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August 23, 2004
Ethics In Business: Questions About eBay?
It would seem as though ethics are always simple, black or white, right or wrong. But it isn't always so, and ethics in business are sometimes especially murky.
Here is an eBay example ... eBay has a “travel” category because vacations are big business on the famous auction site. There are subcategories that include airfare, hotels and vacation packages. These are sold by individual sellers – the same “small” folks that made eBay the famous and extremely lucrative net business that it is today.
Yet right next to these individual auctions is a giant ad for Priceline:
http://pages.ebay.com/travel/index.html?ssPageName=MOPS5:HTR01
Giant is the correct word because it is as large as eBay's entire travel category listing. If I were an interested traveler looking for airline tickets, for example, I would definitely check Priceline first simply by the way my attention is drawn to its ad.
Is Ebay an affiliate of Priceline? Or is Priceline paying major money to eBay for an ad in the juiciest travel spot on eBay?
Is selling this space to a major Internet company sacrificing the interests of its sellers or not?
* Yes, it hurts because buyer attention is drawn away from auctions.
* Or no, perhaps it doesn't hurt because auction prices might be so much better than Priceline that buyers choose the bargains, instead.
One thing is for sure: the only certain winner here is eBay.
Posted by SydneyJohnston at August 23, 2004 11:54 AM
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