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EBay Moves in to Cut Competitors to Size

April 18th, 2011

According to latest news reports, EBay has added an option to its website which permits online shoppers to check items and inventory from local, traditional retail store outlets in the US. In addition to the Auctions Only and Buy it now tab, the EBay website will have an additional Local Shopping tab. This will allow online buyers to check the display prices and names of trade suppliers who stock and sell the products locally.

EBay has been planning this move right from the beginning of 2010 and it was for this purpose that they had acquired a website that had the software and the technology to handle inventory management systems. The software will be able to access products from over 50,000 trade suppliers spread across the United States. The website also has systems in place to allow traditional brick and mortar retailers to move inventory and display them to the EBay customers.

EBay, in line with its future expansion plans has agreed to buy a few more ecommerce companies with the specific intention of challenging its major competitors in the retail segment. According to recent reports in various sections of the US press, the company has in principle, agreed to purchase additional shares in an Istanbul based online retailing firm where it already has a minority stake.

The earlier stake was bought from the company as early as 2007 which indicates that EBay has been planning this move for quite some time now. There are no details available about the terms of the current deal. However, according to news reports, the deal is expected to be completed and sealed in the second quarter of 2011 after all the regulatory approvals are in place.

Traditional trade suppliers are expected to get a big boost for their business following the move as they will get exposure to a wider market audience readily available on EBay.

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