eBay has finally done what everyone expected when they acquired Magento. They have made it part of eBay enterprise which is the old GSI Commerce. Magento for me has been something of a Pandora’s box regarding the future of this open source shopping cart. eBay is clearly trying to become a platform company that has a dominant platform for users globally and in select markets. A few interesting tidbits to consider – why did eBay wait almost 2 years to announce this? Will Roy Rubin and co stick around and what now happens to the GSI commerce assets? Magento is a shopping cart that has made massive steps forward for small to medium size ecommerce businesses but what happens now? Are they becoming an enterprise solution that no longer focuses on their core business?
eBay are also looking at re-entering China after getting humiliated by Alibaba in the early 2000’s. It is pretty clear to me that eBay wants to be a player in emerging market ecommerce. However, entering markets with clear market leaders is gonna be tough. Consider that with a marketplace that is not eBay’s strength is now seen as asset in India, China and other regions one has to wonder if this is a case of long term thinking or ignorance..
The other big story for the past week is the arrival of Amazon coins in the UK and Germany. The coins is aimed at Kindle Fire owners in the UK or Germany. Virtual Currency is a huge potential revenue maker for Amazon as it will get users to splurge on Amazon content (Games and eBooks) which Amazon already has paid for. The revenue made on the sale of the digital goods is clean profit.