The History About The Public Company Ubid Marketing Essay

The History About The Public Company Ubid Marketing Essay

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UBID has a world class infrastructure and also one of the best technology set-ups. It has one million square foot distribution center and 250 seats customer care center work which are working seamlessly to ensure ubid.com's success and efficient management.

When UBID.COM was first launched, it become a popular channel for auctioning different material online but soon it goes into other markets such as business, consumer electronics, automotives etc. where the average sales price is higher. Increasing of sales depend on a critical component like increasing of average sale price for ubid.com. Since ubid,com's major transaction fee depend on the percentage of sale. The higher the average sale price the more will be the revenue earned by the ubid.com of the million transactions it makes.

UBID.COM has initiated and internationalized automated online auctioning with person to person. Previously it was done or conducted using garage sales, classified advertisement, shows etc. This type of marketplace enable easy pursuing of the buyers and enable seller to list an item which it want to sold immediately after registering on the site.

Anyone can browse the site for free and also bid on the auction for free. No fee will be charged for those who are surfing the site and also bidding for a particular item. But the seller who have sold their items and have carried out the transaction are charged since they have carried out the transaction.

There are two types of transaction fees are

When an item is listed on the ubid.com, some amount of fee is charged called the nonrefundable fee when the seller give sits opening bid on the item.

After completing the auction , final fee is charged this fee may vary from almost about 1.25% up to 5% of the final sale price.

It also up sells its listing fee by enhancing the features of the auction which may include highlighting and bold featuring for increasing their visibility for the customer so that customer can see and get attracted to the advertisement.

And when the customer pays for the product after completing the auction then ubid.com notifies the customer about the transaction through mail. They also tell the customer about the auction from time to time through mail. And ubid.com finally gets its final value fee independent of payment and full shipment.

REVENUE MODEL:-

UBID.COM is continuously expanding its services to its users and customer base through its very effective sales force and through its alliances.

Listing fees :-For each auction you create, a listing fee will be assessed. The listing fee will be based upon the higher of either the Starting Price of the item or the Reserve Price (if you choose to utilize this option). The listing fee will be assessed as follows:

Start or Reserve Price

Listing Fee per Item

$ 0.01 - $24.99

$ .10 per item

$25.00 and above

$ .25 per item

The fee will be applied as a charge per item within the auction, with a maximum listing fee of $1.50 per auction. For example, if a vendor lists 10 items in an auction with a starting price of $9, the listing fee for that auction will be $1.00 (10 items x $.10 Listing Fee per item). The Listing Fee will be assessed when the auction opens. Listing fees are non-refundable. Listing Fees will be accumulated over a month's time. The fees will then be deducted from the vendor's open invoice and will be displayed as a separate line item. If the vendor does not have a remittance for a billing period, the fees will carry over as an open receivable to the next billing cycle.

Transaction Fee :- Transaction fees typically equal 10% of the total sale (product sale price and freight charge). This fee includes the credit card processing fee and upfront Customer Care which we provide via our phone and e-mail centers.

CUSTOMER VALUE PROPOSITION:-

"The unique customer value proposition of UBID.COM is generating the revenue with local commerce and also within the community, user- generated content and also focus on social media" according to Mr. Jeff Hoffman, CEO.

UBID.COM has now divided and increase their success in the online Auction to the consumable items to jewellery by providing in the current months. They want to increase their services and offering to the customer by creating a strong alliances with mobile service provider and also with print media.

Ubid.com realizes this goal in a profitable manner by creating a flexible and powerful interactive platform that connects world through a variety of popular and powerful services.

There are several benefits of online customer value proposition:

It differentiate an ecommerce and e-business site from its various competitors

This will help to keep their company staff to remain focus and clear about the company goals and objective. And also sharpens the marketing.

This can help in linking various products with their normal product proposition.

MAIN COMPETITORS:-

E-Bay

Amazon.com

TopTenReview.com

Epinion.com

MouthShut.com

BizRate.com

ADVANTAGES OF UBID.COM:-

Below are a few of the services provided by uBid.com to all Preferred Partners.

"First Contact" customer care - uBid.com serves as the first point of contact for all customer related questions or concerns.

Auction Management - you are given access to the Auction Manager which is the tool you will use to create your auctions.

Credit card processing - uBid.com charges customers' credit cards and absorbs all credit risk.

Returns processing - if a return/refund is needed, uBid.com processes it.

Saves You Money - Since it cover 100% of the parts and labor and also here is no hidden cost, so this plan saves a lot of money for us.

Convenience - It has a customer toll free that is available 24 hours a day, 7days a week and 365 days a year which has proved to be very convenient for the customer. They are ever ready to help the customer in which ever the form they desire.

Reliability - They are fully authorized trained and certified and are located at the centers nationwide. These provider are continually monitored to ensure that customers are getting prompt and reliable services.

BUSINESS STRATEGIES:-

UBID.COM believes that their forward looking statements are based on expectations, assumption, belief, estimates, forecast, about the business and the market in which they are operating and providing services to the customer. These are statement which are not guaranteed to improve the future performance since they involve high risk, uncertainties and assumption which are very difficult to predict in the earlier stages. Hence the actual outcome or the result may differ largely from what we have expressed or expected by the forward looking statements. These Factors may affect the and uBid.com Holdings, Inc.'s financial condition, business and operating which may further lead to results adverse changes in the economy, reductions in consumer spending, declines in the financial markets and the industries in which uBid.com Holdings, Inc. and its partners operate, adverse changes affecting the Internet and e-commerce.

CONCLUSION:-

The trends that are predicted for the coming future by UBID.COM are : The ability to target online users by geography has improved, and it's a lot cheaper now.

There is heavy reponse from the 2nd tier cities for local business search online. And their interest and involvement is also increasing in using online space

The online space will also see frenzied activity with Marketers tightening their purse strings with a lot of stress on creative experimentation.

Innovation will going to prove very beneficial in sustaining customer interest and loyalty.

APPENDIX A ILLUSTRATION LISTING:-

REFRENCES:-

www.ubid.com

www.google.com

http://investing.businessweek.com