Ebay Scared of Google

Reuters (and the WSJ – Reg. Req.) is reporting that Ebay has:

had talks with both Yahoo Inc and Microsoft Corp to determine whether one of them might be a suitable ally against common threats from Google Inc

Apparently, they are scared because in the last year they have witnessed Google “assaulting its turf in multiple ways”.

I don’t know about you, but I think that Ebay’s poor performance recently should be attributed more to mistakes and lack of initiative on their part, rather than an invasion by Google:

  • The purchase of Skype, though risky and full of initiative, has yet to pay off for them in producing any sizable percentage of new revenue of users
  • Their basic interface and sales model has not changed in years. Though this is not something that is necessarily required, in Ebay’s case I think that a more user-friendly, intuitive and less-complicated design is in order.
  • The one thing that any Ebay user can count on is higher fees once or twice a year. Not a good way to keep your bulk customers
  • Does anyone really think that Google Base is eating into their marketshare? If they are, whose fault is that?

If anything, I think that the biggest threat right now is Craigslist. It is much easier to use, much more popular, and spreading like wildfire (and you can’t beat the price).

So what is their big solution to the “Google Threat”?

An alliance in which eBay would boost its advertising spending with its chosen partner and provide access to data it has collected about its consumers

I am sure that Google is quaking in their boots right now.

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