Ebay

Definition

eBay is an online marketplace that allows individuals and businesses to buy and sell new and used goods in a consumer-to-consumer and business-to-consumer format. Launched in 1995, eBay revolutionized the way people shop by introducing auction-style listings alongside fixed-price sales, making it easier for users to access a wide variety of products from around the world.

5 Must Know Facts For Your Next Test

1. eBay was founded by Pierre Omidyar in 1995, originally as a site to auction collectible items.
2. The platform features both auction-style listings, where buyers bid on items, and Buy It Now options for immediate purchases.
3. eBay has expanded globally, operating in multiple countries and offering localized versions of its website.
4. As of 2023, eBay hosts millions of active listings across various categories, from electronics to fashion to collectibles.
5. eBay has played a significant role in the growth of the gig economy by allowing individuals to monetize their unwanted items or create small businesses.

Review Questions

• How did eBay's introduction of auction-style listings change the landscape of online shopping?
  • eBay's auction-style listings transformed online shopping by allowing consumers to actively participate in the price-setting process. This model not only introduced a sense of excitement and competition among buyers but also allowed sellers to potentially fetch higher prices than they would through traditional retail channels. By combining auctions with fixed-price options, eBay catered to different shopping preferences, making it a versatile marketplace that appealed to a wide audience.
• In what ways did eBay contribute to the rise of e-commerce during the late 1990s and early 2000s?
  • eBay was pivotal in promoting e-commerce by demonstrating how individuals could effectively buy and sell goods online. Its user-friendly interface lowered the barriers to entry for both buyers and sellers, encouraging more people to engage with online marketplaces. Additionally, eBay's success helped legitimize online shopping as a safe and viable alternative to brick-and-mortar stores, paving the way for other e-commerce platforms and fostering trust among consumers regarding online transactions.
• Evaluate the impact of eBay on consumer behavior and retail practices in the digital age.
  • eBay has significantly influenced consumer behavior by encouraging a shift towards online shopping as a primary mode of purchasing goods. Its auction format has created a culture of bargain hunting and price sensitivity among consumers, leading them to compare prices and seek deals more actively. Retail practices have also evolved, as traditional retailers now often incorporate online sales strategies, including auctions or competitive pricing models similar to those pioneered by eBay. This evolution reflects a broader trend towards personalized and dynamic shopping experiences in the digital age.

Related terms

e-commerce: The buying and selling of goods and services over the internet, encompassing various business models including B2B, B2C, C2C, and C2B.

auction: A sales method where potential buyers place competitive bids on items, with the highest bidder winning the item at the end of the bidding period.

PayPal: An online payment platform that allows users to make payments securely via the internet, often used for transactions on eBay.