EB ass 03 PGP-II PGDM(S) "A" Roll No. 41

Q.1 What are the problems that eBay is currently facing? How is eBay trying to solve these problems? Are these correct solutions? Are there any other solutions that eBay should consider?

The problems and solution done by eBay are as follow:

1.To make the process of getting the product to seller to buyer was very big and time taker so ebay is trying to reduce the time and boundaries of buyer and seller to meet at one place and get the delivery of goods at exchange of money in very less time period to increase the speed of transaction.

2. It was also facing problem of meeting customer at different places and money exchange so it has expanse the business and done the acquisition of paypal, VoIP, Skype Technologies

3. In 2000, eBay introduced eBay Motors to encourage the sale of bulky items that are too expensive to ship. Critics believed that consumers would find purchasing a used car over the Web too risky. However, eBay added extra measures of protection in the form of used-vehicle warranties and purchase protection up to$20, 000. These measures, combined with standard eBay seller feedback ratings, gave users enough security to buy one million cars within four years. eBay Motors now include subcategories for boats, motorcycles, parts and accessories, and more.

4. The largest threat to eBay is the honesty and integrity of its auctions, over which it has some but not total control. As eBay ventured into the realm of higher-priced antiques and collectibles, it opened itself up to lawsuits from buyers claiming to have been defrauded by online sellers. Some buyers have alleged that eBay does not do enough to prevent unscrupulous sellers from collecting inflated fees for goods that are not legitimate, or worse, do not exist. eBay users have also been the victim of identity theft scams that resulted unauthorized use of their accounts and hundreds of thousands of dollars worth of fraudulent sales.

5. The company understandably struggles with the task of satisfying two types of “customers” online buyers and online sellers. What is good for one is not always good for the other. Fraud complaints often result in an automated response from eBay that encourages buyer and seller to resolve disputes on their own. As eBay has seen, one unilateral policy decision can set off a negative chain reaction.

6. As eBay was the online service so it was facing the problem to interact with customer so that if they have any problem then they can resolve it so for this problem they started A program called Voices brings buyer and sellers together 10 times a year at corporate headquarters. The users engage in two full days of give and take with company officials about the best and worst aspects of eBay/s services. eBay also monitor every transaction and usage statistics in real time, enabling timely troubleshooting.

7. Internet retailers, who carry the main liability for losses from online fraud, are becoming increasingly concerned about their exposure to web-based crime.

8. Consumers suffer little financial loss from internet fraud. If a consumer’s credit card is used fraudulently over the internet, he or she need only inform the bank and the money is refunded. The bank then reclaims the money from the retailer with which the fraudulent transaction was made a process known as chargeback. Retailers, however, resent having to absorb these losses.

9. In one case we can identify that how problem occur and ebay try to solve it. The Association of Payment Clearing Services (APCS), the trade body governing electronic payments, says £150m was lost last year through fraudulent action when the card was not present. About £117m of this was from transactions over the internet, with most of the loss borne by retailers. Some measures have been put in place to help redress the balance.
APCS and the banking industry spend £3m a year funding a police unit that focuses on internet fraud and helps retailers minimize their risks.

At a some extent the solution done by ebay was correct but it was not able to maintain the good relation with banks, so that the transactions become easy without any fraud. Ebay should have done a collaboration with bank that if any person is making payment then first ask the unique code and then ask the purpose and if it is related to ebay then give one more unique password so that fraud can be stop from this.
Another problem was people making promise to sell but at the time of delivery of goods they did not do this so for this also a streak action should be taken by ebay so that buyer can be at safe side while doing payment of the particular produc.