eBay Evolves

eBay Evolves
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eBay Evolves
Part A
The auction is usually a process of buying and selling products where the seller offers them for bid, and the buyers place the bids. There are currently four types of auctions; English, Dutch, Vickrey, and online. The English auction is where the auctioneer opens the bidding process with a reserve price that can be zero. Once a bidder is interested in that price, the auctioneer will invite further bids by increasing the cost through a predetermined bid increment. The auctioneer will continue this process until no other person is willing to increase the bid further. The auctioneer will close the bidding process since, at this point, the final bidder will receive the item at the bid price. This is a first-price auction since the winner pays for the bid.
In a Dutch auction, the auctioneers set a higher price than they believe the item is worth. They will reduce the cost until the bidder calls, "Mine!" When making the call, the bidder will receive that product based on the price. One of the outstanding features of Dutch auctions is they are speedy. The other form is the Vickrey or sealed bid auction, where the auctioneer prefers confidential bids. In most instances, the seller will likely choose this auction when wanting to employ optional terms of sale. This auction is used whenever there is more than one service or item in a similar auction. The main reason for this preference is to help every bidder to choose the best combination which could help satisfy their needs.
The final form of auction is known as the online auction. This is where online bidders compete for a given good or service by submitting their bids online. These types of auctions have become popular because they are more flexible and offer more possibilities. In this auction, there are also no on-site bidders. In most instances, the actions performed on the Internet usually have specific timelines fixed by bid increments. Sometimes, proxy bids can be used whenever the bidder wants to set a predetermined highest bid.
Part B
Like other businesses, eBay has undergone several transformations over the years. One of the most famous transformations is changing its business model. For instance, previously, eBay was employing the auction business model but is currently using a fixed-price listing model. One main difference between the auction model and the fixed price listing is that in the auction model, the people are supposed to place different bids for a given product after the auctioneer calls, and the product will be offered to the highest bidder (Jacqueline, 2017). On the other hand, in fixed-price listings, the buyer will pay for the fixed price and receive the product upon the pay.
Since eBay has not yet fully scrapped the sellers, buyers usually question the best model for buying and selling. One advantage of the auction is that there are instances where the buyer could enjoy purchasing a product at a lower price if they are the highest bidder having placed a low price. However, the weakness of this model is that the buyers could end up disappointed when the other person places a higher bid for the product, ...