Exploiting the Internet, Opportunities for New Business. IIA, Westmeath CEB, Athlone. John McElligott October 2006. About eBay. eBay is the 21 st century marketplace. eBay Marketplace Business. Marketplace mission: create the world’s online marketplace.
Exploiting the Internet, Opportunities for New Business
IIA, Westmeath CEB, Athlone
Marketplace mission: create the world’s online marketplace
eBay was founded on five key values
Source for number of professional sellers: AC Nielsen. All other metrics based on eBay data.
Why Run a Business on eBay?
Highly efficient markets
Less efficient markets
eBay.ie Registered Users at launch
> 200,000 (2)
eBay.co.uk Registered Users
> 15,000,000 (3)
eBay Europe Registered Users
eBay Global Registered Users
(1) Source: IDA Ireland.
(2) eBay.ie Registered Users as of June 2005.
(3) eBay.co.uk Registered Users as of April 2006.
(4) eBay Europe registered users as of April 2006.
(5) eBay global registered users as of June 2006.
For an item that starts at €0.01 and sells for €30.00
Listing Fee (€0.01 - €1.49)€0.20
Final Value Fee (5.25% of total)€1.58
eBay Fees as % of Total5.9%
For an item that starts at €0.01, has reserve of €500 and sells for €900
Listing Fee (fee based on Reserve Value of €500)€3.00
Final Value Fee€29.40
Reserve Fee (2% of reserve price)€10.00
eBay Fees as % of Total4.7%
Margins can increase by using multiple item fixed price or Shop Inventory Format to promote your items
How PayPal works – 4 steps
Customer clicks on PayPal link.
Benefits of using PayPal
Customer logs in and enters payment amount.
Seller gets electronic notification of funds received and delivers goods.
Seller can withdraw funds or send payment to another customer.
Skype lets you talk through the Internet … for free.
You can also make very low cost calls to phones around the world
Download Skype at www.skype.com.
Contact eBay buyers and sellers using Skype – testing in select categories
Free Calling and “Skype Me”
Why is it so great?
Third party tools (e.g. ChannelAdvisor) also available to serve large sellers
eBay in Ireland
eBay.ie works directly with Irish charities to help promote fundraising and awareness, offering unique items and experiences
Action Aid International Ireland
Fermoy Lions Club
Irish Wheelchair Association
Kildare Town C.Y.M.S.
Brothers of Charity Svcs. Galway
Irish Autism Action
Leprosy Mission Ireland
Cystic Fibrosis Assn. of Ireland
Irish Cancer Society
To Russia With Love
Irish Heart Foundation
On an average day…
An Irish buyer purchases an auto part every 5 minutes
An Irish buyer purchases a DVD every 4 minutes
An Irish buyer purchases a collectible every 2 minutes
An Irish buyer purchases an item of clothing every 2 minutes
In Q3 2006, an Irish buyer buys 3 items across all categories every minute of every day
An Irish seller lists a collectible for sale every 5 minutes
An Irish seller sells an item in music every 4 minutes
An Irish seller sells an item in computing every 4 minutes
An Irish seller sells an item across all categories every minute
eBay.ie Business Centre
eBay Selling Explained
Site Help/Contact eBay Customer Support
Contact PayPal Customer Support
Community and Chat Boards
eBay Ireland Trading Message Board
Seller Tools Finder
Judge’s Safe ‘Surf’ Code
eBay Verified Rights Owner (VeRO) Programme