To eBay with Thanks

A look at what we've gained by the 'eBay experience'

by Dennis L. Prince
- Nov 18, 2013

No, this isn't going to be any sort of sarcastic backhand, nor is it an insincere ploy to gain favor; there's truly good reason to give thanks to eBay.

What started as one man's innocent endeavor in late-1995 has evolved to become the e-commerce culture we enjoy today. And, not only did the eBay experiment ultimately lead the way in defining entrepreneurial opportunity in our high-tech age, it also provided a proving ground for an exciting new business model.

So, here's a look at what we've gained by the eBay experience, from the entrepreneurial paths it has blazed to the business acumen it has perpetuated within its army of sellers. You might agree that there's plenty here to be thankful for.

eBay motivated the technically challenged among us to venture into the emerging World Wide Web in order to buy and sell from the comfort of our own homes

It began as a new place for displaced goods

eBay founder Pierre Omidyar dared to test the idiom, "One man's trash is another man's treasure." Indeed, when he created AuctionWeb at eBay to see what he might earn for his broken laser pointer (among other unneeded computer hardware), he found a buyer willing to pay $14. So began the online garage sale where buyers and sellers could meet, virtually, to determine real-time market value for goods of all sorts.

Soon, a collective of eager sellers met up with an audience of curious buyers and the auction was in full swing. All manner of goods traded in the online auction space, giving unwanted goods new homes, usually to the pleasure of both parties.

Omidyar's experiment opened the door to the unexplored realm of e-commerce, bringing the excitement of the hunt to the thrill of the big-dollar sell. In little time, anyone considering junking their unwanted items were counseled, "Don't throw that away; throw it on eBay."

With that, eBay became instrumental in motivating the technically challenged among us to venture into the emerging World Wide Web, coaxed by the opportunity to buy and sell from the comfort of our own homes. eBay was an inarguable player responsible for the cultural phenomenon of the Internet, having become as indispensable as electricity and indoor plumbing. Therefore, if you enjoy the ease of finding goods to buy or profit from the ability to sell your own items online, you might be thankful for eBay.

I've finally found what I'm looking for

Although eBay played host to some truly odd items (remember the human kidney?), it had become the de facto destination for all things collectible. From rare paintings to rusted relics, eBay became the matchmaker between sought-after goods and those who had been searching for them (and some had been searching for the better part of their lifetimes).

With eBay as a starting hub, sellers learned how to source goods, how to inventory, how to price for profit and how to develop a customer base

By offering a virtual hub for trading, eBay broke down the global barriers that once confined us (or, at least, severely limited us), enabling collectors to find what they yearned for. At the same time, owners of such desirable goods found an eager gathering of buyers who participated in spirited bidding, and often rewarded sellers with bona fide fortunes. If you've found what you've always pined for, or garnered a tidy taking from offering what you no longer wanted or needed, you might be thankful for eBay.

I never thought I could launch my own business

Not long after having "caught on," eBay tempted the motivated among us to claim a piece of the e-commerce pie. Following their unexpected "I never could have believed someone would pay so much for that" successes, many casual sellers determined there was lasting opportunity in the e-commerce world. Though they might have been lightly intrigued by the notion of creating their own little websites (à la Geocities), the potential to marry Web-making know-how with a path to profit made perfect sense.

Soon, sellers were learning how to work with user interfaces (the various eBay screens), discovering how to harness HTML tags to dress up their item listings, and becoming proficient in digital photography. The eBay experience gave motivation to master the workings of the Web and, more important, understand and apply business methods.

eBay laid the groundwork for new online sellers, but most took that knowledge to the next level, learning how to develop their own online stores and establish their own brands and businesses. The entry into the online marketplace was vastly easier than making a presence in the brick-and-mortar retail world. With eBay as a starting hub, sellers learned how to source goods, how to inventory, how to price for profit and how to develop a customer base. And, if their method or model needed adjustment, the near-instant feedback of online commerce made it easy to correct the course and limit any losses.

If you enjoyed making some extra money using the online auction space and then parlayed that experience to develop your own Web business, you might be thankful for eBay.

We've learned how to interpret changes in the way eBay works, determining how their moves might impact how each of us adjusts and adapts our business goals and expectations

How did I become so business savvy?

And that brings us to today. eBay has undergone significant changes since its first bow as AuctionWeb. Many of the changes were well received—especially those that helped the site remain viable in the midst of the late-90s dot com bust—and buyers and sellers gleaned plenty as they witnessed the maturing of the e-commerce model that drives much of today's global economy.

We've learned how to interpret changes in the way eBay works, determining how their moves might impact how each of us adjusts and adapts our business goals and expectations. Of course, many of eBay's changes have infuriated us, seemingly sacrificing the sellers who power the site in exchange for corporate profits.

But, even as we sometimes gnash our teeth over eBay's moves, we're able to dissect the motives and identify the "unintended consequences" that would negatively affect the selling community. That has become the maturing of the seller base, a well-educated (many self-educated) league of businesspeople who see the bigger picture today, and have ability to take matters into their own hands. These are the folks who might believe they no longer have need for eBay, decrying what they assert as the site's heavy-handed and self-serving motives.

If you believe you know a better way to run an online business, to anticipate and cater to customer needs, and to adjust your business in ways that keep it viable in good times and bad, well, you just might be thankful for eBay.


About the Author

Dennis L. Prince has been analyzing and advocating the e-commerce sector since 1996. He has published more than 12 books on the subject, including How to Sell Anything on eBay…and Make a Fortune, second edition (McGraw-Hill, 2006) and How to Make Money with MySpace (McGraw-Hill, 2008). His insight is actively sought within online, magazine, television and radio venues.

Opinions expressed here may not be shared by Auctiva Corp. and/or its principals.

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