Question

Globalization and Sources of Equity Financing

Please respond to the following:

From the e-Activity, discuss how the company you selected might benefit from selling new customers on e-Bay (as opposed to building and maintaining its own Website).

Referring to the same company, determine the best source of equity capital available to the company you selected. Explain your rationale.

Answer 1

My company sells kitchen equipment which could be very beneficial by selling it on eBay. This would definitely reduce the overall expenses made on a website which is specifically created for selling kitchen appliances.
EBay is a global website and have International reach it would definitely increase the overall reach to the customers which would provide positive impact on selling the overall goods on ebay.
International reach would be highly impacted by using ebay as it would provide provide global reach on every platform.Number of visitors would be highly increased as it would provide a positive impact on the overall availability of the sales opportunity for the company.
Kitchen equipment would be selling at a better margin as ebay provides their own logistics services if selected, It would definitely increase the profit margins for the company. It would reduce the impact on overall expenses made on customized website for the company.

Selling companies shares over it locality and available this would be the most beneficial source of equity capital for the company. It would increase overall availability of different shareholding aspects in the local region.