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September 26, 2005
What, Exactly, Is eBay Going To Do With Skype?
It's no news that eBay recently bought Skype for $2.6 billion. eBay has been reaching out into all kinds of directions lately. Some of their acquisitions seem obvious, but I admit that I haven't really understood the purchase of Skype. Course, that's mostly because I've never used it! :-)
Any-hoo ... eBay & Skype have lifted the curtain a bit on their intentions:
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Buyers will gain an easy way to talk to sellers quickly and get the information they need to buy, and sellers can more easily build relationships with customers and close sales. As a result, Skype can increase the velocity of trade on eBay, especially in categories that require more involved communications such as used cars, business and industrial equipment, and high-end collectibles.
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I guess this means that buyers and sellers can get on the phone and chat about items up for auction. I don't know about you, but the last thing I want to do is talk on the phone all day to other eBayers. However, I can see that would make sense for major purchases. Might make more sales that way.
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The acquisition also enables eBay and Skype to pursue entirely new lines of business. For example, in addition to eBay’s current transaction-based fees, ecommerce communications could be monetized on a pay-per-call basis through Skype. Pay-per-call communications opens up new categories of ecommerce, especially for those sectors that depend on a lead-generation model such as personal and business services, travel, new cars, and real estate. eBay’s other shopping websites — Shopping.com, Rent.com, Marktplaats.nl and Kijiji – can also benefit from the integration of Skype.
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"... ecommerce communications could be monetized on a pay-per-call basis." I admit that I don't really follow this. Are they talking about using Skype instead of cell phones for biz commerce? 'Pay-per-call basis' sounds like a great way to add overhead to a business, although if the sales are increased as a result, it will obviously be worth it.
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PayPal and Skype also make a powerful combination. For example, a PayPal wallet associated with each Skype account could make it much easier for users to pay for Skype fee-based services, adding to the number of PayPal accounts and increasing payment volume.
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Sounds great for eBay. Not sure how this helps anyone else, except that we can pay our Skype bill via PayPal.
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In addition, Skype can help expand the eBay and PayPal global footprint by providing buyers and sellers in emerging ecommerce markets, such as China, India, and Russia, with a more personal way to communicate online. And consumers in markets where eBay currently has a limited presence, such as Japan and Scandinavia, can learn about eBay and PayPal through Skype. Skype can also help streamline cross-border trading and communications.
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It is quite true that the future of commerce is shifting toward Asia. Supposedly, China will be the #1 economic power in the world in 10-20 years. Already, Asia is the best source of wholesale goods for resale in ecommerce. This definitely might be a legitimate advantage.
The most interesting question to me, though, is the sale of Skype. It's only three years old but its two owners are now wealthy beyond imagination. How can we build a company that someone will want to buy in a brief time for such an astounding amount of money?
Posted by SydneyJohnston at September 26, 2005 8:02 PM
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Comments
Have you seen it already? eBay's kijiji-Site is using skype already in Japan... This skype-me Button is the central thing what eBay acquired skype for.
Nice blog!
Phil
Posted by: phil at October 14, 2005 9:29 AM

