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Electronic Commerce, Seventh Annual Edition Chapter 6:Online Auctions, Virtual Communities, and Web Portals Electronic Commerce, Seventh Annual Edition Objectives In this chapter, you will learn about: Origins and key characteristics of the seven major auction types Strategies for Web auction sites and auction-related businesses Virtual communities and Web portals Case - eBay In 1995, Pierre Omidyar, in his spare time, operating a small personal web site that provided updates on the Ebola virus. He built a small auction function into his site and called it AuctionWeb. By the end of its second year in operation, it was renamed eBay, had auctioned over $95 million worth of goods and was showing a small profit. In 1997, Omidyar obtained $5 million in funding from Benchmark Capital. In 1998, eBay offered its stock to the public. Like many Internet companies, eBay experienced extremely rapid growth. Unlike many of the new dot-com companies of the time, eBay was profitable from its inception(起初). Case - eBay In just three years, eBay established itself as the dominant website for general consumer auctions with over 2 million registered buyers and sellers. Because eBay was one of the first auction websites and because it pursued an aggressive promotion strategy, it has become the first-choice site for many people who want to participate in auctions. EBay’s early advantage in the online auction business will be very difficult for competitors to overcome. 6.1 Auction Overview – 6.1.1 Origins of Auctions The earliest written records of auctions are from Babylon and date from 500 BC. Auction became common activities in 17th-century England. The 18th century saw the birth of two British auction houses Sotheby’s (1744) Christie’s (1766) 6.1.1 Origins of Auctions In an auction, a seller offers an item for sale, but does not establish a price Bidders(出价人) Potential buyers Bids(出价) Prices bidders are willing to pay for an item Shill bidders(雇佣出价人,托) In some auctions, peo
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