Question

In: Operations Management

Develope a project on how the eBay could improve on their online systems and transaction 1)...

Develope a project on how the eBay could improve on their online systems and transaction
1) indicating the Constraints and requirement based on (scope, cost, schedule, resources, performance and value)
2) project the life span of the project for the next 5 to 6 years

Solutions

Expert Solution

1. This depends on the audience you're asking about. Improvements for the causal user, the power user, the company, or other audiences will likely look very different. However, these are the things that jump out at me.

The simplest and most obvious way eBay could be improved is simply by paying attention to the design and layout of their site. The pages are cluttered, confusing, and in many places redundant, and making improvements there could improve the experience for everyone, buyers and sellers alike.

Discovery is one of the areas that eBay could really improve their service for the normal user. eBay is sort of like the world's largest thrift store, and the reality is that lots and lots of products are mis-labeled, mis-categorized, or poorly photographed, and that makes it difficult for a user to find something they're looking for. However, as an avid user of eBay, this obscurity is actually one of my favorite things about the service. It rewards my knowledge and willingness to dig and allows for the potential of me finding a great item that is mis-labeled, which means I may be able to get a great deal on it. So, while improving discovery would probably lead to more people buying more things at higher prices, I and I suspect other power users would be quietly disappointed. eBay recently acquired Svpply, and if their blog post is to be believed, they will be spending some time tackling this exact pain point.

eBay is a buyer's market, and they could probably make the process of selling something simpler and easier to understand. They have a complex fee structure which possibly keeps some would be sellers from putting their items on eBay.

From my perspective, I would love to see eBay begin to weed out the sellers that use the service to resell large quantities of new items. This would be a terrible business move for them, as much of their sales are through users like this, but that aspect of eBay is not unique or compelling. I can get new items from dozens of other major websites, and having to sort through all of that stuff when I'm searching for something is frustrating.

2.

A week after shutting down the operations of eBay.in, Flipkart on Wednesday launched 2GUD, an independent marketplace for refurbished goods.

This marks Flipkart’s first foray into the refurbished goods market, in which rival Amazon has been present since it launched the ‘Amazon Renewed’ programme last year. The refurbished goods market is estimated to touch $20 billion in the next 5-6 years.

2GUD will initially offer smartphones, laptops, tablets and electronic accessories, with 400-plus categories to be added soon. It will sell used and returned/used products restored to “full functionality”. Each product will go through 47 checks and certified/graded by experts at Flipkart’s partners. All products will have a 3-12 month warranty. 2GUD will be available on mobile web initially, but will subsequently be available on the desktop and mobile app platforms.

“With 2GUD, we have removed the trust deficit that exists in the refurbished goods market and are offering customers yet another avenue to access quality products at the most affordable prices,” said Kalyan Krishnamurthy, CEO, Flipkart.

eBay.in down?

The development marks the end of eBay.in’s 14-year e-commerce journey in India that began with the acquisition of Indian marketplace Baazee.com for $50 million. In April 2017, Flipkart had acquired eBay’s India operations in exchange for equity; eBay had then invested $500 million in cash in Flipkart.

However, in May this year, after Walmart announced its decision to acquire 77 per cent stake in Flipkart, eBay sold its stake in the Indian e-tailer for about $1.1 billion. It intends to re-launch eBay India with an initial focus on cross-border trade opportunities.

eBay.in was one of the pioneers of e-commerce in India along with Indiaplaza.com, Indiatimes.com, and Rediff.com, much before Amazon, Flipkart or even Snapdeal had entered the market. “Although it’s early days for e-commerce in India, we believe there is great opportunity over the long term,” Meg Whitman, President and CEO of eBay, had said in 2004 after acquiring Baazee.com.

So is it curtains for eBay in one of the world’s top three consumer markets?

“Not at all. The eBay model has been very successful globally and continues to be successful even today,” said a former top executive at eBay.in.

“When later entrants into Indian e-commerce such as Amazon can succeed, there’s no reason why eBay, which understands the India e-commerce market very well, should be written off,” the executive added.

“eBay.in’s steady decline was because it lost its India-focus as a consequence of the large-scale global restructuring during 2009-2011, a time when it should have been pumping in hundreds of millions of dollars into India to create awareness and build a brand that Indian shoppers could relate to. eBay will re-launch operations in India either through an acquisition or on its own steam,” observed the executive.

Last year, eBay Inc, which operates in over 30 countries, delivered $9.6 billion in revenue.


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