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Strategic international expansion has failed in Taiwan and Japan, where Yahoo!
had a head start, and New Zealand, where Trade Me is the dominant online auction website.
The resulting price increase (from /month to 0) forced him to start charging those who used e Bay, and was not met with any animosity.
Jeffrey Skoll was hired as the first new president of the company in early 1996.
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.
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.
Under US law, a state cannot require sellers located outside the state to collect a sales tax, making purchases more attractive to buyers.Although some state laws require resident purchasers to pay use tax on out-of-state purchases, it is not a common practice.However Value Added Tax (VAT), the EU countries' sales tax, is different.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.Growth was phenomenal; in January 1997 the site hosted 2,000,000 auctions, compared with 250,000 during the whole of 1996.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 late 2009, e Bay completed the sale of Skype for .75 billion, but will still own 30% equity in the company.On September 30, 2014, e Bay announced it would spinoff Pay Pal into a separate publicly traded company, a demand made nine months prior by activist hedge fund magnate Carl Icahn. e Bay’s then chief executive, John Donahoe, stepped down from that role.On January 23, 2008, the company announced that Whitman would step down on March 31, 2008, and John Donahoe was selected to become President and CEO.Whitman remained on the Board of Directors and continued to advise Donahoe through 2008.