eBay was founded during the Labor Day weekend in 1995, when Pierre Omidyar, a computer programmer wrote the script code for goods online auction website which was written on his personal computer. Today, Omidyar's hobby known as eBay whish is the world's largest online marketplace, where anyone can sell quickly and conveniently at any time. Media Business Week provides the terms on eBay "nothing less than a virtual, self-regulating the global economy".
With the presence of 39 markets including the United States market, and approximately 84 million active users worldwide, eBay has changed the face of internet commerce. In 2007, the total value sold on eBay was reach USD 60 billions. This means that eBay users worldwide trade in goods worth USD 1600 per second through eBay.
The advantage of using the eBay seller and buyer is we can determine the price through an open auction and bidding can be followed by any eBay member. eBay went public through an IPO (Initial Public Offering) to the stock market in 1998, the company continued innovation and a liaison between individuals.
Acquisition by eBay
The most important step which have been done by eBay was acquisite online companies such as PayPal and Skype. PayPal allows the transfer of funds between two individuals or business relations with safer through an email address. EBay acquisited Paypal in 2002, PayPal built a financial infrastructure which have already exists, namely through the bank accounts and credit cards by using the security system against potential fraud.
Currently, PayPal is the global leader in online payment solutions, has 149 million members online and is accepted as a means of payment in the millions of merchants worldwide, either through eBay or non-eBay. In the first quarter of 2008, total volume of payment through PayPal is USD 14.4 billions. This amount is equivalent to 9% of overall sales through e-commerce worldwide.
eBay acquisited Skype in October 2006. Skype is a telecommunications company that has revolutionized the way of people communication over the Internet. Skype has 309 million registered users worldwide in early 2008. Skype allows people everywhere to communicate via voice and video online for free through internet connection.
Skype is available in 28 languages and used in almost all countries in the world. Skype business units earning revenue from premium offerings, such as calls using Skype software to or from mobile phones, voicemail, call forwarding, and personalization (including avatars and ringtones). By merging with eBay allows wide-open market of Skype between providers of hardware and software.
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