eBay Case Study

eBay is an American Internet company and was founded in Pierre Omidyar's San Jose living room back in September 1995. It is now a multi-billion dollar business with operations localized in over thirty countries. However, eBay is an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. It allows users to sell merchandise and prospective buyers to place bids on a wide variety of items. The time of the auction can last anywhere from a few days to a few weeks. Throughout the duration of the auction, bids are accumulated. At the end of the auction, the bidder with the highest bid is then awarded the item.

eBay's Business Model:



“eBay acts as a broker, bringing buyers and sellers together and taking a listing fee on products listed over its site and a commission on things sold”


Why has it been so successful?
In the beginning, eBay was the first organization to produce a broker business model over the internet. eBay has been so successful it has developed a ‘community’ so the consumers feel like they are dealing with the individuals therefore this makes eBay personal to them. As a shopper, consumers can shop the world from their kitchen table for almost any item conceivable. As a seller, consumers can reach out to buyers anywhere in the world capable of plugging in.