welcome to watchmojo.com in today’s business school bit we’ll be continuing
business school bit we’ll be continuing
business school bit we’ll be continuing our series on successful companies and
our series on successful companies and
our series on successful companies and successful startups and one of the
successful startups and one of the
successful startups and one of the original names our synonymous with the
original names our synonymous with the
original names our synonymous with the web was none other than ebay now ebay is
web was none other than ebay now ebay is
web was none other than ebay now ebay is a very interesting case because it was
a very interesting case because it was
a very interesting case because it was founded in nineteen ninety-five by a
founded in nineteen ninety-five by a
founded in nineteen ninety-five by a computer programmer piya o media who was
computer programmer piya o media who was
computer programmer piya o media who was a french iranian living in boston
a french iranian living in boston
a french iranian living in boston realized was that the web would be
realized was that the web would be
realized was that the web would be perfect for a global marketplace that
perfect for a global marketplace that
perfect for a global marketplace that would match sellers and buyers from
would match sellers and buyers from
would match sellers and buyers from everywhere from sydney to sarasota the
everywhere from sydney to sarasota the
everywhere from sydney to sarasota the legend goes that he realized when he was
legend goes that he realized when he was
legend goes that he realized when he was in Boston that the place to be for web
in Boston that the place to be for web
in Boston that the place to be for web startups was actually San Francisco
startups was actually San Francisco
startups was actually San Francisco rightfully so so he basically picked up
rightfully so so he basically picked up
rightfully so so he basically picked up from Boston went to San Francisco and
from Boston went to San Francisco and
from Boston went to San Francisco and establish ebay over in San Jose and the
establish ebay over in San Jose and the
establish ebay over in San Jose and the legend goes that he realized that his
legend goes that he realized that his
legend goes that he realized that his girlfriend who was a collector of pez
girlfriend who was a collector of pez
girlfriend who was a collector of pez dispensers no longer had her trading
dispensers no longer had her trading
dispensers no longer had her trading partners who were still left out on the
partners who were still left out on the
partners who were still left out on the East Coast so lo and behold mr. o media
East Coast so lo and behold mr. o media
East Coast so lo and behold mr. o media decided to go out and launch this
decided to go out and launch this
decided to go out and launch this company called eBay this global
company called eBay this global
company called eBay this global marketplace now like most legends that’s
marketplace now like most legends that’s
marketplace now like most legends that’s not really true that was concocted
not really true that was concocted
not really true that was concocted ebays PR agency in 1997 to basically put
ebays PR agency in 1997 to basically put
ebays PR agency in 1997 to basically put a good spin an altruistic sort of spin
a good spin an altruistic sort of spin
a good spin an altruistic sort of spin on the success story that was eBay while
on the success story that was eBay while
on the success story that was eBay while the legend might not be true the fact of
the legend might not be true the fact of
the legend might not be true the fact of the matter is that eBay as a business
the matter is that eBay as a business
the matter is that eBay as a business model is arguably one of the best ever
model is arguably one of the best ever
model is arguably one of the best ever developed a couple years ago I was
developed a couple years ago I was
developed a couple years ago I was working on a business deal with the
working on a business deal with the
working on a business deal with the company out of Utah called overstock and
company out of Utah called overstock and
company out of Utah called overstock and this isn’t really confidential it’s just
this isn’t really confidential it’s just
this isn’t really confidential it’s just an interesting little anecdote and as I
an interesting little anecdote and as I
an interesting little anecdote and as I was trying to understand their business
was trying to understand their business
was trying to understand their business model a bit more I said well let me get
model a bit more I said well let me get
model a bit more I said well let me get this straight you guys are essentially
this straight you guys are essentially
this straight you guys are essentially trying to compete an ebay space I was
trying to compete an ebay space I was
trying to compete an ebay space I was told immediately no no no we don’t
told immediately no no no we don’t
told immediately no no no we don’t really want to compete with ebay because
really want to compete with ebay because
really want to compete with ebay because ebay has got the best business model the
ebay has got the best business model the
ebay has got the best business model the reason is very simple it collects a cut
reason is very simple it collects a cut
reason is very simple it collects a cut of all transactions made on the website
of all transactions made on the website
of all transactions made on the website and it carries absolutely no inventory
and it carries absolutely no inventory
and it carries absolutely no inventory because the transactions are made
because the transactions are made
because the transactions are made between two people so low overhead good
between two people so low overhead good
between two people so low overhead good margins essentially they have eighty
margins essentially they have eighty
margins essentially they have eighty seventy percent profit margins which
seventy percent profit margins which
seventy percent profit margins which makes investors very happy now
makes investors very happy now
makes investors very happy now throughout the years ebay has slowed
throughout the years ebay has slowed
throughout the years ebay has slowed down a bit mainly because while
down a bit mainly because while
down a bit mainly because while transactions are still very much a
transactions are still very much a
transactions are still very much a high-growth area on the web ebay never
high-growth area on the web ebay never
high-growth area on the web ebay never really positioned itself to take
really positioned itself to take
really positioned itself to take advantage from online advertising which
advantage from online advertising which
advantage from online advertising which is an area that is growing like wildfire
is an area that is growing like wildfire
is an area that is growing like wildfire these days so eva has gone out over the
these days so eva has gone out over the
these days so eva has gone out over the past few years and made some very key
past few years and made some very key
past few years and made some very key acquisitions one of them being paypal a
acquisitions one of them being paypal a
acquisitions one of them being paypal a very popular payment processing that a
very popular payment processing that a
very popular payment processing that a lot of individuals and some merchants
lot of individuals and some merchants
lot of individuals and some merchants use and recently ebay went out and
use and recently ebay went out and
use and recently ebay went out and acquired another company that we will be
acquired another company that we will be
acquired another company that we will be profiling in our series called skype
profiling in our series called skype
profiling in our series called skype which is essentially a p2p communication
which is essentially a p2p communication
which is essentially a p2p communication tool that is very very successful they
tool that is very very successful they
tool that is very very successful they pay two billion dollars for skype once
pay two billion dollars for skype once
pay two billion dollars for skype once again some people say that they overpaid
again some people say that they overpaid
again some people say that they overpaid but the bottom line is that with ebays
but the bottom line is that with ebays
but the bottom line is that with ebays coffers they could afford to essentially
coffers they could afford to essentially
coffers they could afford to essentially by growth in the form of the next
by growth in the form of the next
by growth in the form of the next generation of communication so eBay is
generation of communication so eBay is
generation of communication so eBay is one of the many many examples of a
one of the many many examples of a
one of the many many examples of a company that launched over 10 years ago
company that launched over 10 years ago
company that launched over 10 years ago that continues to be a force to be
that continues to be a force to be
that continues to be a force to be reckoned with both in offline and online
reckoned with both in offline and online
reckoned with both in offline and online commerce that’s been this week’s
commerce that’s been this week’s
commerce that’s been this week’s Business School bit eBay
Business School bit eBay
Business School bit eBay watchmojo calm
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