eBay Inc. (, stylized as ebay) is an American multinational e-commerce company based in San Jose, California, that allows users to buy or view items via retail sales through online marketplaces and websites in 190 markets worldwide. Sales occur either via online auctions or "buy it now" instant sales, and the company charges commissions to sellers upon sales. eBay was founded by Pierre Omidyar in September 1995. In 2021, eBay had approximately 17 million global sellers[2]; in 2023, it reported 132 million yearly active buyers worldwide and handled $73 billion in transactions, 48% of which were in the United States. In 2023, the company had a take rate (revenue as a percentage of volume) of 13.81%.[1]
eBay can be used by individuals, companies and governments to purchase and sell almost any legal, non-controversial item. Buyers and sellers may rate and review each other after each transaction, resulting in a reputation system. The eBay service is accessible via websites and mobile apps. Software developers can create applications that integrate with eBay through the eBay API. Merchants can also earn commissions from affiliate marketing programs by eBay.
History
1990s
eBay was founded as AuctionWeb in California on September 3, 1995, by French-born Iranian-American computer programmer Pierre Omidyar as a hobby to make some extra money.[3] One of the first items sold on AuctionWeb was a broken laser pointer for $14.83. Omidyar contacted the winning bidder to ask if he understood that the laser pointer was broken; the buyer explained: "I'm a collector of broken laser pointers."[4]
In February 1996, Omidyar's internet service provider informed him that he would need to upgrade to a business account due to the high web traffic of his website. The monthly price increase from $30 to $250 prompted Omidyar to obtain support from his mother's family (his grandfather, General Mahmud Mir-Djalali was the "father" of Iran's Defense Industries, with close relationships with Skoda Works and Fabrique Nationale Herstal). The website made $1,000 in its first month, which was more than it cost to run, and $2,500 in its second month.[3] Chris Agarpao was eBay's first employee; he processed mailed check payments.[5]
Philanthropy and charity auctions
Using MissionFish as an arbiter, eBay allows sellers to donate a portion of their auction proceeds to a charity of the seller's choice and charges discounted fees for charity auctions.[152]
High-profile charity auctions facilitated via eBay include a charity lunch with investor Warren Buffett for 8 people at the Smith & Wollensky restaurant in New York City, with all of the proceeds going to the Glide Foundation. Auctions were held annually in 21 years between 2000 and 2022, with no auctions in 2020 and 2021 due to the COVID-19 pandemic. In total, auctions on eBay for lunch with Buffett raised $53.2 million for the Glide Foundation, with winning bids ranging from $2 million to as high as $19 million for the final auction in 2022.[153][154][155][156]
Stalking scandal
In June 2020, five employees, including executives, were terminated and charged with cyberstalking after they were accused of targeting Ina and David Steiner, the editors and publishers of EcommerceBytes, a newsletter that eBay executives viewed as critical of the company. In addition to sending harassing messages and doxing, the defendants "ordered anonymous and disturbing deliveries to the victims' home, including a preserved fetal pig, a bloody pig Halloween mask, a funeral wreath, a book on surviving the loss of a spouse, and pornography". The defendants also vandalized the couple's home in Natick, Massachusetts.[159][160][161][162][163] The conspirators pleaded guilty and most were sentenced to prison terms.[164]
Criticisms and controversies
Fraud
Fraud committed by sellers includes selling counterfeit merchandise / bootleg recordings, shill bidding (undisclosed vendor bidding that is used to artificially inflate the price of a certain item by either the seller under an alternate account or another person in collusion with the seller), receiving payment and not shipping merchandise, shipping items other than those described, giving a deliberately misleading description or photo, knowingly and deliberately shipping faulty merchandise, denying warranty exchange after pre-agreeing to return merchandise authorization of defective on arrival merchandise, knowingly fencing (selling stolen goods), offering nonexistent goods for sale (including goods that could not exist - e.g. devices with battery capacities far beyond that possible for the form factors of the listed items), misrepresenting the cost of shipping, using bulk shipping prices to knowingly mask much higher costing, individual return shipping, and using pseudo-accounts to make high nonpaying bids on similar items that competitors are selling. eBay has been criticized for not doing enough to combat shill bidding. Users have developed techniques, such as auction sniping, to avoid fraud across the site.[173][174]
See also
- Depop
- eBay v. Bidder's Edge
- List of acquisitions by eBay
- Vinted
External links
- ebay – YouTube
References
- eBay, Inc. 2025 Annual Report (Form 10-K) U.S. Securities and Exchange Commission, February 19, 2026, retrieved February 20, 2026^
- eBay Statistics (2025): Growth Data on Users, Listings & Revenue Capital One Shopping, retrieved 2026-02-14^
- LILY ROTHMAN. The Small-Scale Story Behind eBay's Big Bucks