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The website is free to use for buyers, but sellers are charged fees for listing items after a limited number of free listings, and again when those items are sold.

Today, e Bay is a multi-billion-dollar business with operations in about 30 countries.

The company manages e Bay.com, an online auction and shopping website in which people and businesses buy and sell a wide variety of goods and services worldwide.

e Bay generates revenue by a complex system of fees for services, listing product features, and a Final Value Fee for sales proceeds by sellers.

As of November 2012, the US-based e charges $0.10 to $2, based on the opening or reserve price, as an insertion fee for a basic auction-style listing without any adornments.

In his responding email, the buyer explained: "I'm a collector of broken laser pointers." The frequently repeated story that e Bay was founded to help Omidyar's fiancée trade Pez candy dispensers was fabricated by a public relations manager, Mary Lou Song, in 1997 to interest the media, which were not interested in the company's previous explanation about wanting to create a "perfect market".

Reportedly, e Bay was simply a side hobby for Omidyar until his Internet service provider informed him he would need to upgrade to a business account due to the high volume of traffic to his website.

In November 1996, e Bay entered into its first third-party licensing deal, with a company called Electronic Travel Auction to use Smart Market Technology to sell plane tickets and other travel products.