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In the United States, it is common for people to sell their second-hand goods in their front yards and garages, called "yard second-hand sales" or "garage auctions." For example, when the child is older, the toys when he was a child are no longer needed, parents let the child set up a stall in their front yard, sell the toys for a few cents or a few dollars, and earn some pocket money. Sometimes, when the old furniture is no longer needed, a sign is put up at the intersection and the neighbors come to reduce the bargain.

In some cities in the United States, there are also thrift markets known as flea markets, like antique markets in China, where you can sometimes pick up some good things.

In 1995, when the Internet boom was on the rise of the world, an American engineer of Iranian origin, Pierre Murphy. Pierreomidyar came up with the strange idea of bringing a frontyard thrift and flea market online, initially called Web Auction and later eBay.

At that time, Americans would even choose to sell old cars, old furniture and other second-hand large items of information published in newspaper classified ads, the emergence of eBay provides a network platform for people to communicate with people who sell old goods and buy old goods, compared to dozens of dollars in the local newspaper classified ads, pay a little fee to ebay is cheaper, and can reach a wider range of buyers, sellers like this way, so in a short period of time, a large number of sellers will pile up their old goods on ebay for sale.

eBay, on the other hand, uses auctions to allow buyers to negotiate prices on their own and deal directly with sellers. In this way, eBay has almost no other costs other than basic operating expenses, which are actually equivalent to charging fees. As a result, eBay has had a gross profit margin of more than 8o for a long time.

eBay's business model is crystal clear, very easy to understand, and has good roots in the United States. In China, Tmall, which was the first to transform and claim to be C2C, is also the premise of implementation in the context of the rise of Chenxing Home Express, SF Express and Four Links Yida, which is dominated by the "small express delivery" business, and the birth of Alipay! Otherwise, payment and credit issues alone would be enough to make it difficult for Mr. Ma.

In later generations, the short-lived 8848, which was as dazzling as a comet, fell from the clouds into the dirt, and the brand gradually tended to die! Its market was then cannibalized by the then-eBay (1999), Excellence (2ooo) and rising star Taobao (2oo3).

Prior to this, the performance of e-commerce websites was not optimistic, because the problems of "logistics", "payment" and "integrity" made e-commerce companies very uncomfortable, so they were vividly called "the three mountains of e-commerce"!

If it weren't for the "saRs" of 2oo3, China's e-commerce would probably have to walk in the mud and twists for a longer time!

eBay's business model is a perfect money printing machine model, but for this money printing machine to work, eBay has to solve two problems, namely credit problems and payment problems.

Since it is impossible for two parties to meet each other in an online transaction, and it is difficult to avoid fraud on one or even both sides, eBay's solution is to let buyers and sellers rate each other's evaluations, and over time, each eBay user has a rating and transaction record, including the number and percentage of positive reviews and details of recent transactions, so that trading on eBay is somewhat reassuring.

This is the prototype of the "big number jù" often mentioned by the media in later generations, and in the context of China's lack of perfect credit information, it is also the basis for the implementation of P2P financial services such as Alibaba Cloud Loan!

Before the advent of third-party online payment companies for paypaL, eBay's main payment methods were cash, check, and credit card, all three of which were not suitable for both parties to eBay's transactions.

Since buyers and sellers can't meet, cash can't be used. On the one hand, sellers are afraid of receiving fake checks, such as a check for $1,000 in a $100 account; On the other hand, the buyer is also afraid that the other party will not pay the check after receiving it, not to mention the time it will take to send the check back and forth. Credit cards are a good way to pay online, but they are not accepted by individuals and many small businesses. On the other hand, customers are generally less comfortable handing over their credit card information to small businesses they don't know.

In this way, eBay needs a payment method specifically for online transactions, and the emergence of paypaL is both shocking and reasonable, which is an emerging economy that will inevitably emerge after the in-depth development of Internet technology.

In later generations, paypaL was not actually valued by eBay at the beginning, but in the time and space with Song Chen and Chenxing Holdings, eBay did not dare to take carelessness lightly!

This group of companies owns 8848, an online retailer that has gained worldwide fame; QQ, an online instant messaging app that has tens of millions of users who can compete with IcQ; There are search engines googLe and Baidu, which have a near-monopoly in the global search market; There are Chenxing Culture Group, an entertainment platform based on terminal PCs, and paypaL and Alipay, which have the world's top online payment solutions!

Especially paypaL!

When it went live at the end of July last year, the company had the advanced ability to recruit a large number of experienced engineers, and in the specific field of security, paypaL and googLe have the top technical talents in California, who are like fish in water in the loose and free paypaL, and hundreds of engineers have developed a heart-wrenching anti-fraud system and several models in a year!

Chenxing Holdings is a "deformed monster", it is difficult for people to estimate the true value of this company, but it is undeniable that in front of this increasingly large young company, anyone who does the Internet does not dare to boast of "no pressure" in the face of Song Chen!

This time, Jeff? Skoll came to visit Song Chen on behalf of eBay, and the most important purpose was to test it!

eBay wants to buy paypaL! And there's no time to wait!

In the beginning, eBay only did online auctions, but Jeff? Scholar from the founder Pierre. When Omidya took over the reins of eBay, he realized that he couldn't sustain the company's rapid growth by selling second-hand goods alone - because no one but a loser could put their second-hand goods up for auction on eBay every day.

As a result, eBay made a small shift in its business model, gradually transforming from an online flea market to an online free market. eBay began helping small e-commerce merchants open their own stores through Guòebay, providing them with a place to reach global consumers without having to spend money advertising their websites, and these small merchants gave a portion of the proceeds of the sale as a commission to eBay.

This business model is actually a subversion of the traditional retail business model!

In the U.S. and around the world, eBay plays the role of a disruptor, and in China eBay, which copies eBay's business almost unchanged. But the irony is that the later generation of Ma Yun also played the role of a subversive - he subverted the C2C charging model in China, exempting Taobao users from sales commissions, and also exempting the listing fee of single products on the shelves, opening stores for free within 3 years (later lengthened), traffic monetization (advertising, merchant bidding rankings, etc.) and store plug-ins and online software rental, etc., although Ma Yun's marketing plan made Taobao fall into losses for a long time, but he also lost a favorable situation from eBay in the competition, and finally Ma Yun won the war.

In the traditional business model, advertising is almost the only way to reach a consumer base, so the cost of advertising becomes part of the cost of business. Opening a store on eBay is to convert the advertising fee into eBay's listing fee and a very low sales commission. Whether it's better to advertise your own website or do business through guòebay, it's easy for small businesses to settle the account. It's easy for eBay to keep its fees lower than traditional advertising costs, so a large number of e-commerce companies and individuals sell on eBay.

At this time, eBay is no longer selling old goods from the flea market, but mainly brand new consumer goods! A large number of individuals buying and selling on eBay have contributed enough popularity to eBay, and eBay has since caught the fast train of e-commerce!

But at a time when Wall Street is praising eBay's higher paper returns than the broader market, Jeff? Skoll saw the reef under eBay's glorious achievements, saw the complementary role of third-party network payment technology on eBay, and the wide praise of eBay users, more than half of eBay's users use paypaL to pay!

Which makes Jeff? Schole regretted that perhaps eBay should have decisively learned from Amazon to open its own third-party payments instead of working with paypaL. Skoll had a feeling that he was a tiger.

But eBay is different from Amazon, and the relationship between eBay and Amazon is like the relationship between Google and Apple in later generations, the former is an open platform that serves millions of small merchants, while the latter is a closed platform, with Jeff? Skoll's eponymous Jeff? Bezos has the confidence and technology to let Amazon consumers use their own technology, while eBay cannot!

If eBay sits like this, it will first face lawsuits from eBay users and paypaL. Skoll is restless! To this end, he began to tentatively reveal the wind to the outside world, testing paypaL's reaction; On the other hand, given the pressure of time cost, eBay has selected several online payment startups from behind paypaL for later use.

Of course, he would prefer to reach an acquisition agreement with Song Chen, paypaL has too much talent and technology that eBay needs! (To be continued.) If you like this work, you are welcome to subscribe (Biquge), reward, your support is my biggest motivation. )