Tammy Austin

~research~


 
Pierre Omidyar's eBay: A Beginning in Pez

 

Introduction

In September of 1995, Pierre Omidyar created the service Auction Web (renamed eBay in 1997) an online flea market/auction site "inspired by his fiancee's passion for collecting and trading Pez dispensers" (1). Of course this was not Pierre's first achievement in the field of technology in fact, he has quite an impressive "tech" background.

Web Sources

Title of Web page: Hoover's Company Database-American Public Companies
Web address:
http://web.lexis-nexis.com/universe/doclist?_m=dfc3e13469cbbde2a5721fba5816fb35&wchp=dGLSzV-lSlzV&_md5=c87a719f8abd2503dc5acb3cc2bbd087;WRAP=1022781456-165.247.132.116
Brief Description: A brief history on Pierre Omidyar and eBay, a list of company executives, some financial information, and a list of competitors.
Source of Web Site: Lexis Nexis.com

Title of Web page: A Brief History of eBay
Web address: http://thestandard.net/article/0,1902,28323,00.html
Brief Description: A timeline of events on eBay's auction site.
Source of Web Site: The Industry Standard

Title of Web page: Forbes.com - Pierre Omidyar
Web address: http://www.forbes.com/finance/
Brief Description: Background information on Pierre Omidyar.
Source of Web Site: Forbes.com

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UNC-CH Libraries

Print Sources:
Stross, Randall E. eBoys : the first inside account of venture capitalists at work. New York, NY : Crown Business, c2000. Call number: HG4963 .S85 2000

Sinclair, Joseph T. eBay the smart way [computer file] : selling, buying, and profiting on the Web’s #1 auction site. New York : American Management Association, 1999. Electronic Book netLibrary

 

Mini-Essay

Pierre Omidyar is a graduate of Tufts University, with a Bachelor's degree in Computer Science. Prior to his success with eBay, Mr. Omidyar was a developer for a subsidiary of Apple Computer, as well as other software development companies, and an engineer with General Magic (a mobile communications company). He also co-founded Ink Development Corp. where he was a software engineer (3).

From the start eBay was meant to be an arena for the sale of goods and services and largely, by word of mouth, grew into the phenomenon we know today (1). In fact, by the middle of 1997 eBay reported nearly 800,000 auctions a day (1). Adding to its power and prestige the company accumulated significant financial backers, acquired Butterfields and Butterfields (an upscale auction house), bought out several other online sellers/auction sites, and established peer reviews, ratings, chat rooms, and bulletin boards to create a "cyber community" for its patrons (1).

In 2001 eBay reached Europe with the purchase of a French Internet auction firm and also found its way into Ireland, New Zealand, and Switzerland. By 2002 eBay joined with the renowned Sotheby's and moved Sotheby's "entire online business into the eBay website, further proving the company to be the premiere connection in both the low and high-end merchandise scenes."

Although eBay's success has flourished in a time when other online businesses have struggled, the company has not been without its share of problems. In fact, as competition in the online auction arena stiffened, eBay was confronted with the loss of the large Japanese market to Yahoo, experienced technical malfunctions, and was exposed to auction hoaxes (1).

In just a few short years, what started as a hobby in the San Jose living room of Pierre Omidyar, has become one of the biggest and most profitable online businesses. At just 34 years old, Mr. Omidyar has been listed as one of the World's richest people (3). His talent and vision facilitated with ease the exploration, sale, and purchase of goods online, thereby making it possible to sell such items as nude photos of Marilyn Monroe or to purchase Bob Dylan's boyhood home (2).

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Notes

(1) Hoover's Company Profile Database-American Public Companies. 2002 [Online] http://www.ebay.com. eBay Inc., TICKER: EBAY EXCHANGE: Nasdaq.

(2) Industry Standard Staff. 30 July 2001 [Online] http://www.thestandard.com."A Brief History of eBay."

(3) Forbes.com Inc., Paul Maidment. 2002. "Pierre M. Omidyar" [Online] http://www.forbes.com.

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Questions? Comments? Email Tammy.

This site was created for JOMC 50 in the School of Journalism and Mass Communications at the University of North Carolina at Chapel Hill.