eBay

eBay is an online auction and shopping website where people and businesses buy and sell a wide variety of goods and services worldwide. Established in 1995 and headquartered in San Jose, California, eBay operates as an online auctioneer, enabling individuals to buy and sell nearly anything through the Web.

Detailed Definition

eBay is an American multinational e-commerce corporation founded in 1995 by Pierre Omidyar. It offers a platform where individuals and businesses can engage in buying and selling a broad array of goods and services. The website operates both as an auction site and a shopping website, allowing for both auction and fixed-price sales. eBay’s primary function is to act as an intermediary, facilitating transactions between buyers and sellers.

Examples

  1. Auction: An individual lists a collectible item—for example, a vintage comic book—on eBay. Interested buyers place bids, and the highest bidder wins the item at the end of the auction period.
  2. Buy It Now: A business lists a new electronic gadget at a fixed price of $200.00. Consumers can purchase the item immediately without participating in an auction.
  3. Classified Ads: A local seller posts a classified ad to sell a used car, providing detailed information for potential buyers who wish to contact the seller directly.

Frequently Asked Questions

Q1: How do I list an item for sale on eBay?

To list an item for sale on eBay, you need to sign up for an account if you don’t already have one. After logging in, navigate to the “Sell” section, provide details about your item, set its starting price, or choose a fixed price, and then submit your listing.

Q2: What are the fees for selling on eBay?

eBay charges listing fees and a final value fee when an item sells. These fees can vary depending on factors like the item’s category, selling price, and the type of listing (auction or fixed price).

Q3: How does eBay protect buyers and sellers from fraud?

eBay has several measures in place to protect both buyers and sellers, including their Money Back Guarantee, which ensures buyers receive the item they ordered or a refund. Sellers are protected against fraudulent claims and chargebacks.

E-commerce

E-commerce, or electronic commerce, refers to buying and selling goods or services using the internet, as well as the transfer of money and data to execute these transactions.

Online Marketplace

An online marketplace is a type of e-commerce site where multiple third parties provide product or service information. Transactions are processed by the marketplace operator and later fulfilled by the retailers or wholesalers participating in the marketplace.

Digital Payment Systems

Digital payment systems are methods of transacting money online without the need for physical cash, using various platforms including credit/debit card processing, online banking, and other digital wallets.

Online References

Suggested Books for Further Studies

  1. “eBay For Dummies” by Marsha Collier - Comprehensive guide for buying and selling on eBay.
  2. “The eBay Business Handbook: How anyone can build a business and make big money on eBay.co.uk” by Robert Pugh - Step-by-step guide to starting and growing a business on eBay.
  3. “The Insider’s Guide to eBay” by Michael R. Miller - Practical advice and strategies for maximizing success on eBay.

Fundamentals of eBay: E-commerce Basics Quiz

### What year was eBay established? - [ ] 1990 - [ ] 1993 - [x] 1995 - [ ] 1997 > **Explanation:** eBay was established in 1995 by Pierre Omidyar. ### Where is eBay headquartered? - [ ] New York, NY - [ ] Seattle, WA - [x] San Jose, CA - [ ] Los Angeles, CA > **Explanation:** eBay is headquartered in San Jose, California. ### What primary functions does eBay serve? - [x] Auction site and shopping website - [ ] Social media platform - [ ] Streaming service - [ ] Search engine > **Explanation:** eBay serves as both an auction site and a shopping website, facilitating both auction-style and fixed-price sales. ### What does eBay charge when an item sells? - [ ] No fees are charged - [ ] Only a listing fee - [x] A final value fee - [ ] Only a subscription fee > **Explanation:** eBay charges a final value fee when an item sells, which is a percentage of the total selling price. ### How does eBay ensure buyers are protected? - [x] Money Back Guarantee - [ ] Personal eBay Assistant - [ ] Free shipping on all items - [ ] Direct negotiation between buyers and sellers > **Explanation:** eBay ensures buyers are protected through its Money Back Guarantee, which ensures buyers receive the item they ordered or get a refund. ### What is a "Buy It Now" listing? - [ ] An auction with no bids - [x] A fixed-price sale - [ ] A local classified ad - [ ] A promotional discount > **Explanation:** A "Buy It Now" listing allows consumers to purchase the item immediately at a fixed price without participating in an auction. ### Can eBay be used to sell used items? - [x] Yes - [ ] No - [ ] Only new items - [ ] Only in specific categories > **Explanation:** Yes, eBay can be used to sell both new and used items across various categories. ### What is the primary benefit for businesses using eBay? - [ ] Matching shopper trends - [ ] Creating social media presence - [x] Access to a large marketplace - [ ] Free advertising > **Explanation:** The primary benefit for businesses using eBay is access to a large marketplace with millions of potential customers worldwide. ### Which type of payment system is utilized for transactions on eBay? - [ ] Cash only - [x] Digital payment systems - [ ] Barter system - [ ] Bank cheques > **Explanation:** eBay utilizes digital payment systems for transactions, including PayPal, credit cards, and other online payment methods. ### How are fraudulent activities on eBay managed? - [ ] They are ignored - [x] Measures like Money Back Guarantee and seller/buyer protections are in place - [ ] Handled through user disputes without intervention - [ ] All activity is stopped immediately > **Explanation:** Fraudulent activities on eBay are managed by measures such as the Money Back Guarantee and seller/buyer protections to safeguard users.

Thank you for exploring the world of eBay. Good luck with your quizzes and continue enhancing your e-commerce knowledge!

Wednesday, August 7, 2024

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