eBay Goes Shopping.com

Posted by: Rob Hof on June 01, 2005

The news that eBay is buying Shopping.com came as a surprise to many folks. But maybe not to readers of my commentary back in January, after eBay’s fourth-quarter profits missed expectations. I’d be shocked (and dismayed) if eBay actually listened to someone with a measly feedback rating of 156, but it’s eerie what eBay has done since the piece ran.

My advice then:
* Back off the fee hikes. A few weeks later, eBay did in fact reduce some fees.
* Ditch those TV ads. eBay recently replaced its ad agency of six years.
* Diversify! We suggested eBay consider other venues for large, branded merchants and merchandise. That's precisely what Shopping.com will do.
* Keep hammering fraud. OK, that's a no-brainer, but it's interesting that Rob Chesnut, eBay's senior VP of trust and safety, is embarking on a press tour next week.

So, what should eBay do with Shopping.com? Sorry, gotta do a little more digging on that.

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BusinessWeek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, Douglas MacMillan, and Spencer Ante dig behind the headlines to analyze what’s really happening throughout the world of technology. One of the first mainstream media tech blogs, Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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