SWOT analysis example: eBay
eBay is an Achilles of the online auction industry
eBay Inc. is an American multinational internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. Founded in 1995, eBay is one of the notable success stories of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries.
A company like eBay must always know its strengths,weaknesses, opportunities and threats. And to reveal and evaluate this four things a SWOT analysis is a must. Using this analysis eBay can focus on the good part of the business and focus more on the bad part to make it good.
- eBay needs to do a better job incontrolling the content, it needs to block certain illegal and fake auctions and at the same time be able to protect copyrighted material on eBay. This is possible and eBay is doing this to counter all the scammers however we can still find auction that are fake, illegal and other copyrighted materials. The advantage of using this alternative may result in lower amount of scams, illegal auctions and happy customers.
- Shipping Calculator is must have for eBay, due to huge number of sellers exploiting this weakness of eBay buyers have flocked to other websites where the price might be higher on eBay but with shipping price, it is cheaper than eBay’s price. This tool would really bring more buyers to the site and can trust on the prices of the products.
- Standardize Payment method is a must for eBay to be more reliable to the buyers. Everyday hundreds of buyers are being scammed by sellers using an alternate payment method like money order which has no fund security. By using Paypal as the standard payment method the buyers can use both their checking account and credit card to pay the sellers with some peace in their minds. eBay still need to provide alternate methods to its sellers as some countries do not allow Paypal transfers. However, eBay should devise a strict plan or a certification for sellers to offer alternate method of payment. This method will filter out all the sellers with bad intentions that just take the money and leave the buyers hanging. A trust factor is increased between the buyers and sellers. Also buyers can be assured of sellers that offer alternate payment as they are all eBay certified.
- Localization is a keyword, just imagine being able to find an item in the city you live in and not have to deal with the hassle of shipping or waiting for the items to arrive for days. This feature can be a favorite among all as it can attract furniture sellers and garage sale items.eBay currently has a half of this option but is located in a very hard to see location. Making this feature a full-fledged feature and using it as one of the primary options can help a whole new set of buyers and sellers.
- A good way to get away from the email scam would be using some kind of digital signature, so a user can just push a button to verify the validity of the email. The advantage of the solution is no more fake email to scam people.
Source / read more: scribd.com