The following article has a number of interesting statistics about
eBay that are sure to attract the attention of your audience:
"The economy according to eBay" By Kevin Maney, USA TODAY, December
29, 2003 ://www.google.com/url?sa=U&start=2&q=http://www.usatoday.com/money/industries/retail/2003-12-29-ebay-cover_x.htm&e=7781
EBay's success is based on its ability to transform many fragmented,
primarily local markets into global ones at a relatively low cost to
its users. People have always had a need and an interest in buying
and selling used, surplus, and collectible items. Traditionally, they
have done so through garage sales, classified advertising in local
newspapers, and flea markets. However, the number of people available
to complete a transaction was limited because a face-to-face meeting
was typically required.
For a price comparable to advertising an item in the classifieds
section of their local newspaper with three or four lines of text,
users can post lengthy descriptions and pictures available to a
worldwide audience. Concerns about fraud have been mitigated through
a user feedback system escrow services. The company's ability to bring
a large number of buyers and sellers together is what has driven its
growth. The more buyers there are, the more sellers want to
participate. Conversely, the more sellers there are, the more items
are to buy, and the greater the attraction of the service to buyers.
EBay has allowed many people to become entrepreneurs with little
upfront expense or overhead and provides a method for companies and
even governments to dispose of unwanted items.
The recent downturn in the economy which crushed so many dot-coms
ironically worked in eBay's favor. People who were laid off started
businesses selling on eBay, and many people were interested in getting
a deal even if it meant purchasing a used item. Also, collectibles
markets have thrived by making it easier for buyers and sellers to
find one another. However, prices have sometimes been affected as
items that were once thought to be rare have turned out not to be.
Companies have also found it attractive to purchase industrial items
online at steep discounts to conventional channels.
EBay makes money by charging listing fees and collecting a percentage
of the selling price of items sold through the site. EBay also owns
PayPal, which makes money through investing its clients' assets and
from transaction fees. EBay's growth has been remarkable. "In 1998,
its gross merchandise sales -- the total value of all transactions --
were $700,000. In 2000, at the height of dot-comm mania, they hit
$5.4 billion. This year [2003]? The number should pass $20 billion."
Over 86 million people are eBay users.
EBay appears to have significant growth potential. It has
successfully introduced new markets, such as car sales, which many
thought would not be adaptable to its business model. Also, only a
small percentage of the world's population currently uses eBay.
Fundamentally, it is so successful because it meets its customer's
needs better than any competing service. No one else has accumulated
such a large number of buyers and sellers in a single marketplace.
Sincerely,
Wonko
Search Terms: eBay statistics |
