When did it start
In the fall of 1995, programmer Pierre Omidyar (Pierre Omidyar), who now lived in the city of San Jose, California, (San Jose, California), launched an online auction on his website, named AuctionWeb. History has preserved the fact that the first item sold in this way was the faulty laser pointer Omidyar. Moreover, even the price at which it was sold was preserved – $ 13.8. It is claimed that it was acquired by a certain collector of laser pointers for his collection. True or fiction is now difficult to establish. But the fact is that the idea of an online auction was so much liked by Internet users that within a few months the auction was held daily.
Initially, the auction was completely free for both sellers and buyers. However, Omidyar quickly realized that he had stumbled upon a gold mine. Diligently considering all the conditions, rules and business model, in 1997 he transferred his (by then extremely popular) brainchild to commercial rails. The principle is simple – the auction gets a certain percentage of the sales that the seller pays him. In the case of sending purchased eBay does not take any part.
Being part-owner of the consulting company Echo Bay Technology Group, the programmer decided to call the auction EchoBay. But the corresponding domain turned out to be busy and Omidyar shortened the name to eBay.
What is the success of this organization
In just a few years, eBay is becoming one of the e-commerce leaders. Revenues allow you to not only develop, but also absorb competitors. So, in 1999, Billpoint online payment system and Butterfield & Butterfield and Alando (now eBay Germany) were absorbed. This was followed by several other major acquisitions, of which particular mention should be made of the purchase of the PayPal payment system, which is now actively used in the settlement of bids on the eBay pages. However, in 2015, the payment system was again allocated to a separate company.
To date, trading on eBay is ongoing. This is not only an auction, but the world’s largest sales system, which also works like a regular online store. Lots are exhibited all kinds of things – from used items to completely new ones, from socks to airplanes. There are sometimes quite unique lots.