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Article

Title: EBay Bets On VoIP, But Do Sellers Want To Chat?

Author: Hoover, J Nicholas Article Type: Product Analysis
Source: Information Week, n1056 p32(1) Publication Date: Sep 19, 2005
  ISSN: 8750-6874
URL of Publication: http://www.informationweek.com

Online auctioneer eBay is betting that VoIP will become a major part of its e-commerce business with the company's acquisition of Skype Technologies SA. EBay CEO Meg Whitman feels that the combination of eBay and the VoIP service provider will generate more revenue for the company, especially in areas that eBay has not been able to penetrate such as travel, real estate, expensive collectibles, and new-car sales. Skype will be able to help in lead generation and communication capabilities in these areas. Some industry analysts feel that eBay users do not want to add VoIP service since it is difficult enough to keep up with e-mail volume. Adding VoIP will make things more complicated and the success of eBay has been its simplicity and ease of use for both buyers and sellers. VoIP may also increase eBay's gray market, where items sell outside of eBay to dodge seller fees. However, eBay may not be looking at its current customer base as the main users for VoIP and instead might be looking to other e-commerce sites such as Shopping.com, which the company acquired, to use Skype's technology. VoIP use is increasing at a fast rate and it is only a matter of time when it will be an expected capability. Already Google offers instant messaging with VoIP capability, and Lands' End customers can purchase clothing online using the technology.

Companies:
eBay Inc Skype Technologies SA

Products:
E-Commerce Mergers & Acquisitions
VoIP (Voice over IP)

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