EBay
American e-commerce company enabling online auctions and fixed-price sales.
eBay Inc. Founded by Pierre Omidyar in September 1995, eBay became a major force in online commerce, enabling transactions through online auctions and 'Buy It Now' instant sales, and charging commissions to sellers.
- founded
- September 3, 1995
- founder
- Pierre Omidyar
- field
- E-commerce
- nationality
- American
- known_for
- Online auctions and marketplace platform
- headquarters
- San Jose, California
Lore & Background
eBay was founded as AuctionWeb in California on September 3, 1995, by French-born Iranian-American computer programmer Pierre Omidyar as a hobby site. Its first sale was a broken laser pointer auctioned for $14.83. The website made $1,000 in its first month and $2,500 in its second. Chris Agarpao was eBay's first employee, processing mailed check payments. The company changed its name from AuctionWeb to eBay in September 1997, after Omidyar's consulting firm Echo Bay Technology Group, shortening it because the domain echobay.com was already taken. In 1997, the company received $6.7 million in venture capital from Benchmark. The most purchased and sold items were Beanie Babies, accounting for 10% of all listings in 1997.
Reader's Guide
Its reputation system, where buyers and sellers rate each other, helped build trust in online transactions. The company's history illustrates key challenges of global expansion, particularly in China, where it faced competition from Alibaba's Taobao. eBay shut down its Chinese site in 2007 and turned control over to Tom Online Inc. The company also faced a notable patent infringement case, eBay Inc. v. MercExchange, which reached the U.S. Supreme Court in 2006, establishing that injunctions are not automatic in patent cases.
Did You Know?
- eBay's first sale was a broken laser pointer auctioned for $14.83, and the buyer was a collector of broken laser pointers.
- In 1997, Beanie Babies accounted for 10% of all listings on eBay.
- The company's name was shortened from AuctionWeb to eBay because the domain echobay.com was already taken by a gold mining company.
Frequently Asked Questions
What are EBay's powers/role?
eBay connects buyers and sellers through two main transaction formats: competitive online auctions and fixed-price 'Buy It Now' listings. The company earns revenue by taking a commission on completed sales, acting as the intermediary platform rather than a traditional retailer.
When and where was EBay founded?
Pierre Omidyar launched eBay on September 3, 1995, originally from his home in San Jose, California. What began as a small side project quickly expanded into a multinational platform serving markets across the globe.
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