e recently businesses to sell merchandise (Kotler & Keller, 2012).
The organization also regulates transactions its seller profile and feedback forums. This form of rating and comment is linked to the seller's performance. Feedback has been attributed as a major important factor for achievement of success. The members of the eBay community have the ability to leave feedback or rate items bought on eBay This type of feedback encourages both buyers and sellers to feel like and integral part of the organization. EBay's online personal trading community relies on the mutual trust and respect. This creates a connection between both parties; therefore there is a mutual dependency in all transactions that underpins the culture of the eBay community. Business relationships between buyers and sellers are pivotal in the maintenance of the business structure. These relationships involve issues regarding compliance with formal or informal regulations. As previously noted, the business model utilized by eBay is one that is based on mutual trust. The company offers users buyer protection on purchases made via PayPal. Therefore, by member's use of the PayPal payment system, each member can be confident that their transaction is protected against deceit or being duped in any fashion.
Evaluation of eBay fee schedule 易趣网收费表评价
EBay's business process creates a business model, which does not require the carrying of inventory, but rather has its share of the profit margin from every transaction that it does (Mishra, 2010). This type of fee structure in most commonly referred to as second degree price discrimination. This practice refers to the charging of an insertion fee for each item listed and is designed to attract vendors with higher sales volumes. In addition to the listing fee, the vendors are charged a percentage based on the final dollar amount of the auction or buy it now listing. EBay also caters to buyers who purchase goods in higher volumes. This strategy attracts a small business owner who would like to purchase merchandise in bulk but does not have the resources to buy from larger wholesale distributes.
The discussion of whether or not the fee schedule is optimal depends on the vendor's status in the marketplace. In response to feedback from sellers, EBay has made significant revisions to the fee schedule in response to increased competition in ecommerce. EBay has launched a new fee structure and incentives for sellers in an effort to remain the most competitive commerce platform (Rao, 2013). The simplification of the pricing structure allows vendors to list items for free therefore both individuals and eBay store owners can increase their profit margin. The listing fees for the occasional seller are very different from those of power seller in that there is a difference in the number of free listings. Small volume sellers can list up to fifty listings monthly while power sellers can list up to twenty five hundred. This fee structure is optimal for smaller volume sellers. These changes in the fee structure will benefit larger power sellers by discounting fees charged to maintain their online store. In the older fee structure, there were no free listings for stores (Rao, 2013). Other revisions to the fee schedule include basing the final value fee on the items price at the completion of the transaction. As
