Online Auctions

eBay:

A pure play is a company that invests its resources in only one line of business.The Business Model of eBay is an online person-to-person trading community. Buyers and sellers are brought together in a manner where sellers are permitted to list items for sale and buyers to bid on items of interest. eBay allowed general trading of items when it was first constructed but over time has created itself an online community that feels safe and has the added feeling of safety with the third party paypal looking after your best interests.

Links:

http://hbr.org/2011/09/ebays-founder-on-innovating-the-business-model-of-social-change/ar/1

http://www.investopedia.com/ask/answers/04/042904.asp

http://teamcaffeine.wikidot.com/ebay

eBay’s Dominance:

eBay has a greater dominance in the online market over sites such as Amazon.com due to its feeling of familty, reliability and security. Its dominant online auctions have matured reducing risk and increasing security. however in china ebay plays second due to tao bao having free listing.

Link:
http://www.nytimes.com/2012/07/28/business/ebays-turnaround-defies-convention-for-internet-companies.html?pagewanted=all&_r=0

Ebay uses a third party group to add security to transactions made online, with higher security measures PayPal looks after eBay customers privacy and security. A brand named vendor would set up an online business through eBay due to it added security, online presence and its ability to let consumers know trusted sellers. eBay has just recently changed the pricing for listing items through there site if you are a separate business, reducing the cost for businesses to sell their products through eBay.