EBay.com Guiding Questions - Assignment Example

eBay’s online marketing should supplement self-regulation in implementing policies to empower the marketplace network members. Developing awareness and confidence among the members about the transaction security while selling, buying or bidding can definitely flourish the consumer value on eBay. Reducing the transaction costs of customers and taking an effort to raise support and trust among members as well as between members and the company can create strong value. I would like to put before you some of the present potential contracting issues faced by the company.

Investigations put forth alleged misuses at eBay such as fraud, trading faults, and illegally listed items. In detail like the seller is delivering the product without the quality as in the item description and entering indifferent information on the product. Problems are rising if the buyer makes any alteration regarding the product. Also, we are facing bidding offenses, such as attempts to artificially raise the level of a bidding price and not furnishing the bid amount. With the present verification method, eBay is unable to provide greater assurance to its users about the reliability of potential trading partners.

To overcome all the above-cited issues we need to discuss a solution like the ‘Verified User’ type. Member can be given the ‘Verified User’ status by collecting and verifying the personal identification information like social security number with other details. This can be chosen as a way to provide better assurance to eBay users on the reliability of potential traders. To make the buyers safer, we can adopt some insurance policy as per the product cost according to the company turnover.

Members who engaged in trading offenses or site misuse should be banned from future trading on eBay. It is better to establish a convenient online escrow system to protect buyers and sellers from fraud dealings. Escrow holds a buyer's payment and sends it to the seller only after the buyer has inspected the product and gives approval. Simultaneously, sellers have the same opportunity to inspect and approve a returned item before the buyer gets a refund.