What Is eBay, and How Does It Work?

The Internet spawned all kinds of online marketplaces (known as e-commerce sites to Wall Street types), and eBay is the superstar. The reason it remains the leader is simple: It’s the place where buyers and small-business sellers can meet, do business, share stories and tips, and have fun. It’s like one giant online potluck party — but instead of bringing a dish, you sell it!

eBay, itself, doesn’t sell a thing. Instead, the site does what all good markets do: It creates a comfy environment that brings together people with common interests. You can think of eBay as the person who set you up on your last blind date — except the results are often a lot better. Your matchmaking friend doesn’t perform a marriage ceremony but does get you in the same room with your potential soul mate. eBay puts buyers and sellers in a virtual store and lets them conduct their business safely within the rules that eBay has established.