How eBay Works - Essay Example

Online auctions and especially via eBay entails one to watch the bids besides being prompt when responding to the buyers’ questions via emails. Close watching by the seller especially during the bidding process may be extremely vital because one to increase buyers’ interests may decide to make adjustments to the uploaded images or information. Before closing, the seller can eliminate some of the buyers based on the mode of payments or those who emanate from the states one cannot ship the products to their destinations. The final step encompasses packing and shipment of the product to the intended buyer. This step is extremely sensitive because the seller ought to respond to the buyers’ questions with the necessary promptness besides settling eBay’s invoices.
• What Advantages and disadvantages do eBay® offer to small-scale sellers and large-scale sellers?
Advantages
i. eBay owing to its pool of fans online, offers sellers a guarantee that they will sell their merchandise without making any effort in terms of marketing.
ii. It provides security not only to the buyers but also to sellers (Vassou, 2008). eBay acts as a mediator, especially in the cases of a problematic buyer who may intend to be mischievous during transaction processes (Vassou, 2008).
iii. The site provides a platform where sellers can sell new merchandise, which they are not sure about their prices
Disadvantages
i. Selling via eBay is extremely pricey.
ii. eBay is inflexible, especially in terms of the payments, which both the transacting sides ought to accept or use. In most times, this prevents buyers from owning what they want and can afford (Hsieh, 2008).
iii. The seller ought to come up with a unique keyword, if not; one may end up not selling what he or she is auctioning.
iv. It is helpful to the new online entrants who would have stayed for long before attaining the necessary clientele for their merchandise.
• How do the advantages and disadvantages differ with the size of the seller?
This is an effective method for large and established sellers when disposing of their products, which is contrary for small sellers. Since the latter will entail incurring pricey eBay fees.
• If a person wanted to start a small electronics retail (e-tail) business, should the use of eBay® be part of the business strategy? Explain the reasoning.
No. Since, eBay to date maintains its restriction regarding the selling of digital merchandise online, for instance, electronic artwork. Therefore, the site will not be of any assistance to the business. Read More