1. eBay Business Case Presentation
Joshua Rudman
Marketing 476

2. eBay History/Overview
• eBay was founded by Pierre Omidyar in
September 1995 as part of a personal online
auction website in which people can buy and
sell a huge variety of goods and services.
• In 1996 Omidyar hired Jeffery Skoll as the first
president of the company. A couple months
later EBay entered into its first party licensing
deal.
• eBay was originally a side hobby for Omidyar
until his internet service provider informed
him he would need to upgrade to business
account due to the high traffic of customers on
the website.

3. EBAY’s Overview
• eBay is now a multinational Internet consumer-
to-consumer corporation that allows a huge
variety of online shopping and market place for
the sale of goods and services.
• eBay has expanded now to be a multi billon
dollar company and is localized in over 30
countries.
• Two years after being founded it auctioned over
2,000,000 products compared to the previous
year of 250,000 products.
• It is now amongst on the largest E-commerce
company in the world.

4. EBay's Decentralized Structure
• eBay is a decentralized business model that provides a online auction
website and act as a middle man giving people the opportunity to buy or
sell any product.
• eBay provides a common place that creates s online E-commerce market
where people can redistribute products directly to the consumer from a
central location which is their website.
• A example of this is how eBay has created a website that distributes
different varieties of products in a common market place. They control the
power within the website but decentralized their power giving anyone the
opportunity to create and maintain whatever they are offering to sell.
• eBay is a decentralized business where it controls all the functions and
oversight from top management but gives local managers and distributors
the freedom and authority to make decisions for whatever they are
selling.

5. EBay's Decentralized Benefits
• eBay does not purchase any inventory for their overhead.
• Gives anyone the opportunity to sell old goods to someone in demand of
that specific product. Its like a giant garage sale.
• The benefit of eBay having a decentralized business model gives users the
ability to adapt and offer any new forms of products that are high in
demand.
• eBay gives people the incentive to update personal product pages making
their site more appealing to consumers.
• Lets users submit feedback about the seller and how his product works.
Informs users for future purchase.

6. Key Competitors
• Amazon- Provides a product comparison between
distributers giving consumers option and the best
price possible
• Yahoo- Search Engine that provides people with
everyday news. This site gives a stock break
down, sports analysis, Email, Jobs, and any other
interest that appeals to the consumer
• Google- This is the biggest search engine available
over the web. It fulfills anything a consumer is
interested in. It can search any product and find the
cheapest available price on any company site
• Overstock.com- This site distributes products that
haven't sold off the shelf discounting it to a efficient
price.

7. Key Partners
• Pay Pal- Pay Pal has established a online
security payment to ensure the safety of the
consumers credit card information
• Rent.com- This site is a linked to eBay
fulfilling anyone in need of renting an
apartment.
• Stubhub- 3rd party online ticket service
where people can buy sold out tickets at the
cheapest price with security of any sort of
fraud.

8. User base and Customers
• The average user on eBay is between the age of 35-55 years of age.
• User base is over 200,000,000 users
• Over 1,000,000 people sell products on eBay today
• eBay has expand internationally to over 30 countries.
• eBay users range from businesses try to sell products at the most efficient price to
college students who are in need of particular product.
• It was establish as a marketplace for anyone.
• The Usual eBay customer is someone who is trying to find a product at a relatively low
price.
• Users in the middle class are most likely to buy from this website.

9. Stakeholders
• As off December 2012 eBay employees approximately 31,500
people
• Bench Mark Capital invested $6.7 million dollars to start the
company.
• Any one that is a stockholder owns a stake in the company.
• Here is a list of the company's top stockholders:

10. Decentralized Structure in the Eco-System
• eBay decentralizes its structure by creating a common online marketplace
giving users the ability to maintain and decide what products they want to sell
or buy.
• eBay gives users the ability to upload any product they want to sell.
• Gives users to resell old products they don’t want anymore.
• Gives users a competitive advantage on retailing any hot product online.
• eBay has a upper chain of command to make insure people are receiving the
products they bought.
• Pay-pal offers users the most profound credit card security
• Users can leave feed back on people they purchased products from explaining
if they provided what they promoted in the most efficient manner.
• Planning and execution becomes faster and more efficient since there is
delegation of authority and responsibility.
• It will increase morality because eBay employees will feel more valued
creating initiative and sense of ownership.

11. Interesting Assets
• eBay's content for selling products has a variety of purchasing
options through E-commerce providing customers with the up most
security.
• One of eBay's biggest assets was purchasing pay-pal in 1998
providing a guarantee that they will receive every product they
purchase or they will get their money back.
• eBay provides a exclusive chat room between sellers and
consumers if they have any particular questions.

12. Funding
• eBay's first funding payment was received in 1997 of $6,700,000 from
venture capitalist firm Bench Mark Capital.
• In September 1998 eBay went public starting to sell shares at the New
York Stock Exchange.
• Started selling $18 per a share
• Relies on crowd source funding for individuals to network to support other
people or organizations.
• Peer Production relies on self-organized communities to come together to
produce a shared outcome.

13. Distribution
• eBay engages in user-to-user distribution which allows them to have no
inventory.
• eBay acts as a middle man linking buyers and sellers
• E-Commerce is then transfers the payment completing the transaction.
• The business is self-sufficient running on its own through third parties
• Provides customers with any customized and personal products for
anything they want.
• eBay ensure delivery every time

14. Revenue Mode
• eBay revenues a majority of its money on purchasing
and selling fees using profit sharing
• Research has shown that the fee on purchasing a
product has changed multiple times but the current
rate is 9%.
• eBay also charges a 3% fee for individuals who are
selling product and sometimes charge an additional
fee to the seller when the product is sold.
• The last fee they use is an option fee to add more
pictures and marketing exposure.

15. Intellectual Property
• eBay has a trademarks which gives them
ownership of their name and logo.
• No one can use their name and logo without
their permission which usually leans towards a
licensing deal.
• eBay created VeRO to protect individual
property rights and makes its easy to report
anything infringing their rights.

16. Sources
• http://angueschan.blogspot.com/2009/11/eb
ay-organization-structure-anlaysis.html
• http://finance.yahoo.com/q/mh?s=ebay+Maj
or+Holders
• http://investor.ebayinc.com/faq.cfm
• http://pages.ebay.com/sellerinformation/ebay
forbusiness/essentials.html