Question

Evaluate eBay's fee structure. Is it optimal or could it be improved? Why? How?

my subject is marketing

Answer 1

By collecting fees eBay earns money.By auction or fixed price a final value fee is based.By acting as a mediator it plays as a smart game.Buyers who buy in larger volume are charged less by ebay.To attract more buyers its pricing strategy is good.But small consumers are charged high online fees which scares them.Free shipping is also loved by customers.But for heavier products it will collect delivery charges.But eBays fee structure is optimal.Withreasonable demand and cool collection eBay website has become famous past two years.Its marketing is based on Trust,Value and Selection.A website which doesnt sell or buy which earns money by collecting fees like insertion fee and final value fee .It is a best online shopping place.By accumulating its fees revenues are generated.The price approach is called second degree price approach inequity where buyers are charged less amount by company.It was first online marketplace that created success.