Piere Omidyar had formed a sole proprietorship for his web consulting and freelancing technology work, which he named Echo Bay Technology Group.
In 1995, Pierre Omidyar created Auction Web, the forerunner to eBay. The company originally operated out of Omidyar's house in San Jose, California. The company name, eBay, was arrived at by accident The company was originally known as Echo Bay Technology. In 1995, the company tried to register the domain name echobay.com; however, this domain was in use. The company shortened its domain name to eBay.com. ebay is short for echo bay and echo bay came from Echo Bay California.
The site began with the listing of a single broken laser pointer. Though Pierre had intended the listing to be a test more than a serious offer to sell at auction, he was shocked when the item sold for $14.83. Pierre knew that he'd created something big as soon as he contacted the winning bidder to ask if he understood that the pointer was broken. "I'm a collector of broken laser pointers," came the reply.
eBay began as an online market from which people could sell goods and services on a local or international basis.
In 2010, eBay's company information describes the company as global with websites in the Asia Pacific region, Europe and North America. With 90 million worldwide users, eBay is the worlds largest online marketplace. eBay grew rapidly, branching out from collectibles into nearly every type of market. eBay's vision for success transitioned from one of commerce—buying and selling things—to one of connecting people around the world together. eBay thrived, eclipsing many of the other upstart auction sites that dotted the dot-com bubble. According to eBay, PayPal, the online banking website, became an important part of eBay.
In 2002, eBay took control of PayPal. In 2009 eBay sold goods worth $60 billion.