Analysis of online auction site ebid

Analysis of online auction bridge site ebidE ask round is an online auction website, which was cofounded by Mark Wilkinson and Gary Sewell in December 1998 in UK. They did not take the conventionalism approach of putting huge sum total of capital initi eithery to take the backing, they built their site backwards by building a egotism sufficient auction site which would attract and retain guests. The initial meter reading of EBid went on air in January 1999.EBid now operates in more than 20 countries including UK, USA, Canada, Australia, Austria, Belgium, India Italy, France, Ger some(prenominal)(prenominal), Spain, Netherland, Denmark, Nor route, New Zealand, Portugal, Sweden, Singapore and South Africa. It lists to buyers in other 100 countries as well.EBid has its own online defrayal service PPPay, which deals in paying Euros and Pounds Shillings. But this is not restrictive as EBid also accepts payment by PayPal and Google Checkout. PPPay.com is simple and comparativel y secure which makes EBid a safe market gives on the virtual world for everyone including individuals, pocket-size and big companies equally.The closest competitor of EBid is Ebay, Online auction gross taxation, Oztion and so forth In a new-fangled online auction review EBid stood second, closing behind EBay.EBid is often termed as the silk hat Ebay alternative.EBid has numerous auction goods in more than 3,500 product categories, which includes music, collectibles, c solidifyinghing, jewellery, electronics, games and antiques etc. EBids wait capability lets its customers find items in their own region or dis sh ar globally the choice of items they atomic number 18 interested in.There is a wanted feature which allows buyers to post a publish pushment and list the unexceptionable price. Sellers provide then bid for the same with the stipulation requirements.Membership directEBid offers three membership levels to their customers.Buyers There is no membership topple. It is free of bell to join EBid and buy there.Seller It is free to join and list on the auction. And if the product put on the auction is sold off, a negligible of 3% of the terminal value is ap establishd. Sellers are required to give their mention or debit card verification for safety purposes.Seller positivistic It is the membership base on subscription which charges the vender with a recurring fee every 73090 days or 365 days. EBid also offers a lifetime membership which is a onetime charge of 49.99. Seller Plus members fanny control surface five shops for no charge. They can also list a free auction of which the final fee is none. And for gallery oddball auction 2% fee is charged.Seller Plus+ members can use a type of software called the Bulk lister spread sheet which list some(prenominal) items at the same time, also there is software called as Ninja lister in which you can use EBids cross-plat wreak.Registration and upgradingA registration form is to be filled up by the drug users to register as buyers at EBid. For upgrading to SELLER or SELLER+ a security subscription is to be purchased. rear FeesSELLER Rs. 0.00SELLER+ 7 Day Rs. 59.0030 Day Rs. 210.0090 Day Rs. 510.00365 Day Rs. 1800.00Lifetime Rs. 2000.00(Refer to cecal appendage imagine 1) sidekick programs and affiliationsAn consociate program is a establishment in which a customer advertise EBid at their emails or their websites etc, and then if someone joins EBid then it pays the introducer a amount of $2.00 / 1.00. The EBid Buddy Points program is a Loyalty Card system. The customer can earn and accumulate sends during his bidding or giveing, they can be apply everywhere at the site. Once the invited people join 1 point per person is awarded to the customer. If they then upgrade to SELLER another point testament be earned, and if they upgrade to Seller+ 2 points will be earned. The sidekick points then can be later used in diametric buddy auctions.Points are also available vi a the following trigger points1.Referring a Buddy = 1 pointsBuddy SELLER Upgrade = 2 pointsBuddy SELLER+ Upgrade = 5 pointsMaking a Bid collision Reserve = 0.5% of reserve price (max 5 points)Purchasing via Winning Bid = 1.0% of final bid (max 5 points)Purchasing Using BuyNow = 1.0% of BuyNow price (max 5 points)Receiving Positive Feedback = 0.5% of final bid OR BuyNow price (max 5 points)Online Auction Business ModelThere are several business models associated with online auction model namely business to consumer (B2C), consumer to consumer (C2C), business to business (B2B), business to organization (B2G), and government to public (G2P).EBid adopts a customer-to-customer business model, as it allows direct fundamental interaction of customers. A customer to customer interaction is be as the interaction of n customers that affects the value, demand and credibility of a desired good. It avoids medalling of a business firm/comp either etc in between the two customers. In Customer- to-customer markets the website facilitates a platform where customers can sell goods to each other.EBid has globalised and centralized customer-to-customer trade. The most primordial such customer interaction were seen in flea markets, garage sales etc. Online auction sites have given it a new global boundary line to it. On one single platform buyers and sellers can find the items and bring about for the best deal.Listing an item on EBid is free of cost still they charge a nominal of 3% fee on the final sale price. At the end of an auction, EBid notifies the winning buyer through given e-mail that he has won the auction. It also contact the seller via email to report the winner and the final price of the auction. Then it is upto the buyer and seller how to complete the transaction independently. EBid doesnt charge buyers any fee to shop and place bids, so it makes money by charging fees from sellers.Advantages The middleman concept is removed. The customers are benefited more b y the elimination.Large number of bidders and sellers As the online auctions are open to all, many an(prenominal) people who have saleable product go online to sell, which increases the number of bidders too. date barrier there is no time constraints as anyone can sell or purchase at any hour of the day.Due to globalisation people from different countries interact with each other to transact. It offers wider range of products and services. legal injury factor prices at such sites are negotiable and the goods sold are cheaper.In such business model there is a lot of cost cutting, inevi card cost such as inventory cost, distribution, sales etc are deleted.Customer Value PropositionEBid has not kept any buyers fee, this encourages more buyers to participate. Whereas in other auction site there is a minimum buyers fee too. There is no listing fee too, sellers can put the goods up on auction without any charges, and this strategy gets many sellers to get involved. There is a nominal 3% fee charge on final sale value, which is not comparatively much.The buddy point system makes EBid more interactive and fun to use. EBid provides a lot of bonus such as special bidding by buddy points etc, this lets customer become more enthusiastic. tax income ModelAs mentioned earlier EBid earns through final sale value that is 3 %. There is another way of EBid earning, it is through their subscription based membership called as SELLER Plus. Not all the auctions are opened for regular seller there are some which are held only for seller plus members exclusively. EBid charges a fee based on membership validity.There are some fee charged by EBid from customer who wants to highlight their or customise their bidding. A table of the list of charges have been given below.Estimated market price of EBid.net is 1,366,632 USD. And its annual revenue for the last year was calculated as 683,316 USD.(Refer to appendix Figure 2)(Refer to appendix Figure 3)(Refer to appendix Figure 4)Competit orsEBids main competitor is online auction heavyweight EBay. Then comes onlineauctions, OZtions, overstock etc.Ebid is often termed as best ebay alternative.It has make better price options, free bidding, free joining and free shop to boot. It offers English as well as dutch auctions.EBid has got buddy point system which let users invite more people.Finding a item in EBid is also not a problem, they have excellent navigation system.The word picture gallery is also of good size and quality.EBid has an excellent customer support. Their FAQs cover all the major problem faced by the user.EBid has got easy payment options such as PPPay, PayPal, and google checkout.EBid has been made googles official product partner which gives it an edge. compendEbid is a well established online auction company which is growing at a fast rate. It offers some commendable features like numerous auctions in over thousands of categories, very powerful search functioning, simple payment options, user frie ndliness, different range of auction types and no hidden cost.There are some improvisations needed in the field of their promotional activities. EBid can revert better revenues if they start selling their web space for advertisements and it will uphold them grow their network. Their wanted section is still not well defined and should be made more visible to the customers by more promotions.Figure Account typesFigure Traffic Rank and number of visitors.Figure Revenue systemFigure Unique visitor count