Ebay Business Analysis

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  • Topic: EBay, Revenue, Dot-com bubble
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Internet Strategy Paper
eBay, Inc.


eBay, the online auction web site, was founded in San Jose, California on September 3, 1995, by computer programmer Pierre Omidyar as AuctionWeb. The very first item sold on eBay was a broken laser pointer for $14.83. Chris Agarpao was hired as eBay's first employee and Jeff Skoll was hired as the first president of the company in 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. They went public in 1998, and both Omidyar and Skoll became instant billionaires.

eBay Inc. is a company that is built on commerce, trust, and opportunity. “eBay brings together millions of people every day on a local, national and international basis through an array of websites that focus on commerce, payments, and communications (eBay.com).” The eBay Marketplace creates a powerful online platform for the sale of goods and services by a community of individuals and small businesses. On any given day, millions of collectibles, appliances, computers, furniture, equipment, vehicles, and other miscellaneous items are listed and available through auction-style and fixed priced trading. With millions of buyers and sellers worldwide, eBay offers localized sites all over the world. They have sites in Europe, North America, and Asia.

eBay is constantly acquiring new innovative businesses that keep them number one among other online businesses. In recent years they have acquired Paypal, Skype, Shopping.com, and Rent.com. In October 2002, eBay acquired Paypal a company that allows individuals to securely, easily, and quickly send and receive payments online. Merchants accept Paypal all over the world. In 2004, eBay launched its Business & Industrial category, breaking into the industrial surplus business. They also acquired Skype, the world’s fastest growing Internet communication business, in October 2005. Skype allows people everywhere to make unlimited voice and video communication for free between the users of their software. This software is available in 27 different languages and is used worldwide. Shopping.com is another company that eBay acquired in August 2005. Shopping.com is one of the fastest growing shopping destinations on the Internet with sites in the United States, the United Kingdom, France, Germany and Australia. Rent.com, which was acquired by eBay in February 2005, is an online apartment listing service. With over 20,000 properties listed, consumers can check availability, rental rates, see virtual tours, and find roommates.

eBay is in a unique situation as being one the first organizations in their market. Through the use of acquisitions and positioning itself as a worldwide power, eBay is poised to lead the industry in their sector for some time to come.


Competes on a worldwide levelFraudAbility to reach full potential of the companyCompetitors Superior customer serviceDeclining sales Growth potentialBuyer/Seller decline High stock priceControversy over their privacy policyCustomer adaptability Negative publicity


Amazon.com and Overstock.com are among two of eBay’s fiercest competitors.

Amazon.com, Inc. is an American e-commerce company based in Seattle, Washington. It was one of the first major companies to sell goods over the Internet and was one of the iconic stocks of the late 1990s dot-com era. After the dot-com era, Amazon faced skepticism about its business model, but made its first annual profit in 2003.

Founded by Jeff Bezos in 1994, and launched in 1995, Amazon.com began as an...
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