eBay: Online marketplace for auctions and fixed-price sales

How the service works

Sellers can create timed auction listings or set a fixed "Buy It Now" price. Anyone may sell on the site after registering an account; businesses may operate stores with branded pages and bulk listing tools. Transactions typically involve an agreement on price, payment method, and shipping arrangements. Sellers arrange shipping themselves or offer local pickup for oversized items. Buyers and sellers negotiate acceptable payment methods; many use integrated providers for convenience. The online payment service PayPal was once a closely linked part of the ecosystem.

Key features and systems

• Two main listing formats: auction and fixed-price.
• Reputation system based on buyer and seller feedback to build trust.
• Search, categories, filters and promoted listings to help discovery.
• Seller tools for inventory, shipping labels, and analytics; buyer protection programs for disputed transactions.

Revenue for the marketplace comes from listing fees, final-value fees on sales, advertising and optional promotional services. The platform supports both casual sellers disposing of used goods and professional merchants selling new products at scale.

History and notable developments

• Founded in the 1990s by entrepreneur Pierre Omidyar as an online auction experiment; the name eBay emerged as the business grew.
• Expanded during the 2000s into a global marketplace and acquired complementary services, including an online payment firm that later separated from eBay.
• Leaders such as Margaret "Meg" Whitman guided its growth in the late 1990s and 2000s.

eBay remains notable for enabling peer-to-peer commerce at scale and for an ecosystem that balances auctions, fixed pricing and an extensive secondary market. Its model contrasts with retailers focused mainly on new inventory by providing a prominent venue for used, rare and collectible items, and for small sellers to reach international audiences.