👉 eBay's mathematical model revolves around balancing seller and buyer incentives to maximize sales while ensuring profitability. It starts with a base price, which is determined by factors like item condition, demand, and seller reputation. Sellers use mathematical algorithms to set prices dynamically, adjusting them based on real-time data such as competitor pricing, item condition updates, and buyer behavior. Buyers, in turn, factor in their willingness to pay, which is influenced by these same factors. The platform also employs auction mechanics, where bids increase the item's price until a seller accepts them or a buyer decides to walk away. This creates a competitive environment that drives prices up, and the mathematical underpinnings ensure that both sides benefit: sellers get higher prices when their items are in high demand, and buyers pay fairly. Additionally, eBay uses machine learning to predict trends and optimize pricing strategies, ensuring a fair and efficient marketplace.
