- On its website eBay is described as "...the world's online marketplace; a place for buyers and sellers to come together to trade almost anything." EBay takes the ancient practice of auctioning goods to the worldwide web, where sellers put items up for auction and interested parties place their bids. An auction runs for a set amount of time, after which the highest bidder "wins" the item and can purchase it at the agreed upon price. Items that can be auctioned on eBay range from toys, books and vacuum cleaners to cars, houses and land. According to the site, as of 2007 eBay had 84 million users worldwide selling $60 billion in goods. The company estimates that $1,900 worth of merchandise is traded on the site every second.
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The founder of eBay is Pierre Omidyar, who in 1995 owned the domain name for his consulting company Echo Bay. A computer programmer, Omidyar was running auctions on the site from his home computer as a hobby. When he realized just what he was onto, he continued the practice under the name AuctionWeb. He hired some employees to assist him and two years later, changed the site name to eBay and devoted it entirely to online auctioning. Today, eBay is a self-regulating global marketplace that never closes, where "practically anyone can sell practically anything at any time," says the site.
In October 2002, eBay Inc. acquired the website PayPal, which allows payments to be sent and received securely online. PayPal is used not only on eBay, but by merchants worldwide. EBay.com says the online payment company has 149 million registered users. Another major acquisition was made by eBay Inc. in 2005, the Internet communication company known as Skype. The Skype software lets you make unlimited voice and video calls for free. EBay has also acquired several other companies, including Shopping.com and Stubhub. -
Unlike traditional retailers, eBay is not in the business of selling goods---rather, eBay connects buyers and sellers together to complete their transactions. Anyone who registers with eBay can use the site to buy and sell goods. To register, visit the home page and click on "Register." You will be asked for your name, address, phone number, date of birth, email address and you will select a user name and password. You must be at least 18 years old to be an eBay member. Once registration is complete, you are free to buy and sell, keep track of up to 200 items you are interested in and post to message boards. The site provides several ways you can ask questions and obtain help should you need it.
Although most are casual users, there are people who literally make a living by buying and selling items using the site. Some sell their own goods and some help other people to buy and sell on eBay. - To shop for goods on eBay, you can browse by category such as electronics, music or cell phones. Or you can type in the name of the item you want in eBay's search bar. There is no charge to browse for and bid on items. Click on an item you are interested in and its auction page will come up with the item's description, often including pictures, and seller and shipping info. You will also see the item's current high bid and the time left before the auction closes. There is a space for you to insert your own bid, should you choose. EBay will send you a confirmation email each time you place a bid and once the auction is over. The function "My eBay" helps you keep track of the auction and will email you a few hours before bidding ends. Should you win an auction, you will be notified via email, at which time you can arrange payment and shipping. Some items have a "Buy It Now" option, which means you can purchase the item immediately for that price, without having to bid. You are free at any time during the process to ask the seller questions.
- EBay charges you to sell items on the site and there are two types of charges: an "insertion fee" which is charged when the item is listed and a "final value fee," charged once the item is sold. These fees are calculated based upon the starting price and selling price. To sell an item, visit the home page, log in and click on "sell," You will be asked to provide details such as your contact information, the item's description and asking price. Once you've entered all the required data, click to begin the auction. You have the option of setting a "reserve price" which is the minimum price you are willing to sell the item for. If no bidders meet the reserve price by the time the auction ends, you can decide not to sell the item. The site offers seller tips and tools to help ensure a successful transaction.
- Not everything can be bought and sold on eBay. Some exceptions are: bootleg copies of movies, TV shows, music or software, designer replicas such as of handbags, sunglasses or clothing, alcohol, tobacco and drugs, firearms, weapons and knives, satellite and cable TV descramblers, used cosmetics, animals and wildlife products such as pelts, adult only products, cell phone contracts, pesticides, stocks and stamps. For more prohibited items, check eBay's rules section.
