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1. Introduction 

The electronic commerce business has increased and is based on the dealing of goods by electronic media such as television and the internet. This kind of business is generally conducted with a set of easy payment options mainly conducted by a cashless strategy. However, in the case of the leading internet giant companies such as Amazon, eBay, and Alibaba, tough competition can be noticed in the case of both national and global scale. However, the competitive advantages of these companies are depending on different regions and on their different business types. In the leading e-commerce business, e-Bay has achieved to penetrate the Australian market with its unique marketing strategy. Thus, in the current study, the issue and opportunity of eBay in the Australian market have been portrayed systematically in the comparison with general e-commerce business model of the country.

2. Project objectives 

The aim of the project is to determine the opportunities and challenges of the general electronic business in the reference of business of eBay. 

To provide an overview of electronic business in both global and Australian market

To analyze the opportunities and challenges of eBay in the Australian market

To overview the existing challenges of electronic business in the country

To provide effective recommendations for implementing strategic management

3. Project scope 

The main scope of this project is to gain knowledge about the importance of the e-commerce market. Along with this, in the future, this research is going to be a quality resource for conducting other research work. Another scope of this study is to promote an effective model of e-commerce business by overcoming the barriers and competitions. With the help of the current project, the current challenges can be overcome with the provided recommendations.

4. Literature Review 

4.1 Overview of electronic business 

Apart from the Bricks and Mortar business model, the e-commerce business is propagating its tributaries since late 1970. According to Slack (2015), the e-commerce business is a network-oriented business model which consists of Electronic Data exchange, e-mail, Electronic Bulletin board, Electronic fund transfer, and other networking technologies. Wheelen et al. (2017) supported and commented that the main differences between traditional and e-commerce businesses are the communication process with the customers. In the case of traditional business, person-to-person direct communication is conducted whereas in the case of e-commerce companies the main communication is conducted via an electronic channel such as websites, emailing, and many more. It has been noticed that almost 1.66 million people purchased goods online in 2017 and the global e-retail market has achieved 2.3 trillion AUD. Among these statistics, eBay has gained 31 billion AUD on the global scale (abs.gov, 2017). On the other hand, Bettis et al. (2014) argued that the electronic business generally is of 4 types which are B2B, B2C, C2B, and C2C. Among this business operation, eBay is a C2C business kind where the customers can post their personal advertisements on the websites and another customer can directly purchase the product. In this case, the buyer is another customer [Refer to Appendix 1]. 

Communication process of electronic business

However, the e-commerce business is having major three strategies which include the area, money, and interrelationship with customers and suppliers. Thus, with the help of this factor, the e-commerce business is propagating their business in both developed and developing countries. On the contrary, Daspit et al. (2017) argued that many governmental and global organizations are also interested in improving an economy and decrease the poverty level of a country by selling patent and exportable goods via e-commerce business. For example, International Federation for Alternative Trade (IFAT), is introducing 100 organizations among 42 countries for marketing such products from lower income countries. They are selling almost 200 to 400 million AUD every year. Million of SME firms and personal businesses have been conducted by the leading e-commerce companies (australia.gov, 2017). Among them, eBay is the platform for auctioning used and new products. On the contrary, Delina (2014) argued that there are still some gaps present in the awareness of people to use e-commerce sites for purchasing. In the case of the developing countries, this issue is predominantly present and the governments of these countries are focusing on the development of their SME industries.

4.2 Overall view of Australian market electronic business 

In the past few decades, there is an online business boom has taken place in the Asia Pacific region. As per the annual report of the e-commerce companies of Australia, the overall review is exceeded above 32 billion AUD in 2017 and the country has enlisted among the top 10 e-commerce supporting country of the world (Keikha and Sargolzaei, 2017). According to Dzhandzhugazova et al. (2015), the main reason for the increasing e-commerce business is the high rate of internet users of the country. On the other hand, in case of eBay, they are recognised company of Australia. However, there are some government issues that have been noticed in eBay where a collision and friction among the stakeholders are noticed. Among the subsidiary companies, Skype and GSI commerce are having tremendous market competition with the PayPal. After this confliction, finally, eBay has managed to penetrate their business in the Australian market after Amazon, Alibaba, and Google. On the contrary Gong and Wang (2015) argue that another major reason for the e-commerce blooming is the high rate of Smartphone and social media users that are present. Thus, it was easy for eBay to conduct their business since 1999 for 15 years. It has been noticed that the eBay Australian native sellers have capitalised about 78% of the global export market of eBay which makes the Australian eBay market sustainable (smartinsights.com, 2017) [Refer to Appendix 2]. 

 

 

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