eBay began in 1995 as an online marketplace for collectibles, growing to host 200,000 auctions by 1997. It now has over 90 million active users globally and $2,000 in goods are sold every second, totaling $60 billion in annual revenue. eBay connects buyers and sellers through online auctions and fixed-price listings. It ensures trust in transactions through user ratings, payment protection policies, and escrow services. While competitors have emerged, eBay maintains its dominant position through network effects, multiple platforms, and lack of inventory risks. However, its business model may not be sustainable long-term as growth slows and competition increases.

1. Going, Going, Gone! – Consumer AuctionsProf. LattemannOrganizational Design for Networks - Fall 2010MariyaArnaudova

2. Consumer-To-Consumer Transactions: Long ago…C2C

3. Consumer-To-Consumer Transactions: Online AuctionsC2CInternet Newsgroups: search listings (burdensome)Web-based auctions:  listing and transaction fees  independent arrangement of shipment and payment  special-interest sites Seller 1Buyer 1Transactions platformIntermediariesSeller 2Buyer 2Seller 3Buyer 3

4. How it all started: Fair and efficient internet marketOverviewPierre Omidyar 1995 – changed the world indeed

5. Initially traded collectibles (e.g. PEZ)

6. 1996: Gross Margin 80%-96%

7. January 1997 hosted 200 000 auctions

8. Need of better IT architecture Currently: Overview Overview90 million active users globally

9. Mission: World's largest online marketplace where practically anyone can buy and sell practically anything

10. 2009:the total worth of goods sold on eBay was $60 billion -- $2,000 every second.

11. Revenue: advertising, listing and value fees, merchant fees, revenue sharing agreements, contractual service fees and classified and lead referral fees.

12. Current CEO: John Donahoe since 2008 eBay Annual Report 2009

13. Trading Community:How does it work?ServicesProxy bidding: winning bidder pays the price of the second-highest bid plus a defined increment  price paid is determined only by competitors' bids and not by the amount of the new bidAuction-style listings: offer items for sale for a specified number of daysBuy-It-Now OptionLast bid displayed

14. Trading Community: Ensuring Trust ServicesSeller Rating: Transaction-related feedback Buy-It-Now OptionPayment: PayPalBuyer Protection PolicyDetailed Item Description

15. Trading Community:Diverse Possibilities ServiceseBay Stores: sellers’ showcase establish their own brand (auction or fixed price) ProStores: subscribers design own online stores  hesitant about real business?  easy connection with eBay Shopping.com: price comparison service  eBay sellers got access to buyers search of fixed price  fixed price listings increased eBay Motors: Buy and sell all types of vehicles  Autos, Used Cars, Motorcycles, Boats, Trucks, Parts

16. Paying Strangers: How to make it safe PaymentEasy C2C payments

17. Free service for buyer, tax for seller