Success History Of eBay: eBay is a global online auction and trading company started by American entrepreneur Pierre Omidyar in 1995. It was one of the first companies to create a website where buyers and sellers could trade goods and services.
| Company Name | eBay |
| Founders | Pierre Omidyar |
| Current CEO (2024) | Jamie Iannone |
| Founded Year | 1995 |
| Headquarters | San Jose, California, America |
| Services | E-commerce |
| Official Website | www.ebay.com |
Success History Of eBay
Most sales on eBay happen through auctions, but many items are sold at fixed prices too. eBay helps individuals and small businesses sell their products and is a leader in online shopping worldwide. eBay’s main office is in San Jose, California.
History Of eBay
1990s
Beginning: eBay was originally called AuctionWeb and started on September 3, 1995, by Pierre Omidyar as a hobby. One of the first items sold was a broken laser pointer for $14.83. Omidyar was surprised that someone wanted to buy a broken item, but the buyer explained he collected broken laser pointers.
Growth: In February 1996, due to high website traffic, Omidyar had to upgrade his internet service, which cost more money. To cover these costs, he started charging users. The website made $1,000 in its first month and $2,500 in the second month.
Expansion: Jeffrey Skoll was hired as the first president of the company in early 1996. The company started hosting online auctions for travel-related products and changed its name to eBay in September 1997. By 1997, eBay received $6.7 million in venture capital funding.
Going Public: In September 1998, eBay became a public company. The initial public offering was priced at $18 per share and closed at $53 per share on its first day of trading, making Omidyar and Skoll billionaires.
2000s
Acquisitions and Partnerships: In June 2000, eBay acquired Half.com, and in 2001, it acquired a majority stake in Internet Auction Co. Ltd in South Korea. In 2002, eBay acquired iBazar in France and entered the Chinese market, but shut down its Chinese site in 2007 due to competition from Taobao.
PayPal Acquisition: eBay acquired PayPal in October 2002 for $1.4 billion.
Legal Challenges: In 2003, eBay faced a legal challenge from MercExchange over patent infringement, leading to a $35 million damages award. The case was eventually taken to the Supreme Court, which ruled that an injunction is not automatic in patent cases.
Classifieds and Skype: eBay acquired a 25% stake in Craigslist in 2004 and acquired Rent.com for $415 million. In 2005, eBay acquired Skype Technologies for $2.6 billion.
Environmental Initiatives: In 2008, eBay opened a LEED Gold standard building in San Jose with solar panels and energy-efficient systems.
Global Expansion: eBay acquired G-Market, a South Korean online retailer, in 2009.
2010s
GSI Commerce: eBay acquired GSI Commerce for $2.4 billion in 2011, which was later renamed eBay Enterprise in 2013.
New Logo: In September 2012, eBay introduced a new logo with a thinner typeface.
Key Points
eBay started as a small hobby project and grew into a global e-commerce leader.
The company initially focused on auctions but also includes fixed-price sales.
eBay has expanded through numerous acquisitions and partnerships, including PayPal and Skype.
Legal and competitive challenges have shaped its journey.
eBay continues to innovate and grow, maintaining a strong presence in the e-commerce market.
2012
International Shipping Partnership: In October 2012, eBay partnered with Pitney Bowes. Sellers can send items to a local Pitney Bowes facility, which then handles international shipping. eBay also teamed up with FedEx to offer sellers discounted shipping rates.
Legal Issues: In November 2012, eBay was involved in a lawsuit about not competing for employees with other tech companies. The case was settled in May 2014, and eBay agreed to stop these practices.
2014-2015
PayPal Spin-Off: On September 30, 2014, eBay announced it would spin off PayPal into a separate company. This was completed on July 18, 2015. John Donahoe stepped down as CEO of eBay.
Acquisitions and Sales: In January 2015, eBay bought Vivanuncios, a Mexican classified ads site. In June 2015, eBay sold its stake in Craigslist. In August 2015, eBay sold part of its stake in Snapdeal.
Payment Methods: In September 2015, eBay stopped accepting Propay and Skrill due to low usage.
2017-2018
Flipkart Partnership: In July 2017, eBay partnered with Flipkart, gaining a 5.44% stake. eBay sold its India business to Flipkart and invested $514 million. In May 2018, eBay sold its stake in Flipkart to Walmart and restarted its own operations in India.
Technology Improvements: In October 2017, eBay launched a feature to find listings using photos, powered by artificial intelligence.
Payment Changes: In January 2018, eBay announced it would replace PayPal with Adyen as its main payment processor to reduce costs.
New Acquisitions: In May 2018, eBay bought Qoo10, a Japanese e-commerce platform, for $573 million. In July 2018, eBay started supporting Apple Pay and partnered with Square for seller loans.
2019-2020
Security Measures: In September 2018, eBay decided to build a security fence around its San Jose headquarters after a shooting at the YouTube headquarters.
Dividends and Investments: In March 2019, eBay paid its first dividend to improve shareholder returns. In July 2019, eBay bought a 5.59% stake in Paytm Mall.
Leadership Changes: In September 2019, CEO Devin Wenig resigned due to pressure from shareholders. Scott Schenkel became interim CEO. Jamie Iannone became CEO in April 2020.
StubHub Sale: In November 2019, eBay sold StubHub to Viagogo for $4.05 billion, completed in February 2020.
2020-2023
Board Changes: In June 2020, two longtime board members resigned. Pierre Omidyar left the board in September 2020.
Classifieds Business Sale: In July 2020, eBay sold its classifieds business to Adevinta for $2.5 billion and 540 million Adevinta shares. Gumtree was further sold to get regulatory approval. eBay sold its Adevinta shares in 2023.
South Korea Business Sale: In November 2021, eBay sold its South Korean business to Emart for $3 billion.
Recent Acquisitions: In 2022, eBay acquired stakes in Funko and KnownOrigin, a marketplace for non-fungible tokens. They also bought myFitment for automotive parts and TCGPlayer for collectible card games. In July 2023, eBay acquired Certiligo for digital IDs and authentication.
2024
Workforce Reduction: In January 2024, eBay announced plans to lay off 9% of its workforce due to hiring outpacing growth projections.
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