E-Bay Business Models and StrategiesE-Bay Business Models and Strategy Has anyone ever been frustrated trying to find merchandise that no one seems to have? Or how about looking for the autograph of your favorite artist or a professional player? How about looking for new/old Pez dispensers? Well, I'm sure everyone who has needed or searched for one of these particular products online has stopped by E-bay to take a look at what exactly they have to offer. E-bay is an online auction company that serves as an intermediary between buyers and sellers. It was started in 1995 by a man named Pierre Omidyar, who started the site as a hobby, originally used by his girlfriend as a trading exchange to collect Pez dispensers. Who would have thought that today, what started as a hobby, could have become a widely accepted and growing stock on the NASDAQ stock market. With today's technological advancement, it's easy to see why E-Bay has continued to grow over the past 12 years, becoming the largest and most popular online auction site today. in the world. However, would E-bay have been as successful if they had just introduced the site to today's e-commerce world. E-bay is considered the best online auction site in the world, and to think that if they had introduced this service into today's business world they would not have been as successful, it would be absolutely absurd. However, it is difficult to imagine how the success of electronic racks would have been perceived if it had been created at the present time. The introduction of the Internet in the 1990s played a major role in the success of eBay and made it what it is today. Consider...... middle of paper ...... all customers in E-bay's already huge customer base simply because E-bay offers its customers everything they are looking for, from from simplicity to accessibility, including the products. which they don't seem to find in any store or any other online source worldwide. From what was once a small household hobby designed to trade and buy Pez dispensers, has turned out to be a multi-billion dollar industry. E-Bay is operationally strong, especially as it is still in a development period and has a business model that scales extremely well. Management has proven to respond quickly and effectively and has worked hard to grow the business without compromising core business strategies. While eBay stock may still be overvalued, the company's fundamentals are strong and the only risk is if eBay doesn't make it happen. not growing as fast as he estimated.