All auctions have a set time period of up to 10 days. Bidders can have eBay notify them by email when a particular item is placed in an auction. Users can setup their own "My eBay" page to monitor all auctions that are of interest.
eBay is increasingly attracting trade sellers who see it as an alternative distribution channel. They can use the reserve option to avoid making a loss and now they make use of a new facility called "Buy It Now-. With this, sellers can specify a price at which they will sell to the first person matching that price provided there has, at that point in time been no bids for the item.
eBay's strategy helped it become a dominant player in the industry. Their business model consisted of a consumer-to-consumer model, one that not many companies used at the time. Other companies were using merchant-to-consumer business models where consumers dealt mainly with large businesses and retailers. By using the consumer-to-consumer model, eBay was not limited to just retailers. Their model allowed the average person to trade and sell items with other people. It also allowed people to start small businesses who could not afford to purchase retail space, bust still sell their products to a large audience.
From the beginning, eBay was very profitable. For every item listing and transaction, eBay required a percentage fee. This highly profitable model helped attract not only venture funding, but also investors upon going public.
eBay's mission is to provide a global trading platform where practically anyone can trade practically anything. Although eBay does not include an official "vision statement- on their official website, one can conclude that eBay's vision is creating a passionate, vibrant and loyal global trading community. eBay's objectives include being the largest online seller of books, movies and videos and remaining above their competition.
EBay faces a lot of small competitors in its market.