Archive for the ‘ Internet ’ Category

The Amazing and Highly Questionable eBay History

Nowadays a stock exchange listed company, eBay was founded in September 1995 by Pierre Omidyar under the name of AuctionWeb which was one year later changed to the current one that makes reference to the San Francisco Bay Area where Pierre Omidyar launched the project. The first attempt seems to have been “echobay”, but since the internet domain was already taken, the shorter version was preferred.

It is said that originally the site was created by the French-Iranian entrepreneur in order to allow his wife to exchange the Pez candy dispensers she was collecting. However, there are voices claiming this story is not true. They pretend the starting point was a test for a software program and that the other story was created for public relation purposes two years after the site’s inception.

The very first item sold on eBay for14.83 U.S. dollars was a defective laser pointer. Surprised that a broken item found its buyer so easily, the website’s founder contacted the winning bidder to check if he understood that the laser was defective, but it proved to be exactly what the buyer needed as he was a collector of this kind of items. From this point onwards, carried by the boom of the Internet and by the rapid development of the electronic commerce, this concept gain rapidly popularity and became not only a huge commercial success, but also a society phenomenon.

During the year of 1996, eBay hosted a quarter of a million objects put on sale by their holders. The number increased by almost ten thousands times the next year. If in 2004, its turnover was of three billion dollars, in 2006, the company headquartered in San Jose, Silicon Valley had 11.000 employees and in 2011, the number of items sold since the site’s creation exceeded 45 billion.

Home Delivery with Google

According to reports, theMountain Viewgiant aims to launch its own home delivery service that would come along on top of the already existing price comparison engine. With the introduction of Panda, Google is already the top price comparator on the European market and this new addition would do nothing but reinforce its dominant position.

Although it did not interfere in the online shopping business for a long time, Google has always shown some initiative within this field and made some attempts by introducing Google Product Search, Froogle and Google Checkout. However its interest in the e-commerce business segment has increased since 2011 when Stephanie Tilinius was hired. A former eBay employee, Tilinus was a valuable addition that seems to help Google concentrate efforts and conquer this Internet business area as well.

According to business analysts, Google is currently trying to hit Amazon and their fast delivery service Amazon Prime which allows a fast reception of online purchases for a fee of 79 dollars a year. The reason lies in the high percentage (40%) of internet retail business share detained by Amazon at the moment which the web-search giant cannot stand losing. According to Wall Street Journal, Google is already negotiating with the American major distribution players such as Gap and Macy’s in order to establish this innovative delivery system that would cost a lot less then Amazon and would take between 24 and 48 hours to reach destination.

Therefore, no matter what legal actions the internet giant might face, online shoppers should be reassured as such competitiveness brings more options and better services at lower prices for the general public. However, if Google succeeds in this new venture, it will be difficult for any online customers to avoid it and its supremacy will gain another confirmation.