Online market Essay Example | Topics and Well Written Essays - 2000 words

Online market - Essay Example It is estimated that $1,900 worth of goods are traded per second worldwide from the eBay platform. eBay auctions are the online version of traditional auctions. The marketplace provides online commerce platforms to buyers and sellers, providing individuals and businesses from around the world the opportunity to interact and trade online. Buying and selling takes place in a variety of ways on eBay. On the auction platform, sellers establish a starting price for a good or service they want to sell. Using the bidding format the interested buyers bid higher prices till the end of the auction after which the seller sells to the highest bidders. Another option available for individuals is the fixed price option called Buy It Now. In this case a fixed price is established by the seller, and the sale is made to the first person who offers to pay the fixed price. The website also offers a Want It Now feature, which allows interested buyers to create a wish list of the things they want to buy, based on which interested sellers can contact them and arrange transactions. Any item can be sold online as long as it is not illegal or does not violate eBay’s Prohibited and Restricted Items policy. eBay generates revenue by charging various fees for its service. The auction service charges the seller per listing and a percentage of the final sale price. E-marketing is the heart of e-business. It involves getting close to customers, adding value to products, expanding distribution channels and increasing sales and offering after sales services (Chaffey & Smith, 2005). According to Ellis and Korper (2001) e-commerce companies just like all others face the challenge of having to define themselves in the global market. Through marketing and branding they need to identify what makes them unique and how this unique selling point can be used to attract customers. Ellis and Korper (2001) explain that the aim of marketing online businesses is to attract customers, get them to