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eBay Inc
, a worldwide e-commerce corporation headquartered in San Jose, California, enables consumer-to-consumer and business-to-consumer purchases through its website
Pierre Omidyar launched eBay in 1995, and it became a prominent success story of the dot-com boom
As of 2019, eBay is a multibillion-dollar corporation with operations in about 32 countries
The corporation administers the eBay website, an online auction and shopping platform where individuals and companies worldwide purchase and sell a broad range of products and services
Buyers may use the website for free, but sellers are charged fees after a certain number of free listings and an extra or separate price when those products are sold
Aside from eBay’s initial auction-style sales, the website has grown and extended to include: immediate “Buy It Now” buying; shopping by Universal Product Code, ISBN, or other kinds of SKU number (through Half
com, which was closed in 2017); and other services
eBay historically provided online money transfers (through PayPal, which was a completely owned subsidiary of eBay from 2002 to 2015); online classified listings (via Kijiji, or eBay Classifieds Group); and online event ticket selling as part of its services (via StubHub)
Every day, eBay users list, buy and sell millions of different types of items, including collectibles, home decor, appliances, computers, furniture, equipment, automobiles, and a wide variety of other products
In 2006, eBay made its first foray into the market for industrial excess with the launch of its Business & Industrial category
In principle, anything may be auctioned off on the site so long as it does not break any laws and does not fall under the category of an item that is prohibited or restricted by eBay’s policies
Additionally, one might sell services as well as intangible goods
eBay is used by major multinational organizations such as IBM in order to offer their most recent products and services via competitive auctions and shops with set prices
On distinct eBay sites, such as eBay US and eBay UK, users are able to do business using their national currency
Software developers may create programs that communicate with eBay by enrolling in the eBay Developers Program and utilizing the eBay Application Programming Interface (API)
There were approximately 15,000 participants in the eBay Developers Program as of June 2005
These members were from a wide variety of businesses that were creating software to aid eBay customers and merchants
Other participants included eBay Affiliates
eBay and other types of auctions are already being used by a great number of national governments and local police agencies throughout the world in order to dispose of seized and confiscated property
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Certain items that have been put up for sale have given rise to much discussion
For instance, in late 1999, a man placed one of his kidneys up for sale on eBay in the hopes of profiting from the potentially lucrative market for transplantable human organs, which is forbidden in the United States due to the possibility of organ trafficking
Since August of 2007, eBay has mandated that all listings in the “Video Games” and “Health & Beauty” categories accept PayPal as a form of payment
Additionally, sellers in the “Video Games: Consoles” category are only allowed to accept PayPal for buyer payments
eBay has announced that starting on the 10th of January, 2008, sellers in the categories may only accept PayPal as a form of payment
eBay mandated that all sellers with less than 100 feedbacks were required to provide PayPal as a payment option beginning in March of 2008 and that sellers were not permitted to use merchant accounts
This is in addition to the requirement that all businesses in the United Kingdom must accept payments made via PayPal
In addition, as will be discussed further below, it was essential to include PayPal in every listing in Australia and the United Kingdom
However, in response to objections from the Australian Competition and Consumer Commission, eBay has now withdrawn the policy from the eBay
com
au website that required sellers to accept PayPal as a payment option
a trademark for eBay Express eBay debuted its new brand eBay Express website on April 24, 2006, with the intention of making it operate in a manner similar to that of a regular online shopping website for consumers based in the United States
Before its closure in 2008, eBay Express was an online marketplace that sold a selection of eBay’s items and allowed customers to make purchases from various merchants by using a standardized online shopping cart
Midway through October 2006, customers in the United Kingdom were given access to the eBay version; however, on January 29, 2008, eBay announced its intention to shut down the site
The German version of eBay Express, which started operations in 2006 and shut down in 2008, is referred to as eBay Express Germany
During the eBay Developer’s Conference in 2008, the eCommerce giant introduced its Selling Manager Applications project (SM Apps)
Approved developers have access to the initiative, which allows them to immediately include their applications into the eBay
com user experience
[126] Users of eBay who have a subscription to Selling Manager also have the option to subscribe to applications that were produced by third-party developers
Message boards, groups, an answer center, chat rooms, reviews and guides, and more are just some of the specialized features that can be found on eBay’s website
eBay’s mobile services include text message alerts, a wireless application protocol (WAP) website, Java ME clients, and mobile applications for Windows Phone, Android Operating System, and Apple iPhone
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The initiative “Choice in eCommerce” was officially launched on May 8, 2013, by a number of online retailers in Berlin, Germany
According to the campaign, the explanation was because of sales restrictions imposed by particular manufacturers and internet restrictions
The dealers believed that they had been severed from their primary sales channel, which prevented them from using online marketplaces such as Amazon, eBay, or Rakuten to the advantage of their customers in a highly competitive industry
In its early years, eBay was almost completely unregulated
The popularity of the website made it necessary to restrict or forbid auctions for certain items, nevertheless
Some of the restrictions are applicable to eBay
com (the US site), while others are applicable to specific European sites (such as Nazi paraphernalia)
Both the buyer and the dealer may be subject to local laws and ordinances
Generally, eBay won’t let an item to be listed if the sale or possession of the item is prohibited or restricted by one or more states
There are over a hundred forbidden or restricted categories, including: Tobacco (tobacco-related items and collectibles are accepted
) Alcohol (and alcohol-related artifacts like sealed containers and select wines) may be sold on some websites, such ebay
com
au, by authorized sellers
(Ebay said on September 21, 2012 that it will start removing beer and liquor listings from its website, after a story that aired on ABC’s 20/20
) drugs and drug-related equipment Merchandise that “promotes or celebrates hate, violence, racial, sexual, or religious intolerance, or supports groups that espouse such beliefs
” This covers Nazi costumes, though there are exceptions for Nazi goods like stamps, correspondence, and envelopes with Nazi postmarks (must comply with the currency and stamp policy) Confederate battle flag-adorned items
recording without permission Firearms and ammunition, including all components that could be used to put together a firearm and, as of July 30, 2007, all components needed to fire a firearm, such as bullet slugs, brass casings and shells, slides, cylinders, magazines, firing pins, trigger assemblies, and so forth
Knives of any kind are also forbidden
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Vehicle warning systems used by emergency services and the police, such as red or blue lights and sirens (antique or collectible items are exempt) Unclean old clothing and intentionally stained underwear (see “panty fetishism”)
documents that are forged, illegal, stolen, or classified by the government, such as passports, Social Security cards, driver’s licenses, voter registration cards, birth certificates, school records, and financial or medical information
Any tool used to alter papers is also forbidden
bodily parts, organs, and remnants of humans (with an exception for skeletons and skulls for scientific study, provided they are not Native American in origin) any living creatures Several works that include copyright or trademarked items tickets for lotteries, contests, or other forms of gambling
Military equipment, such as operational weapons or explosives, is forbidden, with the exception of demilitarized vehicles
any product with a North Korean, Syrian, Cuban, or Iranian provenance
plutonium, uranium enrichment, and other fissile materials No matter what is prohibited, certain types of sexually explicit content must be labeled as “Adult Only”: children’s involvement in pornography discarded sex toys with pornographic content including bestiality, necrophilia, rape, coprophilia, and incest
Services with sex-related activities
Links to websites with prohibited content Adult products sent electronically Virtual items from massively multiplayer online games that are restricted by country Items fashioned from ivory Except specific cutlery, knives are now illegal in the UK after BBC Watchdog researchers discovered that many knives that were previously illegal to own or import had been brought in illegally
If they have listed on one of the eBay websites under the category “knives,” empty leather knife scabbards are also forbidden
services for witchcraft and fortune telling It is forbidden to possess spirits, souls, and other “things whose existence cannot be confirmed
” items related to the COVID-19 pandemic, such as surgical masks, hand sanitizer, cleaning wipes, and other things to avoid price gouging Many additional products are either strictly forbidden or prohibited entirely
When you submit a bid on an auction-style item on eBay (regardless of whether the listing is old or new), this process is referred to as proxy bidding, and it is essentially similar to a Vickrey auction (sealed-bid), with the exception of the following details
When you submit a bid on an auction-style item on eBay (regardless of whether the listing is old or new), this process is referred to as proxy bidding, and it is essentially similar to a Vickrey auction (sealed-bid), with the exception of the following details
The winning bidder is accountable for not only paying the highest offer, but also the second-highest bid, in addition to an amount that is equal to the bid increment (that is, a minor specified sum relative to the bid size)
On the other hand, bid increment values are almost never taken into strategic account due to the fact that their relative relevance is lower when compared to the amount of the bid
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As in a Vickrey auction, the offer that was made by the top bidder is kept a secret; however, the current winning bid, which is the second highest plus one increment, is shown throughout the auction so that price discovery may take place
It is typically in the best interest of all parties involved for bids to be placed only at the very last possible time in the sale
This is because the auction-style postings on eBay are sealed-bid auctions, which means that bids cannot be seen until the very end of the sale (except for an initial minimum bid, that cancels out a “Buy It Now” option, or prevents the seller from ending the listing early)
Early bids seldom boost a bidder’s chances of winning the auction; nonetheless, they often drive up the item’s final price (the winning bid), which is beneficial to the person who ends up taking home the item in question
There is also the possibility that the seller would propose a “Buy it Now” price, which promptly puts a stop to the auction
You have the opportunity to acquire the item at the Buy It Now price up to the time that it gets at least one bid or the reserve price is fulfilled, whichever comes first
After the “Buy It Now” option has been removed, the auction-style listing will continue in the customary fashion from that point forward