Why did eBay succeed?

I just finished reading the book The Perfect Store: Inside eBay and it was quite enlightening. From what I understand, eBay succeeded because:

  1. They had a very solid first-mover advantage because they built a strong community of users and thus had a lot of sellers and buyers on their site. This made the switching costs very high.
  2. They were very frugal, they perfected the art of thriftiness in a time were IT companies blew boatloads of cash on furniture, scotch and acquisitions.
  3. The founders stepped aside and allowed experienced managers to run the company, as opposed to trying to reinvent the managerial wheels once the business started making lots of money.

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