Porter’s Five Forces Analysis of eBay 

eBay is a B2C and C2C (customer-to-customer) platform and e-commerce American multinational company. Pierre Omidyar founded the e-commerce platform in 1995. Today, we’ll discuss Porter’s five forces analysis of eBay; bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.

Dropshipping suppliers of eBay

• Doba
• TVCMall
• Wholesale2b
• DHgate
• Wholesale Central
• Chinavasion
• Mirage Pet Products
• SaleHoo
• Costway
• The Wholesaler UK
• Yakkyo
• EPROLO
• Worldwide Brands

Key Features of eBay

• E-commerce platform
• Online auction
• B2C and C2C sale

Top shops and sellers on eBay

• Bandel-automobile
• Bullseye-deals
• Thrift-books
• COMC

•  WeBuyBooks
• DcSports87
• Baham_books
• Medimops_shops
• World of Books
• Music MagPie Shop
• SecondSaleCom

Porter’s five forces analysis of eBay would analyze the bargaining power of suppliers and buyers; the threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management. Here’s eBay Porter’s five forces analysis of e-commerce business as follows;

Porter’s Five Forces Analysis of eBay

Let’s discuss Porter’s five forces analysis of eBay as competitive forces in strategic management and they’re as follows;

Bargaining Power of Suppliers in eBay

The bargaining of suppliers is Moderate in e-commerce business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in eBay Porter’s five forces analysis of e-commerce business are as follows;

I-Suppliers Availability

eBay is the world’s leading marketplace and e-commerce that offers thousands of products, goods, and services in a wide range of categories. The suppliers are easily available in various categories of products and it decreases their bargaining power. In some particular niches and categories, the raw material and product suppliers aren’t easily available, and this amplifies their bargaining power.

II-Quality & Differentiation

Along with product and supplies availability; the quality of supplies and materials and how well they’re differentiated, define their bargaining power. It means if the suppliers are providing unique, differentiated, and top-quality material, products and supplies; they would have a higher bargaining power than others.

Bargaining Power of Buyers on eBay

The bargaining of Buyers is Higher in the e-commerce business as competitive forces in strategic management. Some of the main factors impacting the bargaining power of suppliers in eBay Porter’s five forces analysis of e-commerce business are as follows;

I-Large Market Size & Users

eBay has millions of daily active users and thousands of people perform transactions daily on its platform. A vast majority of good and reliable buyers and sellers are easily available on eBay; the buyers and sellers network on the platform decreases the bargaining power of ordinary users.

II-Online stores

There are multiple online stores both locally and globally, an ordinary online shopper has the option to shop from multiple online stores. In order to retain the attention of customers, eBay offers multiple types deals to maintain user engagement and stop them from going to other platforms. Some of the deals are as follows;

• Loyalty rewards
• Competitive Pricing
• Differentiation

Threat of New Entrants in eBay

The threat of new entrants is Moderate in the e-commerce business and eBay a competitive forces in strategic management. Some of the main factors impacting the threat of new entrants in eBay five forces analysis of eBay are as follows;

I-Recognized Brand

eBay has established a strong brand name and reputation with quality products and services over the years. The company has achieved this status with years of marketing, branding, and providing customers the top-quality user experiences. It compels them to avoid visiting and shopping from other platforms.

II-Buyer & Seller Network

There is no doubt that the new capital entrepreneur could easily build the e-commerce platform. However developing the loyal database of users and earning a recognized brand image requires a lot of work. However, these factors decrease the risk of threat of entrants capturing the market and winning the competition.

Threat of Substitutes to eBay

The threat of substitute products and brands is moderate in eBay as a competitive forces in strategic management. Some of the main factors impacting the threat of new substitutes in the eBay five forces analysis of e-commerce business are as follows;

I-Alternative E-commerce Platform

There is no doubt that there are multiple e-commerce platforms available in the market and customers have the availability of multiple alternative options. Decades of quality service and millions of loyal databases of customers, buyers, and sellers allow eBay to fight off the substitute alternatives and competitors.

Competitive Rivalry in eBay

The competitive rivalry among online stores is very high in the e-commerce business as competitive forces in strategic management. Some of the main factors impacting competitive rivalry in eBay Porter’s five forces analysis of the e-commerce business are as follows;

I-Competition Online & Offline

Walmart, Alibaba, and Amazon are the top competitors of eBay in the e-commerce industry, along with many other brick-and-mortar stores. The e-commerce and online marketplace have become highly saturated with a lot of competitors. It poses a significant challenge to the company to keep developing and upgrading its platforms with new security measures to improve the overall customer experience.

Conclusion: eBay Porter’s Five Forces Analysis |5 Forces Analysis of eBay

After an in-depth study of Porter’s five forces analysis of eBay; we have realized that eBay is the world’s leading e-commerce and online marketplace. If you are learning about the eBay five forces analysis of e-commerce business; then you should keep in mind the abovementioned bargaining power of suppliers and buyers; threat of new entrants and substitutes; and intense rivalry as competitive forces in strategic management.