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Ebay Buys Shopping.com - Boon Or Bust To Online Merchants?
My first reaction: This could be bigThe players:eBayLargest online auction site where buyers bid to buy products. Arguably the most well-known e-commerce site with over 100 million registered users. Billions in sales are transacted here worldwide.Shopping.comShopping portal that helps shoppers find the least-expensive merchant to buy their desired product from. Shopping.com is one of the largest portals on the Internet. They achieved success by implementing a model that allows online merchants to acquire targeted clicks from shoppers by paying a per-click fee.eBay SellersIndividuals, small businesses, and some larger businesses post products for auction on eBay, and also maintain "stores" within the eBay website where shoppers can make purchases without bidding.

eBay sellers must maintain a presence on eBay to participate. This means that the shopper never leaves eBay to make a purchase, and the sellers must coordinate a system to process orders through eBay.Online MerchantsInternet 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.What's happening?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.BackgroundeBay was originally founded as an online auction where individuals offered used (and sometimes new) products to the highest bidder.

Over time, EBay has introduced services to allow merchants to sell directly to buyers through eBay stores that bypass the 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, the merchant must have two stores: Their current store, and their eBay store.AnalysisThis 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 the Shopping.com portal. In other words, they will funnel traffic from eBay to Shopping.com, which will then be funneled to the online merchants who currently advertise on Shopping.com.- Upside to eBay: Increased advertising

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