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September 5, 2006
eBay + Google + Yahoo ... Whew!
Earlier this summer, eBay announced an alliance with Yahoo that was heralded as possibly THE most important Internet deal of the year.
On eBay:
* Yahoo will provide graphic ads and search results for eBay USA
* PayPal will be the exclusive payment provide for many Yahoo services, including the Yahoo Publisher Network

Yet in a later deal announced this summer, eBay has also formed an alliance with Google. This surprised many as Google and eBay have been ... well, less than friendly. Their deal specifies:
* Google will be the exclusive provider of text advertising outside the US
* And, in an intriguing new plan, eBay and Google plan to launch a "click-to-call" program. Details are unclear but eBay-owned Skype and Google's message service, called Google Talk, will combine to allow buyers to click on auctions and ads to talk with the seller.
This is an ironic deal since most analysts agree that eBay only acquired Skype to prevent Google from obtaining it.
Apparently, the way it will work is that if you are a participant in the program, you will have an icon or button on your auction. If a potential buyer has a question, she can click on this symbol and talk with you in person. Calls would be made either through your computer or through a handheld device like a cell phone or blackberry.
"The click-to-call capability will allow a user to click on a link or icon within a product or service advertisement to initiate an Internet voice call to participating eBay merchants or Google advertisers directly from either company's respective sites". eBay and Google described the approach as an "emerging e-commerce model" that would bring buyers and sellers together via the Web, and added that plan already are afoot to integrate Skype into Google's toolbar and its Google Talk system.
What a deal for eBay: Yahoo promotes Paypal and Google promotes Skype.
How It Will Affect eBay Sellers
Many of the terms of these deals aren't available to us yet, so any speculation on its effects on us eBay sellers is only that - speculation. However, I am willing to make a few wild guesses ...
1) I see the appearance of ads on eBay pages as only bad for us sellers. It will take buyers away from eBay - and our auctions. Text ads (Yahoo in the US, Google outside the US) can only benefit eBay and not us sellers although eBay has promised to only provide these ads when there are no relevant auctions. So far, they seem to be keeping their word.
2) Certain eBay ads will appear on Yahoo and Google. Which ads? Currently, featured ads are all over Google, which is the engine I use for search. I rarely use Yahoo so just checked out their results and don't see eBay anywhere. This might be a big plus for some sellers.
3) The phone contact is quite intriguing. Google Talk and Skype are free phone services and it might certainly increase sales to talk with prospective buyers. I can't see spending time on the phone for a $5 profit might personal contact certainly might be worthwhile with more expensive items. Personal contact seems to be a major importance these days.
Recently we reported on software and a course that allows us to make video auctions
and soon we will introduct a product that makes it cheap and simple to include audio on your auctions. One thing is for sure ... those folks who neglect technology are going to suffer from reduced sales in the future.
Posted by SydneyJohnston at September 5, 2006 11:57 AM
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