eBay SWOT Analysis

Strengths

• eBay is the largest auction site on internet which deals with selling of new and old products. People can find most of the goods at reasonable prices via auction in eBay.

• eBay term becoming more common among people same like Google.

• eBay running business on different models like B2B, B2C, C2B and C2C as well.

• The company gathers information from customers during the time of registration for making better future decisions.

• It provides number of tools to assist seller finding target buyers and also to buyers to find best products.

• It is offering wide range of products.

• eBay always move one step ahead form its competitors to sustain the competitive advantage.The recent good example for this is the acquisition of paypal to robust the auction and payment process.

• Better revenue and profit streams.

Weaknesses

• eBay has not been able to stop the fake or illegal auctions.

• Seller can enforce the payment method of their choice.

• Shipping charges are one of the well known problems means final price of the product increased after adding shipping charges.

• eBay unable to check the contents of auction and auction items. Majority of items are checked after the content or auction has been posted. Due to this problem it facilitate large scale of copyrighted and not for sale items.

Opportunities

• Auction normally takes 10 to 15 days which frustrates a buyer willing to purchase the product immediately.  eBay should add the new feature to allow the buyers to check out the product without waiting so long.

• Acquiring Skype is a shocking new for the world because eBay has nothing to do with VOIP. eBay has integrated Skype so the buyers and sellers can interact easily for business transactions.

• eBay localizing its Web Site all over the world.

Threats

• Hacking and denial of service attacks.

• eBay is moving its service to new countries so It may face tight competition from local Web Sites.

• Company can sue eBay for selling copyright contents.

• Strong competition from Amazon, Yahoo and Google.

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