Thursday, June 02, 2005

Interesting Story about EBAY and Shopping.com Merger

Hmm this is a very thoughtful story about the merger. It talks about how Ebay will be able to ramp up its monthly traffic by linking to Shopping.com instead of the more expensive Google.

She also suggests EBAY should buy Overstock.com and add it to a conglomerate of companies under the EBAY name. I think this is a pretty good idea but some EBAY sellers may not like the fit because they would be directly competing with the company that they are listing stuff on.
Some of the Overstock.com prices are super low and small sellers will not be able to compete with them. It would only affect certain sellers though so it probably won't be a very big deal.

The idea of an Ebay conglomerate is a very good one though. They can run several brands under the Ebay name that all run together and give traffic to one another. This would be very much like IAC does with its various brands. As long as all the companies work well together and funnel traffic back and forth Ebay will make some good money.

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