- by omar
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Electronic Commerce is the conducting of business (selling and purchasing of products), communication and transactions over networks and through computers. E-commerce may include the use of electronic data interchange (EDI), electronic money exchange, Internet advertising, websites, online databases, computer networks, and point-of-sale (POS) computer systems. - dictionary definition

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About eBay

eBay Inc is an American Internet company that manages ebay.com, its an online auction and shopping website where individuals and businesses are able to buy and sell products and services both nationwide and internationally. eBay also owns PayPal, Skypeexternal image Skype_logo.png, and other businesses.

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Click here for more on eBay's official About Us

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About PayPal

PayPal founded in 1998 became a subsidiary of eBay in October of 2002. PayPal allows an individual or business with an email account to securely, easily and promptly, send and receive payments online. PayPal's service builds on the existing financial infrastructure of bank accounts and credit cards and utilizes the world's most advanced proprietary fraud prevention systems to create a safe, global, real-time payment solution. PayPal is currently a global leader in online payment solutions with over millions account holders worldwide.external image imgEcheck.gif
In addition, PayPal is an e-commerce business which allows payments and money transfers to be made through the Internet. PayPal performs payment processing for online retailers, auction sites, and other corporate users, for which it charges a fee. PayPal account holders must be 18 years of age or older with a debit/credit card or bank account and an e-mail address in order to use the service.
Click here for more on PayPal's official About Us

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  • Introduction to eBay

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eBay is, an original and primary online auction site that one can browse through from various categories such as Antiques, Boats, Clothing & Accessories, Computers & Networking, Jewelry & Watches, and others. When one chooses something he or she likes, they click on the auction title and view the details on the item, on this page, they are able to view the pictures, descriptions, payment options and shipping information. If the shopper has a good perception or idea of what he or she is looking for, they can search for the desired item by simply using the “keywords search”. For example an "Apple iPod”, or using the advanced search criteria which helps narrow down the results, such as keywords to exclude, item location, price range and accepted payment methods.

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Soon after placing a bid on a desired item, the user would need to enter a contractual agreement to buy the desired item if he or she wins the auction. All auctions have a minimum starting bid, and some have a reserve price, which is an undisclosed minimum amount the seller wishes to accept the item for. If the bidding does not reach the “reserve price”, the seller does not have to part with the auctioned item. In addition, one can also find tons of “fixed-price” items on eBaymakes shopping as reliable as any other online shopping sites. One is able to select and buy their desired item at a reasonable cost and wait for the arrival of the item at their doorsteps. There are also auctions listings that gives the users the choice of “Buy it Now” <external image bin_15x54.gif> for a price that is typically higher than regular auction’s starting bid. If an individual chooses to buy an item for the “Buy it Now” price instead of bidding on it, the auction ends immediately.

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One can pay for an item on eBay using various methods, such as money orders, cashier’s check, cash personal checks and finally electronic payment services like PayPal and BidPay. The seller is able to decide the type of payment which nest suits his/her interest or accessibility. Since PayPal is a subsidiary of eBay,
PayPal is the easiest technique of purchasing items over eBay. The PayPal transaction process is a build-in solution on every eBay auction lists.
Similarly like buying any items over eBay, one can auction off any item too. Simply by using the listing process, one can put up sell their items on eBay, he or she may also be interested in opening their very own “eBay store”, where one could operate a business. When one sells an item over eBay, he or she pays a listing charge and turns over a certain percentages of the sales price to eBay.
Once an individual registers onto eBay, they can access all of their eBay buying and selling activities from a single location called "My eBay."


- Shipping -

eBay usually provides fast reliable transporting services with UPS (United Parcel Service) which allows an eBay user to trace and track their item online. “UPS and eBay have teamed up to simplify your online sales and purchases!”

UPS Shipping Zone on eBay - An article on UPS & eBay teaming up
eBay is The World's Online Marketplace®, a powerful platform for the sale of goods and services by a passionate community of individuals and businesses. With hundreds of millions of registered users around the world, eBay buyers and sellers transacted more than $34 billion USD worth of goods in 2004.
To make it easier for sellers and buyers to get their goods where they need to go, eBay has integrated UPS shipping technology into their online auction process. Registered eBaysellers can now prepare and print their shipping labels while on the eBay web site. Users will also be able to accurately determine shipping costs and get detailed shipment tracking information 24 hours a day through links to UPS.com. Buyers and sellers also get the comfort of knowing that their shipments are being handled by the leaders in global shipping. UPS offers the largest selection of domestic and international courier services in the industry to suit all of your shipping needs.
Integrating UPS technologies on eBay.ca will simplify things for eBay users by streamlining the process of preparing and tracking shipments, calculating shipping costs and reducing e-mails between buyers and sellers boosting confidence in their online transactions.
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external image 96db_1.JPG**UPS - eBay Alliance**- An article talking about UPS and eBay's relationship. “Today’s eBay buyers and sellers have easy access to a suite of UPS OnLine® Tools integrated throughout the eBay marketplace. The services allow eBay users to track UPS shipments, review transit times, calculate shipment costs and print shipping labels, all at the point of transaction. UPS and eBay have enjoyed a successful relationship since 2000, when UPS created a shipping center at eBay.com. In 2002 UPS announced the integration of UPS shipping tools into eBay’s PayPal payment process, allowing buyers and sellers to complete shipping functions within PayPal’s Web site.” - UPS Pressroom

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  • eBay IT systems

In 2005 eBay had 200 database servers followed by 20 search servers, after its series of service disruptions that occurred in 1999, which caused issues for eBay Inc. The structure is a grid computing type which allows both error correction and its growth. Comparatively, it allows search functions together with everything eBay runs on roughly 50 servers; this includes Web servers, application servers and data-storage systems. This new grid allows eBay to add servers to its structure if any service disruptions occur similar to the one that occurred in 1999. The diagram above shows eBay’s infrastructure, from eBay’s systems to its users’ source of access to eBay.
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While majority sites run on roughly 50 servers, eBay has 200 severs located at 4 different locations in the United States. <2005 statistics> In case of a system crash on any one of these servers the other three picks up the job as all the 4 servers contains the same data. On the eBay site, when clicking on a listing for an item, a user’s computer connects to the Web servers; this allows the application servers to operate that transfers data back and forth among the user’s computer and the servers. Since eBay has an enormous market, it has local partners in many nations which provide its services. This allows eBay users to access the site at a faster speed; in addition this allows the monitoring systems to constantly scan for problems over the network. In general this system provides eBay’s millions of users to search, buy and sell items over the world wide web.

  • Ethical and Social issues, advantages and disadvantages.

Ecommerce is not as simple as choosing items of shopping cats or purchasing of attractive products. ECommerce is relatively outside that, there are various issues that arise, specifically in such environment. The following are few highlighted preparation to take into consideration in relation to business issues in ecommerce.
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Security & Privacy:
Ecommerce scam is mounting and many users are doubtful regarding revealing their personal and secretive information, such as financial information. An ecommerce business should build an atmosphere of assurance for user to come to their site.
      • Creating a Spam free site, for example Popup free.
      • Comply with all secure transactions accordingly to the latest security standards, for example the SSL security standards.
      • Hosting of the Ecommerce business over and around a secure environment.
      • Providing of disclaimer during the checkout process and which in addition will respect the privacy of the visitor.
      • Creating different locations of servers which will allow the firm to keep a constant watch on the changes in Internet security environment and occasionally scan the network for safeguards against any security threats.

Providing Authentic Information. Collaboration with security issues can cost very much. It is always recommended to be with the best in the industry when it comes to security of Ecommerce store. Processing Capabilities: The speed and accuracy of various processes that go in managing an ecommerce store are also very important. Your ecommerce store should be powerful, yet stable.
      • An inventory management capabilities and quick Ecommerce solution.
      • Accepting of all possible popular payment methods.

I went through details for the point below when presentation in class, they were points which needed to brought up for Presentation.
Few legal issues to consider when starting a business on the Web in order to avoid ethical and social issues,
  • Incorporation
  • Trademark
  • Copyright
  • Clickwrap Agreement for Users
  • Federal Trade Commission (FTC)

In relation to the various social issues and both disadvantages and advantages for eBay users.
Click here to view a video which allows an eBay user to identify scam mails.

- Registering & Signing on eBay -

The video below shows the signing in process on eBay, i created this video show an sample of the signing in process.
- by omar

The following video shows the process of becoming an eBay member, there is also a link that shows the process of registeration. *A slideshow on "How to register"*
- by omar

- Personal View -

Personally I have not used eBay, though I do have an account. I believe that the service provided by eBay is an interesting as we are able to order things from around the world from our computer. The accessibility is simple; as all a user needs is internet besides that there is security measure we should take into consideration although it does not play a big factor as the eBay network ensures are with protection from such acts. Overall I’m from this firm as I believe it has moved the World Wide Web and at the same time generating standards for businesses. In addition, providing comfort for people around the world. For example, if one has a second home half way around the world, he/she may order meal over the net before reaching the destination, which means he/she would be able to have their meal at their doorstep soon after their arrivals.

Below are few tutorials for nwe users in relation to eBay,
A slideshow on and tutorial "How does eBay work?"
Tips on "Securely shopping on eBay"

- More on eBay and PayPal... -


Issue- Information video for people who uses PayPal. The pros and cons of using PayPal. Includes the various scam mails (Phishing).
“This is a small video about the reverse scammers that prey on sellers and steal their goods. Please if you are a Paypal seller that has been burned comment here and lets get some justice. It's not always the buyer of an item that gets scammed. Sellers get scammed as well. Listen to my story and see what I mean. Rate the video get it featured, make Paypal an ebay company wake up!”
Below are two examples of one of the many phishing email sent to PayPal users.
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An individual explaining and exploring the importance of the PayPal scams, creating and awareness of its’ users.


Using PayPal to safely transfer money, similar to wiring money.
“By funding your paypal purchase with your visa or credit card you will be entitled to chargback protection in case something goes wrong”

Click here to view a video which allows an eBay user to identify scam mails, it also explore smart user' techniques in order avoid loss of privacy and secretive information.

- Bibliography -

Cohen, Adam. "The Perfect Store: Inside eBay." <http://www.businessknowhow.com/manage/perfectstore.htm>

"eBay: Last Man Standing." CNET News.com. <http://news.com.com/2102-1017_3-887630.html?tag=st.util.print >

eBay's Security & Resolution Center <http://pages.ebay.com/securitycenter/ >

"eBay's Business Model." eBay PowerUser's Bible. <http://www.wiley.com/WileyCDA/WileyTitle/productCd-0764559427,descCd-tableOfContents.html >

"Zeus power 20 million eBay searches a day." Zeus.com. <http://www.zeus.com/news/pdf/case_studies/ebay.pdf>

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