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Case Ebay Managerial Accounting

In: Business and Management

Submitted By joaoqms
Words 662
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Mini Case eBay

According with the information provided by the article, it is possible to infer on some facts and speculations about the operations of eBay, an online selling/auction company. The creation of value in the company is given mostly by the fee paid by sellers to make your product available for sale or auction, which could be understood in a certain way as a "rent" paid to the domain owners in order to promote the good to be sold.
The online business brings to the table many plausible contracting problems, since it is not dealing with physical pressure and not presencial operations. In the case of ebay it is possible to detect and suppose many contracting problems tangible to the website operation. One of the most concerning traceable contracting problems refers to the misuse of the system by actions such as negotiating illegal material and not attending to the buyers/sellers demands, which involves situations such as not delivering the promised good, not exercising the buy after winning an auction, or even not finishing the sale after settling a deal with a buyer. In order to solve and prevent those situations, ebay has created some tools in order to control the flow of negotiations and provide extra safety to the parties involved. One of the tools of addressing contracting problems is the creation of a Feedback feature, named "The Feedback forum", in which the buyers evaluate the quality of the services and negotiations brought by the sellers and vice-versa. With this tool it is possible for the users to avoid in a significant amount the risky an unwanted deals that could jeopardize it´s good. Towards th same direction, the company relies on a safety staff, responsible for investigating alleged misuse and abuse situations with the power to ban the accused, in a temptative to assure the security of the users.
Taking under consideration the tool…...

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