eBay founder Pierre Omidyar launched the online auction site AuctionWeb in 1995; the service later became eBay.
Omidyar created AuctionWeb as part of a personal website while developing a way for people to trade collectibles online. The platform used auctions, allowing sellers to list items and buyers to compete by placing bids. Its early success encouraged the site to become a standalone business.
The company was initially known as AuctionWeb, not eBay. In 1997, the business adopted the eBay name, which was derived from Echo Bay Technology Group, Omidyar’s consulting company. A famous early listing involved a broken laser pointer, but that item is not the company’s name or its founding product category.
The auction model distinguished eBay from fixed-price online retailers. Over time, eBay added fixed-price listings, payments, seller tools, and international marketplaces, while auctions remained an important part of its identity.