EBay is a global online marketplace where practically anyone can trade practically anything. It was managed by eBay Inc, an American internet company founded in 1995 by a computer programmer, Pierre Omidyar. Today, eBay is the world's largest online community of buyers and sellers.
Why is eBay so successful?
eBay acts as a place that gives people the opportunity to come together and trade any items. People are able to pursue interests in areas of their hobbies and collectibles that remind them of fond childhood memories.
People enjoy the experience of shopping bazaar and hunting for great merchandise or great deals. There are great selection of products which attract alot of consumers. The competition of the bidding process is also one reason that makes eBay successful. People like to get a bargain and haggle prices. eBay's auction format allows them to do just that.
Having no inventory is another key to the success. eBay only provides a virtual space and software tools while its customers supply the products for auctioning. So, eBay is not troubled by warehousing costs.
eBay also maintains close communication with its customers through posted bulletins and interactive message boards. A sense of community exists. Even Meg Whitman, eBay's CEO is known by everyone as Meg.
It also has a huge mass of customers through the so-called "network effect". It is expanding so much that they do not have to do much external promotion to build membership. Big and small merchants are drawn to eBay because that is where most buyers are.
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