ebay marketing strategy case study

TheBigMarketing.com

eBay Marketing Strategy 2024: A Case Study

In this case study, we will examine eBay’s marketing strategy for 2024 and its impact on the digital marketplace. As one of the leading e-commerce platforms, eBay has implemented innovative tactics to optimize their SEO, enhance their advertising efforts, and reach a wider audience of active buyers.

Key Takeaways:

• Ebay has implemented a comprehensive marketing strategy to boost their online visibility and attract more active buyers.
• They have evolved their marketing approach to adapt to market challenges and capitalize on the growing e-commerce industry.
• Ebay effectively utilizes traditional media, such as television advertising, to build their brand and reshape consumer perception.
• They understand the power of social media in promoting products and engage customers by incentivizing sellers to share listings.
• Ebay employs unconventional marketing strategies, like storytelling and influencer partnerships, to expand their reach and engage new audiences.

The Evolution of eBay’s Marketing Strategy

eBay, as a leading digital marketplace in the e-commerce industry, has experienced remarkable revenue growth in recent years. The company reached its highest recorded quarterly revenue in Q1 2021, showcasing the effectiveness of their marketing strategy in driving revenue growth. With the ever-increasing adoption of the Internet by consumers, eBay’s marketing strategy has evolved to adapt to market challenges and capitalize on emerging opportunities.

Key Factors Driving eBay’s Success and Revenue Growth

eBay’s success and revenue growth can be attributed to several key factors:

• Wide Reach in the Digital Marketplace: eBay’s strong presence in the digital marketplace enables them to tap into a vast and diverse customer base. With millions of active buyers and sellers worldwide, eBay offers a platform that caters to a wide range of product categories and consumer preferences.
• Effective Online Advertising and Promotion: eBay has invested in various online advertising tactics to increase brand visibility and attract more customers. By targeting specific demographics and leveraging data-driven insights, eBay effectively reaches its target audience and encourages user engagement.
• Customer-Centric Approach: eBay actively listens to customer feedback and continuously improves its platform to enhance the shopping experience . Personalization plays a vital role in their marketing strategy, with tailored recommendations and targeted promotions based on customer preferences and previous interactions.
• Strategic Partnerships: Collaborations with influential partners, such as brands and celebrities, have allowed eBay to extend its reach and tap into new customer segments. These partnerships help create buzz around the platform and further amplify eBay’s brand presence.
• Continuous Innovation: eBay has embraced innovation in its marketing strategy, leveraging emerging technologies and trends. By adopting artificial intelligence and machine learning, eBay delivers personalized recommendations and streamlined shopping experiences that meet the evolving needs of consumers.

With a strong focus on revenue growth and customer satisfaction, eBay has positioned itself as a trusted and dynamic digital marketplace. By adapting their marketing strategy to align with changing market dynamics, eBay has successfully captured the attention and loyalty of consumers worldwide.

The Impact of eBay’s Marketing Strategy on the Revenue Growth

eBay’s evolving marketing strategy has played a pivotal role in driving its impressive revenue growth. By capitalizing on the growing e-commerce industry and leveraging their digital marketplace dominance, eBay has achieved significant financial success. Their strategic approach to online advertising, customer-centricity, and continuous innovation has led to increased customer acquisition, customer retention, and ultimately, revenue growth.

This table highlights the steady revenue growth eBay has achieved over the past few years. As their marketing strategy has evolved and adapted to market trends , eBay’s revenue growth has remained consistent, with a continuous upward trajectory. This consistent revenue growth affirms the effectiveness of eBay’s marketing strategy and their ability to capitalize on the expanding e-commerce landscape.

Leveraging Traditional Media for Brand Building

While eBay is known as an online marketplace, the company recognizes the importance of traditional media, especially television, in building their brand visibility. Despite being predominantly digital, eBay understands that TV advertising is an effective channel for reaching and influencing consumers, helping to reshape the perception of eBay beyond its image as just an online car boot sale.

TV advertising plays a crucial role in eBay’s marketing strategy by allowing them to tap into a wider audience and showcase their offerings in a visually engaging way. By leveraging the power of television, eBay is able to present their brand in a more refined and professional light, shifting the perception from a purely online marketplace to a trusted and reliable platform for both buyers and sellers.

Through strategic TV advertising campaigns, eBay aims to influence consumer behavior and reshape the narrative around their brand, emphasizing their diverse product range and the value they provide. By showcasing compelling stories and highlighting the benefits of using eBay, the company aims to expand its customer base and attract new users who may not have previously considered the platform.

Impact on Brand Visibility

eBay’s use of TV advertising has had a significant impact on brand visibility, helping to reinforce their position as a leading online marketplace. Through regular television exposure, eBay has been able to connect with a broader audience, increasing brand recognition and driving traffic to their platform. TV advertising has allowed eBay to overcome preconceived notions and demonstrate that they offer much more than just used goods.

By appearing on the television screens of millions of viewers, eBay has been able to establish themselves as a trusted brand and gain credibility in the e-commerce space. This increased brand visibility has translated into greater trust from consumers, leading to increased sales and an expanding customer base.

Furthermore, TV advertising has helped eBay reach demographics that may not be as active online, such as older generations or those in rural areas with limited internet access. This reach has allowed eBay to tap into underserved markets and expand their customer base, ultimately driving revenue growth.

Bilingual Conclusion

Harnessing the power of social media.

eBay recognizes the significant impact that social media can have on promoting products and engaging customers. As part of their comprehensive marketing strategy, eBay has implemented a social sharing initiative that incentivizes sellers to promote their listings on popular social media channels.

By offering fee reductions to sellers who actively promote their products on platforms such as Facebook, Instagram, and Twitter, eBay encourages sellers to tap into the vast audience reach and customer engagement potential of social media. This initiative not only benefits individual sellers but also contributes to driving overall traffic and visibility for the eBay platform.

Social media promotion serves as a powerful tool for expanding the reach of eBay’s seller community and creating customer engagement opportunities. By leveraging the widespread popularity and influence of social media, eBay enables sellers to showcase their products to a wider audience and establish direct connections with potential customers.

With social media promotion integrated into their marketing strategy, eBay fosters customer engagement by enabling sellers to interact with buyers and respond to their inquiries, share product updates and promotions, and build brand loyalty. This direct engagement with customers enhances the overall shopping experience on the eBay platform and strengthens the seller-customer relationship.

Furthermore, eBay’s social media promotion aligns with the evolving online shopping habits of consumers, who increasingly seek product recommendations and reviews from their social networks. By leveraging social media channels, eBay taps into this consumer behavior, leveraging word-of-mouth marketing and peer recommendations to drive traffic and boost conversions.

The Impact of Social Media Promotion on eBay’s Success

eBay’s social sharing initiative has proven to be a valuable addition to their marketing strategy, helping drive platform traffic, enhancing customer engagement, and increasing seller visibility. By incentivizing sellers to leverage social media, eBay effectively harnesses the power of these popular platforms to expand its reach and strengthen its position as a leading online marketplace.

To illustrate the impact of eBay’s social media promotion, here is a breakdown of the key benefits:

Overall, eBay’s integration of social media promotion into their marketing strategy demonstrates their commitment to utilizing the most effective channels for promoting products, engaging customers, and driving growth in the competitive e-commerce landscape.

Unconventional Marketing Strategies

eBay has consistently embraced unconventional marketing strategies to stand out in the highly competitive digital marketplace. They understand the power of storytelling and incorporate impactful narratives and human-interest elements into their marketing campaigns . These strategies not only generate publicity but also drive growth by engaging and resonating with their target audience.

One of eBay’s innovative approaches is their strategic partnerships with influencers. By collaborating with popular influencers who align with their brand values, eBay leverages their social media reach and credibility to expand their reach and engage new audiences. This influencer marketing strategy allows eBay to tap into niche markets and target specific demographics more effectively.

Additionally, eBay has ventured into reality TV shows as a means of unconventional marketing. By strategically integrating their brand into popular shows like Love Island, eBay is able to create organic product placements and generate buzz among viewers. This approach not only increases brand visibility but also creates memorable and authentic brand experiences for the audience.

Overall, eBay’s unconventional marketing strategies, including storytelling and influencer marketing partnerships, have proven to be effective in expanding their reach, engaging new audiences, and driving growth. These innovative approaches allow eBay to differentiate themselves in the competitive digital landscape and remain at the forefront of the e-commerce industry.

Personalized Shopping Experience and AI Integration

eBay is committed to providing a personalized shopping experience for its users by harnessing the power of structured data and artificial intelligence. With a robust marketing strategy in place, eBay organizes its vast inventory around products to create seamless and tailored consumer experiences. By leveraging structured data and intelligent algorithms, eBay aims to highlight the price and selection advantages it offers to shoppers.

Structured data plays a crucial role in eBay’s marketing strategy. It allows eBay to classify and categorize its inventory meticulously, enabling shoppers to find the exact products they are looking for quickly. By organizing data in a structured format, eBay enhances the shopping experience by ensuring that the right products are presented to the right consumers at the right time.

A key aspect of eBay’s personalized shopping experience is the implementation of artificial intelligence. By leveraging AI algorithms, eBay can analyze user browsing and purchasing patterns, search history, and preferences. This analysis empowers eBay to deliver personalized recommendations to shoppers, suggesting items that align with their interests and needs. The integration of AI technology enables eBay to understand and anticipate customer preferences, providing a tailored and enjoyable shopping experience.

Advantages of eBay’s Personalized Shopping Experience

eBay’s focus on structured data and AI integration offers several advantages to both buyers and sellers. For buyers, the personalized shopping experience ensures that they can easily discover the products they desire, saving time and effort spent searching through unrelated listings. The tailored recommendations also enhance the discovery of new and relevant items, allowing buyers to explore a wider range of options.

On the other hand, personalized recommendations benefit sellers by increasing visibility and exposure for their listings. By leveraging structured data and AI algorithms, eBay can showcase sellers’ items to those most likely to be interested in purchasing them. This targeted approach maximizes the chances of sellers connecting with interested buyers, ultimately driving sales and revenue.

Risk Mitigation and Trust Building

In order to address the significant risk of fraud on the platform, eBay has implemented a range of trust and safety programs to protect both buyers and sellers. These programs play a crucial role in building customer trust and maintaining the integrity of the marketplace.

One of the key trust-building measures is the buyer and seller review system . By providing a platform for buyers and sellers to rate each other and leave feedback, eBay encourages transparency and accountability. This system enables users to make informed decisions based on the experiences of others, reducing the risk of fraudulent transactions and fostering a trusted community.

Ebay also places high importance on safe harbor data protection to safeguard the personal information of its users. With robust security measures in place, eBay ensures that personal data is handled responsibly and protected from unauthorized access. This commitment to data privacy further enhances customer trust and confidence in conducting transactions on the platform.

Furthermore, eBay’s purchase protection systems provide an added layer of security for buyers. These systems offer refunds or replacements for eligible items that are not as described or fail to arrive. By offering this level of protection, eBay reassures buyers that their purchases are protected, thus further establishing trust between the company and its customers.

Through these comprehensive risk mitigation efforts and trust-building initiatives, eBay has positioned itself as a secure and trusted online marketplace. By actively addressing fraud prevention and ensuring the safety of its users, eBay instills confidence in its customers and strengthens the overall customer experience.

To illustrate eBay’s commitment to fraud prevention and customer trust, the table below highlights the key trust and safety programs implemented by the company:

eBay’s Revenue Model

eBay generates revenue through its listing and commission fees. While the platform initially gained popularity as an online auction site, eBay has strategically shifted its focus towards fixed-price sales to cater to changing customer preferences. By adapting to the evolving e-commerce landscape, eBay aims to position itself as the top choice for purchasing new items.

Listing Fees

eBay charges sellers a fee for listing their products on the platform. This fee varies based on several factors, including the value of the item, the listing duration, and any additional optional features that sellers choose to include in their listings. By implementing listing fees, eBay not only generates revenue but also ensures that sellers are serious about their listings, leading to a more reliable and trustworthy marketplace.

Commission Fees

Another key source of revenue for eBay is the commission fees charged on successful transactions. When a seller’s item is sold, eBay takes a percentage of the final sale price as a commission. This fee is calculated based on a tiered structure, with higher-value items generally incurring lower commission rates. By aligning the commission fees with the transaction value, eBay encourages sellers to list higher-priced items, which can contribute to increased revenue for both the platform and sellers.

In addition to listing and commission fees, eBay may also generate revenue through other revenue streams, such as advertising and promoted listings. These additional revenue streams further contribute to eBay’s overall revenue model, helping to support the platform’s growth and expansion.

Global Expansion and International Growth Opportunities

eBay has experienced remarkable growth in international markets, with cross-border transactions accounting for nearly two-thirds of all transactions on the platform. This global expansion has propelled eBay’s success and opened up new opportunities for growth.

International Markets

eBay’s expansion into international markets has allowed them to tap into a diverse range of customers and cultures. By entering new markets, eBay can reach a wider audience and cater to their specific needs and preferences. This targeted approach has proven to be a key driver of success in international markets.

eBay’s International Growth Strategies

eBay employs a variety of strategies to fuel their international growth. One of their approaches is adapting their platform to the local market conditions and regulations in each country. This ensures a seamless experience for buyers and sellers, building trust and facilitating cross-border transactions.

In addition, eBay actively seeks partnerships with local businesses, influencers, and celebrities to strengthen its presence in international markets. These collaborations help to build brand awareness and foster trust among local consumers, further driving growth.

eBay also prioritizes localization efforts by providing translated content, localized search preferences, and customer support in multiple languages. By addressing language barriers and cultural nuances, eBay creates a more inclusive and personalized shopping experience for its international users.

The Impact on eBay’s Success

eBay’s global expansion and focus on international markets have significantly contributed to the platform’s success. The ability to facilitate cross-border transactions has attracted a vast number of buyers and sellers worldwide, creating a thriving and diverse e-commerce ecosystem.

By capitalizing on international growth opportunities, eBay has achieved a competitive advantage in the global marketplace. Their understanding of local markets and ability to adapt to different customer needs have solidified eBay’s position as a trusted and reliable platform for international transactions.

Overall, eBay’s commitment to global expansion and their tailored strategies for international growth has driven their success and established them as a leader in the cross-border e-commerce landscape. As eBay continues to explore new markets and expand their footprint, they are well-positioned to capitalize on the increasing demand for international online transactions.

Building a Strong Seller Community

eBay understands the value of a vibrant and engaged seller community. They recognize that sellers play a vital role in driving the success of the platform, and therefore, actively encourage seller engagement and involvement.

eBay provides comprehensive support and resources to help sellers improve their listings and succeed in their e-commerce endeavors. They offer educational materials, tutorials, and workshops to enhance sellers’ knowledge and skills in areas such as product photography, SEO optimization, and marketing strategies.

Seller support is a top priority for eBay, and they have dedicated teams that provide assistance and guidance to sellers, addressing any concerns or challenges they may face. This personalized support fosters a sense of trust and collaboration within the seller community, creating a supportive environment where sellers can thrive.

Furthermore, eBay organizes seller-focused events and conferences where sellers can network, share experiences, and learn from industry experts. These events serve as a platform for sellers to connect with like-minded individuals, exchange best practices, and gain valuable insights to grow their businesses.

In addition to support and networking opportunities, eBay has implemented various seller-centric initiatives to empower sellers and promote their success. These initiatives include special seller badges, exclusive discounts on shipping supplies, and performance-based rewards programs.

eBay understands that a strong and active seller community is crucial for creating a vibrant and dynamic marketplace. By fostering seller engagement, providing extensive support, and promoting collaboration among sellers, eBay continues to build a thriving seller community that contributes to the overall success of the platform.

Future Trends and Outlook

As the e-commerce industry continues to evolve, it is crucial for eBay to stay ahead of the curve and adapt to changing consumer behavior. The future of eBay’s marketing strategy will be shaped by emerging technologies and innovative digital marketing techniques. By keeping a close eye on industry trends, eBay can position itself for continued success in the digital marketplace.

One of the key future trends in the e-commerce industry is the increasing use of mobile devices for online shopping. With the widespread availability of smartphones and tablets, consumers are browsing and making purchases on the go. eBay must prioritize mobile optimization and responsive design to ensure a seamless shopping experience for mobile users.

In addition to mobile, another emerging trend is the rise of voice search. With the rapid growth of voice-activated devices like Amazon Echo and Google Home, more consumers are using voice commands to search for products and make purchases. eBay should invest in optimizing its platform to cater to voice search queries and leverage this technology to enhance the customer experience.

Furthermore, personalization will play a pivotal role in the future of eBay’s marketing strategy. With the help of artificial intelligence and machine learning algorithms, eBay can analyze customer data to provide personalized product recommendations and targeted advertising. Tailoring the shopping experience to individual preferences will increase customer satisfaction and drive repeat purchases.

As digital marketing continues to evolve, eBay should also explore new channels and strategies to reach a wider audience. Influencer marketing has proven to be an effective way to engage with consumers and build brand awareness. Partnering with influencers who align with eBay’s brand values can boost visibility and attract new customers.

Emerging Technologies Shaping the Future of eBay’s Marketing Strategy

E-commerce is a rapidly changing industry, and eBay must stay agile and adaptable to remain competitive. By embracing new technologies and exploring innovative marketing strategies, eBay can capitalize on future trends and continue to be a leader in the global e-commerce market.

In conclusion, eBay’s marketing strategy has played a crucial role in driving its success and revenue growth. Through their ability to adapt to market challenges and leverage both traditional and digital media channels, eBay has consistently positioned itself as a dominant player in the competitive digital marketplace.

One of the key success factors of eBay’s marketing strategy is their emphasis on innovation and embracing unconventional approaches. By utilizing storytelling, influencer partnerships, and reality TV shows, eBay has successfully expanded its reach and engaged new audiences, further strengthening its brand presence.

Additionally, eBay’s strong focus on building a supportive seller community has been instrumental in their sustained growth. By encouraging seller engagement and providing them with the necessary resources and support, eBay has created a thriving ecosystem where sellers can thrive and buyers can access a wide range of products.

Looking ahead, eBay’s future prospects remain promising. With a robust marketing strategy in place, a strong seller community, and a continuous commitment to international expansion, eBay is well-positioned to capitalize on emerging trends and new growth opportunities in the ever-evolving digital landscape.

What is eBay’s marketing strategy for 2024?

How does ebay use tv advertising to enhance brand visibility, how does ebay incentivize sellers to promote their listings on social media, what unconventional marketing strategies does ebay employ, how does ebay deliver a personalized shopping experience using ai and structured data, how does ebay mitigate the risk of fraud, what is ebay’s revenue model, how has ebay achieved growth in international markets, how does ebay build a strong seller community, what is the outlook for ebay’s marketing strategy in the future, related posts.

Editorial Team

E.on marketing strategy 2024: a case study, électricité de france (edf) marketing strategy 2024: a case study.

eTail Palm Springs 2025

February 24 - 27, 2025

JW Marriott Desert Springs, Palm Springs, CA

eBay Case Study: Marketing Strategy Innovation in Action

Initially beginning life as AuctionWeb back in the days of the dotcom bubble, eBay not only survived that tumultuous period in internet history but has continued to thrive and become the biggest customer to customer selling site in world.

According to the company’s latest financials , the first quarter of 2022 saw eBay generate revenue of $2.5 billion with a gross merchandise volume of $19.4 billion. eBay has performed better than expected in this period – perhaps due to an increased number of people selling items acquired during the pandemic when ecommerce shopping was at its zenith.

Most people don’t associate eBay with marketing campaigns and traditional marketing efforts, but this couldn’t be further from the truth. eBay has a solid and innovative marketing strategy which helps it hammer home its position as a service platform rather than a traditional ecommerce retailer.

With that in mind, let’s dive into this special eTail West case study to discover what’s under the hood of the eBay marketing machine – before we get outbid.

Historic Marketing

eBay has long had a reputation for out of the box marketing strategies and these go right back to its early days during the dotcom boom.

In 1997, when the company officially changed its name from AuctionWeb to eBay, there was a rumor that the site was conceived so that founder Pierre Omidyar’s fiancé could sell her collection of Pez candy dispensers. This human-interest element to the eBay story created enormous publicity for the nascent platform and helped it achieve explosive growth in the collectibles market – a sector it is still incredibly popular with today.

This in turn helped fuel the 1997 Beanie Baby craze and resulted in the hard-to-find toys accounting for 10% of all listings on eBay for the year.

However, the story was a complete fabrication, cooked up by then public relations manager, Mary Lou Song. The Pez dispenser myth could be the first example of this kind of storytelling in marketing and helps demonstrate how eBay was innovating in the digital marketing space from the word go – even if it weren’t the most authentic of strategies.

Legacy Media

While our focus is often drawn to modern digital channels when crafting our marketing strategies, eBay isn’t ready to turn its back on legacy media just yet. In fact, the online selling platform announced in 2021 its intention to pour marketing resources into that old living room stalwart – television.

With testing to begin in the UK, before global rollout is considered, eBay believes TV is still a powerful channel when it comes to brand building and will form a core thrust of its effort to communicate the idea that eBay is more than a second-hand seller.

"We don’t want to be defined by that online car boot sale reputation anymore,” said eBay in a press statement. "We need to get people to consider eBay in a completely different way. The UK is the petri dish for testing a new approach to rebuilding the brand globally. It is all about a shift away from the marketplace and over to being the ultimate shop. TV is still on fire and a wonderful medium to get neurons into people’s brands in order to rewire their perceptions. If you ask someone where they are shopping on Black Friday, then TV is the best place to put eBay at the front of their consideration set.”

Social Sharing

We all know how powerful social media can be when it comes to promoting products and eBay is no exception. This is why in 2021, the company announced it would be incentivizing sellers to promote their listing on their social media channels by offering a reduction in fees for those who do so.

"We all know that increasingly buyers are discovering products and getting validation of those products through their social channels. And so, first," said Vice President of eBay Stores, Tom Pinckney . "We're improving the basic capabilities of how you can go to the listing page and share your listing into these different channels.”

Sellers which promote their posts on social media will get a significant reduction in fees if a customer clicks through a social link, through to their seller page, and completes a purchase. If these conditions are met, the seller will only be charged 2.5% final value fees and a 30-cent transaction charge.

With free at point of use services such as Facebook Marketplace posing an existential threat to sites such as eBay, incentivizing sellers to promote both themselves and eBay as a platform on those very same social media platforms is a terrific way to try and drive traffic towards the site

The promotion has proved so successful that in April 2022, eBay announced it would be expanding the social sharing offer to other markets around the world, including a limited release in Australia. While the promotion may only be temporary to begin with, it seems likely eBay will extend the offer if it sees significant engagement during the promotional period in question.

Love Island

Love it or hate it, there’s no denying the television mega hot that is Love Island. The British reality/dating show has found a dedicated following across the world as millions tune in to watch the drama unfold among these attractive young people.

The final episode of the 2022 season pulled in a staggering 3.4 million viewers – up 100,000 on the previous year – with the consolidated series average currently stands at 4.6 million across devices once catch-up data and ITV Hub audiences are accounted for.

With influencer marketing being so popular right now, it was only natural that eBay would turn to one of the stars of the show to help drive its brand messaging to a wider demographic of highly engaged potential customers.

For this partnership, eBay selected on of the contestants from the 2022 season, Tasha Ghouri who it named its Pre-Loved Ambassador. This collaboration is the first to come out of the TV show which focusses on the joys of second-hand clothing and eschews the environmentally harmful fast-fashion space which is responsible for so much waste being dumped in landfills around the world.

"Prior to Love Island, I’ve always bought secondhand for my wardrobe, so partnering with eBay really is a dream come true,” wrote Ghouri in an Instagram post announcing the partnership with eBay. "I feel passionately that we can all make little swaps to our wardrobes and our lives for the better and so I’m excited to join eBay on their mission to put secondhand fashion at the front and center.”

The collaboration with Ghouri follows a partnership eBay established with Love Island during its 2022 season run where it provided the show’s contestants with collections of pre-loved clothing in an attempt to inspire viewers to engage in a circular clothing ecosystem. Convincing customers to embrace second-hand clothing is not only beneficial to a platform such as eBay, but also helps reduce our consumption levels and the environmental impact of the fashion industry.

In September 2022, Ghouri released her first collection on eBay – a special edit of 60 items of clothing which will be available for a limited time on the platform. All proceeds from the collection will go to Ghouri’s chosen charity – the Royal National Institute for Deaf People.

"I’ve always enjoyed being playful with clothes - mixing and matching existing pieces in my wardrobe with vintage designer finds - so partnering with eBay and being able to create my own pre-loved capsule is a dream come true,” said Ghouri at the announcement. "With this collection, I wanted to include the timeless staples I reach for most in my own wardrobe, from denim jackets to sparkly dresses and big blazers that can be dressed up or down. I’m passionate about showing how easy it is to make those little swaps so that we shop more sustainably, whilst still serving amazing looks!”

Final Thoughts

eBay survived the dotcom crash of the early 2000s and came back fighting to become one of the biggest and most widely recognized ecommerce brands on the market today. With a solid marketing strategy which has been ahead of its time from the very beginning of its life, eBay has proven on numerous occasions that it is here to stay and can still trade blows with the best in the business.

Innovative and exciting marketing strategies in the ecommerce space are sure to be part of the conversation at eTail West 2023 , being held in February and March at the JW Marriott Desert Springs, Palm Springs, CA.

Download the agenda today for more information and insights.

Kabinet Tower, Surabaya JIn. Mayjen Yono Soewoyo AK 2 no.27, Surabaya, Indonesia 60256

A Full Study Case: eBay’s Marketing Strategy

• February 7, 2024

eBay’s marketing strategy – eBay is a global leader in the e-commerce industry, with a presence in over 190 countries. The company’s success can be attributed to its effective marketing strategy that encompasses the four Ps: Product, Price, Place, and Promotion. 

In this article, we will explore eBay’s marketing strategy mix in detail, highlighting the key strategies and tactics that have propelled the company to its current position.

Read More : Domino’s Marketing Strategy : A Full Study Case

Founded by Pierre Omidyar in California in 1995, eBay started as an online auction site and has evolved into a multi-billion dollar e-commerce giant. With over 187 million active buyers, eBay has become a global platform connecting millions of buyers and sellers. 

In India, eBay focuses on enabling Cross Border Trade (CBT) for Indian sellers, promoting the culture of entrepreneurship in the country.

The Growth of E-Commerce

eBay’s marketing strategy – In recent years, the e-commerce sector has experienced tremendous growth, driven by increasing internet and smartphone usage. Customers now prefer the convenience of shopping from the comfort of their own homes. 

eBay, along with other companies, has contributed to this unstoppable growth of the e-commerce industry.

Product Strategy

eBay’s marketing strategy – eBay’s product strategy revolves around providing online services to buyers and sellers, making it a global marketplace for various goods and services. 

The company offers a wide range of products, including auction-style online trading services, instant sales services, and delivery services. The auction-style trading and instant sales services form the core of eBay’s business, allowing sellers to list their products and buyers to bid or make immediate purchases. 

Additionally, eBay provides managed delivery services and an application programming interface (API) to enhance the marketplace experience and support third-party developers.

eBay’s success in the e-commerce industry can be attributed to its vast portfolio of products. The company serves as a marketplace for the sale of goods and services. 

From collectibles to home decor, electronics to fashion, eBay offers a wide range of products to cater to the diverse needs and preferences of its customers.

Best Selling Products on eBay

Mobile phones and accessories: The mobile phone category on eBay is highly popular, with an average of 666 items sold in the mobile phone listing.

Video games: eBay’s video game category is another bestseller, with an average of 118 items sold.

Health and beauty products: The health and beauty category, which includes vitamins, skincare products, and hair tools, is also a popular choice among eBay shoppers.

Home and garden products: Home decor items such as lighting, coffee tables, and sofas are among the most sold items on eBay.

Pricing Strategy: Ensuring Competitiveness

eBay’s marketing strategy – Pricing is a crucial aspect of eBay’s marketing mix, as the company aims to remain competitive in the e-commerce industry. eBay follows a market-oriented pricing strategy, setting prices based on prevailing market rates. 

The company’s pricing structure includes fixed fees per item sold and fees as a percentage of the final sale amount. This dynamic pricing strategy provides flexibility for sellers to choose their selling formats and corresponding fees. 

By offering competitive pricing, eBay attracts more buyers and sellers to its platform, thereby increasing its market share.

Distribution Strategy: Virtual Places for Accessing Services

eBay’s marketing strategy – In terms of distribution, eBay operates primarily through virtual channels. The company’s official websites, such as ebay.com and localized versions, along with mobile apps for iOS and Android, serve as the main platforms for customers to access eBay’s e-commerce services. 

These online channels provide convenience and accessibility to buyers and sellers, enabling them to engage in transactions from anywhere with an internet connection. eBay’s distribution strategy aligns with its goal of reaching global markets and supporting its competitive advantage.

Promotion Strategy: Building Brand Awareness

eBay’s marketing strategy – eBay employs various promotional tactics to build brand awareness and attract customers. The company utilizes sales promotions, such as discount coupons and special offers, to increase sales in the short term. 

While eBay’s advertising efforts are relatively limited, the company focuses on sales promotions as a key element of its promotional mix. Additionally, eBay engages in public relations activities through its eBay Foundation, which supports corporate social responsibility programs and enhances the company’s visibility in different markets. Through these promotional strategies, eBay maintains a strong presence in the e-commerce industry.

The Impact of eBay’s Marketing Mix

eBay’s marketing strategy – eBay’s marketing mix has been instrumental in its success as a global e-commerce leader. By focusing on product diversity, competitive pricing, global distribution, and effective promotion, eBay has managed to stay ahead of the competition. 

However, the company continues to face challenges, particularly from its biggest rival, Amazon. To sustain its position in the market, eBay must continue to innovate and adapt to the evolving needs and expectations of customers.

eBay’s marketing strategy has played a pivotal role in its growth and success in the e-commerce industry. As a pioneer in online retail, eBay has revolutionized the way people buy and sell goods. With its diverse product portfolio, competitive pricing, global distribution, and effective promotion, eBay has become a trusted platform for millions of buyers and sellers worldwide. 

The company’s journey is far from over, and it will be exciting to see what innovative ideas eBay brings to the table in the future.

Thank you for taking the time to read this article. We hope you have gained valuable insights into eBay’s marketing strategy mix. If you’re interested in learning more about digital marketing, be sure to check out our weekly masterclasses at IIDE. Feel free to leave a comment below if you enjoyed this blog.

Gerard Jovian Brand

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eBay marketing strategy case study 2021

A case study focusing on ebay marketing strategy.

2021 eBay marketing strategy update: E-commerce giant records highest quarterly revenue Q1 2021

Ebay has had a fascinating year. The quarterly revenue chart below depicts both highs and lows for this company in the last 12 months. Plunging to a low revenue of US $2,129 million in quarter 1 of 2020, the company then rocketed to it’s highest recorded quarterly revenue of US $3,023 in quarter 1 of 2021. That’s YOY growth of US $894 .

Moreover, ending the year on a high, Ebay finished 2020 with it’s highest annual net revenue so far, at US $10,271 million . This demonstrates that e-commerce is still a growing sector, despite the initial market uncertainty during the onset of the pandemic. Lessons learnt from studying Ebay marketing strategy – react to market challenges to create new opportunities, to stay ahead in a competitive environment.

EBay ended 2020 with 185 million active buyers, up 11 million from the end of 2019. EBay acquired 3 million new shoppers in the second half of the year, even as panic-buying essentials slowed down and stores opened back up, leading experts to believe eBay’s turnaround may last post-pandemic:

“EBay is proving that it has the ability to sustain the gains it is seeing from COVID,” says Ygal Arounian, an analyst at Wedbush Securities. “We expect these trends to increasingly become ingrained in consumer behavior, which will support eBay in 2021.”

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2018 stat update: Over 50% of purchases on eBay in the UK from mobile

At the end of 2017 eBay had 168 million 12-month active buyers, an increase from 90 million active in 2010. Nearly two-thirds of transactions are now international. The challenge of growing the business can be seen by the near static GMV in the last three years. Globally 58% of GMV is now transacted on smartphone.

Updating eBay brand positioning using traditional media

In an interview with eBay UK marketing director Gareth Jones, explained that:

“We don’t want to be defined by that online car boot sale reputation anymore. We need to get people to consider eBay in a completely different way. The UK is the petri dish for testing a new approach to rebuilding the brand globally. It is all about a shift away from the marketplace and over to being the ultimate shop”. 

He is candid that a past focus on prioritising digital channels has had a “small impact” on changing eBay’s perception. Despite stating we’re in an age of digital-based marketing, he believes TV is the best channel for brand building. This is based on regional tests that proved TV is the best place to get people to reap-praise eBay as a brand:

“TV is still on fire and a wonderful medium to get neurons into people’s brands in order to rewire their perceptions. If you ask someone where they are shopping on Black Friday then TV is the best place to put eBay at the front of their consideration set.”

It’s hard to believe that one of the most celebrated dot-coms has now been established nearly 20 years. Pierre Omidyar, a 28-year-old French-born Software Engineer living in California coded the site while working for another company, eventually launching the site for business on Monday, 4 September 1995 with the more direct name ‘Auction Web’.

Legend reports that the site attracted no visitors in its first 24 hours. The site became eBay in 1997 and by 2012, it had 112 million active users globally defined as users who have bid, bought or listed an item during the preceding 12 month period, with the total worth of goods sold on eBay $60 billion, which is equivalent to $2,000 every second. Total revenue was $8.7 billion.

eBay’s Mission

eBay describes its purpose as to ‘pioneer new communities around the world built on commerce, sustained by trust, and inspired by opportunity’.

eBay’s 2016 report describes the company’s view on current marketing approaches of exploiting Big Data and Artificial Intelligence.

To deliver the most relevant shopping experience, we continue our efforts to better understand, organize and leverage eBay’s inventory. With our structured data initiative, we are able to begin organizing our vast inventory around products rather than listings and aggregate insights into supply and demand. We continue to broaden the coverage of structured data, which enables us to create and start rolling out new consumer experiences that are modern, simple and differentiated. One of our goals is to deliver a more personalized shopping experience by determining what products to show our consumers and highlight the incredible price and selection advantages that eBay often provides across categories.

eBay’s Revenue model

The vast majority of eBay’s revenue is for the listing and commission on completed sales. While it is best-known for auctions,  80% of UK sales now coming through new items  of which the majority are fixed price. UK marketing director Gareth Jones told Marketing Week he wants to focus on top-of-the-funnel consideration: “ it wants British consumers to see it as the first choice for buying new items as opposed to its historic online car boot sale reputation “.

For PayPal purchases an additional commission fee is charged.

Margin on each transaction is phenomenal since once the infrastructure is built, incremental costs on each transaction are tiny – all eBay is doing is transmitting bits and bytes between buyers and sellers.

Ebay marketing strategy proposition

The eBay marketplace is well known for its core service which enables sellers to list items for sale on an auction or fixed-price basis giving buyers the opportunity to bid for and purchase items of interest. Software tools are provided, particularly for frequent traders, including Seller’s Assistant, Selling Manager and Selling Manager Pro, which help automate the selling process, plus the Shipping Calculator, Reporting tools, etc.

Today over 60% of listings are facilitated by software, showing the value of automating posting for frequent trading.

An example of a new Shopper feature which is part of its OVP is the eBay ShopBot on Facebook Messenger.

This uses artificial intelligence to provide a personalized shopping assistant that helps people find the best deals from eBay’s one billion listings.

According to the SEC filing, eBay summarises the core messages to define its proposition as follows:

For buyers:

• Convenience.

In 2007, eBay introduced Neighbourhoods where groups can discuss brands and products they have a high involvement with.

For sellers:

• Access to broad global markets
• Efficient marketing and distribution
• Opportunity to increase sales.

In January 2008, eBay announced significant changes to its marketplaces business in three major areas: fee structure, seller incentives and standards, and feedback. These changes have been controversial with some sellers, but are aimed at improving the quality of experience.

Detailed Seller Ratings (DSRs) enable sellers to be reviewed in four areas: (1) item as described, (2) communication, (3) delivery time and (4) postage and packaging charges. This is part of a move to help increase conversion rate by increasing positive shopping experiences.

For example, by including more accurate descriptions with better pictures and avoiding excessive shipping charges. Power sellers with positive DSRs will be featured more favourably in the search results pages and will gain additional discounts.

Risk factors

Fraud is a significant risk factor for eBay. BBC (2005) reported that around 1 in 10,000 transactions within the UK were fraudulent; 0.0001% is a small percentage, but scaling this up across the number of transactions, this is a significant volume.

To counter this, eBay has developed ‘Trust and Safety Programs’ which are particularly important to reassure customers since online services are prone to fraud.

For example, the eBay feedback forum can help establish credentials of sellers and buyers. Every registered user has a feedback profile that may contain compliments, criticisms and/or other comments by users who have conducted business with that user. The Feedback Forum requires feedback to be related to specific transactions and Top Seller status was introduced in 2010 to increase trust in the service.

There is also a Safe Harbor data protection method and a standard purchase protection system.

The fees model that eBay uses is often changed and this can cause problems with users, but the impact is calculated that it does not affect overall sales. In their 2012 SEC filing eBay note: ‘We regularly announce changes to our Marketplaces business intended to drive more sales and improve seller efficiency and buyer experiences and trust. Some of the changes that we have announced to date have been controversial with, and led to dissatisfaction among, our sellers, and additional changes that we announce in the future may also be negatively received by some of our sellers. This may not only impact the supply of items listed on our websites, but because many sellers also buy from our sites, it may adversely impact demand as well’.

In common with other global platforms like Amazon, Facebook and Google, eBay note the potential threat of the shift to tablet and smartphone platforms noting that one risk factor is: ‘Our ability to manage the rapid shift from online commerce and payments to mobile and multi-channel commerce and payments’.

There is also the common risk factors for online pureplays of retaining an active user base, attracting new users, and encouraging existing users to list items for sale, especially when consumer spending is weak.

Competition

Although there are now few direct competitors of online auction services in many countries, there are many indirect competitors. SEC (2012) describes competing channels as including online and offline retailers, distributors, liquidators, import and export companies, auctioneers, catalogue and mail order companies, classifieds, directories, search engines, products of search engines, virtually all online and offline commerce participants and online and offline shopping channels and networks. In their SEC filing, eBay states that the principal competitive factors for the Marketplaces business include the following:

• ability to attract, retain and engage buyers and sellers;
• volume of transactions and price and selection of goods;
• trust in the seller and the transaction;
• customer service; and brand recognition.

Amazon is one of the biggest competitors since it also has marketplace sellers integrated into its products listings. It’s latest SEC filing notes: Consumers and merchants who might use our sites to sell goods also have many alternatives, including general e-commerce sites, such as Amazon and Alibaba, and more specialized sites, such as Etsy.

Competitive factors today are listed as:

• customer service;
• brand recognition;
• community cohesion, interaction and size;
• website, mobile platform and application ease-of-use and accessibility;
• system reliability and security;
• reliability of delivery and payment, including customer preference for fast delivery and free shipping and returns;
• level of service fees; and
• quality of search tools.

Before the advent of online auctions, competitors in the collectables space included antique shops, car boot sales and charity shops. Anecdotal evidence suggests that all of these are now suffering. Some have taken the attitude of ‘if you can’t beat ’em, join ’em’. Many smaller traders who have previously run antique or car boot sales are now eBayers. Even charities such as Oxfam now have an eBay service where they sell high-value items contributed by donors. Other retailers such as Vodafone have used eBay as a means to distribute certain products within their range.

Objectives and strategy of eBay

The overall eBay aims are to increase the gross merchandise volume and net revenues from the eBay marketplace. More detailed objectives are defined to achieve these aims, with strategies focusing on:

• Acquisition – increasing the number of newly registered users on the eBay marketplace.
• Activation – increasing the number of registered users that become active bidders, buyers or sellers on the eBay marketplace.
• Activity  – increasing the volume and value of transactions that are conducted by each active user on the eBay marketplace.

The focus on each of these three areas will vary according to strategic priorities in particular local markets. eBay marketplace growth was driven by defining approaches to improve performance in these areas.

• First, category growth was achieved by increasing the number and size of categories within the marketplace, for example Antiques, Art, Books, and Business and Industrial.
• Second, formats for interaction. eBay Stores was developed to enable sellers with a wider range of products to showcase their products in a more traditional retail format including the traditional ‘Buy-It-Now’ fixed-price format.

eBay has constantly explored new formats, often through acquisition of other companies, for example through the acquisition in 2004 of mobile.de in Germany and Marktplaats.nl in the Netherlands, as well as investment in craigslist , the US-based classified ad format. Another acquisition is Rent.com , which enables expansion into the online housing and apartment rental category. In 2007, eBay acquired StubHub, an online ticket marketplace, and it also owns comparison marketplace Shopping.com .

Finally, marketplace growth is achieved through delivering specific sites localized for different geographies as follows.

You can see there is still potential for greater localization, for example in parts of Scandinavia, Eastern Europe and Asia. Localized eBay marketplaces:

• South Korea
• Switzerland
• Netherlands
• New Zealand
• Philippines
• United Kingdom
• United States

In addition, eBay has a presence in Latin America through its investment in MercadoLibre.

eBay marketing strategy for growth

In its SEC filing, success factors eBay believes are important to enable it to compete in its market include:

• ability to attract buyers and sellers;
• customer service; and brand recognition.

This implies that eBay believes it has optimized these factors, but its competitors still have opportunities for improving performance in these areas which will make the market more competitive. According to its 2010 SEC filing: Our growth strategy is focused on reinvesting in our customers by improving the buyer experience and seller economics by enhancing our products and services, improving trust and safety and customer support, extending our product offerings into new formats, categories and geographies, and implementing innovative pricing and buyer retention strategies.

Updates on eBay marketing strategy information

Found our eBay marketing strategy blog useful? Keep up to date with the latest trends and innovations with expert advice and real-life case studies so you can win more e-commerce customers. Get started today.

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eBay’s Marketing Mix: 4P Analysis

eBay Inc.’s marketing mix (4P/4Ps) is an example of an e-commerce marketing strategy that maximizes online business revenues. A firm’s marketing mix (or 4Ps) defines the strategies and tactics used for executing a marketing plan, involving decisions regarding product, place, promotion, and price (4P) variables. In eBay’s case, the focus of the marketing mix or 4Ps is on services for buyers and sellers. For example, the company’s products include its marketplace services for online shoppers and vendors. In managing the effects of customers’ expectations, the business aligns its 4P to global market dynamics. The company’s pricing strategies are designed to ensure competitiveness against Amazon , Walmart Marketplace, Meta’s Facebook Marketplace, and other competitors. As one of the main players in the e-commerce industry, eBay Inc. has competitive advantages for attracting and retaining online shoppers and merchants. The company’s marketing mix adjusts to trends in the e-commerce industry environment.

eBay’s marketing mix reflects the company’s perspective about the e-commerce market. For example, the corporation’s 4Ps consider the purchasing behaviors of consumers and sellers in using different information technologies, such as mobile technology. The company uses these behaviors in designing its products. Also, the company’s 4P affects the evolution of subsidiaries. This context stresses the importance of the marketing mix in shaping strategies and management approaches in multinational business, and in supporting business goals derived from eBay’s mission statement and vision statement .

eBay’s Products

This aspect of the marketing mix identifies eBay’s products. Products are the organizational outputs offered or sold to the target market. In this case, the products are online services, such as online retail/auction services. The corporation’s target customers are buyers and sellers. This part of the 4P requires that the company accurately determine market demand and opportunities. The characteristics of the product mix shape the e-commerce company’s strategic management for the international business environment. The following are the product categories in eBay’s marketing mix:

• Auction-style online trading services
• Instant (“Buy It Now”) sales services
• Delivery services
• API and others

Auction-style trading and instant sales services are the core of eBay’s business. As an aspect of the marketing mix, these services are designed to complete sales transactions between sellers and buyers on the company’s online marketplace platform. eBay’s marketing mix also involves delivery services, including managed delivery services. Managed delivery services use the company’s information systems to streamline the delivery of purchased items, involving third-party couriers or delivery service providers. eBay’s marketing strategy also includes its application programming interface (API) and related services as free products available to developers and organizations that want to maximize the benefits of using the company’s e-commerce platform. The API and related services enhance the marketplace and strengthen the company’s competitiveness in the e-commerce market. The products in eBay’s marketing mix are developed around the online marketplace and its services.

Place/Distribution in eBay’s 4P

In this aspect of the marketing mix, the analysis focuses on the channels or places where eBay Inc. distributes its products in the market and transacts with target customers. These places or venues are focused on virtual locations. For example, online platforms are channels considered in this part of the 4Ps. eBay’s operations management supports distribution through an online strategy that includes various technologies that enable shoppers and merchants to access e-commerce services. In this case, the places in eBay’s marketing mix are as follows:

• Official websites
• Mobile apps

Official websites (ebay.com and localized versions) and mobile apps are the main places for customers to access eBay’s e-commerce services. For example, merchants and shoppers can use the company’s marketplace websites and apps for iOS and Android. In this part of the 4P, the company’s application programming interface (API) allows third parties’ websites and apps to enable customers to access eBay’s marketplace services. Thus, these places optimize strategic management efforts to reach target markets and support eBay’s generic strategy for competitive advantage and intensive strategies for growth . This marketing mix shows that the company’s distribution strategy aims to provide multiple options for accessing the services of the business.

Promotion in eBay’s Marketing Mix

This aspect of the marketing mix focuses on how eBay Inc. promotes its products in target markets. The company’s strategies and tactics define communications between the business and the target buyers and vendors. For example, promotional public relations tactics satisfy business objectives in this part of the 4P. Effective promotion using the business strengths outlined in the SWOT analysis of eBay is key to managing customers’ expectations and increasing the company’s market share in the global e-commerce industry. The following components of the promotional mix are applied in eBay’s marketing mix:

• Sales promotion
• Advertising
• Public relations

Sales promotions are among the most significant tactics in eBay’s promotional mix. Designed to increase sales in the short term, these sales promotions include discount coupons for shoppers and special offers for sellers. The 4Ps also include advertising, which is infrequently used in attracting more users to the company’s online trading platforms. Furthermore, public relations help promote the company’s business and brands. For example, the eBay Foundation maintains corporate social responsibility programs that increase the company’s visibility in various markets around the world. Overall, this aspect of the marketing mix emphasizes managerial focus on short-term promotional activity.

Prices & Pricing Strategies in eBay’s 4Ps

In this aspect of the marketing mix, eBay Inc. determines the price ranges and price points for its services. Among the 4Ps, this element is linked to the company’s profit margins and international market share. For example, lower prices can attract more shoppers and sellers to the company’s online trading websites. The suitability of pricing strategies affects management goals and business performance. Managers implement the following pricing strategies as part of the marketing mix of eBay Inc.:

• Market-oriented pricing strategy
• Dynamic pricing strategy

The market-oriented pricing strategy involves prices that are set based on current or prevailing market prices. For example, eBay’s current seller fees are comparable to competitors’ fees in offering e-commerce services. The company’s 4P also involves dynamic pricing, which allows flexibility in setting prices. For instance, fees include fixed fees per item sold, as well as fees as a percentage of the final sale amount. Vendors can choose selling formats and corresponding fees. Through the dynamic pricing strategy, the company manages customers’ expectations on sales format flexibility. This aspect of eBay’s marketing mix helps optimize profits as the global business grows its sales revenues.

• eBay Developers Program .
• eBay Foundation .
• eBay Inc. – Choosing a carrier and service .
• eBay Inc. – Form 10-K .
• eBay Inc. – Selling Fees .
• Kucuk, S. U. (2023). Digital Marketing and Digital Marketing Mix. In Visualizing Marketing: From Abstract to Intuitive (pp. 119-155). Cham: Springer International Publishing.
• U.S. Department of Commerce – International Trade Administration – Retail Trade Industry .
• Wu, X., Zhang, F., & Zhou, Y. (2022). Brand spillover as a marketing strategy. Management Science, 68 (7), 5348-5363.
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eBay's changing business model responds to omnichannel challenge

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Martin Koehring is senior manager for sustainability, climate change and natural resources at Economist Impact (part of The Economist Group). He leads Economist Impact's sustainability-related policy and thought leadership projects in the EMEA region. He is also the head of the World Ocean Initiative , inspiring bold thinking, new partnerships and the most effective action to build a sustainable ocean economy.

He is a member of the Advisory Committee for the UN Environment Programme’s Global Environment Outlook for Business and is a faculty member in the Food & Sustainability Certificate Program provided by the European Institute for Innovation and Sustainability.

His previous roles at The Economist Group, where he has been since 2011, include managing editor, global health lead and Europe editor at The Economist Intelligence Unit.

He earned a bachelor of economic and social studies in international relations from Aberystwyth University and a master’s degree in diplomacy and international relations from the College of Europe.

It is easy to assume that relatively new companies, such as eBay or Amazon, are leading the charge towards online and hybrid shopping, wiping out traditional retailers as shopping habits change in their favour. In fact, these companies are themselves having to change fast to keep up with rapidly evolving consumer habits. In the space of just 15 years eBay's business model has changed fundamentally, for example, and it continues to evolve.

Set up as an online auction site, most of eBay’s business is now selling new goods for a fixed price. "More than three-quarters of our listings today are 'buy it now'," says Valerie Nygaard, eBay’s senior director of buyer experience. The company's growth has been as fast as the changes to its business model. In 2013 its gross merchandising volume (excluding vehicles) was above US$76bn globally and continuing to grow fast, up 13% on 2012.

As expected from an online specialist, eBay is an expert at many of the basics demanded by consumers, from simple ordering and delivery procedures to an effective mobile app. However, as Ms Nygaard points out: "We face the reverse challenge to bricks-and-mortar retailers." She points to the formation of eBay Collections, allowing customers the chance to browse their favourite things on the site as well as in physical stores. "It gives us a shop window," she explains. As well as allowing eBay to highlight offers from the millions of different items available on the site, shoppers can create collections around the areas that interest them, from vintage clothing to computer equipment.

eBay is also working hard on data analytics techniques to identify customers' tastes and offer them the right things in marketing e-mails, recognising the value of the huge amount of information that it holds. "You have to be careful not to overload people with offers," warns Ms Nygaard, acknowledging how annoying endless sales messages can become.

Perhaps most intriguing, however, is that eBay, in many ways symptomatic of the new online competition that troubles traditional retailers, also recognises that it must become a part of the omnichannel revolution. Its own research shows that close to one-third (31%) of customers visit a store before making a purchase online, but also that a greater percentage—34%—research online before buying in-store. Simply put, eBay needs to co-operate with the retail chains that use it as a sales channel.

In the UK alone it now has tie-ups with more than 100 retailers. For eBay, this allows it to get around some practical problems, such as offering options for home delivery. Its customers can now opt to pick up their packages from Argos stores, for example. For retailers already using eBay heavily as a sales channel, it allows the one-time auction site to become a part of their omnichannel strategy, rather than being in opposition to it. See something in-store, buy it over eBay and then have it delivered to the store or to your home. It's a natural fit, and a big shift in the way of doing business for both eBay and traditional retailers.

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eBay Marketing Strategy: What are the top eBay Marketing Strategies?

You have successfully hunted products and listed them on eBay; the next step is marketing. You can market your eBay store in many ways. Lots of methods require effort, and you’ll have to invest without getting sales. Now the question is, what is the best eBay marketing strategy?

Some of these strategies are cheap and easy. Some of them would work. All these strategies are helpful in specific situations. You don’t have to use them all – find one that works best for your business.

Top 5 Strategies for eBay Marketing

Follow any one of these eBay marketing strategies and take your eBay store to the next level.

Dominate the search results

You need to be picked by eBay, and it will become possible when you conquer the group listing. Moreover, it will become possible when the number of shoppers visiting your store increases. So, you need to pay attention to your seller account and eBay listings at the start. As an eBay seller, you must master the group listing and basics of eBay SEO to get a chance.

• Try to match the eBay listing with the eBay catalog
• Learn the art of writing killer descriptions and taking photos
• Use eBay pricing techniques effectively and set competitive prices
• Try to achieve the status of Top Rated Seller on eBay and enjoy its benefits
• Ensure that you’re offering guaranteed delivery
• Provide quality customer service and build a solid customer base

All these points are crucial for making money on eBay. Some may not look important today, but product-based shopping has again made them critical.

RELATED: Top 5 Google tools to help you grow your small business

By following these tips, you can expose your eBay store to more people and those who have already purchased your product.

There is a possibility that only a limited number of people will visit your listings, but this small percentage will add up and make a solid customer base.

Use promotion manager wisely

If you’re serious and looking for tools to market your store, eBay offers you a Promotion Manager. It will ensure that deals are visible to everyone who searches for similar results.

Moreover, customers can even apply a filter of view listings with deals. Furthermore, everyone who browses your store can see these deals.

RELATED: ECommerce Branding: 4 Steps you must take for Growing and Scaling your Ecommerce Brand

Promotion is an excellent way to get more views. For example, when customers like one deal, they check other deals in your store. By doing so, they will make several purchases at a time.

Can these promotional deals hurt profit margins?

It’s not essential because you can offer volume discounts to encourage buyers to make large purchases. You can set discounts according to the order size. It will help you maintain your profit margins.

There is another way as well. For example, raise the prices for some time and bring them back to the original price by offering deals. So, in this way, you won’t cut your profit margins.

Even when the deals end, there will not be a decrease in sales because a recent increase in the sales history will help your store gain a higher ranking in eBay search results.

In this way, you’ll keep getting more visitors and sales even after returning your price to a normal one.

Make use of the package insert

If you want your buyers to keep visiting your eBay store, then insert a flyer or business card inside the package. It’s another sound eBay marketing strategy helping you promote your store to drive sales.

Many eBay sellers use this strategy to promote their websites.

Remember, we’re not sure whether it’s legal or not. It doesn’t matter which route you take; ensure that the package includes a handwritten note. It may be just “Thanks” and your “signature.” You can also request feedback in this written note.

It can help to establish a long-term relationship with buyers. Building a long-term relationship is the key to wanting buyers to make frequent purchases from your store.

Create a newsletter

All the buyers generally don’t follow the store they visit, but some of them will permit you to send them emails. If you don’t do that, you miss the marketing opportunity.

Moreover, eBay offers some marketing tools to reach out to buyers who have subscribed to your newsletter.

If you are interested in creating a newsletter, ensure that it provides value to customers and doesn’t just focus on letting them know about deals. Try to be informative and entertaining in your newsletter. For example, you can share your product’s manufacturing process or tell them how to use your product.

This practice will help you build your relationship with customers. In the newsletter, you can feature your products and deals. When you do over promotions, it will force your subscribers to unsubscribe from the newsletter.

Go Off-Site

The last eBay marketing strategy is to do everything to win eBay customers. Just think about getting traffic or customers from other parts of the web. We have seen eBay sellers following the below-given practices for promoting their eBay stores:

• Share the link on social media platforms
• Write a detailed article and link it to your eBay store
• Try to get a higher ranking in search engines through SEO
• Purchase and redirect a domain to your eBay store
• Get links for your store from other websites
• Use third parties like Google Ads for advertising

RELATED: How to Create a Successful Social Media Campaign

These techniques can help you drive lots of traffic to your e-commerce website . Moreover, it will help you avoid eBay’s marketing constraints and fees. In simple words, using these practices, you can get more results with minimum effort.

What’s the ideal time to market your eBay Store on the web?

As mentioned earlier, these techniques require time and effort, so practice them when you want to:

• Get featured in grouped listings and boost your search rankings
• Build your feedback score to win the customer’s trust
• Send bidders to the high-value auction

If you’re not interested in creating your website, the best option is to spend your time and efforts marketing your eBay store.

All these techniques work when you send customers to your store to buy products. It’s not wise to send random people to your store who will click on the back button.

Don’t go for bots, click baits, and tricks. Be natural and be organic. Try to market to real people and target those interested in your items.

Final Words

There are plenty of eBay marketing strategies; we have just covered the easy and free ones. You can go for paid route also; whatever eBay marketing strategy you choose ensures that you give your 100%.

Design your store well and make it worth visiting. For example, use proper categories, promotion boxes, and all design features to maximize conversions. Otherwise, all your eBay marketing strategies will be useless.

Pia has consulted for a number of digital startups and small businesses in Asia before coming to the UK. Pia writes about a wide range of SaaS and B2B products, including trends and issues on e-commerce, accounting and customer service software. She’s also covered a wide range of topics in business, science, and technology for websites in the U.S., Australia and Singapore.

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How does eBay make money: Business Model & Strategy

Founded in 1995 as a sole proprietorship, eBay is a brand that needs no introduction. eBay is one of the world’s largest and most vibrant marketplaces for discovering great value and unique selections. eBay connects millions of buyers and sellers in more than 190 markets worldwide. 

eBay was founded by Pierre Omidyar in 1995 and became a notable success story of the dot-com bubble. eBay manages an online auction and shopping website in which people and businesses buy and sell various goods and services worldwide.

To read eBay’s history, you have  Wikipedia . But The Strategy Story is renowned for publishing high-quality insights on business models and strategies of organizations. Therefore, in this story, we decided to analyze eBay’s strategy and business model and learn how eBay makes money.

Business Strategy of eBay

As a global commerce leader and third-party marketplace, the business strategy of eBay is designed to provide buyers with choice and a breadth of relevant inventory from around the globe and to enable sellers’ access to eBay’s 147 million buyers worldwide. 

EBay’s business model and pricing are planned and executed so that eBay is successful when the sellers are successful. eBay makes money primarily through fees collected on paid sales, payment processing, and first-party advertising. 

eBay’s strategy is to leverage technology to enhance the marketplace experience for its customers to drive growth in Gross Merchandise Volume (“GMV”) while increasing the rate of revenue growth through its managed payments and advertising initiatives and delivering healthy operating margins. 

In 2020, eBay embarked on a multi-year journey to build more compelling category experiences for enthusiastic consumers, to become the partner of choice for sellers, and to strengthen trust in relationships with buyers on its platforms. eBay derived most of GMV in 2021 from the following product categories — parts & accessories, consumer electronics, and home & garden. 

During 2021, eBay completed the migration of its managed payments in all markets, delivering buyers and sellers a simplified end-to-end payments experience. Through managed payments, eBay can provide a frictionless experience for current and next-generation customers, consistent with today’s retail standards. 

“All-Inclusive” business model of Amazon Prime

eBay offers buyers more flexibility and choice in how they’d like to pay and offer sellers a more streamlined way to run their businesses. eBay’s advertising business focuses on growing its Promoted Listings offerings (first-party advertising products) while reducing non-strategic, third-party advertising. 

In 2021, eBay launched three new products:

• Promoted Listings Express (a cost-per-acquisition product for auction listings)
• Promoted Listings Advanced (a cost-per-click product)
• External Promoted Listings (an off-platform advertising product) 

These new products complement its existing first-party advertising offering, Promoted Listings Standard (a cost-per-acquisition product for fixed-priced listings).

Through its portfolio of Promoted Listing’s offerings, eBay is providing sellers with data-driven recommendations to optimize their conversion and drive velocity while testing and building more technology features to drive growth, position eBay as the seller’s platform of choice, and surface relevant inventory to buyers. 

As part of its growth strategy, eBay focuses on categories where it is positioned to win, prioritizing non-new-in-season inventory that makes up 90% of eBay’s GMV. At the end of 2021, eBay had 147 million active buyers, 17 million sellers, and approximately 1.5 billion live listings globally.

How does eBay make money? What is the business model of eBay?

In 2021, eBay made $10.4 billion. eBay primarily makes money from fees collected from sellers on paid sales, payment processing, and first-party advertising. eBay makes money from two revenue streams: Net transactions revenue (94%) and Marketing services & others (MS&O) revenue (6%).

Net transaction revenues  primarily include final value fees, feature fees, including fees to promote listings, and listing fees from sellers on eBay. The net transaction revenues include store subscriptions and other fees, often from large enterprise sellers. eBay made $9.8 billion in Net transaction revenue in 2021.

eBay makes money from sellers in two phases : pre-sales and post-sales. In Pre-sales, eBay charges an insertion fee. For most casual sellers, it’s free to list on eBay. If sellers list more than 250 items per month, they must pay a $0.35 insertion fee per listing to eBay. In post-sales, eBay keeps a portion of the sale. This final value fee for most categories is 12.9% of the sale price or lower, plus $0.30 per order.

Two key operating metrics impact net transaction revenue: Gross Merchandise Volume (“GMV”) and take rate.

• GMV consists of the total value of all paid transactions between users on eBay, including shipping fees and taxes. In 2021, the GMV of eBay was $87 billion.
• Take rate , in e-commerce parlance, is the commission fee a marketplace charges for a transaction it facilitates on its platform. Take rate provides a valuable measure of eBay’s ability to monetize volume through marketplace services on its platforms. eBay uses take rate to identify key revenue drivers in its marketplace. In 2021, eBay’s take rate was 11.19%.

Amazon Pricing Strategy: Behind the Scene

Marketing services and other revenues  are derived principally from the sale of advertisements and revenue-sharing arrangements. eBay made $600 Million from this segment in 2021.

• Advertising revenue is derived principally from the sale of online advertisements, which are based on “impressions” (i.e., the number of times that an advertisement appears on pages viewed by users of eBay’s platforms) or “clicks” (which are generated each time users on its platforms click through advertisements to an advertiser’s designated website) delivered to advertisers. 
• eBay’s most significant revenue share arrangements are with shipping service providers. eBay primarily acts as an agent in these arrangements and makes money by connecting the shipping service provider to its customers.

During 2021, eBay completed the migration of its managed payments in all markets, delivering buyers and sellers a simplified end-to-end payments experience. Net revenues increased 17% to $10.4 billion in 2021 compared to 2020, primarily due to the migration of managed payments on a global basis and the associated higher take rate. 

Transaction take rate was higher in 2021 (11.19%) compared to 2020 (9.41%) as a result of revenue initiatives such as global payments and Promoted Listings, which along with final value fees, are calculated as a percentage of an item’s sale price and category mix. 

A passionate writer and a business enthusiast having 6 years of industry experience in a variety of industries and functions. I just love telling stories and share my learning. Connect with me on LinkedIn. Let's chat...

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Case Study: eBay

eBay is a brand that needs no introduction. A global ecommerce leader, eBay connects millions and buyers of sellers across more than 190 markets around the world. We sat down with Partnerships Lead Richard Lane to find out about eBay’s Performance Marketing Strategy, grappling with today’s digital challenges and plans for peak period 2021.

Tell me about eBay’s performance strategy in the EU & US.

We’ve got various vertical initiatives and that’s where we want to target specific audiences. At a given time of year, we might want to target Home and Garden, and at another have a particular fashion niche we’re focused on. We’ve also become more flexible in terms of how partners want to be paid, be it on CPC or CPA, allowing ourselves to form a hybrid approach between performance and strategic buys to help the exposure we can get. Our Performance Strategy is now very focused in terms of the users we go after. What has also developed is that we now work a lot with content partners, using providers like Skimlinks for example, to work with publishers and reach these specific audiences.

You use Multiple CSS Partners. Tell me about that.

We work across an array of different categories in retail. It isn’t just electronics or just fashion, so when you think about picking a Google CSS partner, we look at having different partners that are strong in particular niches. Over time we’ve got the lay of the land, so that when we have internal requests for activity, it isn’t just a one size fits all and we’re able to push activity. We also factor in different regions where partners are based and so for example if we talk to Finance on budget management and they say we’re underspending in Italy, we look at which partners are strong there and match up the right partner to that scenario. You see the value of the expertise reflected in the volume they can deliver. Ultimately it comes down the value of being able to pick and choose, rather than having a square peg for a round hole.

How important is incremental value in looking at performance of CSS partners?

We measure incrementality of every partner. The revenue each partner brings in has an incremental revenue KPI against it and we also have efficiency targets. So, we know that if the efficiency is really low, then we won’t put budget there in the next period. So, we look at the ROI on incremental spend and the fact that Connexity’s is strong puts you in a very strong position when planning spend with partners.

You’ve worked with Connexity for a while, why do still you work with Connexity today?

There’s a lot of history in our partnership and I think today the multi-region aspect to Connexity really helps. The fact we can say we need to push something in the UK, France or US and having that up our sleeves really helps the relationship and explains Connexity’s place as one of the key partners. You’re always in the conversation because you cover so much ground. It’s also a flexible, open and honest relationship too. We all have the same goals and Connexity understands that. I can call our Account Manager about anything, work out how we can make things better and it is productive. In fact because of that flexibility we’re able to work with Connexity on not only Google CSS and PLA but also on Bing Activity in the US, where we only have a small number of partners doing it.

What do the results of working with Connexity look like?

For the UK, Connexity is at the top end of efficiency ratings within the space, which is very positive especially since last November. Incrementality is increasing and things all look very positive. What has also been fantastic to see is that Connexity’s conversion rate has started to rocket in recent months and that means the revenue coming through goes up. For our measurements we’re very focused on efficiency figures, so let’s say for every pound that comes through we have a multiplier attached to it, so we can see the incremental value on it, if for example 50p was incremental, and we track that across all partners.

What does the future look like?

The past year has seen a real focus on communities and C2C. People have built businesses through eBay and have seen real success. We’re looking at how to better support that, especially with certain higher value verticals like relatively expensive sneakers from Air Jordans to Adidas Yeezys, through our eBay Authenticity Guaranteed Labels. If a product is over a certain price point, our systems flag it internally, they’re sent from seller to be verified, we label them as the genuine article and then it is boxed up and sent on to the buyer. More little touches like that are coming this year. From a performance perspective, there’s our Priority Listing project, where we want to find out whether this feed of certain listings will drive high conversions or volumes and we are testing that with Connexity at the moment. On top of that, internally, we’re looking at a new internal metric called quality visits, where we look at the visitors we receive, their propensity to buy, what audience they’re from and how much they spend. We then associate that figure against partners, so that when we run campaigns, then analytics can measure it and compare it to competitors. It means when we set up budget, we’re able to be strategic about spend on campaigns.

EBay Company’s Marketing Managment Case Study

Reasons why ebay have succeeded as an online auction market place, evaluating the ebay fee structure, the future of ebay, works cited.

Kotler and Keller assert that the success of eBay was as result of their capability to create new pricing strategies that enabled the bidders or buyers to establish the values of the products they need 411. The ability of the consumers to predetermine the prices created a feeling of control among the consumers. Consumers also had the capability of bargaining the best prices. Moreover, the website enabled the consumers to reach a wide variety of sellers as well as the products to choose (Kotler and Keller 411).

On the other hand, the eBay platform enabled sellers to meet a variety of customers at reduced costs. In fact, eBay established a distinctive online business that attracted both the customers and the auctioning firms. The uniqueness of eBay attracted customers from the competitors resulting in most of the competing firms merging or shutting down (Stevens 141).

The online firm has been successful on the online business because of the knowledge of the needs of the customers. Moreover, eBay had a proper knowledge of its customers and targeted their needs that the competitors did not give much attention (Kotler and Keller 411). In fact, the firm was fast to identify the requirement of the people, do business in second-hand quality goods, and earn cost-effective proceeds.

The company became conscious of the fact that there is need for a platform where auctioneers for second-hand products could meet the buyers (Kotler and Keller 411). The company applied its technological competence to create the required platform that enabled free trade between the auctioneers and the buyers.

The firm has been able to build its credibility among the customers. The credibility the firm established during the first years of operation enabled many potential customers build trust on the firm (Stevens 141). Creditability is critical in the cyberspace where sellers meet potential customers virtually and exchange takes place.

The company builds this credibility through having high quality website that increases the capability of customers and sellers to interact (Stevens 141). Moreover, the company also embraced a well-established payment system including the WorldPay as well as PayPal that increased the customers’ confidence on the business. In fact, the reputable money transfer firms turned many non-believing customers to the business (Stevens 141).

Essentially, the success of the online auction was attributed to the simplicity of the user interactivity, the ability to offer wide variety of products, increased degree of trust among the customers, enhanced level of development and adaptability, augmented connection capabilities, improved levels of commitment and the ability to adopt the reputable and reliable payment options (Stevens 141).

The ability of the company to attract large volume of traffic also boosted the customers’ confidence and enabled increased frequency in buying. Moreover, the company developed an easily to use website that enabled increased interactivity. In addition, the company’s website has advanced features that allow easy navigation, increased availability, high-usage interaction and clutter-free (Kotler and Keller 411). All these features contributed to the success of the company.

The company has also been able to acquire similar firms that would have offered competition hampering its growth and development. Through these acquisitions, the company has grown from a simple online firm to a large international online firm operating in many countries.

The company attains its financial gains through fees it charges on the auctions. According to the company pricing policy, there is a fee charged for each listing while there is a final value charged on the fixed price. In fact, the seller meets all the charges. Taking an example in the case, there is a percentage charged on the $25 of each action. The percentage reduces depending on the amount sold.

A particular percentage is also charged on the remaining amount. For instance, the company will earn $5.69 in an auction that costs $100 dollars to the buyer. In other words, the seller will be charged 8.75% on the first $25 and 3.5% on the remaining $75. Numerically, (2.19 + 3.5) this equals to $5.69.

The fee structure could be improved by lowering the percentage on the fixed charge and increasing the percentage on the remaining amount. In other words, the pricing structure should be flexible to enable the company remain competitive.

Flexibility in the pricing structure should be made in such a way that it still deter the low-priced items auctioneers while at the same time increases the company competitiveness. The online business is currently becoming more competitive. Therefore, online businesses must ensure flexibility in all their operations to gain the competitive advantage. The pricing structure of eBay should not only be flexible but also enhance efficiency.

The successes that the company has achieved will enable its growth and expansion as well as remain competitive in the market. There are high possibilities that many competing online firms will emerge. However, the company will use its capabilities in terms of technology, finance and market share to remain at the top (Kotler and Keller 411). Moreover, the company is still capable of acquiring the competing firms that will add value to its customers. The future of the company also lies on the way it addresses the challenges it is facing.

The way the company addresses the challenges coming from the sectors such as the real estate markets as well as expensive collectibles will determine its future growth and development (Kotler and Keller 411). In addition, the company is facing challenges arising from regulations, honesty in the part of sellers as well as in the internet security. Besides, tackling these challenges, the company has to offer quality services to the sellers and the buyers. The quality services will enhance the confidence of the users of its site.

Forming partnerships with other online businesses such as Wiki together with social networking sites including Facebook and twitter is another opportunity the company can exploit for its future growth and development (Kotler and Keller 411). Partnership with these online companies will ensure increased market share and be found within the market niche of these online firms.

Moreover, the social sites will ensure continuous popularization of the company. The company must also come with innovative and unique ways of doing business in order to remain relevant in the market.

In addition, the company should make considerable investments to expand in new markets found in various developing and developed countries that lack the eBay presence. Further, the fixed-price options should also be a focus of the company. The fixed price options should provide superior prospects and enable the firm to advance into new markets (Kotler and Keller 411).

Kotler, Philip and K. Keller. Marketing Management. Upper Saddle River, NJ: Pearson Education, 2012. Print.

Stevens, Robert. Marketing Management: Text and Cases. London, UK: Routledge, 2012. Print.

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"EBay Company's Marketing Managment." IvyPanda , 26 Feb. 2024, ivypanda.com/essays/ebay-2/.

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IvyPanda . 2024. "EBay Company's Marketing Managment." February 26, 2024. https://ivypanda.com/essays/ebay-2/.

1. IvyPanda . "EBay Company's Marketing Managment." February 26, 2024. https://ivypanda.com/essays/ebay-2/.

Bibliography

IvyPanda . "EBay Company's Marketing Managment." February 26, 2024. https://ivypanda.com/essays/ebay-2/.

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Article Overview

Introduction

E-commerce has become a crucial part of private sectors, organizations, and government and also the consumers who address the effective and convenient process. E-commerce helps in the increase and betterment of the sales revenue, market shares, any time ease of access, accomplishing the branding goals, and most importantly provide support to the international marketplace which holds an important role in this modern technological time. In 1995 eBay was launched by Pierre Omidyar and became a popular and most successful e-commerce site, it also started online auctions, online shopping sites , giving the marketplace for both sellers and buyers to bid, list, sell and buy services and products.

It is an American Multinational company established in San Jose located in California known for sales of products and services in different aspects. More than a hundred thousand citizens of the US make their living by selling and buying on eBay and in 2009 it acquired approximately 56 million active users and also many companies like Skype, PayPal, etc. eBay believes that keeping the trust between the buyers and sellers is the only key to the success of the marketplace.

The history of the Brand

On September 3, 1995, eBay was founded by Pierre Omidyar in his San Jose Home. He had an interest in potential in E-commerce which is web-based commerce and with his marketplace, he started testing that potential which is selling goods and services in masses. Omidyar the French-born, firstly took eBay as his hobby as an additional income of extra bucks during the weekends. With the huge number of sales and growth of the sellers and buyers on his site, Omidyar’s hobby turns into a business, and soon he changes his site to a business account. 

After switching into the business account his monthly internet bill went through a drastic increase from $30-$250, which forced him to charge any amount from its users to use his site for all the transactions. Users were happy to pay the amount for using the site and eBay started growing more rapidly to a larger venture and this made Omidyar recruit his first employee named Chris Agarpao for the process checks. 

In 1996, eBay became a million-dollar e-commerce business and Jeffrey Skoll , the first president of the company was on board to steer the company for higher growth and efficiency. ‘eBay’ created two million transactions of the auction by the year 1997 and in that same year, it received $6.7 million of funding from a venture capital firm named Benchmark Capital and they changed the name of the e-commerce company officially as eBay. 

Under all the guidance and management eBay continues to be perfecting the digital consumer auction site for the next decade. With more top managers from different high-profile companies like Disney , PepsiCo it almost started selling and buying all products and goods possible.

1. Using the traditional media eBay started updating its brand positioning

Marketing Director Gareth Jones stated that there is a small impact on giving priorities to digital mediums on changing the perception of eBay . Even after knowing that our generation is all about marketing which is digitally based, he believed that the traditional way of marketing and advertisements through television is a better way for brand building and few of the regional tests have proved that television had a better impact on marketing to the people rather than any other source of medium. 

2. Marketing Strategy

eBay provides a core service that enables the sellers to list various items for selling in the auction and allows the buyers to bid and purchase any items according to their choice and interest. They also provide software tools especially for regular traders, selling managers, seller’s assistants, selling manager Pro which helps to automate the process of selling, also shipping calculator, tools for reporting, etc.

3. Objective Strategy

The main motive of eBay is to increase net revenues and the gross merchandise volume from the  marketplace of eBay . They aim at some detailed objectives as follows. i. Acquisition- In the marketplace of eBay there is an increase in the number of newly registered users. ii. Activation- more the number of registered users in the eBay marketplace, there are more numbers of active buyers, bidders, and sellers. iii. Activity- increasing the value of the transaction and the volume which are conducted with each active user on the  eBay marketplace . The above-mentioned strategies depend upon the local markets and it is mainly done to increase the performance efficiency in some areas.

Another strategy that is effective in attracting buyers and making more eBay sales is by using an eBay title builder tool . Find the best keywords to use in your eBay titles. Get your listing to the top of the search result and drive more sales.

4. Growth strategy

there should be the ability for attracting both sellers and buyers, there shouldn’t be any compromise with brand recognition and customer services, there should be quality selection for goods and prices. Growth strategy is mainly focused on improving and giving a better experience to customers both sellers and buyers by enhancing their products and services and also gaining the trust for customer support, safety, etc, and also focused on implementing innovative buyer and pricing retention strategies.

Further Reading

eBay: Growth Achieved Through Mergers And Acquisitions

4 Ways to Promote Ecommerce Growth for your Business

5 External Threats Endangering Your Business

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