EBay now controls the biggest share in the Customer to Customer e-market and millions of transactions are being processed daily through its website. EBay.com was rated to be the easiest website to navigate by special rating websites like Gomez.com. The site is also easily accessible from anywhere in the world. Because of that, Sellers and customers of EBay developed a sense of loyalty and more than twenty billion dollars worth of goods and services are traded annually through EBay. It is safe to say that this massive customer base and variety of products sold is another strength that is unmatched by any other competition in this line of business.

Another point of strength is that EBay has no issues of managing inventory. Unlike amazon.com and other competitors, EBay is in the business of connecting sellers and buyers through its online website. There are no inventory counts or costs.

EBay can also expand to serve the Business-to-Customer market. By creating alliances with major manufacturers, EBay can compete with non-online retailers and may be able to achieve lower costs by avoiding inventory costs. EBay is already heading this way by its alliances with Major Corporation like IBM and Disney.

Another opportunity that can pose a threat is EBay’s alliances with famous manufacturers and corporations like IBM, Dell, Gateway, etc… Small sellers feel that EBay is being “sold” to big corporations and find it harder to compete against corporate giants. Customers are also fear that EBay becomes just another retail website that will no longer be driven by sellers and customers, but only by giant corporations.

Another threat EBay faces rests in the opportunities listed above. If EBay does expand to different markets quickly, the company may not be able to coordinate and cope with the challenges that are brought by each market. EBay may find itself too stretched that it can not handle the volume of its customers and face worsening customer support.

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