By Steve Dawson
There aren't a lot of people who know that today's international "virtual marketplace" we refer to as eBay was founded in a San Jose living room 10 years ago, in 1995. eBay founder Pierre Omidyar designed the web site with the idea of an on line marketplace where people would be able to sell and buy goods. Today, that small virtual trading space, has become an amazing global phenomenon, stretching and reinventing the limits of on line commerce.
1998 brought a major change in eBay's future, when Pierre and his cofounder Jeff Skoll brought a new member into the successful team - Meg Whitman. She was a Harvard Business School graduate who understood the high importance of branding and advertising. After her arrival, eBay received a different view on business: it was no longer just a place that allowed individuals to sell items, it was a place where people would connect. A highly skilled and experienced staff, recruited from companies such as Disney, sustained this new vision. The 20-year average business experience in management that the staff presented was a good reason why eBay was and still is on an ascending trend.
eBay's potential was huge, and its founders decide to take it one step further. They reshaped the web site into one that offers more and more upscale products and managed to attract companies such as Sun, GM or Disney. The average sale price grew exponentially with the number of important sellers that joined eBay and this generated higher transaction fees, which were translated into increasing profits. Sun alone sold more than $10 million worth of equipment and is presently listing an average of 80 products each day. More credibility was also gained by eBay when such important international companies started using its services.
The way eBay is structured favors an easy connection between buyers and sellers. Each seller can list his or her items, with corresponding prices. Buyers see these listings and can bid on the ones they are interested in. The auction style selling process brings dynamism and presents us with one of the most complex trading mechanism in the world. Browsing through listings is quick and organized, as there are various specific categories, which shorten search times. Another great feature of eBay is that it saves time and money, both in the case of sellers and buyers. A seller can receive bids on a listing just minutes after placing it and this prompt response is always appealing to anyone involved in marketing something.
One of eBay's main advantages is its huge variety of offers. The web site brings concepts like "flea market", "trade show" and "garage sale" and puts them in a global perspective. The development of eBay is one of the most successful materializations of globalization, allowing buyers and sellers from different continents trade merchandise and engage in commercial activities, which wouldn't be possible otherwise.
1998 brought a major change in eBay's future, when Pierre and his cofounder Jeff Skoll brought a new member into the successful team - Meg Whitman. She was a Harvard Business School graduate who understood the high importance of branding and advertising. After her arrival, eBay received a different view on business: it was no longer just a place that allowed individuals to sell items, it was a place where people would connect. A highly skilled and experienced staff, recruited from companies such as Disney, sustained this new vision. The 20-year average business experience in management that the staff presented was a good reason why eBay was and still is on an ascending trend.
eBay's potential was huge, and its founders decide to take it one step further. They reshaped the web site into one that offers more and more upscale products and managed to attract companies such as Sun, GM or Disney. The average sale price grew exponentially with the number of important sellers that joined eBay and this generated higher transaction fees, which were translated into increasing profits. Sun alone sold more than $10 million worth of equipment and is presently listing an average of 80 products each day. More credibility was also gained by eBay when such important international companies started using its services.
The way eBay is structured favors an easy connection between buyers and sellers. Each seller can list his or her items, with corresponding prices. Buyers see these listings and can bid on the ones they are interested in. The auction style selling process brings dynamism and presents us with one of the most complex trading mechanism in the world. Browsing through listings is quick and organized, as there are various specific categories, which shorten search times. Another great feature of eBay is that it saves time and money, both in the case of sellers and buyers. A seller can receive bids on a listing just minutes after placing it and this prompt response is always appealing to anyone involved in marketing something.
One of eBay's main advantages is its huge variety of offers. The web site brings concepts like "flea market", "trade show" and "garage sale" and puts them in a global perspective. The development of eBay is one of the most successful materializations of globalization, allowing buyers and sellers from different continents trade merchandise and engage in commercial activities, which wouldn't be possible otherwise.
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