key term - EBay

Definition

eBay is an online auction and shopping platform that allows users to buy and sell a wide variety of goods and services worldwide. Founded in 1995, it revolutionized the way people engage in commerce by providing a global marketplace where individuals and businesses can connect directly, reflecting the growing trend of globalization and the digital economy after 1900.

5 Must Know Facts For Your Next Test

1. eBay was founded by Pierre Omidyar as a hobby project, initially called AuctionWeb, before it became a major player in e-commerce.
2. The platform introduced the concept of online auctions, allowing users to bid on items, which created a unique marketplace dynamic compared to traditional retail.
3. eBay enables sellers to list items for sale, either through auctions or fixed-price listings, giving them flexibility in how they conduct business.
4. The site has expanded beyond auctions to include 'Buy It Now' options and various seller tools to help small businesses reach global customers.
5. eBay's success helped pave the way for the broader acceptance of online shopping, influencing consumer behavior and changing how people buy and sell goods.

Review Questions

• How did eBay change the way people engage in commerce compared to traditional retail?
  • eBay transformed commerce by creating an online auction model where individuals could bid on items rather than simply purchasing them at set prices. This introduced a competitive element that wasn't present in traditional retail environments. Additionally, eBay allowed anyone with internet access to become a seller, democratizing the marketplace and enabling small businesses and individuals to reach a global audience.
• Evaluate the impact of eBay on the global economy and consumer behavior since its inception.
  • eBay's launch marked a significant shift in the global economy by promoting e-commerce and encouraging direct transactions between buyers and sellers across borders. It has influenced consumer behavior by increasing acceptance of online shopping as a viable alternative to traditional brick-and-mortar stores. This shift has led to changes in purchasing patterns, with consumers increasingly seeking unique or second-hand items through platforms like eBay instead of conventional retail outlets.
• Discuss the broader implications of eBay’s model for future technological advancements in commerce and society.
  • eBay's model has set a precedent for future technological advancements in commerce by demonstrating how digital platforms can create new marketplaces that connect diverse groups. As technology continues to evolve, this model encourages innovations such as mobile commerce and social shopping, fostering an environment where buying and selling can happen anywhere at any time. Additionally, it raises questions about regulation, data privacy, and ethical considerations in online transactions, shaping societal norms around commerce in an increasingly interconnected world.

Related terms

Globalization:

The process by which businesses or other organizations develop international influence or operate on an international scale, leading to increased interconnectedness among countries.

E-commerce: Commercial transactions conducted electronically on the internet, which have grown significantly with the rise of digital technology and online platforms like eBay.

Digital Marketplace: An online platform that connects buyers and sellers, allowing for the exchange of goods and services through the internet, such as eBay, Amazon, and Etsy.