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Mon Aug 28 2006 16:25:19

eBay Leverages Auction Site for PayPal & Skype

By: Ina Steiner

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In May, eBay announced a "multi-year strategic partnership" with Yahoo, and this week, it announced a "multi-year agreement" with Google. eBay appears to be taking advantage of each company's strengths - Yahoo has strong ecommerce offerings, and Google is strong in advertising.

Through these two agreements, eBay has gotten Yahoo to make PayPal its exclusive third-party provider of its online wallet and deeply integrate PayPal on the Yahoo site. PayPal will be integrated and promoted as Yaho's payment solution to its merchants and publishers (including Yahoo Stores).

eBya has also gotten Google to try and monetize its Skype service with Click to Call advertising.

However, it appears that eBay sellers are not getting anything out of these deals, and in fact, they will find themselves competing with off-eBay merchants. This is due to Yahoo Search Marketing ads appearing on search results pages, and Google AdWords ads appearing on eBay international search results pages.

With the Yahoo partnership, eBay listings were to be optimized on Yahoo search results. But I don't see anywhere in the Google announcement that eBay listings will get increased exposure on Google search results.

Does anyone see any benefits to eBay sellers coming out of the Google-eBay partnership?

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by: Joyce

Sun Sep 3 11:26:22 2006

The only possible benefits of the Google-eBay partnership that I see.. are to Google and eBay... None to eBay sellers.

The benefits for Google and eBay go along with the idea of ''knowing the enemy''.
They each will learn something of one another.. not necessarily for ''the opportunity to turn him into a friend''.

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by: Barbara

Sun Sep 3 22:55:38 2006

The moves by Ebay to partner with other leaders in internet marketing is brilliant - for them!  For smaller businesses this is not good news.  Ebay is dominating the online retail market completely and I think that is monopolistic and sad.  It will be harder for small budgets to get their advertising spaces on these venues because they will be clogged up with Ebay ads.  Think about it:  Ebay is buying and/or partnering with every avenue of internet retailing to control the market place!  First Paypal (banking), then the Skype (communications), now Google (international markets, Yahoo (domestic markets).  What's next????

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by: Randall

Mon Sep 4 11:37:15 2006

Apparently these contextual ads will only show up when their is a Null value in search. (Basically no EBay listings) My guess is EBay knows they are going to have reduced listings on the site going forward so they want to monetize their marketplace with these ads. This is shortsighted. Why split revenue on with Google and Yahoo when you can get 100% of the revenue from a seller on your site.

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