Anyone trying to sell their product, old or new, always considers eBay. It is an online auction platform open for all. It is a website that made e-commerce susceptible and convenient. The platform operates as a middleman for both consumer-to-consumer and business-to-consumer services. Pierre Omidyar founded this multinational corporation in 1995. It is one of the leading e-Commerce websites of all time. An online auction company, created as just a hobby, is now worth $34.27Billion. It manages 2 billion transactions per day. Therefore, it is without a doubt, their approach to their target market is the right way to do it.
Target Market Analysis of eBay
eBay has approximately 167 million vigorous users and around 25 million sellers. It is a place where you can find antiques, collectibles, new and secondhand appliances, motor parts, devices, equipment and so on. 80% of products are brand new and sold at a fixed rate on the site. But their real deal happens in the auction section, which is the real money generator. The first product, eBay had auctioned successfully, was a broken fountain pen to a broken pen collector. So, anything you may find a bit iffy, you can find it on eBay for sure. This is where sellers put their unique products on an auction. So, it gives us an idea of which sort of markets the corporation approaches to. Let’s look at some facts based on Neilson ratings to understand it adequately.
Types of buyers: The buyers are mainly collectors of unique and specific properties as the highest-grossing merchandise is antique and collectibles. But 80% of products are sold new and at a fixed rate. So general household consumers and professional users are also a target for the company.
Age range: The money spinner users of eBay are from the age range of 45 years and up. A study states that millennial are less keen to eBay where it has a large customer base in the age range 55-65. As they are collectors. But on average, 20-34 years old users have a fair count too. It is important to mention that the website is quite popular among kids (age 15-19) nowadays. Even as sellers, it is a potentially growing market.
Gender: The gender ratio is almost 1:1 for male (53%) and female (47%) buyers. So, their approach to the market is indifferent in the count of gender.
Average Income: the website is originally an online auction platform. From celebrity-worn-clothes to Einstein’s-driver-used-glasses, all sorts of things are auctioned and bid wars tend to get intense. So, the household income range is a bit high. It is around $100,000. But the average standard income of an individual user is recognized to be $50000-$75000.
Service Base: Today, eBay deals with a wide range of customers and products. They target all categories of buyers (Male-female, young, elderly, middle-aged, professionals, educated, less/uneducated, service holders etc.). They focus on specific types of services while listing products, so it is a “service focused” kind of website. It offers its broad market the limited services they provide effectively. Thus, they create a very compelling customer-business relationship. Auction facilities, instant buying, bidding, classified services are the main services they offer. Therefore, all kinds of buyers and sellers get attracted to their services. So, the market of the corporation is smaller than other e-commerce sites but the users are well maintained.
Education: Most of the eBay users are considered passionate buyers as they bid for unique items. It was confirmed that more than half of the users do not have a college education background. Most of them don’t even have kids. So, the target market of the firm is leering around less educated but more independent groups of people.
Related: Target Market Analysis of eBay
Reference:
- https://en.m.wikipedia.org/wiki/EBay
- https://www.majortests.com/essay/Ebay-Target-Market-F3QVNKGQAA.html
- https://research-methodology.net/ebay-segmentation-targeting-positinoing/
- https://www.bartleby.com/essay/Ebay-Target-Market-P3J3L443TJ
- https://www.ebayinc.com/company/
- https://www.macrotrends.net/stocks/charts/EBAY/ebay/net-worth
- https://www.bigcommerce.com/blog/ebay-marketplace-statistics/#ebay-statistics-to-make-any-sellers-head-turn
This is Tabassum Nusrat Soti and she is a content writer from Bangladesh. She has been a professional writer for over 5 years now. and she has been working with The Strategy Watch for over 3 years now.
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