Ebay Case Study

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EBay Inc. is an American multinational internet consumer-to-consumer corporation, headquartered in San Jose, California. It was founded by Pierre Omidyar in 1995, and became a notable success story of the dot-com bubble; it is now a multi-billion dollar business with operations localized in over thirty countries. The company manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. In addition to its auction-style selling’s, the website has since expanded to include "Buy It Now" standard shopping; shopping by UPC, ISBN, or other kind of SKU, online classified advertisements, online event online ticket trading, money transfers like pay pal and other services. HISTORY Auction Web was founded in San Jose, California, on September 3, 1995, by French-born Iranian-American computer programmer Pierre Omidyar (born June 21, 1967) as part of a larger personal site that included, among other things, Omidyar's own tongue-in-cheek tribute to the Ebola virus. One of the first items sold on Auction Web was a broken laser pointer for $14.83. Astonished, Omidyar contacted the winning bidder to ask if he understood that the laser pointer was broken. In his responding email, the buyer explained: "I'm a collector of broken laser pointers. “The frequently repeated story that eBay was founded to help Omidyar's fiancée trade Pez candy dispensers was fabricated by a public relations manager in 1997 to interest the media, which were not interested in the company's previous explanation about wanting to create a "perfect market". This was revealed in Adam Cohen's book, The Perfect Store (2002), and confirmed by eBay. Reportedly, eBay was simply a side hobby for ... ... middle of paper ... ...ey auction, but the current winning bid (second highest plus one increment) is displayed throughout the auction to allow price discovery. Shipping Before an auction, eBay lets sellers choose which shipping options to offer — regular mail, express mail, or courier service. The website lets buyers choose which option to accept. Since 2012, eBay has also allowed US sellers to opt into its Global Shipping Program. The program works as follows: Each seller decides whether or not to opt into the program. If a seller opts in, and a non-US buyer buys an item from the seller, then the buyer pays an additional fee to Pitney Bowes. The seller ships the item to a Pitney Bowes facility in the US. After receiving the item, Pitney Bowes forwards it to the buyer. The program enhances the selection available to buyers, but can considerably increase buyers' costs on low-value items.

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