My first reaction: This could be big
Largest online auction site where buyers bid to buy products. Arguably most well-known e-commerce site with over 100 million registered users. Billions in sales are transacted here worldwide.
Shopping portal that helps shoppers find least-expensive merchant to buy their desired product from. Shopping.com is one of largest shopping portals on Internet. They achieved success by implementing a model that allows online merchants to acquire targeted clicks from shoppers by paying a per-click fee.
Individuals, small businesses, and some larger businesses post products for auction on eBay, and also maintain “stores” within eBay website where shoppers can make purchases without bidding. eBay sellers must maintain a presence on eBay to participate. This means that shopper never leaves eBay to make a purchase, and sellers must coordinate a system to process orders through eBay.
Internet stores, large and small. Stores ranging from independent specialty stores like Surray Luggage, to huge mass-merchants like Amazon.com. Many online merchants do not do business on eBay because it requires them to maintain a separate store, which has both branding and logistical consequences.
eBay is buying Shopping.com for $620 million. Shopping.com’s key assets include its product comparison technology, large network of product reviewers (formally EPinions.com), brand awareness, and of course, its advertisers.
eBay was originally founded as an online auction where individuals offered used (and sometimes new) products to highest bidder. Over time, EBay has introduced services to allow merchants to sell directly to buyers through eBay stores that bypass bidding process. Since everything is done through eBay, merchants are required to have a presence on eBay that is separate from their online store. In other words, merchant must have two stores: Their current store, and their eBay store.
This could go one of two ways:
1) eBay could be buying Shopping.com to monetize its targeted traffic by sending eBay shoppers outside of EBay to Shopping.com portal. In other words, they will funnel traffic from eBay to Shopping.com, which will then be funneled to online merchants who currently advertise on Shopping.com.
- Upside to eBay: Increased advertising revenues.