Saudi Electronic University College of Administrative and Financial Sciences E-commerce Department Assignment

Saudi Electronic University

College of Administrative and Financial Sciences

E-commerce Department

Assignment 2: Case Study

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Assignment 2: Case Study

Students need to understand the company scenario from the given case study; the answers can be also from outside trusted resources. Answers can have related quotations with proper references.

Maximum Grades: 10

Duration: 4 Weeks

Number of Words for Each Answer: 125 to 150 Words

Amazon and eBay

Online marketplace is an e-commerce site that links sellers with buyers. Online Amazon, eBay, and Craigslist are the examples of E-Market places. Companies utilize online marketplaces to connect with customers who want to purchase their products and services. Amazon and eBay were among the first e-marketplaces.

Amazon and eBay are two largest players in the e-commerce sector. Amazon and eBay have many comparisons, at first in attracting visitors to their site, providing them the ability to browse existing products and make a purchase. The differences between the two companies exists in their business models. Amazon works like a traditional retail store whereas eBay functions other like an auction house.

Amazon depend on third-party sellers to list their products on the site so that consumers have a large inventory of goods to search through. Also, eBay depend on sellers to list their goods for sale to be auctioned off in a certain time. Amazon is buyer orientated while eBay is seller orientated.

eBay is an auction house and marketplace that basically facilitates the sale of goods between third-party buyers and sellers. Buyers visit the site to search for products they want to buy from big list of individual sellers and then bid on items through individual auctions.

 Amazon is an immediate provider of goods, and customers visiting its site view products that Amazon maintains as inventory in its large network of warehouses. Amazon’s products are either from their own brand or from third-party sellers, the last of which makes up the bulk of its offerings.

Even though Amazon and eBay are two of the largest players in e-commerce, both have much different business models. Amazon works like a traditional retail store, attracting buyers to its site to purchase its listed inventory, while eBay attracts sellers to list their personal goods, working as an auction house or a garage sale.

As a buyer, depends on what you are seeking to purchase, either Amazon or eBay will be a better fit for your needs. Similarly, as a seller, based on your business model and selling needs, one company will work better for your business goals.

Case Study Questions

1.What type of e-commerce does eBay and Amazon use? (2 marks)

2. What are the similarities of Amazon and eBay e-Market selling? (2 marks)

Discuss the Business Models and Pricing Strategies used in Amazon and eBay? (2 marks)

As an e-commerce expert, give the competitive features required for an

E-Market place. (2 marks)

5. Express your personal experience with the services of any E-market place. Which one you prefer and why? (2 marks)