EBay as an Online Auction Marketplace - Case Study Example

eBay’s fee structure is based on the principle of charging more for the initial amount and less for additional ones. It is therefore focused more on building big with bulk sales, which indeed exponentially increases on the sales graphs for an organization. The high-volume sellers get attracted and even companies that have made it huge within the industry now bank on eBay for their inventory sales (Munir, 2010). As of today, eBay’s fee structure needs no tinkering because it takes care of both the buyers’ and sellers’ needs. Hence incremental improvements can always be brought about but no wholesale changes would as such be required at this stage.

3. What’s next for eBay? How does it continue to grow when it needs both buyers and sellers? Where will this growth come from?

The next steps for eBay are to acquire renowned businesses that exist in the virtual world and build on the strategy to take over companies for its betterment and in a desire to increase profits in the long run. The capabilities shall continue to expand in the times to come which would further the cause of eBay and enhance its vision to grow and expand across the board. It continues to grow when there is a need for both the buyers and sellers to get in touch through a collective mindset of growth and advancement whereby eBay benefits just about everyone who comes in contact with it (Reuer, 2009). This growth comes from a collective mesh of connecting with eBay which paves avenues for such participation which in the end increases the profits for eBay.