Overview of eBay Inc
Transcript of Overview of eBay Inc
“Overview of eBay Inc. and Insights on Consumer Behaviour
and Buying Preferences for Lifestyle Categories”
Presented by
SANAM DASDepartment of Fashion Management Studies, NIFT, Kolkata
A presentation on
Objectives
To give an overview of eBay Inc. and eBay India. To explain the business model of eBay Inc. To explain the functions of eBay India. To discuss the insights on consumer buying behaviour in watches
and mom and baby products. To explain the average selling price of the products. To suggest new strategies for improvement of the organisation.
E-Commerce in India
India first came into interaction with the online E-Commerce via the IRCTC.(2002)
In 2005 eBay entered the Indian e-commerce market.
In 2007 Flipkart introduced itself to the Indian market and gained popularity soon.
Reasons for Growth of E-Commerce in India
Increasing broadband Internet and 3G penetration.
Growing Living standards
Availability of much wider product range
Busy lifestyles and lack of time for offline shopping
Increased usage of online categorized sites
Evolution of the online marketplace model with websites like eBay, Flipkart, Snapdeal, etc.
Challenges for E-Commerce in India
Lower average broadband speeds compared to other countries.
High failure rate of online payment transactions.
Lack of access to free internet facilities in public places like airports, trains etc.
Lower margins for e-commerce companies could be a potential threat to their survival.
eBay Inc.
Company OverviewBusiness ModelOrganisational StructureFunctions
eBay Inc.
American multinational corporation and e-commerce company, providing consumer to consumer & business to consumer sales services via Internet.
Founded by- Pierre Omidyar Founded- 3rd September, 1995 Headquarter- San Jose, California Chairman- Thomas Tierney CEO- Devin Wenig Type- Online Retailing Website- eBay.com, eBay.in
eBay India
eBay entered in India in 2004 by acquiring baazi.com.
India’s leading e-Commerce marketplace.
eBay India has 2.1 million active users from 4,306 cities in India.
Managing Director- Latif Nathani.
Head Office- Goregaon East, Mumbai.
Corporate Affairs
In 2004, eBay acquired 25% of classified listings website, Craigslist.
In 2005 eBay acquired Skype.
In 2007 eBay acquired StubHub.
On October 3, 2002, PayPal became a wholly owned subsidiary of eBay.
eBay and PayPal have splitted their operations into two individual companies since 20th July, 2015.
Reasons for Separation from Paypal
Competitive landscape of online payment- Square, Visa and Apple Pay.
Overnight increase in value.
Very different set of strategic priorities.
Business Model
eBay enables commerce through three reportable segments.
Marketplaces
Payments
Enterprise
Marketplace Features
eBay is a leading commerce platform for users and merchants. eBay provides a variety of access points for consumers to shop
virtually anytime, anywhere. eBay provides a large selection of inventory globally. eBay strives to provide value to consumers. eBay offers consumers choice. eBay offers a variety of specialized vertical experiences.
Payment Features
eBay enables payments in the online and physical worlds.
Global reach and scale provides value for consumers and merchants.
eBay offers consumers choice by providing a variety of funding mechanisms.
eBay is focused on making solutions simple for customers and developers.
Payments solutions offer leading fraud prevention and protection.
Enterprise
Enterprise operates three primary lines of business:
Commerce Technologies
Omnichannel Operations Solutions
Commerce Marketing Solutions
Commerce Technologies
eBay Enterprise Retail Order Management solution
The eBay Enterprise payments infrastructure
eBay Enterprise Store Fulfilment solutions
eBay Enterprise Retail Associate Platform
Omnichannel Solutions
eBay Enterprise Fulfilment and Freight solutions
Provides scalable, market leading direct to consumer fulfilment with seven campuses across U.S., Canada and Europe
Provides scalability, operational efficiency and cost efficiencies that retailers cannot achieve on their own.
Marketing Solutions
Focused on providing comprehensive, industry-leading marketing technology solutions as well as digital agency services.
Includes a suite of demand generation capabilities including: affiliate marketing; attribution; database and CRM; email & mobile marketing; online advertising display targeting.
eBay Enterprise Agency Services offers full-service digital marketing specializing in analytics and optimization; creative services; studio services; media services; search engine marketing; user experience design and usability research.
Business models offered to sellers and customers
Yard sales
Consignment
eBay stores
Dropshipping
Wholesaling
Organisational Structure
eBay Inc
CEO
CFO CCOCommunicatio
ns Director, CMO
HR, Chief
People’s
Officer
Chief Technological Officer
Legal, Gener
al Couns
el
Chief Produc
t OfficerCateg
ory Head
Chief Strate
gy Officer
Velocity Statistics A pair of shoes sold every 2 seconds Womens accessories sold every 3 seconds Three woman's dresses sold every 2 seconds A pair of womens jeans sold every 15
seconds A pair of mens sunglasses sold every 16
seconds A mens necktie sold every 22 seconds A womens handbag sold every 5 seconds A cell phone sold every 4 seconds An MP3 Player sold every 40 seconds
including Apple iPod, Creative Zen, and others
An LCD television sold every 2.5 minutes Headphones sold every 16 seconds
An iPad sold every 15 seconds An item in the home décor category sold
every 4 seconds A bedding item sold every 16 seconds A bath item sold every 16 seconds A major appliance sold every 17 seconds A baby gear item sold every 2 minutes Three parts or accessories sold every 1
second A motorcycle part is sold every 2.3
seconds An engine or component is sold every
7.2 seconds A wheel or tire part is sold every 5.9
seconds A snowmobile, ATV, or personal
watercraft part or accessory is sold every 7.1 seconds
Functions of eBay India
Category ManagementMarketingProductLogisticsFinance
Category Management
Category management is a frame-work and set of practices used to optimally manage supply categories to meet business objectives.
A category is a grouping of materials or services that have similar supply and usage characteristics to meet business objectives.
The head office of eBay in India, located in Mumbai, is responsible for the category management of the site eBay.in.
Its main function is to decide the categories to be put on the site and the items sold in each category.
Category Management Workflow
Follow UpCategory
Tactics and Execution
Category Strategy
Company GoalsMarket Insight
Marketing
The marketing department must act as a guide and lead the company's other departments in developing, producing, fulfilling, and servicing products or services for their customers.
Build relationship with the audience
Involve the customer
Generate income
Tools of Marketing Department
Marketing research
Product development
Advertising and promotional campaigning
Business development
Responsibilities of Marketing Department
Applying customer-centric approach Keeping up with the competition Branding Finding the right partners Being creative and innovative Communicating with other departments Budgeting Being aware of ROI Managing strategy Managing research Managing events
Product Team
Consumer Support
eBay Enterprise provides branded customer care services for commerce via telephone, IVR, live chat, email, and social support through three call centres and a network of customer support agents
The eBay Enterprise customer care platform combines proprietary and third-party technologies, including automatic call distribution, computer telephony integration, interactive voice response, email, workforce management, voice recording/monitoring, and customer relationship management systems.
eBay Enterprise call centre operations utilize business intelligence to optimize service, sales, agent and cost efficiencies as well as revenue enhancing services to help drive retail revenue through customer service interactions.
Finance Department
The business functions of a finance department typically include planning, organizing, auditing, accounting for and controlling its company's finances.
Role of the Finance Department
Cash Flows Accounts Receivable and Payable Taxes Investments
Competitors’ analysis
EBay is an open marketplace (OMP) — a technology-based, asset-light model. It merely hosts sellers, of new and, in a small percentage, used goods, and connects them to buyers.
EBay does not handle logistics beyond alerting its partners in this space via an automated process. When goods move from sellers to buyers, they don't pass through an eBay warehouse.
Flipkart, Amazon and Snapdeal — all follow the managed marketplace model (MMP), where they control delivery and returns, and don't do used goods. Snapdeal has opted for MMP as the question of trust comes in OMP
Contd.
On an average day, while eBay India sells 18 products a minute, Flipkart clocks 20.
eBay believes in growth along with the retail industry whereas Flipkart, Amazon and Snapdeal believe in competing with the retail industry.
Contd.
eBay India had revenues or income of Rs 107 crore calculated on commission earned from sellers along with advertising revenues for fiscal 2013-14, according to its annual filing to the Registrar of Companies.
Amazon Seller Services had revenues of Rs 169 crore and Flipkart Internet that manages the portal reported income of Rs 179 crore. A year earlier, eBay's revenue was Rs 81 crore while Flipkart trailed with Rs 15.4 crore.
eBay vs Amazon Business Model
Amazon makes a buyer feel that he is buying directly from Amazon With fulfilment By Amazon, a seller can even have his items stored and
shipped directly from Amazon’s warehouses. On the other hand, a seller might prefer to use eBay in order to customize
and personalize his listings.
SWOT AnalysisSTRENGTH OPPORTUNITY
World’s largest internet marketplace
Business model (no strong direct competition)
Economies of scale Localization Payment system Brand reputation
Growing number of mobile shoppers
Become a retailer Increase services and product
portfolio through acquisition Open more online stores in other
countries
WEAKNESS THREATS High fees No further growth strategy
Online security Regional low cost online retailers Increasing competition from
Amazon, Flipkart and Snapdeal Exchange rates
Market Research onInsights on Consumer Behaviour and
Buying Preferences for Lifestyle Products
Watches and Baby and Mom Products
Objectives
Primary Objective find the consumers’ buying pattern in the categories of wrist watch and baby and mom
products.
Secondary Objectives find the ASPs of the product categories in various retail stores. find the most preferred and most sold brands of these product categories. analyse the consumers’ buying behaviour in various stores. find out the attributes that influence the buying behaviour of the consumers.
Scope and Limitations
Scope: This research work has scope for further utilization in determining market
statistics for the company as well as for other e-commerce companies.
Limitations: People might not be always willing to respond to all of the questions.
Respondents tend to be confused in rank and rating charts. Most of the retailers are unwilling to cooperate. Time is a big limitation. Samples are limited within the state because of time and monetary constraints.
Research Design and Methodology
Design: Exploratory research that focuses on the discovery of ideas and is generally based on Primary data.
Research is based on descriptive study that helps to know the characteristics of certain group such as age, sex, education, level, income occupation etc.
Source of data : Primary data Research method: Survey research (sampling method) Research Instrument: Questionnaire Type of questionnaire: Structured
Type of question: close ended Measurement Scale: Ordinal scale Scaling: Comparative and Non comparative Types of scale: Likart scale Sample Size: (240x2 + 50x2) Sampling Frame: Population of Mumbai, Greater Mumbai and
Navi Mumbai Unit of analysis: Students, Executives, Businessmen and
women, Housewives, Parents Methodology: The sample size is 240 consumers and 50
retailers in each category of products. The report is based on only primary data.
Analysis based on consumer’s responses
Watches
Among Indian brands Titan is preferred by the majority of consumers, i.e. 45.2% whereas Fastrack is preferred by 34.4% consumers. Sonata and Timex are preferred by 9.1% and 5.4% consumers respectively
The survey shows that most consumers, i.e. 33.6% visit online stores in 1-2 years to buy watches.
Most preferred site is Flipkart with 35.7% preference followed by Ebay with 22.8% and amazon with 17.8% preference.
Bar chart represents the family members who make decision while
buying watches .
The survey shows that majority of the consumers, i.e. 29%, uses Titan brand for wrist watches followed by Fastrack with 21.2% users. In international brands Guess and Citizen are used mostly with frequency of 4.6% and 2.1% respectively
In international brands Armani and Citizen are preferred mostly by 12.9% and 11.6% consumers
For fashion wrist watches majority of the women prefer branded wrist watches, i.e. 76.3% and unbranded low priced fashion
watches are preferred by 23.7%
Analysis Based on Retailers’ Responses
Watches
According to the watch retailers, the most selling Indian brand is Titan (78%) followed by Fastrack (22%).
Among the foreign brands, the most selling one is Fossil (52%), followed by Casio (10%), Xylys (8%), Tag Heuer (8%), Esprit (6%), Guess (6%), Rado (4%), Tissot (4%) and Tommy
Hilfiger (2%).
ASP of various Brands: The ASP of Titan is Rs 5785 and most selling price is Rs
4500. The ASP of Fastrack is Rs 1920 and most selling price is Rs
2000. The ASP of Citizen is Rs 11020 and most selling price is Rs
1000. The ASP of Armani is Rs 15930 and most selling price is Rs
15000. The ASP of Giordano is Rs 5250 and most selling price is Rs
5500. The ASP of Seiko is Rs 18129.40 and most selling price is
Rs 15000. The ASP of Rado is Rs 39620 and most selling price is Rs
38000. The ASP of Michael Kors is Rs 13901 and most selling price
is Rs 15000.
Other inferences:
When the retailers were asked about the preferences of women between branded and unbranded watches, while buying fashion watches, 100% were in the favour of branded watches.
With respect to warranty offered, all the retailers surveyed informed that they offer manufacturer’s warranty.
According to the retailers, most preferred type of warranty by the customers is manufacturer’s (100%).
Analysis based on consumer’s responses
Baby and Mom Products
Flipkart leads the market with 33.3% preference followed by Amazon with 26.3% preference for baby care products.
Firstcry has a preference of 13.3% followed by Ebay with 11.3% preference for baby care products
In e-retailing the most selling is diapers with a frequency of 47.9%. The skin care products have a market of 17.1%
followed by toys with 12.1%
In brick and mortar most bought baby product is diapers with 40.4% followed by clothes with 23.8% sales. Baby food account
for 21.7% sales followed by skin care, toys and prams
In diapers most preferred brand is Pampers with 52.1% preferance followed by Huggies with 25.4% , Mamy Poko
10% followed by Libero with 6.3% and Charlie Banana with 4.6% preference
The most sold pack size in diapers is “36-60 pcs” with 37.9% preference. “18-36 pcs” pack have 29.2% preference followed
by “above 60 pcs” pack with 21.3% preference.
The most selling size of diapers is M
In prams Mee Mee is leading with 42.9% preference. Luvlap has preference of 12.1% followed by Dreambaby and
Mothercare. Other brands like Gracco have 30% preference
Most preferred price range for prams is Rs. 3000-5000 with 34.2% preference followed by 33.8% preference for Rs. 5000-
7000.
In toys development toys and activity toys are most preferred by respectively 43.3% and 16.3% consumers. Soft toys also are
preferred by 16.3% consumers.
Fisherprice is the most preferred brand of toys with 35.8% preference followed by Chicco with 24.2% preference. Funskool
and Disney follow with respectively 16.7% and 13.8% preference
Analysis Based on Retailers’ Responses
Baby and Mom Products
In the baby care product category, diaper is the most selling item (76%), followed by skin care (18%) and toys (6%).
In the preference for pack size of diapers, the most selling pack size is “18-36” (36%), followed by “36-60” (20%), “6-18”(18%),
“below 6”(16%) and “above 60”(10%).
In the preference for diaper size, the most preferred size is “M”(66%), followed by “S”(26%) and “L”(8%).
In the category of Prams, the most sold brand is “Others”(42%), followed by “MeeMee”(40%) and Mothercare,
Luvlap and Graco, each 6 %
In the Toys segment, the most preferred type is the Activity toys (48%), followed by Soft toys (24%), Automobile (6%),
Rattles (4%) and Bath toys (2%).
The most selling Toy brand is others (38%) followed by Mee Mee (26%), FisherPrice (24%), Funskool (8%) and Disney (4%)
Findings and Recommendations
The survey revealed that watch brands like Invicta are not well known amongst the Indian consumers. Hence eBay India needs to come up with better promotion strategy to make the consumers well aware of the brands and offerings eBay offers to its consumers.
Consumers are not at aware of the fact that eBay India also sells baby and mom products through its online portal. Therefore the company should aim at making its consumers aware of the categories of products sold in its site by undertaking better promotional techniques.
It is seen that eBay does not participate in any kind of promotions or festive promotions. These are the weak points that eBay needs to work on.
Contd.
o eBay India must stop following eBay Inc., US’s business model and start aiming at making profits.
o eBay can also change its logistics pattern by keeping inventory in its warehouses and control inventory supply process in order to gain control over the vendors which will prevent fraudulent activities.
o The company website has many faults including navigation defects as well as product listing problems. eBay must make the web page more professional and relevant so that consumers do not get confused.
o eBay was primarily a bidding site(C2C) where consumers could auction on products to be sold. This positioning of eBay has to be upgraded so that consumers become well aware of the fact that eBay also offers B2C and B2B selling services.
References:
https://www.ebayinc.com/our-company/our-history/ Pooja Vishant (2015)http://indianonlineseller.com/2015/05/ebay-updates-shipping-policy-for-four-categories-in-
jewellery/ Shelley Singh (2014)http://articles.economictimes.indiatimes.com/2014-09-09/news/53730647_1_ebay-india-
latif-nathani-flipkart-and-amazon Raghavendra Kamath (2014) http://www.business-standard.com/article/management/snapdeal-s-lessons-from-
ebay-114030200685_1.html http://www.theofficialboard.com/org-chart/ebay http://www.exampleessays.com/viewpaper/25348.html http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/digital-media/11134139/The-
five-reasons-behind-PayPals-split-from-eBay.html http://www.wikinewsindia.com/tech-news/ciol/paypal-separates-from-ebay/ http://www.strategicmanagementinsight.com/swot-analyses/ebay-swot-analysis.html http://my.studyindenmark.dk/profiles/blogs/wahid-s-initiative-what-is-the-responsibility-or-role-of-the
Ms. Prabha HariharanCategory Head
eBay IndiaGoregaon East, MumbaiContact no. 9823392433
I express my gratitude to:
THANK YOU