EBAY INC
SC 13G, 1999-02-17
BUSINESS SERVICES, NEC
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<PAGE>
 
                            UNITED STATES                     OMB APPROVAL    
                  SECURITIES AND EXCHANGE COMMISSION  OMB Number:  3235-0145  
                        Washington, D.C. 20549        Expires:  August 31, 1999
                                                      Estimated average burden 
                                                      hours per response  14.90
                                                      -------------------------
                            

                                 SCHEDULE 13G

                   Under the Securities Exchange Act of 1934
                              (Amendment No.  )*


                                eBay Inc.     
             -----------------------------------------------------
                               (Name of Issuer)

                                 Common Stock
                  -------------------------------------------
                        (Title of Class of Securities)

                                278642 10 3    
               -------------------------------------------------
                                (CUSIP Number)

                               December 31, 1998
            -------------------------------------------------------
            (Date of Event Which Requires Filing of This Statement)


Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:

              [_]  Rule 13d-1(b)

              [X]  Rule 13d-1(c)

              [_]  Rule 13d-1(d)

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).

Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB control number.
                    
                                  Page 1 of 4
<PAGE>
 
- -----------------------                                  ---------------------
CUSIP No. 278642 10 3              13G                    Page 2 of 4 Pages 
- -----------------------                                  ---------------------
 
- ------------------------------------------------------------------------------
      NAME OF REPORTING PERSON
 1    I.R.S. IDENTIFICATION NO(S). OF ABOVE PERSON(S) (ENTITIES ONLY)
                                                                                
      Margaret C. Whitman
                          
- ------------------------------------------------------------------------------
      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
 2    (a)
      (b)                                                          
                                                 
- ------------------------------------------------------------------------------
      SEC USE ONLY
 3
 

- ------------------------------------------------------------------------------
      CITIZENSHIP OR PLACE OF ORGANIZATION
 4                                 
      USA  

- ------------------------------------------------------------------------------
                          SOLE VOTING POWER
                     5                                                       
     NUMBER OF            2,379,000(1)   
 
      SHARES       -----------------------------------------------------------
                          SHARED VOTING POWER
   BENEFICIALLY      6       
                          -0-
     OWNED BY
                   -----------------------------------------------------------
       EACH               SOLE DISPOSITIVE POWER
                     7       
    REPORTING             2,379,000(1)
 
      PERSON       -----------------------------------------------------------
                          SHARED DISPOSITIVE POWER
       WITH:         8       
                          -0-
- ------------------------------------------------------------------------------
      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 9                           
      2,379,000(1)
- ------------------------------------------------------------------------------
      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10           
                                                                       
 
- ------------------------------------------------------------------------------
      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
11           
      5.9%

- ------------------------------------------------------------------------------
      TYPE OF REPORTING PERSON*
12           
      IN

- ------------------------------------------------------------------------------
(1) Includes 9,000 shares held by Ms. Whitman's husband as custodian for her
minor children.

                     *SEE INSTRUCTIONS BEFORE FILLING OUT!

                                  Page 2 of 4
<PAGE>
 
Item 1.
          (a)  Name of Issuer:  eBay Inc.
          (b)  Address of Issuer's Principal Executive Offices:
                             2005 Hamilton Avenue, Suite 350
                             San Jose, CA  95125

Item 2.
          (a)  Name of Person Filing:
               Margaret C. Whitman
          (b)  Address of Principal Business Office or, if none, Residence
                             2005 Hamilton Avenue, Suite 350
                             San Jose, CA  95125
          (c)  Citizenship:
               Margaret C. Whitman            USA
          (d)  Title of Class of Securities:  Common Stock
          (e)  CUSIP Number:  278642 10 3
Item 3.   If this statement is filed pursuant to (S)(S)240.13d-1(b), or 240.13d-
          2(b) or (c), check whether the person filing is a:

          Not applicable

Item 4.   Ownership

     Provide the following information regarding the aggregate number and
percentage of the class of securities of the issuer identified in Item 1.

          (a)  Amount Beneficially Owned:
               Margaret C. Whitman    2,379,000(1)
          (b)  Percent of Class:
               Margaret C. Whitman    5.9%
          (c)  Number of shares as to which such person has:
               (i)     Sole power to vote or to direct the vote:
                     Maraget C. Whitman  2,379,000(1)
               (ii)    Shared power to vote or to direct the vote:
                     Margaret C. Whitman  -0-
               (iii)   Sole power to dispose or to direct the disposition of:
                     Margaret C. Whitman  2,379,000(1)
               (iv)    Shared power to dispose or to direct the disposition of:
                     Margaret C. Whitman    -0-

(1) Includes 9,000  shares held by Ms. Whitman's husband as custodian for her
minor children.

Item 5.  Ownership of Five Percent or Less of a Class

     If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following  [_].

Item 6.  Ownership of More than Five Percent on Behalf of Another Person

     Not applicable.

                                  Page 3 of 4
<PAGE>
 
Item 7.  Identification and Classification of the Subsidiary Which Acquired the
         Security Being Reported on By the Parent Holding Company

     Not applicable.

Item 8.  Identification and Classification of Members of the Group

     Not applicable.

Item 9.  Notice of Dissolution of a Group

     Not applicable.

Item 10.  Certification

     Not applicable.

                                   SIGNATURE

     After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

                                              February 16, 1999
                                   -----------------------------------------
                                                    Date

                                              /s/ Margaret C. Whitman   
                                   -----------------------------------------
                                                   Signature

                                                Margaret C. Whitman
                                   -----------------------------------------
 

                                 Page 4 of 4 


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