The one area in which online retail commerce seems to have been a success is eBay. Almost everyone who has made a transaction on the Internet has used the global online marketplace that trades just about everything, either for thesale itself or to compare prices.
eBay Inc. is an American Internet company that manages eBay.com, an online auction and shopping web sites in which people and businesses buy and sell goods and services worldwide. In addition to its original U.S. Web site, eBay has established localized web sites in thirty other countries. eBay Inc also owns Paypal, Skype, StubHub, and other businesses.
History
The online auction web site was founded in San Jose, California, on September 3, 1995, by French-born Iranian computer programmer Pierre Omidyar as AuctionWeb, part of a larger personal site that included, among other things, Omidyar's own tongue-in-cheek tribute to the Ebola virus.
The very first item sold on eBay was a broken laser pointer for $14.83. Astonished, Omidyar contacted the winning bidder to ask if he understood that the laser pointer was broken. In his responding email, the buyer explained: "I'm a collector of broken laser pointers." The frequently-repeated story that eBay was founded to help Omidyar's fiancée trade PEZ Candy dispensers was fabricated by a public relations manager in 1997 to interest the media. This was revealed in Adam Cohen's 2002 book and confirmed by eBay.
Chris Agarpao was hired as eBay's first employee and Jeffrey Skoll was hired as the first president of the company in early 1996. In November 1996, eBay entered into its first third-party licensing deal, with a company called Electronic Travel Auction to use SmartMarket Technology to sell plane tickets and other travel products. The company officially changed the name of its service from AuctionWeb to eBay in September 1997. Originally, the site belonged to Echo Bay Technology Group, Omidyar's consulting firm. Omidyar had tried to register the domain name echobay.com (the domain has recently been put up for sale) but found it already taken by the Echo Bay Mines, a gold mining company, so he shortened it to his second choice, eBay.com.
eBay went public on September 21, 1998, and both Omidyar and Skoll became instant billionaires. The company purchased PayPal on October 14, 2002.
The domain ebay.com attracted at least 902 million visitors annually by 2008 according to a Compete.com study. This was thrice the numbers of walmart.com
How eBay can be so succesful
Access
open access, level playing field, transparency, equal access to information are attributes of any environment with positive outcomes.
Connection
enabling individuals to connect and interact with one another. Market solutions, collaboration and wisdom of crowds.
Sense of ownership
skin in the game lets individuals feel there is an investment required to participate and accountability (e.g. reputation systems).
Strategic Evaluation of eBay
Have a break
A Funny Intro For eBay: "I want it that way"
Comments: "Now i know why he like eBay! haha!"
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