The Online Auction Website Concept

History of Online Auctions
While traditional auctions have been around for centuries, only with the birth of the internet and the availability of personal computers, have online auctions had the opportunity to exist. And it seems, as soon as the function became available the world was set on the idea.

The first to create a successful auction website was Pierre Omidyar, founder of auction giant eBay in the US. The seed of the idea started when he was talking with his wife about how hard it was to find people to trade Pez Candy Dispensers. He thought it would be great if his wife could find a place to trade, an online marketplace where individuals could trade with each other in an efficient market.

And so eBay was born. Pierre, a software engineer by trade started to design the basic framework and functionality for a site he called AuctionWeb, back in early 1995. It was a hobby at first in his spare time but membership started to grow immediately.The service was initially free but soon there was so much traffic that Pierres ISP raised his internet bill (to run the site) from $30 a month to $250. So Pierre decided to charge 10c per auction listed and 5% of the sale price. Month one he made $1000, month 2 $2500 and the number kept rising exponentially. Soon he was making more money with his hobby than his dayjob.

Now eBay is market leader in over 30 countries. The company has almost 30 million members who trade millions of items each day. A publicly listed company, eBay turns over $8 billion per year and also owns Skype and PayPal.

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