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Why has eBay succeeded as an online auction marketplace while so
many others have failed?
Since its inception, eBay has operated as an online auction marketplace earning
tremendous success from first-mover strategy, sound platform, and customer focus strategies.
The company eBay was one of the first to recognize the potential of online auctions and
therefore created a large client base. Adopting the technology early in the process allowed it to
build an association with online auctions, and due to this, a network effect caused competitors of
the platform to struggle. These two factors made the company even more secure within its
leadership role within the market; especially about its ability to come up with new strategies that
would still enable it to set up user-friendly interfaces.
The second reason for eBay’s success is that eBay offers an extremely broad range of
products with different geographical origins. Many competitors can be named, but very few of
them can compete with eBay as it has almost everything for everybody, including antiques,
electronics, etc. This is an important approach to farming because it attracts everyone from the
specific target market to the general public and will not stop. Moreover, eBay has been proving
to be effective as the seller and buyer can leave feedback for each other, clearing issues that
relate to fake user profile issues, this issue of feedback has helped to sustain users' loyalty in the
years past.
It has also succeeded in centering on market transformation by incorporating technology
and reinvention of its business model. For instance, replacing the auctions with the “Buy It Now”
option that enabled users to make an immediate purchase instead of bidding for the auction met
the consumer’s needs. Further, mobile commerce is another strategic area eBay has focused on,
Why has eBay succeeded as an online auction marketplace while so
many others have failed?
Since its inception, eBay has operated as an online auction marketplace earning
tremendous success from first-mover strategy, sound platform, and customer focus strategies.
The company eBay was one of the first to recognize the potential of online auctions and
therefore created a large client base. Adopting the technology early in the process allowed it to
build an association with online auctions, and due to this, a network effect caused competitors of
the platform to struggle. These two factors made the company even more secure within its
leadership role within the market; especially about its ability to come up with new strategies that
would still enable it to set up user-friendly interfaces.
The second reason for eBay’s success is that eBay offers an extremely broad range of
products with different geographical origins. Many competitors can be named, but very few of
them can compete with eBay as it has almost everything for everybody, including antiques,
electronics, etc. This is an important approach to farming because it attracts everyone from the
specific target market to the general public and will not stop. Moreover, eBay has been proving
to be effective as the seller and buyer can leave feedback for each other, clearing issues that
relate to fake user profile issues, this issue of feedback has helped to sustain users' loyalty in the
years past.
It has also succeeded in centering on market transformation by incorporating technology
and reinvention of its business model. For instance, replacing the auctions with the “Buy It Now”
option that enabled users to make an immediate purchase instead of bidding for the auction met
the consumer’s needs. Further, mobile commerce is another strategic area eBay has focused on,
