Mohit Gupta

Q1. What are the problems, which E-bay is currently facing? How e-bay is trying to solve there problems? Are there any other solutions that e-bay should consider?

Ans. E-bay is the leader of the online auction industry and was unchallenged for quit some time. The e-bay company become the leader in the online auction industry by not only allowing every day consumer to purchase and sell items but it also allowed big companies to clear up their stock to bargain shoppers. E-bay has become serious competitors in the traditional e-tail, their secure online payment system.

Problem which e-bay is currently facing are:

1. Less control over auctions which create problems for e-bay.
2. Unscrupulous sellers, who collect fees for goods that are not legitimate, do not exit.
3. Unauthorized use of seller accounts which lead to fraudulent sales.
4. Unsatisfied customer: E-bay is struggling with the task of satisfying online buyers and seller
5. Only use of credit card on the internet.
6. No protection of sellers on e-bay from fraud customers.
7. Chargeback: In this after receiving goods by customers he instruct the card company to reverse the charge

Steps taken by e-bay to solve these problems:

1. Automated response to fraud complaints encourages buyer and sellers to dispute on their own
2. Programme called voices bring buyer and seller together 10 times a year to remain in touch with community users.
3. Continuous enhancement of technology to protect both buyers and seller.
4. Feedback place or space for buyer and seller to communicate experience

Q2. Do you think a critical mass of seller needed in order for a company like e-bay to service? What steps should e-bay take to ensure seller critical mass?

Ans. E-bay is earning from various means like automated auction services, fee and commissions associated with trading services and direct advertising on the site. To establish business like e-bay need a huge chunk of money to be invested in infrastructure this is fixed cost. That same infrastructure also needs high maintenance expenses. So income from only auction services and advertising on site can not turn into profitability. So, I think a critical mass of seller needed on order for a company like e-bay to service.

Steps to ensure critical mass of sellers at e-bay:

1. Less fee and commission: E-bay needs to charge less fee and commission changes to ensure critical mass of sellers. It has already seen reduction in no. of seller at the time of increase in fee and commission
2. Protection from fraud customers: To ensure critical mass of sellers, e-bay need to protect its sellers from fraud customer. They are already angry over e-bay for it.
3. Prompt dispute settlement: E-bay need to ensure prompt dispute settlement, because it takes time which lead to unsatisfied customers and seller, which is harmful for e-bay

Q3. There is a lot of skepticism out over that whether e-bay will be monetize voice transfer call skype? What type of risk you see by adding communication functions to e-bay

Ans. Following are the risks by adding communication functions to e-bay:

1. Seller may not accept the function of communication: The most important need of success of the skype in business function is acceptability of sellers. Customers are always ready to experience these kind of value added services but sellers may not accept it due to increase in cost and efforts
2. High traffic may lead to customer dissatisfaction: Due to high traffic over VOIP may lead to high waiting to customers which will lead to customer dissatisfaction.
3. High fixed cost: It may increase service cost to customer due to high fixed cost. It will harm cost competitiveness of e-bay
4. Loss of sellers: Many sellers are not happy with skype which will lead to loss of number of seller which is prime need of e-bay to service.

Q4. Suggest few secured e-payment mechanism to retailers for minimizing various risk mentioned in the case?

Ans. Secure e-payment mechanisms:

1. E-wallets: It refers to a set of digital information that is associated with a particular individual. It may include Id. Password access control lists, public key etc.
2. Smart cards: Smart Cards have microprocessor chip in it. One can manipulate information over it to secure payment.
3. E-cash

a) Micro payment: These are very small payments. There are also suitable for small payments which credit card can’t provide

b) Wireless payment: Many mobile phones companies use it. Their customers can purchase goods and pay their expenses over mobile. It reduces risk of theft of cards

c) Q-pass: This was used to pay tiny-payments. Customers can pay small payments through Q-pass.

Q5. Will e-bay be successful in long term? Why and why not?

Ans. According to me, e-bay will be successful in long term. The business plan which e-bay has chosen is unique. It is the prime need of various sellers and buyers.

It is very expensive to have all infrastructures to start a e-business.

E-bay has that kind of infrastructure which it is sharing with various customer base.

Automated auction services helps seller and buyer to reach optimum price. It is only possible because of high interaction of buyer and seller at e-bay, which is not possible if any seller go alone. E-bay have always been innovative which is also prime need of the industry. Today’s customers are not only looking for product and services, they are looking for experience through various additional services. Auctions of various sites by e-bay is example of innovation of e-bay to provide experience to customers.

The need of the hour is to deal with current issue related to payment mechanism, fraud trading need to be taken care off by e-bay to service, which I believe e-bay is doing.

So I think, that e-bay will be successful in its business in long term.