WHEN Mr Pierre Omidyar put a broken laser pointer on auction in September 1995, it fetched US$14.83 (S$20.50). Stunned, Mr Omidyar, an American, contacted the new owner to inform him that the item was faulty. The buyer said: "I collect broken laser pointers."

Realising he was on the verge of something big, Mr Omidyar started the world's first online auction business called Auction Watch in 1995, which was renamed eBay in 1997.

Mr Omidyar relinquished his responsibilities in 1998, but continues to serve as chairman.

Today, one of the world's most famous platforms for e-commerce is a mouse click away. Headquartered in San Jose, California, eBay, which has offices in 39 countries, connects 83.9 million active users online. Sales totalled US$1.48 billion in the first quarter of this year, a year-on-year growth of 19 per cent.

To stay ahead of the competition, eBay acquired online payment system PayPal in 2002 and e-communications company Skype in 2005 as part of its expansion strategy.

It also ties up with online platforms in other countries, such as tom.com in Taiwan, to reach more users.

As eBay turns 13 this year, its vice-president for emerging markets (South-east Asia and India), Mr Dan Neary, shares with my paper its branding strategy.

What does eBay stand for?

Fun and variety, at a good price. Like our logo, the site is friendly, open and accessible.

How has eBay's philosophy evolved over the years?

We're trying to change the world of retail, where people from all over the world can buy or sell anything at a fair price.

That has always been our mission statement.

What has changed is how we build trust in the marketplace.

We offered the feedback mechanism in 1996 so buyers can look at a seller's history and see other buyers? comments. Detailed seller ratings were introduced in 2007 so people can research more about the seller's previous transactions. Items bought under PayPal are also covered for up to $2,000 if things go wrong.

How does eBay stay relevant in the face of competition from Orchard Road?

In a country where the national sport is shopping, eBay is a natural platform. What we've noticed is how Singaporeans prefer to buy things that they can't get within Singapore. So they're always looking for the best deals from other countries. And eBay helps them do so.

What's the best deal you've snagged on eBay?

The Tag Heuer watch on my wrist, from a Filipino seller. It was US$1,500, which was 40per cent off the retail price. I've also sold a used Porsche car and became US$35,000 richer.

How does eBay give back to the communities?

We organise regular auctions and donate the proceeds to charity.

For example, we offer an annual lunch date with billionaire Warren Buffett and throw in one stock tip. In 2004, a Singapore- registered user successfully bid US$202,100 for this honour. eBay is also channelling donations towards the Myanmar cyclone rescue efforts.

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