Course:The Bissett eBay Challenge

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Contents

Project Summary and Feedback

EBay Challenge Feedback

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About the Challenge

The Bissett eBay Challenge was founded in 2006 by the Bissett School of Business at Mount Royal College, in partnership with eBay, to provide first-year entrepreneurship students with an experiential learning linked to key theoretical concepts discussed in class.  This project is a multi-class, multi-team competition.  It is hoped that the project will expand to include other educational institutions and organizations.

2007 Press Release

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November 8 2007 - News Release - eBay Challenge at MRC Info_circle.png

Challenge Overview

Professor Howard Stephenson, of the Harvard Business School, has suggested that entrepreneurship is a behaviour; an approach to personal and organizational management. He has also defined entrepreneurship as “the pursuit of an opportunity without regard to the resources controlled[1].” The Bissett eBay Challenge will give you the opportunity to test yourself and this definition through this new experiential learning assignment. Through this assignment you and your team will apply business savvy creativity plus your academic work in entrepreneurship to the assigned task while at the same time leveraging the most dynamic business model of our day, eBay.

Using the eBay online marketplace students will work in designated teams to analyze market segments/categories, select a specific segment, procure product to sell into that segment and execute the sale of the product via eBay. Teams should view themselves as companies, therefore effective delegation and coordination are fundamental to project success. Each team is acting as a consignment agent, securing product from a reliable source (the supplier) and selling that product to their target market via the eBay online market.  All transactions will be on a consignment basis with the supplier.  All buyers and sellers must be arms-length to all and any members of the teams - no transaction are permitted with immediate family or relatives.  (For the purposes of this challenge, "arms-length" is defined as immediate family members.)

Competition Status

Click here to check out the final financial results for the Challenge

Administrative Procedures

  • Teams will set up eBay accounts utilizing new email addresses from providers such as Google, Yahoo and Microsoft etc. Students will not use their personnel eBay accounts, email addresses or their Mount Royal Email address. eBay account ID’s, passwords with the corresponding email address and passwords will be forwarded to the teams instructor by Friday November 9th by 5:00PM
  • Students are expected to familiarize themselves and strictly adhere to all eBay policies and procedures. Failure to do so will result in a failure grade for the course.
  • All payment for goods transacted through the eBay market will be via the PayPal electronic payment system. PayPal will be attached to each of the team’s accounts by the college and managed by a single faculty member on behalf of all teams. Teams will not have access to the PayPal account information. Teams will indicate that the only payment method acceptable for a transaction will be through the PayPal payment system, a feature of ebay.
  • Before listing a product for sale on eBay: teams will submit via Email a Consignment and Agency Agreement Info_circle.png between the team and their client. This agreement should include:
a. A description of the product(s)
b. The minimum sales price acceptable to the client.
c. The percentage of gross sales payable to the client
d. The commission payable to the team for service rendered
e. The payment and delivery terms
f. The time frame the agreement is valid for.
  • The agreement will be sent to the project Chief Operating Officer (COO) at cbraum@telus.net. This Email will include the terms and conditions agreed upon by your team and the client as per the template provided. Once formal approval is given, the team may proceed with listing the product. Approval will be via email from the COO. Original documentation with the client signature will be included in Teams PDB as per three above. It is important for teams to understand the overhead costs when pricing a transaction; these could include, listing fees, PayPal transaction fees and delivery charges.
  • Teams may have more than one client and numerous transactions with that client. Agreements for each client transaction should be included
  •  The daily cut-off for receiving the Listing Approval emails will be 5:00PM daily. Approvals and or feedback will be given no later than 9:00AM the following day.
  • The only non-standard listing fees permitted are Gallery Picture, Reserve Price Auction fees and one subscription to the Fast Past research service.
  • Teams will notify their instructor office upon the successful execution of a transaction. Once funds are received via PayPal a cheque will issued in the name of the client for the amount based on terms outlined in the specific service agreement. Teams will deliver funds and ensure delivery of the product to the eBay customer.
  • Shipping: This is an area that users of eBay need to pay special attention. For the competition all listings should indicate that shipping costs are the responsibility of the buyer. Teams should do research up-front as to the approximate costs for shipping the listed item and the method of delivery. Buyers may specify how they want the item shipped. Funds received should therefore be inclusive of price for the item and delivery costs.
  • All project emails with the exception of the consignment/agent agreement will be sent to the team’s instructor. The subject line must include the teams eBay account name then the subject. Subjects could include but are not limited to: transaction closed, eBay account set up, eBay account closed, My World set-up or change and general questions. Notification of funds received in the Paypal accounts and other general information will come from the project COO’s email address.
  • Teams will make arrangements with their individual instructors for the delivery of project requirements
  • eBay listing and transaction fees will be paid as they are incurred via the projects Paypal Account on behalf of the teams.
  • Each team will be acting as a selling agency, THERE WILL BE NO BUYING TRANSACTIONS initiated through the eBay accounts.
  • Teams will only have three listings active at any one time. Teams can ask permission to expand the amount of listings from their instructor. Permission to expand the number of listings will be based on the team’s track record in generating net profit from previous listings.
  • Listing Durations: Because teams will not have a feedback score eBay will not allow one day listing durations. Ten day listing durations are subject to additional charges and are therefore not permitted by the competition. Therefore three, five and seven day listing durations are the only options available. Teams need to be mindful of the duration of the project in selecting listing times. Like most entrepreneurial situations there is a limited window of opportunity to execute on your opportunity.
  • Closure: Mount Royal is working closely with eBay on this competition and it is therefore important that teams bring appropriate closure to their eBay activity. All listings still active by December 5th must be cancelled using the “End My Listing Early Form”. All items that have been sold must be shipped to the prospective eBay customer. Documentation for these needs to be provided under three above. Lastly team eBay accounts must be closed down on December 5th. Final marks for the course will not be submitted to individual team members until these tasks are complete.
  • eBay accounts will be routinely monitored by the team’s instructor. It is expected that each team will conduct itself in a professional manner in all aspects of the project. Failure to do so will result in a failure grade for the course.

The Profits

Net profits of the project will be distributed to the top three teams who generate the highest team Net Income. Project net profits will be calculated by subtracting all project costs for all teams from all project revenues from all teams. Profits will only be calculated on items that of been shipped to the EBay buyer. Total project net profits will be allocated as follows:

  • First place – 50 % of total project net profit
  • Second place – 30% of total project net profit
  • Third Place – 20% of total project net profit

To ensure transparency a project financial statement will be sent to all students indicating Gross Revenue, Expenses and Net Income for the project.

eBay Training

It is the responsibility of each team member to familiarize themselves with the workings of the eBay market place.  Key eBay links have been provided to help with this process

Good Hunting

Core Topics

Throughout the challenge, your team will be responsible for many deliverables. Consult the following topics for guidance as you prepare these:

eBay Challenge Schedule and Deliverables

Mount Royal College


Marking Guidelines

Mount Royal College

The following is a summary of the marking guidelines for Mount Royal College students in ENTR 2201 (all sections) for Fall 2007:

Summary of the Marking Criteria
Market Research Report 20%
eBay My World and About Me page implementation 10%
Team Project Binder
 60%
Net Income relative to all Mount Royal College Teams 10%
Total 100%


Frequently Asked Questions (FAQ)

Does my team pay our eBay fees before shutting down our account?

No your eBay fees will be paid on Saturday by the college. Your instructor will need time to review your MyWorld account and verify your account financial information.  You will receive an email from your instructor giving you the go-ahead to shut down your account.  Remember to include documentation that you have done this in your binder. 

''''Does the team have to use a Gmail email account?

No, you can use any free email provider

How does our team get reimbursed for shipping?

Remember the buyer will be paying the shipping costs. Once the money has arrived in your PayPal account two cheques will be issued for that transaction; 1) to your supplier for payment of the product and a second to a team member so that you can pay for the shipping. It is important to keep all of your shipping documentation.

Does my team need to set up a PayPal account?

No, the college will attach a Paypal account to your eBay account

Is the Competitive Analysis relevant to the EBay Challenge?

No, but it will be relevant for the second challenge which will be launched Wednesday, November14th.

We have a product in mind, and have found someone willing to supply us, just unsure if we need to give you the details?

Go on the web-site for the project, print off an Agency Agreement, get the client to sign (you have to put in details about the minimum selling price, and your commission, as well as the names and dates. You should also mention shipping and any other costs). Then you send an agreement with the details electronically to the project COO (cbraum@telus,net[1]) , and she returns  permission to list/suggestions to you by the next am. The actual signed agreements are handed in with your final binder as per the web-site. You can list up to three approved agreements on Ebay at once, and if you handle that well, you can ask your instructor for permission to have more than three listings.

How do I make sure that my eBay account is linked to the PayPal account?

First make sure you get your teams PayPal email address from your instructor.  When you put up your first listing indicate that your preferred method of payment is PayPal.  Enter the PayPal address in the "Sell Your Item Form" when creating your item.  eBay will remember the PayPal email address for any other listings.  Your two accounts are now linked. If your still having trouble contact your instructor


''''Should I list in $US?

Given the volitile exchange rate between the US and CDN dollar we suggest you match your listing currency with the currency you have aggreed to pay your supplier.  For most teams in Canada you will be paying your supplier in CND dollars so you should list in CDN dollars

Should my reserve bid be equal to what I have agreed to pay my supplier?

Now think about this for a moment.  If you set your reserve bid equal to what you have to pay your supplier will there be any monies left over to cover your expenses and heaven forbid earn any profit? NO , so think this through and calculate a reserve bid that makes sense.

References

  1. ↑ Stevenson, H., Roberts, M. and Grousback, H. (1985) New Business Ventures and the Entrepreneur. Homewood, IL: Irwin.
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