E-Commerce and Ebay

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Name: Darshan Pather
Course: E-commerce
Assignment 3: Case Study- EBay’s Business Model
Lecturer: C. Gneuss
Due Date: 27/08/12

Introduction

Ebay.com is an online auction and shopping website that allows people and corporations to buy and sell a variety of products and services internationally. EBay makes money by charging fees to sellers, however it is free to shop and place bids. Till date EBay has presence including partnerships and investments, with more than 90 million users worldwide. At the start of 2002, they used PayPal as their online payment method.

Background/History

A computer programmer called Pierre Omidyar, started EBay in his living room in the year and month of September 1995 in San Jose, California. Apparently, the reason why EBay was officially established is because his wife, Pam, thought the thought of an auctioning site online was a great idea as she was trying to collect pez dispensers and meet other collectors online. Originally called AuctionWeb he wanted a central location to which people can buy unique products and bring together people with similar consumer interests. The first two days AuctionWeb released online, there were absolutely no bids. He then posted a notice of the auction website onto the NCSA, “What’s New Site” to attract people onto AuctionWeb. EBay then started to attract buyers by word-of-mouth like most online e-commerce websites. EBay then became popular as it combined business with personal passions. EBay started with a couple's personal interests, Pierre had not planned for EBay to becoming this multinational large-scale online business. The name EBay was chosen as second best, he originally wanted to name the website EchoBay, but that domain was already taken. Echobay was also the name of his consulting group. Jeff Scholl, an MBA graduate, combined his business skills with that of Omidyars computer programming knowledge, and together they became a partnership. Scholl became EBay’s first president,...
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