EBay using Global Shipping Program: Place (Distribution)
Place (or its more common name “distribution”) is about how a business gets its products to the customers. EBay is using eCommerce strategies to sell a great product at an attractive price.
EBay is an e-commerce enterprise and a first online auction site, fabricated to enable trade on a locally, nationally and internationally, offers business to consumer (B2C) and consumer to consumer (C2C) sales & services through Internet. The headquarters of eBay located in San Jose, California and they operate in more than thirty countries. It is the platform where people and businesses buy and sell millions of goods and services worldwide Along its online auction, eBay has included many options in their services like ‘Buy It Now’ shopping, by UPC and online money transit (via PayPal) and many more. Among the main its global competitors there are several other top virtual e-commerce companies i.e. Amazon, Google, Wal-Mart etc. Local companies of respective regions are also a threat for the company.
So company is using Global shipping program to sell the product like hot cakes at the any part of the country.
How eBay is designing the channels-
Free online shipping: once a person make a purchase online the free shipment delivers the orders in given time which is the prior attraction for any customer, another strategy for Ebay is Price effectiveness, where they reduce their prices as compared to the market, it might be they use some pricing automation software where the computer technology automatically reduces prices after inspecting market prices on daily basis. Or limited time promotion technique could also be the part of those price effectiveness strategies.
Depending Upon the distribution-
Wide distribution– like daily deals which eBay brings up for the customer. The basic things like cosmetics, clothes and many discounted items all comes in the wide distribution.
Exclusive Distribution- In the exclusive products it comes with the expensive items which are not generally sold for example the watches of exclusive brands like Rolex, Rado etc.
Top five selling strategies, (Stephen, 2014)
Data mining is another tool in eBay where a customer can easily extract all the required information from data and save his time, how this works there are some areas where date mining tools works.
Fraud detection: in this method data mining go with the statistical analysis and machine learning in order to get the system called “anomaly detection”, this is a system which detects irregular patterns in a data sequence order.
Product Research: through this option a user can easily get what he wants to in a single click rather than to go and search for every product, also it helps eBay to study the behavior of the user through data search, as this data gives eBay a link from a query, and through large-scale data analysis of query logs, EBay can create graphs between queries and different products.
Product recommendation: this is the good tool for the eBay users in order to get what they want without searching for any product, as it saves their time as well as make them happy. This structure is originally built on the system called Collaborative filtering, in this many mixed choices of the past visitors or users give the product insights to the current user. Finding an appropriate product for the customer among many of the products is really a difficult task but through data mining this problem can be tackled easily.
Infrastructure of eBay systems-
Infrastructure of eBay connected with four main servers that are web servers, application server, search servers and data servers. These all servers get information from different user devices and this information travels to web server, web servers send this to application or search servers and finally it goes to the main data servers. Moreover, eBay has launched many computer applications for their clients in order run their business better, those applications include, small applications for computer or tablets, and other mobile applications for android or iOS technology systems that can be downloaded to any device easily.
Stephen, 2014, ‘Top 5 Selling strategies’, Cpc strategy Blog http://www.cpcstrategy.com/blog/2014/12/ebay-selling-strategies/(Accessed 16 September 2016)
Layton, J, ‘How EBay works’, NU-E-Association, http://www.nu.e-association.ca/cim/dbf/how_ebay_works_-_english.pdf?im_id=56&si_id=305( accessed 14 September 2016)