The First 12 Years of an Auction Powerhouse

You may be surprised to know that eBay wasother instilling even more confidence in other users of
created 12 years ago or just about anyway. As of thisthe site.
writing that is less than a month away. The website,In 1997, Omidyar changed AuctionWeb's - and his
eBay was created by Pierre Omidyar in Septembercompany's - name to 'eBay', which is what users had
1995. At the time he was living in San Jose, California,been calling the site for a long time anyway. Pierre
USA. It is said that Pierre wrote the code for eBay inspent a lot of money on advertising, and also
one weekend.eBay was a pioneer in several ways.redesigned the eBay logo. It was in this year also that
The original name of the site was actuallyeBay sold it's one-millionth item.
"AuctionWeb" and was part of a website called EchoIn 1998 during the peak of the dotcom boom, eBay
Bay. It was not too long after the launch, that peoplebecame a big business. The money made available to
started calling the site eBay anyway. The first iteminternet investments during this era allowed eBay to
sold on eBay was Omidyar's broken laser pointer. Thebring in senior managers and business strategists, who
managed to sell it for a whopping $14.00!eBay becometook the company public. This started to encourage
immensely popular very quickly. Sellers came on thepeople to sell more than just collectibles, and eBay
site to list all sorts of oddities and more remarkably,quickly became a massive website, and a very large
buyers actually bought them. At first ebay operated onbusiness.
the honor system as sellers and buyers seem to trustTo this extent, you you could sell anything, large or
each other. This allowed Pierre to let the site almostsmall to anyone who could pay for it. Unlike many
run itself.other websites however, eBay survived the inevitable
From the outset, ebay was designed to collect a smalldot com meltdown, and is still going strong today.
fee on each sale. This money was used by OmidyarIn 1999, eBay expanded worldwide. It launched sites in
to pay for the expansion of the business. As the feesthe UK, Australia and Germany, bought in 2000. was
quickly added up to more than his regular salary, Pierrean online retailer much like Amazon. In 2000 as well,
quit his job to concentrate his efforts full time on hiseBay introduced Buy it Now. Ebay also purchased
website. In 1996 Pierre installed the feedback systemPayPal, an online payment service, in 2002.
on ebay. This allowed buyers and sellers to rate each