History of the Company:
eBay was started by Pierre Omidyar on September 3, 1995 as a part of his personal website, AuctionWeb, and originally aimed to provide a platform for auctioning off collectible items.
To his surprise, the site became so successful, he officially registered as a business and started hiring. By 1996, the site hosted 250,000 auctions and over 2 million in January 1997, at which point Omidyar officially renamed the business “eBay”.
The site is popular around the globe and now serves as both an auction and online shopping portal. It especially appeals to buyers because of the freedom offered within its own market structure.
As eBay’s success grew, it acquired the ecommerce site, PayPal in 2002. It also acquired 65% the widely popular telecommunications company, Skype, in 2005 for $2.6 billion and later sold all but 30% of its stake in the company to Microsoft for $2.75 billion in 2009.
The company is headquartered in San Jose, California, but operates over 80 offices across five continents and employs over 33,000 people.
Trading eBay: What You Need to Know
- eBay issued its IPO on September 21, 1998 at $18 per share.
- Within the first day of trading, the share price jumped to $53.50.
- The company’s revenue comes from a number of fees collected for services, including product listings, add-ons to shipping fees, VAT charges, and a various system of commissions on products sold via the eBay platform.
- It has failed to break into certain markets due to strong local competition such as Alibaba’s Taobao in China and TradeMe in New Zealand.
- Has a history of receiving low ratings regarding its customer service.
- The company has high-profile auction-for-charity programs that allow sellers to give a percentage of the proceeds from their auctions to a charity of their choosing.
- The company’s annual revenue has been on a steady upward trajectory and as of 2013 brought in over $16 billion.
Anyone who wants to trade eBay should carefully analyze the market conditions before trading.Trade EBAY