Reference no: EM133027547

Background Amazon.com (Links to an external site.)www.eBay.com (Links to an external site.)[i]

The traditional method for consumers to purchase goods is through a retail outlet. Even electronic retailing involves an intermediary, the online retail store. But small sellers are now finding a new chain of distribution-direct to consumers through online auction sites such as eBay and . Go to the website for eBay (). Search the site for fax machines offered for sale. (Sometimes the Web address for a location changes. You might need to search to find the exact location mentioned.)

Assignment Instructions:

1. Open two listings for fax machines: the least expensive offered and the most expensive. Choose items that have approximately 24 hours before expiration.
2. Write down the description and current price bid. Why do you think sellers of the lower-priced item are asking such a low price?
3. Check the eBay site after 8 to 24 hours. How have the bids changed?
4. What type of payment is accepted for each of these items? How do these payment types differ from payment options at brick-and-mortar stores? Why?
5. What type of business would be able to use an online auction site effectively to sell its products?
6. eBay also offers an option for businesses to establish non auction "eBay stores" to sell products through the website. What would be the advantages to a small business of establishing such a store rather than a brick-and-mortar store? Would there be any disadvantages? Explain.