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eBay History - PowerPoint PPT Presentation

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Buying. on. eBay History. According to urban myth, eBay was founded by Pierre Omidyar for his girlfriend so she could have a way to trade Pez dispensers 1995 - Pierre Omidyar creates eBay. goes online

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eBay History

  • According to urban myth, eBay was founded by Pierre Omidyar for his girlfriend so she could have a way to trade Pez dispensers

  • 1995 - Pierre Omidyar creates eBay. goes online

  • 1997 - eBay hits on the site spiked in the first quarter of the year, from 600,000 to more than 1 million. Site crashes were a daily occurance.

  • 1997 - site name changed to First logo is created.

  • 1997-1998 - The eBay logo with the colorful letters we know today was chosen as the final logo for the company.

  • 1999 - EBay's site crashes for 22 hours. eBay's then 400 employees are ordered to call all eBay users to personally apologize.

  • 2000 – eBay has 1,927 full-time employees and 12 million registered users. By the end of 2000 the company has 22 million registered users.

  • 2004 – eBay grosses $3.3 billion in revenue

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What is sold on eBay





Business & Industrial

Cameras & Photo

Cars, Boats, Vehicles & Parts

Cell Phones

Clothing, Shoes & Accessories



Computers & Networking

Consumer Electronics


Dolls & Bears

DVDs & Movies

Entertainment Memorabilia

Gift Certificates

Health & Beauty

Home & Garden

Jewelry & Watches


Musical Instruments

Pottery & Glass

Real Estate

Specialty Services

Sporting Goods

Sports Mem, Cards & Fan Shop



Toys & Hobbies


Video Games

Everything Else

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Weird Stuff

  • Grilled-cheese sandwich with the image of the Holy Mother sold for $28,000

  • Man who auctioned his forehead for advertising space sold for $37,375

  • Britney Spears' chewed gum sold for $263

  • U.S. Navy F/A-18A Hornet jet fighter sold for $9,000,000

  • Titan 1 ICBM Missile Base (decommissioned, don’t worry) sold for $778,080.02

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What is not sold on eBay

  • Items that are illegal or that encourage illegal activity (banned weapons, drugs, etc.)

  • Items that are racially or ethnically inappropriate.

  • Services that are illegal, sexual in nature or that violate eBay’s User Agreement

  • Listings with counterfeit or bootleg items (counterfeits, replicas and unauthorized copies)

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What you need

  • A valid e-mail address (if you use webmail you may need to give more information)

  • A credit card

  • Money to buy stuff

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  • Used to send and receive electronic payments

  • Primary form of payment for items on eBay

  • Must be registered separately from eBay

  • Two forms of accounts

    • Unverified: makes payments though a credit card

    • Verified: makes payments using direct deposit to a checking account

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How does eBay work?

  • An eBay user posts an item for sale in an auction listing. The auction lasts several days

  • Another user does a search for the same or similar item and finds the listing.

  • The buyer inspects the listing, asks the seller questions through E-Mail or on eBay, checks the sellers feedback history, and eventually bids on the item.

  • Other buyers do the same and place higher bids

  • The auction ends and the winning buyer is sent an E-Mail notification with the total price of the item plus shipping and handling costs

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How does eBay work?

  • The buyer pays for the item with PayPal, money order, check or credit card (if the seller accepts credit card).

  • The seller receives the payment in their PayPal account.

  • The seller ships the item to the buyer.

  • Once the buyer receives the item and it is to their satisfaction the buyer leaves good feedback to the seller.

  • The seller leaves good feedback to the buyer.

  • The transaction is complete.

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eBay Terminology

  • Auctions: Item is open for buyers to place bids on until the listing end time.

  • Buy it Now: Item can be purchased immediately at a fixed price.

  • Reserve: Item will not sell below a certain price set by the seller.

  • NR: No Reserve.

  • Best Offer: Seller allows buyer ability to make offers on fixed price items which the buyer can then accept or deny.

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Types of Listings

  • Auction

    • Usually lasts several days

    • Some have Buy it now

    • Some have Reserves

  • Fixed Price (Buy it Now)

    • Usually lasts several days

    • Some have make an offer

  • eBay Store

    • Usually last until purchased

    • Some have make an offer

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Types of Payment

  • PayPal

    • The most widely used method

    • Can be paid with either credit card or direct deposit from checking

  • Money Order

    • Most sellers accept money orders, however it increases the time of a transaction

  • Personal Check

    • Few sellers accept strait personal checks because of the inherent risk of bounced checks

  • Cash

    • Only used for direct pickup. NEVER mail cash!!!

  • COD

    • Almost no seller accepts this unless they are directly delivering the item

  • Credit Card

    • Usually only large vendors accept credit card over the phone.

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Types of Shipping Calculation

  • Fixed shipping

    • Seller will ship an item at a fixed price, regardless of destination or weight, using a specified carrier

  • Calculate shipping

    • Buyer can calculate shipping costs for multiple carriers by entering their Zip Code (only works in US)

  • Contact Seller

    • Seller and buyer negotiate shipping charges and methods

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Feedback System

  • eBay employs a user driven feedback system as part of quality control.

  • Every user has a feedback given to them by both buyers and sellers for every successfully completed transaction.

  • The more good feedback a seller has, the safer they are to buy from (generally).

  • The more bad feedback a seller has, the more unsatisfied customers the seller has had.