eBay and the Rise of Online Shopping

25th October 2018 Social Berry

"A dear child has many names" they say. E-tailing, electronic retail or e-shopping, is a shortened form of "electronic shopping". An online store may also be called an e-web-store, e-shop, e-store, Internet shop, web-shop, web-store, online store, online storefront which is the alternative for a virtual store.

 

Online shopping first became available to us in the 1960's in the form of IBM's Online Transaction Processing. For example; American Airlines computerized ticket reservation system was one of its applications. Computer terminals located in different travel agencies were linked to a large IBM mainframe computer, which processed transactions simultaneously and coordinated them so that all travel agents had access to the same information at the same time!

  • Sounds so simple for a person living in 2018 but for people in the 60’s this was as if they were living in a sci-fi movie.

The emergence of online shopping as we know today developed with the emergence of the Internet. Specifically, the growth of the internet as a secure shopping channel has developed since 1994, with the first sales of Sting album 'Ten Summoner's Tales'.

 

Wine, chocolates, and flowers soon followed and were among the pioneering retail categories which fuelled the growth of online shopping.

 

Researchers found that having generic products which shoppers did not need to touch and feel in order to buy were proving to be quite successful for online shopping.

 

However, in the early days, there were very few shoppers online and often fell under the category of: rich, male and over 30 years old. Who would have known? I always thought early adopters would be people whom were looking for a bargain, women and of the younger generation.

 

Fast forward to 2018, anyone can open their own online shop, and thank God for that - now we have access to products worldwide without the hassle of transporting ourselves. It’s just a click away, and with women’s urge for buying new items, companies grow, jobs are created and we also have the potential to make money out of these companies success.

 

Today the world's ninth-largest internet company by revenue is; eBay.

 

eBay is an American multinational e-commerce corporation based in San Jose, California that facilitates consumer-to-consumer and business-to-consumer sales through its website.

 

A leader in online auctions, the company was founded by Pierre Omidyar in 1995, and became a notable success story of the dot-com bubble. eBay is now a multibillion-dollar business with operations in about 30 countries.

 

As the company expanded its product categories beyond collectibles into almost any saleable item, business grew quickly. In February 2002 the company purchased iBazar, a similar European auction web site founded in 1998, and then bought PayPal on October 3, 2002.

 

In addition to its original auction-style sales, the website has since evolved and expanded to include "Buy It Now" shopping, online classified advertisements, online event ticket trading (via StubHub) and other services.

 

By early 2008 the company had expanded worldwide, counting hundreds of millions of registered users as well as 15,000 employees and revenues of almost $7.7 billion. In late 2009 eBay completed the sale of Skype for $2.75 billion, but still owned 30% equity in the company.

 

Today eBay Inc (NASDAQ) stock price is trading around the US$28.19 mark.

 

By Rebecka Kristiansson, Client Relationship Agent at trade.Berry

 

**The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policies or position of trade.Berry.

This content is intended for educational purposes only, and shouldn’t be considered investment advice.

Trading CFDs involves high risk of losing money 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the risk of losing your money.

Please read our Risk Disclosure.

 

 Trading CFDs involves high risk of losing money 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the risk of losing your money.