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ebay, Rules

 

Economically, although eBay boasts a relatively stable corporate structure, the company itself is not completely immune to the changes- both positive and negative- in the marketplace. Share prices are prone to rise and fall in alignment with the changes of the economy; for instance, in November of 2000, the share price fell 20 percent as a result of businesses slowing down and the diminishing activity on the Internet marketplace. But although eBay's business is seasonal with volatile revenues, the company has maintained high gross margins of about 70 to 80%. Politically, eBay has been on the forefront of counterfeit, illegal and questionable issues regarding online listings. While on-line publishers are responsible for the content of their sites as an on-line venue, eBay was not according to the Digital Millennium Copyright Act (DMCA) of 1998. People were, however, selling illegal items such as human kidneys, marijuana, counterfeit software, controversial items such as Nazi memorabilia and pornographic material. In addition, eBay has faced several lawsuits questioning the eBay business model where people claimed that eBay should take responsibility for the authenticity of items sold on the site. Integrated up-to-date technology as well as partnering with other firms plays a major role in the eBay business strategy. On 25th March, 1999, eBay and AOL expanded their existing relationship and announced a 4-year strategic alliance to expand person-to-person commerce and community building on AOL and its family of brands. The agreement gave eBay prominent presence across the domestic and international technological market including AOL, CompuServe, Netscape, ICQ and Digital City. The Global market place is a target for eBay's international expansion. While the Internet is available to users around the world, trading goods across borders involves difficulties such as currency conversions, different duties, taxes and regulations, as well as high delivery costs.


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