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Google revealed a bevy of noteworthy developments for its Chrome OS. However, the success or failure of the Chrome OS will ride on whether users will give up desktop applications.... Continued »

Category: E-commerce

November 9th, 2009

'Tis the season for ID fraud: Retailers face $100 billion in losses

Posted by Larry Dignan @ 8:03 am

Categories: E-commerce, General, Security

Tags: Identity Fraud, Retail Company, Fraud, Fraud Loss, Identity Theft, Security, Larry Dignan

As retailers enter the key holiday shopping season they’re about to get pummeled by identification fraud losses.

LexisNexis Risk Solutions and Javelin Strategy & Research have cooked up a study the looks at how U.S. retail fraud hits merchants. Retailers face $100 billion in losses attributed to ID fraud in 2009. Toss in lost and stolen inventory and losses swell to $191 billion.

In the study, LexisNexis argues that retailers take on most of the costs of fraud. Among the key points:

Read the rest of this entry »

October 29th, 2009

Amazon's PayPhrase: Can it juice Amazon Checkout, Payments?

Posted by Larry Dignan @ 9:37 am

Categories: Amazon, E-commerce, General

Tags: Payment, Amazon.com Inc., Checkout, PayPhrase, Operational Accounting, Finance, Larry Dignan

Amazon launched an effort called PayPhrase in what the company calls an e-commerce shortcut that allows shoppers to buy around the Web with a phrase and a PIN.

When first reading Amazon’s release (Techmeme), my initial thought could be summed up with “huh?” But after further review, PayPhrase may be an easy way to make your Amazon data your de facto e-commerce record and shopping cart of choice.

And while it’s way premature to call PayPhrase any sort of PayPal killer, you can definitely envision it as part of a broader move to make Amazon Payments and Amazon Checkout bigger players.

Here’s how it works:

Read the rest of this entry »

October 21st, 2009

eBay 'cautiously optimistic' heading into the holidays, but outlook disappoints

Posted by Larry Dignan @ 1:35 pm

Categories: E-commerce, Earnings, Economy, General, eBay

Tags: eBay Inc., GAAP, Financial Accounting, Operational Accounting, Finance, Larry Dignan

EBay’s third quarter results weren’t too shabby, but the company’s outlook disappointed some on Wall Street. In addition, the company said it was “cautiously optimistic” heading into the holiday season.

The company reported net income of $349.7 million, or 27 cents a share. Non-GAAP earnings were $501.5 million, or 38 cents a share, a penny better than Wall Street estimates. Revenue for the quarter ending Sept. 30 was $2.2 billion, up slightly from a year ago.

However, there were a few disappointing items in eBay’s report. Operating margin fell to 19.8 percent in the quarter, down from 24.7 percent a year ago. The margin decline was largely attributed to eBay’s Bill Me Later unit and a weaker U.S. dollar. Bill Me later had a net charge-off rate of 11.5 percent as bankruptcy and credit write-offs increased.
Read the rest of this entry »

October 16th, 2009

Amazon same day delivery squarely aimed at brick-and-mortar rivals

Posted by Larry Dignan @ 2:01 am

Categories: Amazon, E-commerce, General

Tags: Amazon.com Inc., Sales Strategy, Web Technology, Sales Force Management, E-business/E-Commerce, Sales, Internet, Larry Dignan

Amazon is using its distribution, information technology and shipping prowess to try and gain sales from brick-and-mortar retailers all the way up to Christmas.

As Amazon continues to grow its rivals won’t be Google and eBay as much as your local Wal-Mart, Target and Kohl’s. Enter Amazon’s expediting shipping efforts.

The company on Thursday said it will provide same-day delivery in seven cities—New York, Philadelphia, Boston, Baltimore, Las Vegas, Seattle and Washington D.C.—with plans to add Chicago, Indianapolis and Phoenix in the months ahead.

Amazon Prime customers will pay $5.99 per item for same-day delivery while others will pay a wide range of higher fees (rate card). This move could really help for those last minute items—Amazon says it will offer same-day shipping Christmas Eve for orders as late at 1 p.m. PST.

The rub is that Amazon’s shipping charges are steep, but it’s likely the company will lower fees over time. Goldman Sachs analyst James Mitchell noted:

We expect same-day deliveries to only moderately boost sales volumes given onerous shipping charges, but the ability to make same-day deliveries (even on December 24) should further differentiate Amazon in the eyes of consumers. Amazon may reduce same-day charges over time as its fulfillment network becomes accustomed to faster deliveries.

Indeed, if Amazon can lower fees it will be able to use shipping as a weapon to cut e-commerce “friction.” J.P. Morgan analyst Imran Khan notes:

We see the service as another step Amazon is taking to shorten customers’ waiting time between order and delivery, and to lower the frictions involved in eCommerce. When Amazon introduced Prime, it raised the order frequency for Prime shoppers—and we think the new delivery option could be one more lever for increasing order frequency.

October 8th, 2009

Barnes & Noble's e-reader triplets and the e-commerce distribution game

Posted by Larry Dignan @ 6:38 pm

Categories: Amazon, E-commerce, Ebook, General, Sony

Tags: Game, E-reader, Barnes & Noble Inc., E-business, Game Plan, Larry Dignan

Barnes & Noble reportedly is planning to sell its own branded e-reader in a move that would give it three devices hooking up to its book store.

The Wall Street Journal reports that Barnes & Noble is planning a device with a six-inch screen and a touch screen (Techmeme). The device will plug into Barnesandnoble.com. The Journal didn’t have a lot of details, but said Barnes & Noble could announce the device next month.

Let’s take a little inventory:

Meanwhile, Barnes & Noble sells e-books that can be read on Apple’s iPhone and Research in Motion’s BlackBerry devices. The common thread to these devices will be using Barnesandnoble.com as the primary book store.

Now if Barnes & Noble can cut a deal with Sony—there’s no reason why it wouldn’t—it will have the Amazon Kindle surrounded. Is it any wonder why Amazon is cutting Kindle prices? The game plan appears to be this: Barnes & Noble will have a beefy section for e-readers, use its retail clout to outflank Amazon and get distribution for its e-commerce site.

Also see: E-reader devices: The fun is just starting

September 30th, 2009

GM, eBay pull plug on online car sales experiment

Posted by Larry Dignan @ 3:00 am

Categories: E-commerce, General, eBay

Tags: Car, eBay Inc., General Motors Corp., Sales Strategy, Sales Force Management, Sales, Larry Dignan

General Motors and eBay are reportedly ending their online sales partnership after the experiment didn’t deliver car buyers to dealers and led to some confusion.

According to the Wall Street Journal, the seven-week eBay experiment for GM is ending. Why? The marketplace didn’t move vehicles.

Among the potential reasons:

  • Consumers were confused about opening bids;
  • Sales leads were disappointing;
  • Dealers garnered interest, but little else.

Source: GM, eBay pull plug on online car sales: Was it too early? on Smart Planet

September 28th, 2009

Newegg announces IPO, plans for expansion

Posted by Sam Diaz @ 11:08 am

Categories: E-commerce, General

Tags:

Online electronics retailer Newegg is going public, launching an IPO estimated at $175 million, according to a filing with the Securities and Exchange Commission today.

The retailer has largely been focused on IT products such as hardware, software and peripherals since its launch in 2001 but recently has expanded into the consumer electronics business and products that are targeted at small- to medium-sized businesses. It has also expanded beyond the U.S., moving into Canada and China.

Last year, it reported net sales of $2.1 billion. In its SEC filing, the company summed up its outlook on the growth potential for online retail sales in its core target markets:

We believe that IT and CE products are well suited for online sales because these products often require a potential customer to research, evaluate and compare a large amount of technical information, product features and consumer reviews, tasks which can be much more comprehensively and efficiently accomplished online. In addition, buying patterns are generally transitioning online as broadband adoption increases, fulfillment capabilities of online retailers become more reliable and consumers and businesses face continuing pressure to save money.

In its filing, the company said it would use proceeds from the offering to expand international operations, including the building of its headquarters in Asia and a regional warehouse, pay off debt and other improvements, such as IT infrastructure upgrades, branding and marketing campaigns and acquisitions of or investments in “complementary businesses, products, websites or technologies.”

The company noted that it is not presently engaged in any discussions about such acquisitions or investments.

September 14th, 2009

Yahoo's sale of Alibaba.com stake opportunistic

Posted by Larry Dignan @ 10:41 am

Categories: E-commerce, General, Yahoo

Tags: Yahoo! Inc., Alibaba.com, IPO, B2B, Investment, Taxes, Financial Planning, Financial Services, E-business/E-Commerce, Internet

There’s a fair amount of hubbub about Yahoo’s decision to sell its stake in Alibaba.com, but it’s really just an opportunistic trade.

Reuters notes that Yahoo is selling its entire 1.14 stake in Alibaba.com, China’s B2B e-commerce giant, to net about $150 million. The move makes sense since:

Alibaba.com shares have almost quadrupled from January.
Alibaba.com co-founder Jack Ma just unloaded shares in his own company. And Yahoo still owns 40 percent of Alibaba Group, the private group that floated the Alibaba.com IPO in Hong Kong.

Simply put, Yahoo is just making a decent trade. Yahoo CEO Carol Bartz is just taking a little liquidity where she can get it. It’s unlikely that Bartz could unload Yahoo’s stake in Yahoo Japan or Alibaba Group easily given the size of the stake, the regulatory concerns and the tax hit.

Goldman Sachs analyst James Mitchell writes in a research note:

We view the sale timing as opportune given: (1) Alibaba Group founder Jack Ma recently sold 13 mn shares in Alibaba.com, his first sale post-IPO, which likely removes any stigma associated with Yahoo! selling shares in Alibaba.com. (2) Alibaba.com shares have rallied sharply, up 300% ytd and up 50% since Yahoo!’s initial investment; we see near-term downside to Alibaba.com stock given our expectation for higher churn and lower gross adds as it laps the 60% price reduction for Gold Supplier membership in 4Q2008, which drove an initial spike in customer adds.

September 14th, 2009

E-commerce sites: You have 2 seconds to load your Web pages

Posted by Larry Dignan @ 3:57 am

Categories: E-commerce, General, Web Technology

Tags: Web, Survey, Akamai Technologies Inc., Web Page, E-business, Web Technology, Channel Management, E-business/E-Commerce, Marketing Research, Marketing

E-commerce sites have two seconds to load a Web page or consumers will click away. And after three seconds nearly all customers will split, according to research by Forrester and Akamai.

Akamai had Forrester conduct a followup to a 2006 survey. The 2006 survey found that 4 seconds was the threshold for Web page loading. Three years later that threshold has been halved.

Quick page loading is a big factor in loyalty for e-commerce sites. No surprise there. It’s also no surprise that Akamai—which sells services to speed up Web pages—is doing the survey. Nevertheless, the results are interesting.

Some tidbits from the 1,048 online shoppers surveyed:

  • 47 percent of consumers expect a Web page to load in 2 seconds or less and 40 percent won’t wait more than 3 seconds.
  • 52 percent say quick page loading is important to their loyalty. In 2006, that tally was 12 percent.
  • 23 percent will stop shopping with slow page loads.
  • 79 percent of shoppers that get slow page loads say they are less likely to buy from that site again. Meanwhile, 64 percent just buy goods from another store.
  • 16 percent of consumers have shopped via a mobile phone.

You can find the full survey (with registration) here.

September 8th, 2009

eBay names Sun veteran head of data center strategy

Posted by Larry Dignan @ 8:59 am

Categories: Datacenter, E-commerce, General, Hardware Infrastructure, Infrastructure, eBay

Tags: Strategy, Data Center, Sun Microsystems Inc., eBay Inc., Dean Nelson, Data Centers, Storage, Hardware, Data Management, Larry Dignan

EBay has appointed Dean Nelson, a Sun Microsystems veteran, to be in charge of its data center strategy.

Nelson will be senior director of global data center strategy, architecture and operations. Nelson is founder of Data Center Pulse, a non-profit data center industry group.

The online auction company announced Nelson’s appointment in a short statement. Luckily, Nelson elaborated quite a bit in a blog post. Nelson noted that he had worked with eBay, a long-time Sun customer, and ultimately bought into the company’s data center vision. Nelson wrote:

Read the rest of this entry »

September 1st, 2009

Makes sense now: eBay unloads Skype; Gets $1.9 billion in cash and keeps 35% stake

Posted by Larry Dignan @ 7:13 am

Categories: E-commerce, General, Skype, eBay

Tags: Skype Technologies S.A., eBay Inc., IPO, Investment, E-business/E-Commerce, Financial Accounting, Telecom & Utilities, Telecommunications, Financial Services, Finance

EBay has officially sold Skype in a deal that values the telephony company at $2.75 billion. The online auction company will get $1.9 billion in cash and retains a 35 percent chunk of the company.

There was some questioning about whether it made sense for eBay to unload Skype (Techmeme). Given the valuation of the deal and the fact that eBay keeps a stake of Skype, the deal makes a lot more sense now.

An investor group led by Silver Lake and includes Index Ventures, Andreessen Horowitz and the Canada Pension Plan (CPP) Investment Board will give eBay $1.9 billion in cash and a note from the buyer worth $125 million. EBay will own 35 percent of Skype when the deal closes in the fourth quarter.

In a statement, eBay CEO John Donahoe called the transaction a “great deal”:

Read the rest of this entry »

September 1st, 2009

eBay finds its Skype exit and it's probably for the best

Posted by Larry Dignan @ 4:33 am

Categories: E-commerce, General, IP Telephony, Skype, Telecommunications, Web Technology, eBay

Tags: Skype Technologies S.A., eBay Inc., Joltid Ltd., IPO, Tools & Techniques, Financial Services, Management, Larry Dignan

EBay is reportedly ready to sell Skype to a group that includes Andreessen Horowitz and private equity firms. The big question is whether a sale makes sense right now.

According to the New York Times, eBay will announce a sale of Skype as early as Tuesday (Techmeme). EBay is looking for $2 billion for the unit, but the New York Times couldn’t nail down a price. TechCrunch first reported eBay’s potential sale of Skype last week. EBay announced in April that it planned to spin off Skype in an IPO.

Read the rest of this entry »

August 31st, 2009

Apps make mobile banking cool; Banks working on security perceptions

Posted by Sam Diaz @ 10:43 am

Categories: E-commerce, General, Mobile, Security

Tags: Bank, Security, Mobile, Mobile Banking, Mobile Applications, Wireless And Mobility, Sam Diaz

The popularity of mobile applications for the Blackberry, iPhone and others has given new life to the concept of mobile banking - and the banks out there are pushing their customers to give it a try.

Credit: BankofAmerica.com

Mintel Comperemedia, a service that provides direct marketing competitive intelligence, said today that the phrase “mobile banking” appeared in direct mail offers from banks twice as often as it did in the first half of 2008, according to research. And, mobile banking is also more often the subject of e-mail offers, as well.

So does that mean that mobile banking has finally hit the mainstream? Well, yes and no.

The big banks out there are further along with the mobile banking offerings than, say, a small credit union. And increasingly, customers who have become comfortable with online banking - a growing number - are likely to give mobile banking a try. Said Susan Wolfe, VP of financial services at Mintel Comperemedia:

Mobile banking isn’t new, but it’s getting a huge push from the popularity of the iPhone and BlackBerry. As more consumers adopt smart phones and adapt to truly on-the-go lifestyles, they’re seeking banking applications and technology that keeps up with them.

I have to admit that I’ve only had limited exposure with mobile banking - but I have done it. The apps do make the process much more appealing than trying to use a mobile web browser to replicate the PC experience. But I also have to admit that I kept checking my bank account regularly for a week after I conducted a mobile transfer between accounts once.

Call me a bit paranoid still.

Wolfe, in the company’s news release, said security perceptions remains a challenge but that banks will soon start addressing those concerns by focusing on the security of the apps and transactions. She said:

Online banking was intimidating to customers early on too but once banks could guarantee security, customers flocked online for flexibility and convenience. I expect the transition into mobile banking will happen in a similar way.

I would agree.

August 13th, 2009

'iTunes of Documents' focuses on forms, legal docs for online marketplace

Posted by Sam Diaz @ 2:45 am

Categories: E-commerce, Web Technology

Tags: Document, Apple iTunes, DocStoc, Digital Music, Recruitment & Selection, Digital Media, Personal Technology, Human Resources, Workforce Management, Consumer Electronics

DocStoc, one of the players in the online embedded documents business, upped its game this week with the launch of DocStore, an online marketplace for people to buy and sell documents that range from a rental agreement to a college essay.

DocStoc is calling DocStore the iTunes of Documents - a place where users can find trusted documents from established companies such as Legal Zoom, which specializes in sensitive and complex documents such as living trusts, powers of attorney or copyright license agreements. Of course, it’s not just complex legal documents. There’s also simple documents - like an agreement to develop a Web site, invoicing templates or letters of recommendation samples. 

Docstoc’s DocStore seems to be different from what competitor Scribd is offering in its own store, where the focus is around documents for reading - anything from literature to a how-to manual.

I like where DocStoc is headed with this marketplace. These are documents that people need and are willing to pay for. Consider these examples: I’ve definitely come across a few contractors who could really benefit from a professional job proposal or invoice template. Anyone planning a wedding knows the importance of a legal contract with the photographer, caterer and florist. And even some college students might be willing to cough up more than $10 per page for instant download and printout of a sample (ahem, cough cough) essay titled The Pitfalls of High Compensation for Employees.

The company also introduced a new proprietary document viewer, which provides tools that enables the publisher to, among other things, restrict access to the full document before purchase. The service also provides a copyright filter that prevents purchased documents from being re-uploaded. The company is also providing publishers with real-time statistics to monitor the demand and sales of their documents.

August 10th, 2009

Can eBay be your new car dealer and reduce GM's inventory?

Posted by Larry Dignan @ 9:50 am

Categories: E-commerce, General, eBay

Tags: Car, eBay Inc., General Motors Corp., Larry Dignan

EBay’s grand experiment with General Motors Co. could be a novel answer to making the auto industry’s dealership networks more efficient.

GM and eBay said Monday that they will kick off an effort to allow consumers to click and buy new cars from participating dealers in California. Typically, eBay Motors, which lures 12 million car shoppers a month, deals with used autos.

According to an eBay statement (Techmeme), the eBay-GM effort launches Tuesday. In a nutshell, eBay will serve as a point guard to move GM inventory—specifically Chevrolet, Buick, GMC and Pontiac autos–from Aug. 11 through Sept. 8. The pilot only applies to California for now.

If successful, you could project more eBay experiments like this. Why? Dealer networks for the likes of GM and Chrysler are a mess. They’re being pared down dramatically. It’s unclear whether Americans really want to buy a car from a government-owned entity—it gives me pause. And consumers are buying Fords, Toyotas, Hyundais and Hondas in the Cash for Clunkers program. Simply put, GM has too much inventory and needs eBay to cull your best offer and sell these cars.

Can eBay make things more efficient for GM? We’ll see. Online haggling for cars isn’t a new model—companies like Autobytel have been doing it for years. But eBay’s foray into new cars may be a nice way to boost revenue and make the process more efficient. Even if eBay manages to pare GM’s inventory a bit it’ll be a success.

In many respects, the eBay-GM move sounds like a nice spin on a inventory liquidation effort. If this inventory was going to move it would have already. However, eBay can at least help find the clearing price.

August 10th, 2009

Target's departure from Amazon creates IT risk; Opportunity for GSI Commerce?

Posted by Larry Dignan @ 2:19 am

Categories: Amazon, E-commerce, General, IT Management

Tags: Information Technology, GSI Commerce Inc., Amazon.com Inc., Target.com, E-business, Target, Web Technology, E-business/E-Commerce, Retail, Internet

Target plans to leave Amazon’s e-commerce platform to build its own site ahead of the 2011 holiday season. The transition is going to be one of the more visible IT projects in the next two years.

Amazon will take a bit of a profit hit from the Target move. Target is expected to generate $87 million in non-GAAP operating profit in 2009 according to Cowen and Company. Most analysts expect Target’s departure to only ding Amazon earnings by 3.5 percent in 2012.

Aside from the profit hit, the Target transition away from Amazon will be an interesting project to watch. Target has to decouple from Amazon’s platform seamlessly and add features that can keep up with other retailers (like in-store pickup).

Meanwhile, Target has to build up its expertise after relying on Amazon for a decade. In a statement, Target.com president Steve Eastman said:

“Amazon has been an important strategic partner since we re-launched Target.com in 2001, and the strength of Amazon’s technology and fulfillment services has been a contributing factor in Target.com’s success. However, to deliver a customized multi-channel experience for Target’s guests, we believe it is in Target’s best interest going forward to assume full control over the design and management of Target’s e-commerce technology platform, fulfillment and guest services operations.”

Amazon will continue to run Target.com until the transition occurs. Unlike the Toys R Us breakup, the Amazon-Target split is amicable. Nevertheless, the project will be high risk. To wit:

  • Target will have to integrate its fulfillment capabilities with Target.com;
  • Target.com will need to build out its customer service;
  • And the new Target.com will launch without a lot of wiggle room before the peak 2011 shopping season.

J.P. Morgan analyst Imran Kahn said in a research note:

Rolling out a platform to fulfill the sales of a top-20 eCommerce site is likely to hit a few bumps in the road—and Amazon’s market share could see benefits if Target.com has any difficulties providing a top-notch customer service experience, in our view.

Add it up and it wouldn’t be all that surprising if Target cuts some kind of deal with GSI Commerce. GSI provides back-end e-commerce services for Toys R Us, Dick’s Sporting Goods, Nautica, Zales, the NFL and other big-name retailers. In a nutshell, GSI provides the same services Amazon does without the direct competition with customers.

Some analysts doubt that GSI Commerce will win over Target. Goldman Sachs analyst James Mitchell writes in a research note:

Target is the final large retailer on the Amazon platform (Toys ‘R’ Us exited in 2006), and following expiration of the partnership originally formed in 2001, Target plans to build and manage an online store independently. Unlike Toys ‘R’ Us, we do not believe that Target seeks to partner with GSI Commerce.

But a blended outsourcing approach could help manage some of the IT risk Target will face.

August 3rd, 2009

Should RadioShack change its name to The Shack?

Posted by Larry Dignan @ 9:07 am

Categories: E-commerce, General

Tags: RadioShack Corp., Shack, Advertising & Promotion, Retail, Wireless And Mobility, Marketing, Larry Dignan

We’ve been told repeatedly that radio is dead. Yet RadioShack, that fabled tech retailer, is still alive and kicking even though it sells laptops, wireless phones and a lot of things that wouldn’t be construed as a radio.

Engadget reports that RadioShack may become The Shack. Whether it turns out to be true remains to be seen, but rebranding efforts can work every once in a while. But “The Shack”? Update: RadioShack has made it official—it’s really The Shack. The company says:

This creative is not about changing our name. Rather, we’re contemporizing the way we want people to think about our brand. THE SHACK speaks to consumers in a fresh, new voice and distinctive creative look that reinforces RadioShack’s authority in innovative products, leading brands and knowledgeable, helpful associates.

Harry McCracken at Technologizer has a fun collection of reasons that the RadioShack shouldn’t become The Shack. Andrew Nusca isn’t sure RadioShack’s name change even matters.  My biggest reason to scream “nooooooooo!!!!” is that The Shack is too vague. The Shack could be mean everything from milkshakes (Shake Shack) to bagels (Bagel Shack) to an actual shack. Do we really want to buy our electronic gear from a shack anyway?

Hopefully, RadioShack ponders the name change a little more before it pulls the trigger. What would you rename RadioShack?

Originally posted on SmartPlanet.

July 27th, 2009

eBay to identify top sellers with badge

Posted by Sam Diaz @ 9:13 am

Categories: E-commerce, eBay

Tags: Seller, eBay Inc., Sales Strategy, Sales Force Management, Sales, Sam Diaz

In eBay, being considered a top-notch, honest and reputable seller is a good thing for the seller. It keeps people coming back.

Now, eBay - with a virtual badge that identifies those top sellers - is looking to tap into and showcase those seller reputations to push a steady flow of shoppers to the site.

The program will go live in October in the U.S., U.K. and Germany. Those seller will have a Top-Rated-Seller badge in the “view item page” for the listing, the company said. Later, the company plans to give sellers with as few as 100 transactions and $3,000 in annual sales volume the opportunity to qualify for the award, based in buyer feedback. that it expects to immediately qualify 150,000 eBay Top-Rated Sellers in the U.S.

In a statement, eBay Marketplaces president Lorrie Norrington said:

For buyers, the new eBay Top-Rated Seller status makes it easy to find the highest quality sellers on eBay based on the feedback of other buyers. For sellers, the Top-Rated Seller status recognizes and rewards their commitment to consistently delivering the highest level of customer satisfaction.

The company is making efforts to improve the marketplaces business - which includes the main eBay site - as declines in that business unit drag down the gains being realized in other divisions, notably Skype and PayPal.

In the most recent quarter, the marketplaces division saw a slight growth in sales over the previous quarter - its first this year, following a quarter-by-quarter decline in all of 2008.

July 23rd, 2009

5 looming questions about the Amazon-Zappos deal

Posted by Larry Dignan @ 5:45 am

Categories: Amazon, E-commerce, General, Web Technology

Tags: Amazon.com Inc., Zappos, Mitchell, Roi/Tco, Finance, Managerial Accounting, Larry Dignan

Amazon’s acquisition of Zappos is notable on a few fronts. The combination is largely complementary, but there are a few questions hanging. With any luck there will be a few answers on Amazon’s second quarter earnings conference call.

Among the questions about Amazon’s $847 million purchase of Zappos (Techmeme):

Will Endless.com end? Amazon has its own shoe store in Endless.com and analysts estimate that it is losing money. Ultimately, analysts reckon that Amazon will put an end to Endless.com. Cowen analyst Jim Friedland writes:

It is likely Amazon will eventually shut down Endless.com, its late-to-market Zappos competitor, which we believe is loss making.

Read the rest of this entry »

July 22nd, 2009

Don't Forget to Turn Out the Lights, Tony

Posted by Tom Steinert-Threlkeld @ 4:41 pm

Categories: Amazon, Business 2.0, E-commerce, Economy

Tags: Amazon.com Inc., Games, Personal Technology, Tom Steinert-Threlkeld

The announcement that Amazon is buying Zappos is so sad.

What online retailing needs is more innovators, not fewer.

Jeff Bezos of Amazon (recommendation engine and free delivery over $25) and Tony Hsieh of Zappos (free delivery both ways, 365-day guarantee and social shopping) are at the top of their game. And the game.

Says here that Hsieh will move on within 18 months, after joining Amazon. He’s a two-time winner, having sold LinkExchange, an advertising network he co-founded to Microsoft for $265M in 1998. And a guy clearly confident in his ability to find new veins of gold to tap in digital commerce.

But wouldn’t it have been a lot better for etailing in general if we customers had witnessed and benefitted from a head-to-head competition across multiple categories of these two outfits?

This would have been Yankees versus Red Sox, Coke versus Pepsi, Microsoft versus Google every step of the way. Zappos would figure out a way to make shopping fun and interactive, make you want to work for them. Amazon would just make it as efficient as possible.

Now, if they do manage to marry the two, effectively, and keep it up — for the long term — then online shoppers everywhere will win.

But the absorbed culture (in this case, Zappos) usually is the one that disappears.

Tell us when you get ready to turn out the lights, Tony.

 Tom Steinert-ThrelkeldTom Steinert-Threlkeld is editor-in-chief of Securities Industry News, as well as a long-time media, technology and business journalist. See his full profile and disclosure of his industry affiliations.

Email Tom Steinert-Threlkeld

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