Presented by:

Dinker Vaid

Case study analysis

EBAY : Partner Network

CASE BLAZER 4 UNIVERSAL BUSINESS SCHOOL

Brief Background1995 19981997 2006

Pierre omidyar Created a peer to peer online

transaction portal

Auction Web Saw Steady Growth with its revenue

increasing to $ 5.74 Million

Auction Web Renamed itself to Ebay with 5

Lakhs Registered Users

By This time, Ebay Started facing

competition from other online platforms

The Case study of EBAY Partner Network is about Online Affiliate marketing. It depicts how Ebay started its journey in 1995 and its conversion from Auction web to ebay. The case depicts how affiliate marketing plays a vital role for getting customers and Merchants on online Platforms.

CASE SYNOPSIS

1. Case synopsis 2 3 4

The case tells how Steve Hartman (Senior Director) was appointed and how ebay developed his own inhouse affiliate marketing network, way of comission, creation of EPN and pros and cons faced by ebay Affiliate Program.

Case Problem1 2. Case problem 3 4

The first problem was Increasing

Competition from other

Online Platforms

The problem of frauds,

which made ebay to go for inhouse

Affiliate Program

How the team of just 8 people can handle operation

of Large and Complex Affiliate Program Industry

After year 2006 the Customer base and

Revenue started decreasing and fell upto 29% year after

year

Ebay Announcing Revenue Increase and yet incresing

the Fee Along with it, caused anger among sellers

Analysis & Inferences1 2. 3. Analysis 4

Steve Hartman got promoted from Director

of on-site advertising to EBay Senior

DirectorEBay Paid commission in 2

ways. 1: For Active Confirmed User2: Commission for Complete

Transactions

EBay which earlier relied on Commission Junction Network after fraud issues, decided to

go for IN house affiliate Program.

EBay was to Bring its own

IN House Affiliate

Marketing Program.

After facing the slow

Down, ebay turned to

PayPal as its primary Growth Driver.

As per Exhibit-1, Net-Income increased from 1996 to 2006

but then decreased

rapidly in 2007

Recommendations1 2. 3 4: Recommendations

A Large Team is required to handle operation of so Large and Complex Affiliate Program Industry

Ebay need to Reinvigorate its core ebay marketplaces business and lucrative offers for its merchants.

Hartman role to Improve the Ability of the affiliate program to generate Revenue for Ebay.

Make Sure that Problems like Fraud ( Digital Point solutions ) should not occur. And Develop Better Interface for the Users

Thank you