Evaluating EBay

Company overview

EBay is an internet person-to-person trading website, which was founded in September 1991 by Pierre Omidyar. EBay has built an online trading community on the Internet, using the World Wide Web. Website provides internet auction or through sales where final values has range from 1.25% to 5% of the final sale price (Bjornsson 2001).

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Measuring marketing effectiveness

In all types of business clear marketing strategy plays significant role. Internet business is one of the most popular types due to growing of innovations and technologies, even if you are a sole trader. For this reason, internet organization’s managers or business holders must know how to control, evaluate, measure and finally improve company marketing effort. Cain (2012) points out that it is important to understand which metrics to track and analyse, and how to do so. The best place to start is by gathering some data from company’s annual reports, customer’s feedbacks and websites, including:

Behaviour, memory and customer profile metrics

  • Unique visitors. This indicator shows participation on your website during the period, where each user counted once. This data is very flexible and related with the amount of content, website data, period of time and size of website. The graphic below shows how the number of EBay visitors changed during the period from 89.02 mil to 61.9 mil during 2016 (Statista 2016).  

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  • Page views. It shows the total amount of users clicks inside the page. If the page views are higher than unique visitors number, it is mean that users interest increase. EBay rates are higher than 250 mil per day (eBay 2015).
  • Search engine traffic shows where people search your website and rates of interest in it. EBay associate in people imagination when they need to buy something, in this case eBay is one of the most useful internet market.  
  • Bounce rate: the percentage of people who immediately go back from your page.

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  • Conversion rate. This point highlights the numbers of users who make some profitable actions during the visit period.
  • Inbound links. The amount of external links, where numbers of clicks on it show their quality and interest of users. Champion (2014) states that eBay has 11 million per hour, 190000 per minute and 3000 per second searches and clicks on different website links.

In addition, eBay had more than 800 million number of items listed in the marketplaces with 25 million sellers (Savers 2015). Also important to say that males are more likely to participate in eBay market where they sell successfully and buy more (Heilpern 2016). Users have access to market through the internet on any platform. Interestingly that about 43% of purchases have been done by the user’s smartphones (eBay 2015). In 2014 company already operated by 25 personal websites in different countries with specific local customers’ needs and goods.  

Financial metrics

Due to the decreased of eBay shares on 11% company got some unexpected loses. The company forecast full-year adjusted profit of $1.82-$1.87 per share and revenue of $8.5 billion-$8.8 billion, that was lower than expectation of $1.98 per share in profit and $8.99 billion in revenue. However, online sales in US riced on 9% to $105 billion during the holidays. Finally, the company’s net income fell to $449 million USD in March 2015 (eBay 2016).

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Reviewing and bargaining on auctions is gratis, but vendors are charged two types of expenses (Bjornsson 2001):

  • When the product is enumerated on eBay a non-refundable Insertion Fee is charged. It can be in range between $0.30 and $3.30, depending on the vendor’s initial bid on the product.
  • A pay is charged for complementary listing options to advance the product, such as highlighted or bold listing.
  • A Final Cost is charged at the end of the vendor’s auction. Payment usually ranges from 1.25% to 5% of the ultimate sale cost.

References:

Alexa 2016, How popular is ebay.in? , Alexa, retrieved 17 May 2016, <http://www.alexa.com/siteinfo/ebay.in&gt;

Bjornsson, M 2001, EBAY, Bjornsson, M, retrieved 21 May 2016, <http://www.cs.brandeis.edu/~magnus/ief248a/eBay/history.html&gt;

Cain, K 2012, Measuring Marketing Effectiveness: 6 Metrics You Need to Track, Content Marketing Institue, retrieved 20 May 2016, <http://contentmarketinginstitute.com/2012/10/measuring-marketing-effectiveness-metrics/&gt;

Champion, S 2015, eBay By the Numbers: Stats to Help You Sell More, EBay, retrieved 22 May 2016, < http://for-business.ebay.com/ebay-numbers-stats-help-you-sell-more&gt;

EBay 2014, Infographic: A Collection of eBay Tips from Top Sellers, EBay, retrieved 21 May 2016< <https://www.ebayinc.com/stories/news/infographic-collection-ebay-tips-top-sellers/?utm_source=301Redirect&utm_medium=301Redirect&utm_campaign=301Redirect&gt;

EBay 2015, Annual Report 2015, EBay, retrieved 21 May 2016, <http://files.shareholder.com/downloads/ebay/2049302125x0x882672/742AC716-B4DB-40F8-83B0-793F0D6BDA5C/EBAY_2015_Annual_Report.pdf&gt;

EBay 2015, EBAY INC. FAST FACTS AT-A-GLANCE (Q4 2015), EBay, retrieved 23 May 2016, < https://static.ebayinc.com/static/assets/Uploads/PressRoom/eBay-Factsheet-2015-Q4.pdf&gt;

Heilpern, W 2016, The gender pay gap exists even on eBay — Here’s how much less women sellers earn than men for many popular items, Business Insider Australia, retrieved 21 May 2016, <http://www.businessinsider.com.au/ebay-gender-pay-gap-exists-2016-2?utm_source=feedly&utm_medium=webfeeds?r=US&IR=T&gt;

Reuters 2016, eBay fails to post revenue growth in holiday quarter, VentureBeat, retrieved 22 May 2016, <http://venturebeat.com/2016/01/27/ebays-fails-to-post-revenue-growth-in-holiday-quarter/&gt;

Sawers, P 2015, eBay is 20 years old today, VentureBeat, retrieved 20 May 2016, <http://venturebeat.com/2015/09/03/ebay-is-20-years-old-today/&gt;

Statista 2015, Number of unique U.S. visitors to eBay.com from April 2011 to July 2015 (in millions), Statista, retrieved 19 May 2016, <http://www.statista.com/statistics/265098/number-of-unique-us-visitors-to-ebaycom/&gt;

 

 

 

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