
In 1997 the company received $6.7 million in funding from the venture capital firm Benchmark Capital. The domain name was already taken by a gold mining company, so Omidyar shortened it to. The company officially changed the name of its service from AuctionWeb to eBay in September 1997, after Echo Bay Technology Group, Omidyar's consulting firm. Growth was phenomenal: from 250,000 auctions during all of 1996 to 200,000 in January 1997 alone. In November 1996, the E-Commerce platform entered into its first third-party licensing deal, with a company called Electronic Travel Auction, to use SmartMarket Technology to sell plane tickets and other travel products. Jeffrey Skoll was hired as the first new president of the company in early 1996. Pierre Omidyar, founder and chairman of eBay Chris Agarpao was eBay's first employee he processed mailed check payments.

The monthly price increase from $30 to $250 prompted him to start charging eBay users, who continued to use the site.

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Reportedly, eBay was simply a hobby for Omidyar until his Internet service provider informed him he would need to upgrade to a business account due to his high website traffic. Astonished, 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." It soon became the first online auction site allowing person-to-person transactions, and its popularity boomed. One of the first items sold on AuctionWeb was a broken laser pointer for $14.83. The AuctionWeb was founded in California on September 3, 1995, by French-born Iranian-American computer programmer Pierre Omidyar as part of a larger personal site. On July 25, 2018, eBay announced a new partnership with PayPal's rivals Apple and Square in place of its longtime payment partner PayPal. eBay previously offered online money transfers as part of its services (via PayPal, which was a wholly owned subsidiary of eBay from 2002 to 2015) online classified advertisements (via Kijiji, or eBay Classifieds Group) and online event ticket trading (via StubHub). In addition to eBay's original auction-style sales, the website has evolved and expanded to include: instant "Buy It Now" shopping shopping by Universal Product Code, ISBN, or other kind of SKU number (via, which was shut down in 2017) and other services.
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The website is free to use for buyers, but sellers are charged fees for listing items after a limited number of free listings, and an additional or separate fee when those items are sold. The company manages the eBay website, an online auction and shopping website in which people and businesses buy and sell a wide variety of goods and services worldwide. eBay is a multibillion-dollar business with operations in about 32 countries, as of 2019. eBay was founded by Pierre Omidyar in 1995 and became a notable success story of the dot-com bubble. ( / ˈ iː b eɪ/ EE-bay) is an American multinational e-commerce company based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website. Auction Co., iBazar, GittiGidiyor, G-Market,, Qoo10.jpĮBay Inc.
