Analysis of the online auction platform eBay. Advantages and disadvantages

Projektarbeit aus dem Jahr 2019 im Fachbereich VWL - Mikroökonomie, allgemein, Note: 1.3, Macromedia Fachhochschule der Medien München, Sprache: Deutsch, Abstract: This paper discusses the business idea eBay, its strengths and weaknesses. Bidding over the Internet brings with it several advantages, but also disadvantages. Especially buyers can be harmed by opportunistic behavior of the transaction partner. Companies that want to sell their goods electronically will have to consider soon whether eBay is not a good alternative to the traditional online shop. The services offered are aimed at almost every type of user and meet the requirements of large companies. Both the simple evaluation of figures and the constant presence of customers suggest that shop providers with fixed prices must prepare for new competition. For them, the type of eBay use is irrelevant, since the application flow for pure sales via eBay is the same as the implementation in an existing sales system. The main problem with Internet auctions is the fact that the players involved do not know each other. Trading between two individuals via online auctions therefore requires a high degree of trust. Customers also enjoy more and more auctions and the possibility to get high-quality goods at good prices. It must be considered, however, that the inhibition threshold for Internet shopping is still quite high in the population. The eBay platform certainly offers new sales potential in all areas with low investment costs at the same time. However, the market must be constantly monitored, as changes in demand can often be perceived too late.