Seems to me I read the "e" is for electronic same as "email" and the Bay is just for "Bay Area" which is the area (San Jose to be specific) where Pierre Omidyar lived with his wife. She was a collector of Pez dispensers and the site was created as a way to increase her collection. Less than five years later the Omidyars are billionaires many times over and could buy the whole Pez company along with every other candy company in the country if they chose.