Buy.com Gets Bought:: Will eBay’s Chickens Come Home to Roost?
OK, so I am sure you have heard the news right? Buy.com got bought for $250 million The acquisition, valued at approximately $250 million (USD), will be carried out by Rakuten’s U.S. subsidiary, Rakuten USA."
The press release illustrates the strategy as follows:
“As a company, Buy.com shares our vision for the future of ecommerce as a platform to give consumers the best value no matter their location, and to merge shopping with entertainment, and to help retailers build deep and lasting consumer relationships.”
Now things are getting juicy, there is a possible new player in the eCommerce domination game. No more do you just speak about eBay vs Amazon, you have to know that a 3rd rail is coming. Will it be Wal-mart? Sears? or now BUY.com?
We know one thing, Buy.com has a sweat heart deal with eBay and now eBay got a new "mac daddy" from the far east running the show…LMAO. Will this turn out to be a case of "chickens coming home to roost?" Could Rakuten USA be the stone that brings down a giant? I dunno, but you got to love the drama right.
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You nailed it, John – this is going to get interesting.
I'm one of the companies you're referring to when you talked about Buy.com putting eBay sellers out of business. Of course, Buy.com didn't do anything wrong – this has always been an eBay issue. Its a pretty simple plot line: “Hey! Let's take our lowest margin category (movies and cd's) where all the sellers are starving to death and bring in a new seller and give them a tremendous price break on fees. Let's also artificially inflate their DSR's to keep them at the highest level of Final Value Fee discount. That should really help the marketplace!” 2 years later, 22 of the largest 25 media sellers are out of business, and the other 3 have a giant clock ticking.
As my 9 year old would say, “smooth move, ex-lax”.
So, what happens if Rakuten decides that Buy should not sleep with the enemy and have Buy pull off eBay? That giant sucking sound you hear will be the huge hole in eBay media offerings.
Kevin
Dude you WERE the company I was referring too! Actually I referred to your company buy name and then cut it out (you can see the edit) since I had not checked with you first…WOW!