eBay 2.0

Fortune writes:

Whitman knows that eBay’s only alternative is to keep moving. The company has started its own international classified site, Kijiji, which operates in 11 countries but hasn’t started charging for listings. It bought e-commerce sites Shopping.com and Rent.com to dig into the retail and real estate worlds. It has bulked up PayPal and Skype with acquisitions. Whitman says her strategy boils down to three critical synergies among eBay’s properties: that eBay buyers and sellers will talk over Skype (generating ad revenue for eBay); that Skype callers will use PayPal to pay for their calls (the ones that aren’t free, that is); and that Skype will encourage PayPal’s expanding cross-border remittance business. It’s all part of a plan to define eBay 2.0. “What it takes in the first ten years is a little different than what it takes in the next ten years,” says John Donahoe, president of eBay’s worldwide marketplace businesses, which account for 73% of the company’s revenues.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.