EBay
American e-commerce company enabling online auctions and fixed-price sales.
eBay Inc., an American multinational e-commerce company headquartered in San Jose, California, operates online marketplaces and websites across 190 markets worldwide. Founded by Pierre Omidyar in September 1995, the platform allows users to buy and view items through retail sales, with transactions occurring either via online auctions or "Buy It Now" instant sales; the company charges sellers commissions upon each sale. In 2021, eBay had approximately 17 million global sellers, and by 2023 it reported 132 million annual active buyers worldwide, handling $73 billion in transactions—48% of which took place in the United States. That same year, the company’s take rate (revenue as a percentage of transaction volume) stood at 13.81%. Individuals, companies, and governments can buy or sell almost any legal, non-controversial item on eBay. After each transaction, buyers and sellers can rate and review one another, creating a reputation system. The service is accessible via websites and mobile apps, and software developers can build applications that integrate through the eBay API. Merchants may also earn commissions through affiliate marketing programs.
eBay began as AuctionWeb in California on September 3, 1995, a hobby site created by French-born Iranian-American programmer Pierre Omidyar. Its first sale was a broken laser pointer auctioned for $14.83. The site’s high traffic soon forced Omidyar to upgrade to a business account, and the website earned $1,000 in its first month. Chris Agarpao became eBay’s first employee, processing mailed check payments. Jeffrey Skoll was hired as the first president in early 1996. By November 1996, the company had hosted over 200,000 online auctions. In September 1997, the service was renamed eBay, after Omidyar’s consulting firm Echo Bay Technology Group, though the domain echobay.com was already taken. That year, the company received $6.7 million in venture capital from Benchmark. Beanie Babies were the most listed items, accounting for 10% of all listings in 1997. Meg Whitman became president and CEO in March 1998, when the company had 30 employees, 500,000 users, and $4.7 million in U.S. revenues. In July 1998, eBay acquired Jump, operator of the Up4Sale auction site. In September 1998, during the dot-com bubble, eBay went public on NASDAQ at $18 per share, closing at $53, with a market cap of nearly $1.9 billion. In June 2
- 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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