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eBay Acquires Shopping.com

eBay has acquired Shopping.com, an online shopping portal that allows consumers to find and compare prices on numerous products. A BusinessWeek story on eBay's purchase says that Shopping.com could help eBay "plug a hole for the auction giant: Its dependence on mostly small merchants."
This could prove to be a savvy way for eBay to attract new buyers and sellers. Shopping.com at first glance looks like quite a different business from the more direct marketplaces eBay has been purchasing. Unlike eBay, which charges merchants fees for listing and selling merchandise, Shopping.com is essentially an advertising play. It makes money from fees it charges merchants for sending potential customers their way, regardless of whether those visitors buy anything.


Posted on June 3, 2005
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