eBay History • According to urban myth, eBay was founded by Pierre Omidyar for his girlfriend so she could have a way to trade Pez dispensers • 1995 - Pierre Omidyar creates eBay. AuctionWeb.com goes online • 1997 - eBay hits on the site spiked in the first quarter of the year, from 600,000 to more than 1 million. Site crashes were a daily occurance. • 1997 - AuctionWeb.com site name changed to eBay.com. First logo is created. • 1997-1998 - The eBay logo with the colorful letters we know today was chosen as the final logo for the company. • 1999 - EBay's site crashes for 22 hours. eBay's then 400 employees are ordered to call all eBay users to personally apologize. • 2000 – eBay has 1,927 full-time employees and 12 million registered users. By the end of 2000 the company has 22 million registered users. • 2004 – eBay grosses $3.3 billion in revenue
What is sold on eBay Antiques Art Baby Books Business & Industrial Cameras & Photo Cars, Boats, Vehicles & Parts Cell Phones Clothing, Shoes & Accessories Coins Collectibles Computers & Networking Consumer Electronics Crafts Dolls & Bears DVDs & Movies Entertainment Memorabilia Gift Certificates Health & Beauty Home & Garden Jewelry & Watches Music Musical Instruments Pottery & Glass Real Estate Specialty Services Sporting Goods Sports Mem, Cards & Fan Shop Stamps Tickets Toys & Hobbies Travel Video Games Everything Else
Weird Stuff • Grilled-cheese sandwich with the image of the Holy Mother sold for $28,000 • Man who auctioned his forehead for advertising space sold for $37,375 • Britney Spears' chewed gum sold for $263 • U.S. Navy F/A-18A Hornet jet fighter sold for $9,000,000 • Titan 1 ICBM Missile Base (decommissioned, don’t worry) sold for $778,080.02
What is not sold on eBay • Items that are illegal or that encourage illegal activity (banned weapons, drugs, etc.) • Items that are racially or ethnically inappropriate. • Services that are illegal, sexual in nature or that violate eBay’s User Agreement • Listings with counterfeit or bootleg items (counterfeits, replicas and unauthorized copies)
What you need • A valid e-mail address (if you use webmail you may need to give more information) • A credit card • Money to buy stuff
PayPal • Used to send and receive electronic payments • Primary form of payment for items on eBay • Must be registered separately from eBay • Two forms of accounts • Unverified: makes payments though a credit card • Verified: makes payments using direct deposit to a checking account
How does eBay work? • An eBay user posts an item for sale in an auction listing. The auction lasts several days • Another user does a search for the same or similar item and finds the listing. • The buyer inspects the listing, asks the seller questions through E-Mail or on eBay, checks the sellers feedback history, and eventually bids on the item. • Other buyers do the same and place higher bids • The auction ends and the winning buyer is sent an E-Mail notification with the total price of the item plus shipping and handling costs
How does eBay work? • The buyer pays for the item with PayPal, money order, check or credit card (if the seller accepts credit card). • The seller receives the payment in their PayPal account. • The seller ships the item to the buyer. • Once the buyer receives the item and it is to their satisfaction the buyer leaves good feedback to the seller. • The seller leaves good feedback to the buyer. • The transaction is complete.
eBay Terminology • Auctions: Item is open for buyers to place bids on until the listing end time. • Buy it Now: Item can be purchased immediately at a fixed price. • Reserve: Item will not sell below a certain price set by the seller. • NR: No Reserve. • Best Offer: Seller allows buyer ability to make offers on fixed price items which the buyer can then accept or deny.
Types of Listings • Auction • Usually lasts several days • Some have Buy it now • Some have Reserves • Fixed Price (Buy it Now) • Usually lasts several days • Some have make an offer • eBay Store • Usually last until purchased • Some have make an offer
Types of Payment • PayPal • The most widely used method • Can be paid with either credit card or direct deposit from checking • Money Order • Most sellers accept money orders, however it increases the time of a transaction • Personal Check • Few sellers accept strait personal checks because of the inherent risk of bounced checks • Cash • Only used for direct pickup. NEVER mail cash!!! • COD • Almost no seller accepts this unless they are directly delivering the item • Credit Card • Usually only large vendors accept credit card over the phone.
Types of Shipping Calculation • Fixed shipping • Seller will ship an item at a fixed price, regardless of destination or weight, using a specified carrier • Calculate shipping • Buyer can calculate shipping costs for multiple carriers by entering their Zip Code (only works in US) • Contact Seller • Seller and buyer negotiate shipping charges and methods
Feedback System • eBay employs a user driven feedback system as part of quality control. • Every user has a feedback given to them by both buyers and sellers for every successfully completed transaction. • The more good feedback a seller has, the safer they are to buy from (generally). • The more bad feedback a seller has, the more unsatisfied customers the seller has had.