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eBay business all-in-one for dummies
Everything you need to know to start and run a successful eBay business. eBay now has 100 million active users and just keeps growing. And they have turned to --For Dummies books and bestselling eBay author Marsha Collier to help guide them through buying and selling on eBay for over a decade. This nine-books-in-one guide has now been updated to cover all the newest eBay seller tools, new techniques to drive sales, new ways to enhance an eBay business using social media, and more.
Book
Engineering Trust: Reciprocity in the Production of Reputation Information
Reciprocity in feedback giving distorts the production and content of reputation information in a market, hampering trust and trade efficiency. Guided by feedback patterns observed on eBay and other platforms, we run laboratory experiments to investigate how reciprocity can be managed by changes in the way feedback information flows through the system, leading to more accurate reputation information, more trust, and more efficient trade. We discuss the implications for theory building and for managing the redesign of market trust systems.
This paper was accepted by Teck Ho, decision analysis.
Journal Article
Check 100 : tips for a successful eBay business
100 simple, easy-to-use health checks for your eBay business.
Book
On Product Uncertainty in Online Markets: Theory and Evidence
Online markets pose a difficulty for evaluating products, particularly experience goods, such as used cars, that cannot be easily described online. This exacerbates product uncertainty, the buyer's difficulty in evaluating product characteristics, and predicting how a product will perform in the future. However, the IS literature has focused on seller uncertainty and ignored product uncertainty. To address this void, this study conceptualizes product uncertainty and examines its effects and antecedents in online markets for used cars (eBay Motors). Extending the information asymmetry literature from the seller to the product, we first theorize the nature and dimensions (description and performance) of product uncertainty. Second, we propose product uncertainty to be distinct from, yet shaped by, seller uncertainty. Third, we conjecture product uncertainty to negatively affect price premiums in online markets beyond seller uncertainty. Fourth, based on the information signaling literature, we describe how information signals (diagnostic product descriptions and third-party product assurances) reduce product uncertainty. The structural model is validated by a unique dataset comprised of secondary transaction data from used cars on eBay Motors matched with primary data from 331 buyers who bid on these used cars. The results distinguish between product and seller uncertainty, show that product uncertainty has a stronger effect on price premiums than seller uncertainty, and identify the most influential information signals that reduce product uncertainty. The study's implications for the emerging role of product uncertainty in online markets are discussed.
Journal Article
Growth, Adoption, and Use of Mobile E-Commerce
We document some early effects of how mobile devices might change Internet and retail commerce. We present three main findings based on an analysis of eBay's mobile shopping application and core Internet platform. First, early adopters of mobile e-commerce applications appear to be people who already were relatively heavy Internet commerce users. Second, adoption of the mobile shopping application is associated with both an immediate and sustained increase in total platform purchasing, with little evidence of substitution from the core platform. Third, differences in user behavior across the mobile applications and the regular Internet site are not yet so dramatic.
Journal Article
Are There Neural Gender Differences in Online Trust? An fMRI Study on the Perceived Trustworthiness of eBay Offers
Research provides increasing evidence that women and men differ in their decisions to trust. However, information systems research does not satisfactorily explain why these gender differences exist. One possible reason is that, surprisingly, theoretical concepts often do not address the most obvious factor that influences human behavior: biology. Given the essential role of biological factors—and specifically those of the brain—in decisions to trust, the biological influences should naturally include those related to gender. As trust considerations in economic decision making have become increasingly complex with the expansion of Internet use, understanding the related biological/brain functions and the involvement of gender provides a range of valuable insights. To show empirically that online trust is associated with activity changes in certain brain areas, we used functional magnetic resonance imaging (fMRI). In a laboratory experiment, we captured the brain activity of 10 female and 10 male participants simultaneous to decisions on trustworthiness of eBay offers. We found that most of the brain areas that encode trustworthiness differ between women and men. Moreover, we found that women activated more brain areas than did men. These results confirm the empathizing— systemizing theory, which predicts gender differences in neural information processing modes. In demonstrating that perceived trustworthiness of Internet offers is affected by neurobiology, our study has major implications for both IS research and management. We confirm the value of a category of research heretofore neglected in IS research and practice, and argue that future IS research investigating human behavior should consider the role of biological factors. In practice, biological factors are a significant consideration for management, marketing, and engineering attempts to influence behavior.
Journal Article
Advertising Versus Brokerage Model for Online Trading Platforms
The two leading online consumer-to-consumer platforms use very different revenue models: eBay.com in the United States uses a brokerage model in which sellers pay eBay on a transaction basis, whereas Taobao.com in China uses an advertising model in which sellers can use the basic platform service for free and pay Taobao for advertising services to increase their exposure. This paper studies how the chosen revenue model affects the revenue of a platform, buyers’ payoffs, sellers’ payoffs, and social welfare. We find that when little space can be dedicated to advertising under the advertising model, the brokerage model generates more revenue for the platform than the advertising model. When a significant proportion of space is dedicated to advertising under the advertising model, matching probability on a platform plays a critical role in determining which revenue model can generate more revenue: If the matching probability is high, the brokerage model generates more revenue; otherwise, the advertising model generates more revenue. Buyers are always better off under the advertising model because of larger participation by the sellers in the platform’s free service. Sellers are better off under the advertising model in most scenarios. The only exception is when the matching probability is low and the platform dedicates considerable space to advertising. Under these conditions, the sellers with payoffs similar to the marginal advertiser who is indifferent about advertising can be worse off under the advertising model. Finally, the advertising model generates more social welfare than the brokerage model.
Journal Article
Asymmetric Information, Adverse Selection and Online Disclosure: The Case of eBay Motors
Since Akerlof (1970), economists have understood the adverse selection problem that information asymmetries can create in used goods markets. The remarkable growth in online used goods auctions thus poses a puzzle. Part of the solution is that sellers voluntarily disclose their private information on the auction web page. This defines a precise contract -- to deliver the car shown for the closing price -- which helps protect the buyer from adverse selection. I test this theory using data from eBay Motors, finding that online disclosures are important price determinants, and that disclosure costs impact both the level of disclosure and prices. (JEL D44, D82, L81)
Journal Article
Sales Taxes and Internet Commerce
We estimate the sensitivity of Internet retail purchasing to sales taxes using eBay data. Our first approach exploits the fact that a seller's location—and therefore the applicable tax rate—is revealed only after a buyer has expressed interest in an item. We document how adverse tax \"surprises\" reduce the likelihood of purchase and shift subsequent purchases toward out-of-state sellers. We then use more aggregated data to estimate that every one percentage point increase in a state's sales tax increases online purchases by state residents by almost 2 percent, while decreasing their online purchases from state retailers by 3-4 percent.
Journal Article