1. “Overview of eBay Inc. and Insights on
Consumer Behaviour and Buying
Preferences for Lifestyle Categories”
Presented by
SANAM DAS
Department of Fashion Management Studies, NIFT, Kolkata
A presentation on

2. Objectives
 To give an overview of eBay Inc. and eBay India.
 To explain the business model of eBay Inc.
 To explain the functions of eBay India.
 To discuss the insights on consumer buying behaviour in watches and mom and baby products.
 To explain the average selling price of the products.
 To suggest new strategies for improvement of the organisation.

3. E-Commerce in India
 India first came into interaction with the online E-Commerce via the IRCTC.(2002)
 In 2005 eBay entered the Indian e-commerce market.
 In 2007 Flipkart introduced itself to the Indian market and gained popularity soon.

4. Reasons for Growth of E-Commerce in India
 Increasing broadband Internet and 3G penetration.
 Growing Living standards
 Availability of much wider product range
 Busy lifestyles and lack of time for offline shopping
 Increased usage of online categorized sites
 Evolution of the online marketplace model with websites like eBay, Flipkart, Snapdeal, etc.

5. Challenges for E-Commerce in India
 Lower average broadband speeds compared to other countries.
 High failure rate of online payment transactions.
 Lack of access to free internet facilities in public places like airports, trains etc.
 Lower margins for e-commerce companies could be a potential threat to their survival.

6. eBay Inc.
Company Overview
Business Model
Organisational Structure
Functions

7. eBay Inc.
 American multinational corporation and e-commerce company, providing consumer to consumer
& business to consumer sales services via Internet.
 Founded by- Pierre Omidyar
 Founded- 3rd September, 1995
 Headquarter- San Jose, California
 Chairman- Thomas Tierney
 CEO- Devin Wenig
 Type- Online Retailing
 Website- eBay.com, eBay.in

8. eBay India
 eBay entered in India in 2004 by acquiring baazi.com.
 India’s leading e-Commerce marketplace.
 eBay India has 2.1 million active users from 4,306 cities in India.
 Managing Director- Latif Nathani.
 Head Office- Goregaon East, Mumbai.

9. Corporate Affairs
 In 2004, eBay acquired 25% of classified listings website, Craigslist.
 In 2005 eBay acquired Skype.
 In 2007 eBay acquired StubHub.
 On October 3, 2002, PayPal became a wholly owned subsidiary of eBay.
 eBay and PayPal have splitted their operations into two individual companies since 20th July, 2015.

10. Reasons for Separation from Paypal
 Competitive landscape of online payment- Square, Visa and Apple Pay.
 Overnight increase in value.
 Very different set of strategic priorities.

12. Business Model
 eBay enables commerce through three reportable segments.
 Marketplaces
 Payments
 Enterprise

13. Marketplace Features
 eBay is a leading commerce platform for users and merchants.
 eBay provides a variety of access points for consumers to shop virtually anytime, anywhere.
 eBay provides a large selection of inventory globally.
 eBay strives to provide value to consumers.
 eBay offers consumers choice.
 eBay offers a variety of specialized vertical experiences.

14. Payment Features
 eBay enables payments in the online and physical worlds.
 Global reach and scale provides value for consumers and merchants.
 eBay offers consumers choice by providing a variety of funding mechanisms.
 eBay is focused on making solutions simple for customers and developers.
 Payments solutions offer leading fraud prevention and protection.

15. Enterprise
 Enterprise operates three primary lines of business:
 Commerce Technologies
 Omnichannel Operations Solutions
 Commerce Marketing Solutions

16. Commerce Technologies
 eBay Enterprise Retail Order Management solution
 The eBay Enterprise payments infrastructure
 eBay Enterprise Store Fulfilment solutions
 eBay Enterprise Retail Associate Platform

17. Omnichannel Solutions
 eBay Enterprise Fulfilment and Freight solutions
 Provides scalable, market leading direct to consumer fulfilment with seven campuses
across U.S., Canada and Europe
 Provides scalability, operational efficiency and cost efficiencies that retailers cannot
achieve on their own.

18. Marketing Solutions
 Focused on providing comprehensive, industry-leading marketing technology solutions as well as
digital agency services.
 Includes a suite of demand generation capabilities including: affiliate marketing; attribution; database
and CRM; email & mobile marketing; online advertising display targeting.
 eBay Enterprise Agency Services offers full-service digital marketing specializing in analytics and
optimization; creative services; studio services; media services; search engine marketing; user
experience design and usability research.

19. Business models offered to sellers and
customers
 Yard sales
 Consignment
 eBay stores
 Dropshipping
 Wholesaling

20. Organisational Structure

21. eBay Inc
CFO CCO
Communications
Director, CMO
HR, Chief
People’s
Officer
Chief
Technological
Officer
Legal,
General
Counsel
Chief
Product
Officer
Category Head
Chief
Strategy
Officer
CEO Chairman Director

22. Velocity Statistics
 A pair of shoes sold every 2 seconds
 Womens accessories sold every 3 seconds
 Three woman's dresses sold every 2 seconds
 A pair of womens jeans sold every 15 seconds
 A pair of mens sunglasses sold every 16 seconds
 A mens necktie sold every 22 seconds
 A womens handbag sold every 5 seconds
 A cell phone sold every 4 seconds
 An MP3 Player sold every 40 seconds including
Apple iPod, Creative Zen, and others
 An LCD television sold every 2.5 minutes
 Headphones sold every 16 seconds
 An iPad sold every 15 seconds
 An item in the home décor category sold every 4
seconds
 A bedding item sold every 16 seconds
 A bath item sold every 16 seconds
 A major appliance sold every 17 seconds
 A baby gear item sold every 2 minutes
 Three parts or accessories sold every 1 second
 A motorcycle part is sold every 2.3 seconds
 An engine or component is sold every 7.2 seconds
 A wheel or tire part is sold every 5.9 seconds
 A snowmobile, ATV, or personal watercraft part or
accessory is sold every 7.1 seconds

23. Functions of eBay
India
Category Management
Marketing
Product
Logistics
Finance

24. Category Management
 Category management is a frame-work and set of practices used to optimally manage
supply categories to meet business objectives.
 A category is a grouping of materials or services that have similar supply and usage
characteristics to meet business objectives.
 The head office of eBay in India, located in Mumbai, is responsible for the category
management of the site eBay.in.
 Its main function is to decide the categories to be put on the site and the items sold in
each category.

25. Category Management Workflow
KPI
Dashboard
Corrective
Actions
Follow Up
Tactogram
Category
Management
Analytical
Tools
Fact-based
Actions
Category Tactics
and Execution
Category
Definitions
Category Role
Assignments
Category
Strategy
Assignments
Tactogram
Definitions
Category Plans
Category Strategy
Target
Customer
Strategy
Financial
Goals
Format
Strategies
CategoryDeptS
trategies
Company Goals
Consumers
Trends
Economy
Competitors
Suppliers
Market Insight

27. Marketing
 The marketing department must act as a guide and lead the company's other
departments in developing, producing, fulfilling, and servicing products or services for
their customers.
 Build relationship with the audience
 Involve the customer
 Generate income

28. Tools of Marketing Department
 Marketing research
 Product development
 Advertising and promotional campaigning
 Business development

29. Responsibilities of Marketing Department
 Applying customer-centric approach
 Keeping up with the competition
 Branding
 Finding the right partners
 Being creative and innovative
 Communicating with other departments
 Budgeting
 Being aware of ROI
 Managing strategy
 Managing research
 Managing events

30. Product Team

31. Consumer Support
 eBay Enterprise provides branded customer care services for commerce via telephone,
IVR, live chat, email, and social support through three call centres and a network of
customer support agents
 The eBay Enterprise customer care platform combines proprietary and third-party
technologies, including automatic call distribution, computer telephony integration,
interactive voice response, email, workforce management, voice recording/monitoring,
and customer relationship management systems.
 eBay Enterprise call centre operations utilize business intelligence to optimize service,
sales, agent and cost efficiencies as well as revenue enhancing services to help drive retail
revenue through customer service interactions.

32. Finance Department
The business functions of a finance department typically include planning, organizing, auditing,
accounting for and controlling its company's finances.
Role of the Finance Department
 Cash Flows
 Accounts Receivable and Payable
 Taxes
 Investments

33. Competitors’ analysis
 EBay is an open marketplace (OMP) — a technology-based, asset-light model. It
merely hosts sellers, of new and, in a small percentage, used goods, and connects
 EBay does not handle logistics beyond alerting its partners in this space via an
automated process. When goods move from sellers to buyers, they don't pass through
an eBay warehouse.
 Flipkart, Amazon and Snapdeal — all follow the managed marketplace model (MMP),
where they control delivery and returns, and don't do used goods. Snapdeal has opted
the question of trust comes in OMP

34. Contd.
 On an average day, while eBay India sells 18 products a minute, Flipkart clocks 20.
 eBay believes in growth along with the retail industry whereas Flipkart, Amazon and
Snapdeal believe in competing with the retail industry.

35. Contd.
 eBay India had revenues or income of Rs 107 crore calculated on commission earned
from sellers along with advertising revenues for fiscal 2013-14, according to its annual
filing to the Registrar of Companies.
 Amazon Seller Services had revenues of Rs 169 crore and Flipkart Internet that
manages the portal reported income of Rs 179 crore. A year earlier, eBay's revenue was
Rs 81 crore while Flipkart trailed with Rs 15.4 crore.

36. eBay vs Amazon Business Model
 Amazon makes a buyer feel that he is buying directly from Amazon
 With fulfilment By Amazon, a seller can even have his items stored and shipped
directly from Amazon’s warehouses.
 On the other hand, a seller might prefer to use eBay in order to customize and
personalize his listings.

37. SWOT Analysis
STRENGTH OPPORTUNITY
 World’s largest internet marketplace
 Business model (no strong direct
competition)
 Economies of scale
 Localization
 Payment system
 Brand reputation
 Growing number of mobile shoppers
 Become a retailer
 Increase services and product portfolio through
portfolio through acquisition
 Open more online stores in other countries
WEAKNESS THREATS
 High fees
 No further growth strategy
 Online security
 Regional low cost online retailers
 Increasing competition from Amazon, Flipkart
Flipkart and Snapdeal
 Exchange rates

38. Market Research on
Insights on Consumer Behaviour and
Buying Preferences for Lifestyle Products
Watches and Baby and Mom Products

39. Objectives
 Primary Objective
 find the consumers’ buying pattern in the categories of wrist watch and baby and mom
products.
 Secondary Objectives
 find the ASPs of the product categories in various retail stores.
 find the most preferred and most sold brands of these product categories.
 analyse the consumers’ buying behaviour in various stores.
 find out the attributes that influence the buying behaviour of the consumers.

40. Scope and Limitations
 Scope:
This research work has scope for further utilization in determining market statistics for the company as well as
the company as well as for other e-commerce companies.
 Limitations:
People might not be always willing to respond to all of the questions. Respondents tend to be confused in

41. Research Design and Methodology
 Design: Exploratory research that focuses on the discovery of ideas and is generally based on Primary
data.
 Research is based on descriptive study that helps to know the characteristics of certain group such as age,
group such as age, sex, education, level, income occupation etc.
 Source of data : Primary data
 Research method: Survey research (sampling method)
 Research Instrument: Questionnaire
 Type of questionnaire: Structured

42.  Type of question: close ended
 Measurement Scale: Ordinal scale
 Scaling: Comparative and Non comparative
 Types of scale: Likart scale
 Sample Size: (240x2 + 50x2)
 Sampling Frame: Population of Mumbai, Greater Mumbai and Navi Mumbai
 Unit of analysis: Students, Executives, Businessmen and women, Housewives, Parents
 Methodology: The sample size is 240 consumers and 50 retailers in each category of
products. The report is based on only primary data.

44. Analysis based on consumer’s
responses
Watches

45. Among Indian brands Titan is preferred by the majority of
consumers, i.e. 45.2% whereas Fastrack is preferred by 34.4%
consumers. Sonata and Timex are preferred by 9.1% and 5.4%
consumers respectively

46. The survey shows that most consumers, i.e. 33.6% visit online
stores in 1-2 years to buy watches.

47. Most preferred site is Flipkart with 35.7%
preference followed by Ebay with 22.8% and
amazon with 17.8% preference.

48. Bar chart represents the family members who make
decision while buying watches .

49. The survey shows that majority of the consumers, i.e. 29%, uses
Titan brand for wrist watches followed by Fastrack with 21.2%
users. In international brands Guess and Citizen are used mostly
with frequency of 4.6% and 2.1% respectively

50. In international brands Armani and Citizen are preferred mostly by 12.9%
and 11.6% consumers

51. For fashion wrist watches majority of the women prefer branded wrist
watches, i.e. 76.3% and unbranded low priced fashion watches are
preferred by 23.7%

52. Analysis Based on Retailers’ Responses
Watches

53. According to the watch retailers, the most selling Indian brand is
Titan (78%) followed by Fastrack (22%).

54. Among the foreign brands, the most selling one is Fossil (52%),
followed by Casio (10%), Xylys (8%), Tag Heuer (8%), Esprit (6%),
Guess (6%), Rado (4%), Tissot (4%) and Tommy Hilfiger (2%).

55. ASP of various Brands:
 The ASP of Titan is Rs 5785 and most selling price is Rs 4500.
 The ASP of Fastrack is Rs 1920 and most selling price is Rs 2000.
 The ASP of Citizen is Rs 11020 and most selling price is Rs 1000.
 The ASP of Armani is Rs 15930 and most selling price is Rs 15000.
 The ASP of Giordano is Rs 5250 and most selling price is Rs 5500.
 The ASP of Seiko is Rs 18129.40 and most selling price is Rs 15000.
 The ASP of Rado is Rs 39620 and most selling price is Rs 38000.
 The ASP of Michael Kors is Rs 13901 and most selling price is Rs
15000.

56. Other inferences:
 When the retailers were asked about the preferences of women between branded and
unbranded watches, while buying fashion watches, 100% were in the favour of branded
watches.
 With respect to warranty offered, all the retailers surveyed informed that they offer
manufacturer’s warranty.
 According to the retailers, most preferred type of warranty by the customers is
manufacturer’s (100%).

57. Analysis based on consumer’s
responses
Baby and Mom Products

58. Flipkart leads the market with 33.3% preference followed by Amazon
with 26.3% preference for baby care products. Firstcry has a
preference of 13.3% followed by Ebay with 11.3% preference for baby
care products

59. In e-retailing the most selling is diapers with a frequency of 47.9%.
The skin care products have a market of 17.1% followed by toys with
12.1%

60. In brick and mortar most bought baby product is diapers with 40.4%
followed by clothes with 23.8% sales. Baby food account for 21.7%
sales followed by skin care, toys and prams

61. In diapers most preferred brand is Pampers with 52.1% preferance
followed by Huggies with 25.4% , Mamy Poko 10% followed by
Libero with 6.3% and Charlie Banana with 4.6% preference

62. The most sold pack size in diapers is “36-60 pcs” with 37.9% preference.
“18-36 pcs” pack have 29.2% preference followed by “above 60 pcs”
pack with 21.3% preference.

63. The most selling size of diapers is M

64. In prams Mee Mee is leading with 42.9% preference. Luvlap has
preference of 12.1% followed by Dreambaby and Mothercare.
Other brands like Gracco have 30% preference

65. Most preferred price range for prams is Rs. 3000-5000 with 34.2%
preference followed by 33.8% preference for Rs. 5000-7000.

66. In toys development toys and activity toys are most preferred by
respectively 43.3% and 16.3% consumers. Soft toys also are preferred
by 16.3% consumers.

67. Fisherprice is the most preferred brand of toys with 35.8% preference
followed by Chicco with 24.2% preference. Funskool and Disney follow
with respectively 16.7% and 13.8% preference

68. Analysis Based on Retailers’ Responses
Baby and Mom Products

69. In the baby care product category, diaper is the most selling item
(76%), followed by skin care (18%) and toys (6%).

70. In the preference for pack size of diapers, the most selling pack size is
“18-36” (36%), followed by “36-60” (20%), “6-18”(18%), “below 6”(16%)
and “above 60”(10%).

71. In the preference for diaper size, the most preferred size is
“M”(66%), followed by “S”(26%) and “L”(8%).

72. In the category of Prams, the most sold brand is “Others”(42%),
followed by “MeeMee”(40%) and Mothercare, Luvlap and Graco,
each 6 %

73. In the Toys segment, the most preferred type is the Activity toys
(48%), followed by Soft toys (24%), Automobile (6%), Rattles (4%)
and Bath toys (2%).

74. The most selling Toy brand is others (38%) followed by Mee Mee
(26%), FisherPrice (24%), Funskool (8%) and Disney (4%)

75. Findings and Recommendations
 The survey revealed that watch brands like Invicta are not well known amongst the
Indian consumers. Hence eBay India needs to come up with better promotion strategy
to make the consumers well aware of the brands and offerings eBay offers to its
consumers.
 Consumers are not at aware of the fact that eBay India also sells baby and mom
products through its online portal. Therefore the company should aim at making its
consumers aware of the categories of products sold in its site by undertaking better
promotional techniques.
 It is seen that eBay does not participate in any kind of promotions or festive
promotions. These are the weak points that eBay needs to work on.

76. Contd.
o eBay India must stop following eBay Inc., US’s business model and start aiming at
making profits.
o eBay can also change its logistics pattern by keeping inventory in its warehouses
and control inventory supply process in order to gain control over the vendors
which will prevent fraudulent activities.
o The company website has many faults including navigation defects as well as
product listing problems. eBay must make the web page more professional and
relevant so that consumers do not get confused.
o eBay was primarily a bidding site(C2C) where consumers could auction on products
to be sold. This positioning of eBay has to be upgraded so that consumers become
well aware of the fact that eBay also offers B2C and B2B selling services.

77. References:
 https://www.ebayinc.com/our-company/our-history/
 Pooja Vishant (2015)http://indianonlineseller.com/2015/05/ebay-updates-shipping-policy-for-four-categories-in-jewellery/
 Shelley Singh (2014)http://articles.economictimes.indiatimes.com/2014-09-09/news/53730647_1_ebay-india-latif-nathani-
flipkart-and-amazon
 Raghavendra Kamath (2014) http://www.business-standard.com/article/management/snapdeal-s-lessons-from-ebay-
114030200685_1.html
 http://www.theofficialboard.com/org-chart/ebay
 http://www.exampleessays.com/viewpaper/25348.html
 http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/digital-media/11134139/The-five-reasons-
behind-PayPals-split-from-eBay.html
 http://www.wikinewsindia.com/tech-news/ciol/paypal-separates-from-ebay/
 http://www.strategicmanagementinsight.com/swot-analyses/ebay-swot-analysis.html
 http://my.studyindenmark.dk/profiles/blogs/wahid-s-initiative-what-is-the-responsibility-or-role-of-the

78. Ms. Prabha Hariharan
Category Head
eBay India
Goregaon East, Mumbai
Contact no. 9823392433
I express my gratitude to:

79. THANK YOU