Risk factors
Fraud is a significant risk factor for eBay. The BBC
(2005) reported that around 1 in 10,000 transactions
within the UK were fraudulent; 0.0001% is a small
percentage, but scaling this up across the number of
transactions, this is a significant volume. To counter
this, eBay has developed ‘Trust and Safety Programs’
which are particularly important to reassure customers
since online services are prone to fraud. For example,
the eBay feedback forum can help establish credentials
of sellers and buyers. Every registered user has a feed‑
back profile that may contain compliments, criticisms
and/or other comments by users who have conducted
business with that user. The Feedback Forum requires
feedback to be related to specific transactions and Top
Seller status was introduced in 2010 to increase trust in
the service. There is also a Safe Harbor data protection
method and a standard purchase protection system.
The fees model that eBay uses is often changed and
this can cause problems with users, but the impact is
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