The decision of those purchase are made at home. .
The supplier "s decision to place their product online s also made from home, after consideration about web traffic, cost of placement, payment security .
The people who decide go to online to shop only when they have specific purchase in mind. They may made decision to purchase products/ or service online at home because they have good experience with it, or they can suddenly made online purchase decision when they research information about the product on the website. Nevertheless, there are online shoppers who shop for fun, such as they may shop in auction site, or engage their hobby type of interest or enjoy bargains online.
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While there are so many website provide online shopping service, and they all provide abundant information, the online buyers may easily switch their online purchase to other online shopping websites where they perceive that the website can offers more benefits such as convenience, information, and reduce buyer's risk such as product quality, credit card information The suppliers also easily to switch placing their products on website where they believe it will provide more customers and low cost.
The eBay has determined to expand business model for more products categories and increase more web traffic for both buyer and seller in order to broaden its customer based.
Extend of demand.
eBay was the most largest person-to-person trading community on the internet. From inception through beginning of 1999, more than 186 million bids had been made on the over 50 million items for sales. In Quarter 2,1999 revenue of gross merchandise sales is $622 million, with register users is nearly 6 millions people. Auction listed is growth from 289,000 items in 1996 to 29.4 Million in quarter 2 , 1999.
Growth is expected to be at 35%/year over the next five years , with gross merchandise sales of $2.6 billion at eBay in 2000, it estimates that the gross merchandise sales will be nearly 4 billion in 2004.
