broker." This means, that the buyers and sellers have to form a sort of 'trust' with eachother, and assume the transaction is going to go smoothly. If this does not happen there could be all sorts of glitches. (Professor Michael Rapap)

Q5: eBay has long been a marketplace for used goods and collectibles. Today, it is increasingly a place where major businesses come to auction their wares. Why would a brand name vendor set-up shop on eBay?
Ebay is a great place to sell damaged/out-of-date stock that cannot otherwise be sold in shops. cheap and easy. could boost sales, as makes the shop accessable to those who shop at home and live overseas.