What makes eBay click

Ever wondered why eBay is a successful company? Or, what has helped it grow into a $4.5-billion company and that too within a decade of its inception?

These are undoubtedly the most asked questions to high-profile eBay president and chief executive officer (CEO) Meg Whitman, who is credited as the person behind the astonishing success of company.

The company survived the dot.com burst and tided over many an issue, before becoming the largest e-commerce company in the world.

Whitman, who is on a visit to Mumbai and Delhi, had pre-empted these questions and had come prepared with a powerpoint presentation that outlined why the company was a success across the world.

Talking to the Indian press, she said that eBay is a global marketplace. Barriers of distance and time get shortened at eBay.

It is a meeting place for buyers and sellers - think neighbourhood marketplace - where people can meet to create new markets and expand existing markets. It reduces entry-level costs and helps individuals and small businesses to compete with big companies across the world.

"No inventory, no warehouses and no need for a sales force, which would generate revenue per transaction as the sellers pay for each transaction," she said.

The "depth and breadth" of items sold over eBay, superior value as well as the cost efficiencies of doing business online is passed onto the consumer. To top it all, eBay is a 24x7 shopping destination.

After claiming that eBay is the largest e-commerce website in the world, Whitman doles out figures - "On an average, we sell a video game every 12 minutes in Singapore, a teddy bear every 2 minutes in UK, a collectible item every minute in China and a car every minute in the US".

The company is committed to increase business in the Asia-Pacific region, which include countries like Australia, South Korea, New Zealand, Taiwan, China and India among others. She, however, did not divulge the amount of investments or other figures for the country.

eBay had ventured into India with the acquisition of Baazee.com in August 2004. Right now, it has 2 million users spread across 240 towns in the country.

The buyers in the country are in the age group of 18-40. And the most popular items sold include mobile phones, electronics and cameras, laptops, jewellery among others.