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eBay Goes Shopping
Do you ever feel like you know just enough about shopping,blogs,auctions,best buys,deals,bargain to be dangerous? Let's see if we can fill in some of the gaps with the latest info from shopping,blogs,auctions,best buys,deals,bargain experts.
In a surprising yet very interesting move, eBay has decided to buy Shopping.com for $620 million in cash today. This could be a good synergy for the two of them. Shopping.com faces an increasingly commodotized battle in a crowded space (Shopzilla, BizRate, NexTag, PriceGrabber, mySimon, Froogle and countless others) and eBay's stock took a hit recently after analysts freaked when eBay showed signs of slowing growth.
Shopping.com's share price is also lagging lately, due to lack of investor confidence in their aggressive expansion and marketing plans. With this acquisition, Shopping.com gains resources, a potential traffic source, and a bit of insulation from the short-term focus of the street.
Hopefully the information presented so far has been applicable. You might also want to consider the following:
EBay gets a little shot in the arm in terms of traffic, one of the better product catalogs in the business (normalized product catalog is not a trivial undertaking), user opinions (from Epinions) and also a foothold to expand its dealings with more established online retailers. That said, aside from technical issues that they will surely need to surmount if they choose to tightly integrate the sites, there are potential business issues witht existing Shopping.com merchants, who may be unhappy at the prospect of being undercut by eBay sellers.
With its involvement in Craigslist, eBay grows more in local/person-to-person commerce. Now, with Shopping.com integrated, its fixed-price offering grows. This is just another volley in the continuing battle for net domination between Google and eBay. eBay's announcement reinforces their strategy to be the online "shopping portal" for all goods -- it's not just Pez dispensers anymore .
Sometimes it's tough to sort out all the details related to this subject, but I'm positive you'll have no trouble making sense of the information presented above.
In a surprising yet very interesting move, eBay has decided to buy Shopping.com for $620 million in cash today. This could be a good synergy for the two of them. Shopping.com faces an increasingly commodotized battle in a crowded space (Shopzilla, BizRate, NexTag, PriceGrabber, mySimon, Froogle and countless others) and eBay's stock took a hit recently after analysts freaked when eBay showed signs of slowing growth.
Shopping.com's share price is also lagging lately, due to lack of investor confidence in their aggressive expansion and marketing plans. With this acquisition, Shopping.com gains resources, a potential traffic source, and a bit of insulation from the short-term focus of the street.
Hopefully the information presented so far has been applicable. You might also want to consider the following:
EBay gets a little shot in the arm in terms of traffic, one of the better product catalogs in the business (normalized product catalog is not a trivial undertaking), user opinions (from Epinions) and also a foothold to expand its dealings with more established online retailers. That said, aside from technical issues that they will surely need to surmount if they choose to tightly integrate the sites, there are potential business issues witht existing Shopping.com merchants, who may be unhappy at the prospect of being undercut by eBay sellers.
With its involvement in Craigslist, eBay grows more in local/person-to-person commerce. Now, with Shopping.com integrated, its fixed-price offering grows. This is just another volley in the continuing battle for net domination between Google and eBay. eBay's announcement reinforces their strategy to be the online "shopping portal" for all goods -- it's not just Pez dispensers anymore .
Sometimes it's tough to sort out all the details related to this subject, but I'm positive you'll have no trouble making sense of the information presented above.
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