The discovery of the Internet has completely transfigured man’s lifestyle by cutting distance and making the world a small and reachable place to live in. Information is made available with just a click of a button.
People have changed the way of shopping itself. Online shopping has become viral and thriving within a decade, making it one of the most competitive markets in the current world (Atechnologysociety.co.uk, 2015).
The e-commerce market was worth 1.471 trillion dollars worldwide in 2014 and in forecasted to increase by 20% in 2015 (Emarketer.com, 2015). Further, United Kingdom is rated No. 1 for online retail in the world and there is significant increase in demand every year (Ubmfuturecities.com, 2015) (See…show more content… 3.0. Background:
3.1. History of the firm:
EBay is an American multinational firm that offers consumer-to-consumer and business-to-consumer sales services through the Internet. It was founded in 1995 by Pierre Omidyar and is headquartered in California, USA (Ebayinc.com, 2015). The company started with online auctions and then grew into a shopping website where buying and selling takes place between the general public and businesses. EBay has had several acquisition successes. In 2000 eBay bought Half.com, an online site for sales of books, music, movies and games.In 2007 it acquired StubHub, a provider of online services for sellers and buyers of various types of tickets such as concerts, sports, live shows etc. (StubHub, 2015). In 2005 eBay acquired Skype, a telecommunication application, which was later acquired by Microsoft in 2011 for 8.5 billion dollars giving the company a great monetary boost. In 2002 PayPal, a digital wallet for online transfer of money, was made a whole subsidiary of eBay. This was one of the best acquisitions as PayPal’s functionalities were merged with eBay’s platform providing the online shopping process easier, faster and safer (Investor.ebayinc.com, 2015). PayPal is available for users in 38 different countries giving eBay a greater advantage over its competitors in terms of ease in payment options (Investor.ebayinc.com, 2015).