Question

how does ebay operates ? pointwise step by step answere please

Answer 1

The answer has been briefed up which can be elaborated alter as per your wish.

Here is the explanation of how eBay work exactly for buyers and sellers?

eBay is an auction company which allows its users to buy and sell the items online. Almost any new or used item can be sold on eBay. Basically, sellers set the terms of any auction which includes the shipment options, payment methods and also the return policy.

User Accounts

· Generally, eBay visitors would have the option for searching the items without logging in or even creating an account.

· In order to sell or bid on items, one should need to register the account with eBay. The registration is generally free and also requires the customer’s name and their email address, along with a password.

· Once registered, one will have the option of connecting to their PayPal account for easier, quicker payments. A few sellers only accept payment the through PayPal.

eBay Listings

· Sellers usually create the listings for the items which they propose to sell. Anyone possessing an eBay account could sell items on the site for which they would need to confirm their address and telephone number and also to set up an automatic payment method for the eBay fees before selling.

· The "Sell" link which is at the top of each eBay’s page. This link takes the user to the listing creation of the template which includes numerous fields, like the product description, condition, length of auction, shipping methods, starting price, return policy, acceptable payment methods and also the format of the auction.

Bids & Auction

· The buyer usually searches eBay for the items they want to purchase, using the search bar at the very top of the eBay page. There are available category listings to minimize the process.

· Search results would basically include an image, description, and also the price.

· The buyer can click the description of any item to view the entire listing description, on which they should review carefully before placing a bid on the website.

· The buyer has the option to contact the seller with their questions before placing a bid. Once the buyer places a bid, they automatically commit to buy the item if they end up as the top bidder and this is the exact way how eBay works.

Bidding Procedure

· The buyer should enter the amount of their bid in the box which is at the top of the listing. The minimum amount for the next bid appears in the box below.

· The person who has the highest bid at the auction’s end wins the item

· If the buyer wins the item, he is prompted to make the payment according to the preferences of the seller, then the seller will ship the item.

Fixed-Price Auctions

· eBay sometimes offers the fixed-price options which is marked with the "Buy It Now" sticker.

· Here, the seller determines the price and also specifies the number of those items available.

· Once the buyer purchases the item, they will have to enter their payment information. Once payment is done and verified, the seller would ship the item to that particular buyer.

Seller Payments

· If the seller is a new eBay seller, they can expect a hold on PayPal payments.

· PayPal sometimes hold the funds received from the buyers anywhere which can vary from 3 to 21 days even after the buyer receives the particular item.

· This is the strategy eBay follows to encourage a prompt shipment way and also to protect the buyer.

· Sellers with no or little history with eBay and also those with ratings below standard often are subject to this hold on funds.

· Sellers who have been with eBay for a longer period of time will not be subjected to this policy.

How does eBay make money?

Revenue via PayPal

eBay had already acquired PayPal for $1.5 billion. Even though they had become two individual companies recently, eBay’s major revenue comes through PayPal which facilitates most of their payments between buyers and the sellers on eBay for which PayPal charges a brokerage fee on every transaction.

Selling Fees

eBay generally generates a lot of money from their selling activities. eBay would also charge many types of fees in order to improve the selling experience with paid features. Apart from these, the registered seller has to pay final value fees when they list their items or even relisted item sells. Thus, eBay is generating money by helping their sellers to improve their selling performance through their own platform.

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