EBay is an exciting, innovative, and competitive market for communication. .
Through first-mover momentum and superior service, eBay has capitalized on the network effect largely than any other e-commerce company in the market (Hill, 2003). EBay's huge customer base creates a growing bubble of influence that serves as a magnetic field.
Large and small merchants are drawn to eBay because they know that there is a surplus of buyers, Consumers are drawn to the extensive product selection. The result is a massive communications link that provides something for everybody.
According to Hill (2003), "two priorities dominate eBay's operational strategy: keeping its buyer/seller community happy, and keeping its massive Web site up and running." eBay's leaders operate the company as a community-based business. To do so, eBay maintains a great degree of communication with its customers through posted bulletins, interactive message boards and an unprecedented accessibility of its top-level executives. For example, Meg Whitman, eBay's CEO, is known throughout the community simply as Meg. .
In addition to this form of communication, software tools serve to regulate trust in the community (Hill, 2003). The company's feedback system is a secure method of self-regulating that maintains integrity and accountability in eBay's marketplace. Through enhanced communication, eBay members feel secure and comfortable buying and selling through the site. .
When looking at eBay is phenomenal success, its role in building out certain product categories is an important one (hill, 2003). The company follows its sellers to some extent in determining its product directory. For example, while eBay did not invent Beanie Babies, it enabled a brisk business in trafficking them. .
Basically, when eBay determines that there is an excess of activity in a fairly new category, it works to promote it. For example, concentration on eBay Motors resulted in sales of $3 billion in 2002.