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The innovative business model behind eBay was to create a marketplace that brought buyers and sellers together on a common meeting ground online where they could do business. He contacted the buyer of the merchandise to ensure he understood the laser pointer was broken and was informed that the buyer was "a collector of broken laser pointers. Initially, the website was a side hobby for the owner until he was contacted by his Internet service provider, who informed him that he would need to upgrade to a business account due to the high volume of traffic that his site received.
Because of the operations price increase, eBay had to change the way users accessed the site as well as their fees, and this, of course, was not met without any animosity. Still, the changes were made, and then Pierre hired the first president of the company Shortly thereafter, the site obtained a third-party licensing deal with companies like Electronic Travel Auction to sell airline tickets and other travel products.
From that moment on, the company experience phenomenal growth. It wasn't until that the official name of the company changed from AuctionWeb to eBay.
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Pierre had originally wanted to name the site after his consulting firm, Echo Bay Technology Group, but when he tried to register the domain name, echobay. Therefore, he shortened the name down to eBay, and the company's been registered under and known as that name ever since. Since its humble beginnings, eBay has went on to make several acquisitions and sell parts of its company. Now the company is one of the most famous dot-com bubble success stories, and it has grown into a multi-billion dollar business that has operations in more than 30 countries across the world.
Additionally, it has expanded to manage sub-sites like Half.
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