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Abstract

This research investigates the auction properties that influence eBay's effectiveness (ability to attract bidders) and efficiency (ability to maximize price and profit) as the distribution link of the supply chain. The research extends the literature pioneered by Lucking-Reiley (2000) on eBay auctions. We found that the effectiveness of using eBay is influenced by the item description in the auction heading, the initial price, the timing of the auction and the operating condition of the item, in our case an inexpensive, functional HP 12-C financial calculator. The efficiency of eBay, on the other hand, is influenced by the ability to attract bidders, the pricing factors set up by the seller, the product's description, its operating condition, the timing of the auction, and the method of payment options available to the buyer.

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