Should Ebay Be Considering Expanding Outsourcing?

eBay do not need have necessarily to follow other companies like Dell who outsource because eBay has no hold any inventory and no warehousing expense. In 2002, eBay work out the shipping method with the world leading payment company PayPal. It make easier and convenience to eBay 'user to make payment. The Revenue was in 2004 nearly $3.3 billion and mainly generated from two categories. The first called the listing fee involved a nominal fee incurred by the seller in posting an item for sale. This fee ranged from $0.25 to $2.00. The second is the final value fee was charged to the seller as a percentage of the final price when a sale was made. This amounted to between 1.25 percent and 5 percent of the selling price of depend the price of the item.

eBay is the first on-line auction and also increasing worldwide in the market share. eBay's competition came from companies like Yahoo, Amazon, Overstock, uBid. These companies were fight eBay on a number of fronts, mainly the pricing and advertising on-line. But eBay have aggressive the worldwide acquisition and partnership strategy with the international market share almost doubling in the last four years from 2001 until 2004. eBay had more buyers, more sellers and more items until 1.4 billion was listed on the site. The worldwide acquisitions included auction sites in Korea, China, India, Latin America, and Europe. The only significant market overseas where eBay lags is Japan because Yahoo enjoys a sizeable advantage at there as the first to market.

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