EbayCaseStudy essay

This shopping is instantaneous, versus the time involved with having to travel to view items for purchase. The expense of time and travel is creased significantly, thus creating value for the buyer. For the seller, their audience is increased tenfold, therefore increasing the likelihood of selling their items. The seller can create a “store” on eBay versus having a brick and mortar store. The cost of the online store is miniscule in comparison to an actual place of business.

Additional value is created for the buyer and seller due to the availability of Papal.Through the use of Papal, items are insured and payments or refunds are able to be completed quickly and painlessly. This arraignment helps to make sellers to be more confident in their transactions because they onto have to worry about bounce checks or illegal payments. What potential contracting problems exist on eBay? There can be numerous contract problems for online buyers and sellers. For the buyer, the product they purchase may not be as advertised, or meet their expectations.

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The seller may not send the purchased item in a timely fashion, or may not send it at all.For the seller, the buyer may not pay for an item, which in effect has removed the item from being viewed by other buyers. This results in a possible loss of a sell, and the costs of time and fees to relies said item. Possible problems for the buyer and seller are the issues elated to shipping products, items may be damaged or lost during shipping.

How does eBay address these problems? To begin with, eBay starts with the buyer and seller having to sign a user agreement in order to become a member of their forum.This agreement outlines requirements regarding selling, buying, fees etc. The hope is that everyone will follow the rules and there will not be problems. When problems arise, eBay encourages the use of their resolution center. If the buyer and seller do not reach a satisfactory resolution, eBay guarantees a refund. EBay also encourages the use of Papal, which insures items in case of damage or loss. Bay also provides a feedback forum and a star rating system for members so that they may learn more about the buyer or seller before entering into a business transaction with them.

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