About the Founder of eBay

In 1995, Pierre Omidyar was a software developer who developed software for other companies before starting his own consulting firm. The firm, called Echo Bay, was the name Omidyar had in mind when he chose the domain name eBay for his website. The site encompassed several sections, including an auction area that soon grew to take over the entire site.

History

At 28, Omidyar was interested in software, the possibilities of online commerce and the Ebola virus. His website, eBay, was partially dedicated to information about Ebola virus. Another part of the site, AuctionWeb, was dedicated to selling items online in an auction format. This is the section that grew quickly as thousands of people registered in the first few months. The first item sold through the site was a laser pointer.

Significance

When eBay evolved into an online auction site, e-commerce was still in its infancy. The concept of buying items online was a new one, and selling items online seemed incomprehensible to many people. eBay made it safer to buy and sell online by introducing the feedback system that rated buyers and sellers. This made people feel secure, buying and selling items online. It is now the primary source of income for thousands of people.

Time Frame

eBay began as AuctionWeb in 1995 with Pierre Omidyar the only employee. The company grew quickly and within six months it needed several employees to help run the company. The name was changed to eBay in 1997. In 1998, Meg Whitman was hired as the CEO of the company which then had 30 employees. Later that year, the company went public and the founder became a billionaire.

Features

eBay allows sellers to sell in its standard auction format. Members bid for the price of the item. The site allows fixed price listings that feature a price set by the seller. There is also a "best offer" feature that lets members either buy an item at the price set by the seller or to offer an alternate price. Buyers and sellers are rated with feedback ratings that let others know whether they are good trading partners.

Warning

Though most eBay transactions are executed without a problem, there are a number of scams that circulate on the site. One of the most obvious scams is people who set up accounts and sell items that are never shipped to the buyers. Another is asking for a Western Union transfer to pay for items because these transactions are hard to trace and are not refundable. The site continues to attempt to educate members about the scams, but buyers need to be aware of safe buying practices.