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• EBay's changing auction strategy

  Posted Jun 03 2008, 09:56 AM by Kim Peterson
  Filed under: Amazon, eBay, Kim Peterson
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  Auctions are disappearing on eBay and being replaced by fixed-price item sales. BusinessWeek says that's due to the changing needs of the consumer, who thinks bidding is too much hassle. Nope. Don't blame the bidder. EBay is doing everything it can to choke the life out of its own auction business -- and that's a big gamble.

  Yes, time is precious. And yes, there are people who would rather "buy it now" on eBay at a higher price than spend days in a prolonged bidding war. About 42% of eBay auctions have a "buy it now" option, a figure that has grown 22% in the last year, according to BusinessWeek. EBay shares are up nearly 1% today to $29.59.   Read More...

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• Why eBay offers cheap long-distance calling

  Posted Apr 21 2008, 12:10 PM by Kim Peterson
  Filed under: Google, Vonage, eBay, Kim Peterson, Skype
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  Looks like eBay is dusting off the "for sale" sign for Skype, and it's about time. The Internet calling division said today it's offering almost-unlimited calls in the U.S. and Canada for $3 a month. (Calls to other countries will be $10 a month; click here for more info). I say almost because there's a 10,000 minute-per-month limit, which is more than five hours of calling a day. 

  Ebay has Skype under the microscope because it still hasn't figured out what to do with the company after buying it for $2.6 billion in 2005. Skype is a superstar on its own, with 309 million users and sales likely to hit $500 million this year. But meshing it with auctions? Hasn't worked. CEO John Donahoe said eBay will be testing Skype's "synergies" this year. But if the company hasn't found synergies in three years, why would it magically happen now?   Read More...

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