Evey great and mighty organization in one way or the other has experienced transformation. The world of digital age has accelerated the pace at which business are being done all over the world.

Ebay is not an exception to the digital and technological miracle that is sweeping through the global world. I was opportune to read through a great book , authored by Thomas Friedman, the title of the book is "the world is flat", in the book, ebay explained at length the secret of their market dominance.

Below are some of the excerpts, you will find it resourceful.

Before PayPal, explained eBay CEO Meg Whitman, “If I did business on eBay in 1999, the only way I could pay you as a buyer was with a cheque or money order, a paper-based system. There was no electronic way to send money, and you were too small a merchant to qualify for a credit card account. What PayPal did was enable people, individuals to accept credit cards. I could pay you as an individual seller on eBay with a credit card. ‘This really leveled the playing field and made commerce more frictionless.” In fact, it was so good that eBay bought PayPal, not on the recommendation of its Wall Street investment bankers, but on the recommendation of its users.
“We woke up one day,” said Whitman, “and found out that 20 per- cent of the people on eBay were saying, ‘I accept PayPal, please pay me that way.’ And we said, “Who are these people and what are they doing?” At first we tried to fight them and launched our own service, called Billpoint. Finally, in July 2002, we were at [an] eBay Live [convention] and the drumbeat through the hall was deafening. Our community was telling us, ‘Would you guys stop fighting? We want a standard-and by the way, we have picked the standard and it’s called PayPal, and we know you guys at eBay would like it to be your [standard], but it’s theirs. And that is when we knew we had to buy the company, because it was the standard and it was not ours . . . It is the best acquisition we ever made.”