Amazon, Ebay, and Craigslist Term Paper

Pages: 10 (3137 words)  ·  Bibliography Sources: 1+  ·  Level: College Senior  ·  Topic: Business

SAMPLE EXCERPT:

[. . .] Purchase Decision Parameters:

Keeping in view these different business strategies of Amazon, eBay, and Craigslist, a buyer can make choice among them depending upon his need, product availability, and his own available resources. For example, if he has to buy a new product which has just been offered by the manufacturer, he is more likely to find it on Amazon.com and eBay.com. On the other hand, if he wants to purchase second-hand items, Craigslist is the best choice among all. Another purchase decision parameter is the variety of products available at each of these websites. If a buyer has to compare and contrast the specifications, price, and other details of a particular product, the most preferred choice is eBay and Amazon. These two websites have largely diversified product portfolio where a large number of manufacturers post their products along with their prices and specifications (Karp, 52).

How eBay is the best choice?

Among these three websites, eBay can be regarded as the best choice due to its auction style selling. At this website, the buyers meet sellers and bid on the prices of their favorite products. Therefore, there is a strong factor of negotiability and affordability at eBay.com which is missing at Amazon.com. Secondly, eBay provides customized search as well as an option to deal in local currencies which makes the buying process more convenient for the buyers. It also provides an option to the buyers to choose shipping channel for their products from regular mail, courier service, or express mail at very reasonable charges. Moreover, eBay has the safest auction selling style which protects the rights of the sellers and the buyers in a very effective and efficient way.

eBay -- protecting rights of buyers more than sellers:

eBay has implemented a strict buyer protection policy which safeguards the buyers from all types of online frauds, misrepresentations, and scams. The policy covers original purchase price as well as full shipping. If a buyer does not get the product of his required specifications, he can file a case with the company against the seller. The buyer can contact the 'eBay Resolution Center' for making claim against seller that has done fraud or misrepresentation in any phase of the transaction.

Why does eBay design this kind of market?

eBay is one of the world's leading online retailers that promote and sell a huge variety of products and services for personal and professional needs. It has expanded its business operations in almost 30 countries around the Globe. Its services have completely changed the traditional shopping style in which consumers had to visit to the markets to find their required products. Convenience and ease of shopping have made it a valuable brand among individual and businesses. These changes in the shopping style and online dealings have also raised a number of risks and uncertainties for the buyers and sellers. Generally, it is assumed that buyers are at a greater risk than sellers in an online transaction. Reason being, buyers have to make payment for their chosen products or services through online channels which are largely exposed to spam, fraudulent activities, and cyber crimes (Baye, 175). In order to protect the rights of the buyers, eBay has introduced this 'Buyer Protection Policy'. The basic purpose of this policy is to safeguard the buyers from all the aforementioned threats (Collier, 297).

Challenges:

eBay has chosen this kind of market in order to win the trust of its buyers who have to expend their money on the Internet which is the riskiest platform for making any kind of transaction. Through this policy, eBay protects the rights of its buyers and gives them surety that they will get their products with the required specifications and features. This new market has also brought some challenges for eBay at the International level. It is quite easier to detect fraud and catch the guilty party in the home country as compared to foreign countries. Therefore, eBay has to give extra attention while sellers and buyers from two different territories, countries, or regions meet each other at its website.

Sellers' Reaction to the Buyer Protection Policy:

Apparently, the sellers have found the buyer protection policy completely biased towards buyers. Therefore, they are doing criticism and showing negative response to this online retailer. In order to tackle this issue, eBay has introduced new policy for its sellers in order to protect their rights against buyers. eBay has made it compulsory for its sellers to use PayPal payment channel to do transaction with their buyers. PayPal is a safe, secure, and reliable method of making and receiving payments over the Internet (eBay).

The international communities have also criticized eBay on recommending PayPal which is also under its own ownership. However, this step largely helped the company in satisfying its sellers that were annoyed by the buyer protection policy (Holden, 134). Moreover, eBay promises that sellers are also under complete coverage against any fraud or misrepresentation by the buyers. The new buyer protection policy states that a buyer can be suspended from eBay or sued for online criminal activity if he tries to take an undue advantage from this policy.

Impact on the Market Equilibrium:

The strategies and actions of large scale e-commerce companies like eBay, Amazon, Craigslist, etc. have a significant impact on the market conditions. With the introduction of buyer protection policy, the online retail industry observed positive growth from both the demand and supply sides. Especially, the online retail industry in the United States achieved a good balance between the products supplied by the retailers and the local demand by the general household and business consumers. This positive change was the result of the confidence which sellers and buyers put on eBay after it introduced this new policy (Collier, 298).

Enforceability and Trust:

By implementing the buyer protection policy, eBay has put some restriction for the buyers and sellers in order to make their dealings safe and secure. In order to claim any fraud or misrepresentation, the buyer must have to do transaction according to the set roadmap. Similarly, the sellers have to choose the online payment channels (like PayPal) to receive their money from the buyers. In this way, both these parties get coverage from the company for credit and financial risks from either side. The purpose behind introducing this policy was not just to protect rights of the buyers and sellers: the company also wanted to enhance the loyalty and trust of its key stakeholders, which include customers, manufacturers or suppliers, distributors, transportation firms, regulatory authorities, employees, and investors or stock owners.

Seller and Buyer's Confidence:

The buyer protection policy has largely helped the company in winning the trust and confidence of buyers on online retailers. Now consumers feel more secure and confident while doing transaction and making payment over the Internet. Similarly, the sellers are also ensured that they will get payment for their goods once the buyer releases them from his end. The new market which eBay has created is also helpful in developing and strengthening its brand image in the international community. The transactions done on eBay are considered genuine and safer as buyers can directly contact the large scale and renowned manufacturers and suppliers from their home country and the outside world (eBay).

Willingness to Pay:

When buyers get full coverage under Buyer Protection program, they do not hesitate in paying for their required goods or services at the eBay.com. Similarly, the sellers get surety that they are dealing with a genuine buyer who will release his payment through a reliable online channel. If either of the parties has any type of ambiguity towards the second party or finds delay in the performance of transaction at any phase, it is advised to immediately contact the eBay representatives in the 'Resolution Center'. This coverage policy increases the willingness of buyers and sellers to enter into a transaction at the ebay.com (eBay).

Feedback System:

Both eBay and Amazon have maintained a customer feedback section at their websites which enable them to get suggestions from their visitors (including buyers and sellers) on how they can improve their customer services, website layout, company policies, product portfolio, etc. The feedback system is also helpful in increasing the satisfaction of buyers and sellers towards these e-commerce giants. eBay and Amazon have successfully built a strong brand image in the local and international markets by implementing various kinds of customer facilitation systems and rendering excellent customer services at their websites (Amazon). Now sellers and buyers feel confident and secure while doing transactions with unknown manufacturers, suppliers, distributors, and promoters (Holden, 133).

The feedback systems have improved the reputation of these companies among their key stakeholders. The buyers do not hesitate to pay for their products while sellers feel confident when they use online payment systems. Similarly, the investors feel satisfied with the performance of these companies in the stock markets where they are continuously showing superior performance than their competitors.

Works Cited

Amazon.… [END OF PREVIEW]

Four Different Ordering Options:

?

Compare the Four Ordering Options

  1. 1.Buy this paper with your credit card or cash balance at PayPal.  Within 10 hours, we'll send the Microsoft Word file to the email address on your PayPal account.
  2. 2.Same as #1, but we will also remove the paper from our site for 30 days!
  3. 3.Need this paper immediately?  Want to individually download any of our 175,000+ exclusive, private, non-plagiarized papers for 30 days?  It takes only 2 minutes to subscribe and get instant access!
  4. 4.One of our highly experienced experts will write a brand new, 100% unique paper matching the exact specifications and topic that you provide!  You'll be the only person on the planet to receive the one-of-a-kind paper that we write for you!  Use code "Save10" to save 10% on your 1st order!

1.  Buy the full, 10-page paper:  $24.68

or

2.  Buy & remove for 30 days:  $38.47

or

3.  Monthly access to 175,000 papers

After paying, this link will download any paper(s).

or

4.  Let us write a NEW paper for you!

Ask Us to Write a New Paper
Most popular!

Ebay's Impact on Economy and Prices Term Paper


Online Marketing There Is a Convergence Thesis


Web 2.0 With a Focus on Social Networking and a Little on Its Privacy Issues Research Paper


View 6 other related papers  >>

Cite This Term Paper:

APA Format

Amazon, Ebay, and Craigslist.  (2013, June 2).  Retrieved December 10, 2018, from https://www.essaytown.com/subjects/paper/amazon-ebay-craigslist/6186276

MLA Format

"Amazon, Ebay, and Craigslist."  2 June 2013.  Web.  10 December 2018. <https://www.essaytown.com/subjects/paper/amazon-ebay-craigslist/6186276>.

Chicago Format

"Amazon, Ebay, and Craigslist."  Essaytown.com.  June 2, 2013.  Accessed December 10, 2018.
https://www.essaytown.com/subjects/paper/amazon-ebay-craigslist/6186276.