A business model is the company’s way to deal with its target customer and how it will deliver them its message to generate revenues and make profits. It explains how the company plan to make money through making a business plan to consider what products or services it will provide in the marketplace. There are many different types of business models like click and mortar, brick and mortar, direct sales and many others.eBay started with a business model that provides infrastructure for conducting C2C auctions electronically. people are able to sell and buy whatever they want over the internet. eBay generates its revenues through a posting fee up front, a commision that is a percentage of the final sale amount.
eBay decide on the posting fee based on the amount of exposure the seller wants the item to receive if the seller would like the item to be among the featured auctions in a specific product category the fee will be higher and higher fee if the seller wants the item to be listed on the homepage under featured items. Moreover, eBay provides the seller with the option to publish the auction in a boldface font but for an additional charge.Therefore, eBuy is practising all its functions and operations through the internet.