Ecommerce

Running head: ECOMMERCE

eCommerce

The Popularity of Online Auctions

Abstract

The Popularity of Online Auctions

The opportunity to shop from the comfort of ones own home has seen a change like never seen before. Within the span of a few short years, what may have began as an experimental idea has grown to an immensely popular hobby, and in some cases, a means of livelihood, the online auction gathers tremendous response everyday, all day. With the point and click of the mouse, one may bid on an item they may need or just want, and in moments they find that either they are the top bidder or someone else wants it more, and you're outbid! The excitement of an auction all from the comfort of home.

With this opportunity to buy sight unseen also comes the opportunity to be scammed sight unseen as well. There are over 30 million Ð''hits' each month on the online auction sites, and that is opportunity waiting to be taken for those with the criminal intent of defrauding others.

However with a little care and caution, one can have a positive experience doing business on an online auction, and each party can leave satisfied with their Ð''deal', whether they are the buyer, the seller, or the conveyance that brought it all together.

eCommerce

The Popularity of Online Auctions

"Congratulations! This eBay item has successfully ended." (eBay, retrieved 11 April

2002, Sellers Guide, http://pages.ebay.com/help/sellerguide/after-whatnow.html)

Many people each day receive this message in their e-mail box, notifying them that

they have won the bid on an item listed with eBayÐ"Ñž, for sale to the highest bidder. In

fact, online auctions have become so popular, they are gathering multi-billion dollar

per year business.

Top auction sites, January 2002

Site Unique visitors Site Unique visitors

eBay 28.9 million Myitem.com 860,000

Yahoo! Auctions 3.7 million Bidz.com 612,000

uBid.com 3.1 million BuyBidWin.com 487,000

Andale sites 2.2 million PhilTanny.com 279,000

QOOL.com 977,000 SkyAuction.com 262,000

All auctions 32.3 million

Note: Usage numbers for individual sites exceed total because duplicate users, those visiting more than one site, have been eliminated. The total does not include Amazon.com Auctions.

Source: Jupiter Media Metrix

(Mulrean, J., 5 steps to avoiding auction rip-offs,

retrieved 12 April 2002 from MSN Money,

http://money.msn.com/articles/smartbuy/dollarwise/9013.asping ground for fraud.)

In 2000, the eBay community transacted more than $5 billion in

annualized gross merchandise sales (value of goods traded on the eBay site).

(eBay, retrieved 11 April 2002,Company Overview,

http://pages.ebay.com/community/aboutebay/overview/index.html), and for all of

2001, EBay generated revenue of US$748.8 million, representing a 74 percent annual

growth. That is serious money by anyone's standards. "EBay has been profitable

nearly since Day One," Morningstar analyst David Kathman told the E-Commerce

Times. "It has stayed profitable while expanding margins and maintaining growth."

Vigoroso, M., (2002) And the E-Commerce Gold Medal Goes toÐ'...

retrieved 11 April 2002, from NewsFactorÐ"¤ Network site:

http://www.newsfactor.com/perl/story/16387.html

EBay was founded in 1995, and has become a major force in the "online goods and

services" marketplace. They are the world's largest online marketplace by their own

definition, and with 42.2 million registered users, as measured by Media Metrix, it is

not difficult to believe that this is true. (eBay, retrieved 11 April 2002,Company

Overview, from http://pages.ebay.com/community/aboutebay/overview/index.html),

EBay began with a mission to try to help "practically anyone trade practically

anything on earth". (eBay, retrieved 11 April 2002,Company Overview,

http://pages.ebay.com/community/aboutebay/overview/index.html) As evidence of the success of this mission, there are millions of items listed each day in thousands of different categories. There are items for almost any interest that one could imagine, from sheet music to automobiles to hand tools to real estate. And the variety doesn't stop there. Need a computer? One may find it listed in the proper category, in any configuration from very old and obsolete to the latest greatest machine available. What about antiques? One can find an antique quilt that is up for highest bid, or maybe an old violin, whose beautiful tones have enchanted many though its years. Tickets. Maybe a ticket to the next concert of ones favorite artist or play production. One can even find that special bottle of wine, some aged, exotic cheese, and the perfect Ð''mood' music for that special occasion.

In this instance it may be true that on eBay, they have something for everybody, whatever their tastes may be.

Reliability

For a business of this nature, the need to be available is all-important. After all, when

the only means of access is via Ð''online', it is of utmost importance to have