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TS&T Mini-Study: eBay

Published by: InfoCom GmbH

Published: Oct. 25, 2005 - 5 Pages


Table of Contents



1. Introduction
2. History
3. How it works
4. From flee market to online trade
5. Key financial figures
6. Strategy evolution
7. A potentially disruptive trio
8. Outlook
Tab. 1: Estimated GMR of the 12 largest item categories, end-2005 (billion dollars)
Tab. 2: eBay key financial figures per quarter in million dollars
Tab. 3: eBay revenues and EBITDA 1999-2004 evolution in million dollars
Tab. 4: eBay key performance indicators 2003-2005 in million dollars

Abstract

As it often happens in success stories, the eBay idea of an online marketplace was born virtually accidentally, as a result of a private conversation about the possibility to collect Pez dispensers - special candy dispensers which have popular comics characters as heads - and interact with other collectors over the Internet. The founder, Mr. Omidyar, developed in 1995 the idea to create a central location to buy and sell such unique items and to meet other users with similar interest; thus he started a new web site where even the name eBay was chosen by accident, as the domain name Mr. Omidyar originally wanted, EchoBay.com, was already taken.

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