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 mouseclick 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 emergingmarkets (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 40 per 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.

Singapore buys

In Singapore, 250 items of clothing or accessories are sold on eBay every day, 27 watches are bought every hour and five MP3 players exchange hands every minute.

American town for sale

The town of Bridgeville in California was sold for over US$1 million (S$1.38 million).

The winning bidder backed out and a certain Bruce Krall subsequently purchased it for US$700,000 (S$966,350).

Sports car for a dollar

When the wife of a British radio DJ on Kerrang! 105.2 heard him flirting on air with model Jodie Marsh, she flogged his Lotus sports car on eBay at the starting bid of 50 pence (S$1.34). It was sold within five minutes.

Jar of celeb air

A jar of air allegedly breathed by celebrities Angelina Jolie and Brad Pitt was sold on eBay for over US$15,000 (S$20,707). The starting bid was US$9.99 (S$13.79).

Britney's hair

After Britney Spears shaved off all her hair at a Los Angeles salon in Feb 2007, her crowning glory was listed on eBay for US$1 million (S$1.38 million). Following controversy, the bid was taken down.

Most expensive item sold

The most expensive item sold on eBay to date is a private Grumman Gulfstream II jet. The price tag was a whopping US$4.9 million (S$6.76 million).