EAST ASIA INSTITUTE OF MANAGEMENT
E-COMMERCE WITH LOGISTICS CASE STUDY ON EBAY LECTURER : MR. BERNARD LIAN NGUYEN QUOC TUAN
1107/8644
TABLE OF CONTENT
INTRODUCTION EBAY BUSINESS MODEL AND SUPPLY CHAIN OPERATION BENEFIT OF THE WEB TO EBAY LIMITATION OF THE WEB AFFECTING EBAY ACTIVITIES SUGGESTION FOR E-COMMERCE SITE
INTRODUCTION
The whole is changing : Internet connect people from distance to time. People are moving towards buying online because it is fast and convenient.
EBAY
Due to the trends, retailers now are investing in establishing their e-retail website. And eBay was born to assist this purpose.
Date
1995 1997 1998 1999 2000-2006 Feb 2002
Event
Founded by Pierre Omidyar Menl Park, Calif (VC) 22% stock acquisition CEO Meg Whitman (July); IPO Alliance with AOL Global expansion to over 2 dozen countries Withdrew from Japanese market & Hong Kong
(where Yahoo! Auctions/Shopping had head start)
Stock ($)
1.871 25.016 12.708 20.833
Jul 2002
2005
Acquired PayPal
Acquired Skype
15.13
49.500
BUSINESS MODEL
Community platform For global person to person trade Win-win situation Leads Repeat Transaction
More Profit
Transaction Exchange
Decreased Costs
Internet property
Network externality Mediation Universality Information asymmetry Virtual capacity Low cost
sales format
social communication (forums, buyer/seller ratings)
Regional sites Trust and safety large variety Innovative (Bid-based auctioning systems)
Seller
Buyer
SUPPLY CHAIN OPERATION
EBAY IS A INTERMEDIARY BETWEEN THEIR BUYERS AND RETAILERS. THEIR SUPPLY CHAIN IS VIRTUAL, SINCE ALL THE SHIPMENT AND DELIVERY IS OUTSOURCE TO 3PLs
Buyers
eBay is a market maker Acts as an intermediary Charges commission
Sellers
BENEFIT OF THE WEB
Since eBay is an online business model, the Web has contributed a lot advantage to the company
EBAY LIMITATION AND CHALLENGES CAUSE BY THE INTERNET
Online e-retailers like eBay has to face constant challenges every.
PROCESSING, HANDLING AND CONTROL LIMITATIONS STORAGE LIMITATIONS TRANSMISSION LIMITATIONS
PROCESSING, HANDLING AND CONTROL
Deal with thousands of transactions everyday, eBay has to face some difficulties like:
Users misuse information, try to hack in or interfere auctions. Unidentified sellers. Real-time processing, since eBay has branches throughout the world.
STORAGE LIMITATIONS
Huge customers database. Require constant updates, maintenance and protection of data. EBay has been warned by security researchers that they are vulnerable to cross-site request forgery. ([Link] 2010)
TRANSMISSION LIMITATION
Over 2 million people visit eBay everyday. Estimated 100 million active users. ([Link] 2011) November 2009, eBay has a historical crashes that cost them millions due to lost of transactions. ([Link] 2010)
ACTIVITIES SUGGESTIONS
Advertise your e-commerce site on famous social network societies like Facebook, Twitter Target keyword for search engine, constantly update and improve the website and the product availability. Add-ons : video, picture, online fitting devices After purchase service provider : present wrapping, free shipment Promotion for loyal customers.
CONCLUSION
Businesses nowadays going for online retailing to catch the consumers trends. EBay has been a successful story for such business. Besides the advantages, the Internet also has eBay suffer for its disadvantages. There are some techniques to improve online traffic to a newly established e-commerce website.
Reference List
CENTER FOR ADVANCING HEALTH (CFAH) 2009, [Link] A Case Report for Getting Tools Use, Journal of Getting Tools Use, pp.70-71. Robinson, T 2002, Will eBay Strangle Online Commerce?, release 5th of july, E-commerce Times, USA, viewed 21st of August, <[Link] McKinsey&Company 2009, How companies are benefiting from Web 2.0: McKinsey Global Survey results, release September 2009, McKinsey Quarterly, USA viewed 21st of August, < [Link] om_Web_20_McKinsey_Global_Survey_Results_2432> EC FIArch Group 2011, Fundamental Limitations of current Internet and the path to Future Internet, release 1st of March,2011, Luxembourg, viewed 16th of August, < [Link] Prince, B 2010, eBay Security Vulnerabilities Found by Researcher, release 17th of February, 2010, USA, viewed 17st of August, < [Link] Wardrop,M 2009, eBay facing compensation bill after site crashes, release 24th November,2009 , UK, viewed 16t August, < [Link] Crossley,M 2011, How to Promote and Optimize Your E-commerce Site, release 18th of May, 2011, USA, viewded 15th of August, < [Link]