Massive Scale Commercial-Website
Operation
eBay scale:
Approximately 20M users.
Over 500K items added each day.
Massive strain on website reliability and
availability.
Major issue for high-traffic B2C sites, too.
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eBay's Website Operations & Exodus Communications: Ensuring Reliability, Slides of Fundamentals of E-Commerce
An insight into the massive scale of ebay's commercial website operations, with approximately 20m users and over 500k items added daily. The document also discusses the challenges of maintaining website reliability and availability, as evidenced by the three ebay crashes in june 1999. Exodus communications, an internet hosting service provider, was outsourced to help address these issues. The document further explores exodus' offerings, revenue chart, and brief history. Additionally, the document delves into the concept of auctions in c2c commerce, ebay's ascending-bid auctions, and their advantages for unlimited-supply (digital) goods.
Typology: Slides
2012/2013
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Massive Scale Commercial-Website
Operation
eBay scale:
Over 500K items added each day.Approximately 20M users.
Massive strain on website reliability and
availability.
Major issue for high-traffic B2C sites, too.
June 1999: Three eBay Crashes
- eBay service unavailable for “prolonged”
periods of time.
- Blamed on ISP router failure and SUN OS• Stock-price fall: 20%• Revenue-loss estimates: $3M to $5M
“memory bugs.”
Outsourcing to Exodus since Oct 1999.
WHAT EXODUS OFFERS
metropolitan areas“Internet Data Center” facilities in major
high-availability, redundant network infrastructureConnectivity to the Internet through a high-speed,
Services, including security technologies
Lycos, Macromedia, CBS Sports,Major clients: eBay, Yahoo Geocities, MSN,
(^) etc.
BRIEF HISTORY
Founded
- • March 1998 Went Public
Revenue more than $100M
Net loss more than $100M
- March 2000 Historic Peak of Stock Price
REVENUE CHART
R e v en u e 1 0 0 M1 5 0 M
Q u a rte r
2 0 0 M
9 5
9 6
9 7
9 8
9 9
5 0 M
Auction Design in C2C Commerce
Why Auctions?
- Hard for typical C2C seller to do market research and maximize revenue.set optimal fixed price. Auctions allow seller to
eBay ascending-bid auctions include:
- “Proxy bidding agents”– (Sometimes) reservation price– Bid Increment– Ending Time– Starting Price
Auctions for Unlimited-Supply
(Digital) Goods
“Optimal Fixed Pricing” (OFP)
OFP revenueNo truthful auction (even multi-price) can beat
“Competitive” =
=(OFP revenue)
No truthful, deterministic auction is competitive.
[Goldberg, Hartline, Wright ’99]competitive.There exists truthful, randomized auctions that are
Sale of Monroe Photos and Release
(From February 22, 2001 WSJ)
Auctioneer: eBay Premier and Butterfields of SF (eBay acquired Butterfields in 1999)
Item: Five outtakes of Marilyn Monroe’s 1949 “RedSeller: Tom Kelley Studios of Ventura, CA Velvet” photo shoot
(^) and the negatives and the
“model’s release form”
Expected price: $700K to $1M