(Pearson).
Question .
How has the change in the nature of eBay sellers affected the creation of value for buyers?.
Response .
As eBay evolved into the mainstream powerhouse it is today the nature of those selling products through eBay changed as well. In comparison to sellers in the start up years of eBay, in which people sold unique items exclusively through auction style bidding with the merchandise falling to the highest bidder. Producers and consumers in the modern day of e-commerce thrive on high-volume PowerSellers. As the market and consumer behavior shifted to that of a "buy it now " marketplace, eBay had to fight to keep up with the curve. These new sellers were more often than not individuals managing dozens to hundreds of people selling mostly overstock and refurbished items at high volume at a single fixed price. As opposed to eBay's beta stages where consumers scrolled four hours for the perfect deal on a new or used item and then had to wait up to ten days to even find out if they actually bought that item or not, competitors offered the same product for similar prices with half the hassle. Change in the nature of eBay sellers pushing for "fixed price " shopping" throughout the late 2000's created value for online buyers. It provided consumers not only with more options, but more often than not competitors offered free shipping on products, which only added to the increased perceived value. Shoppers could compare from tab to tab on just which site offered the best overall deal on that brand new Play Station or MacBook Pro. With the simplicity this new e-commerce strategy brought buyers, the creation of value was inevitable. Buyers could now find the best deal on virtually any item without ever even leaving the couch.
Do you agree or disagree with CEO Donahoe that eBay's turnaround strategy is the best way to go?.
I agree with CEO Donahoe's turnaround strategy one hundred percent.