Just over 2 years ago eBay dropped a little over $3 billion (about $100,000,000 over) to purchase Skype. While Skype has grown exponentially to over 309 million users (33 million of whom joined this year), eBay is having trouble finding a way to make money with it. eBay’s always intends to supplement their primary site with the purchase of subsidiaries—their purchase of Paypal being the most notable—however, Skype has not become the integrated success eBay had hoped. It has been so unsuccessful as a part of eBay experience, last year they declared its value at 1.4 billion. The problem is not with Skype not being profitable (it has an annual revenue of 500 million), it is just that ebay cannot make it server their larger product, according to John Donahoe, “What we’re testing this year are the synergies…If the synergies are strong, we’ll keep it in our portfolio. If not, we’ll reassess it.”
eBay had hoped Skype would open up communications with buyers and sellers. I would love to know the last time Donahoe has used eBay. I do understand how communication is a part of the eBay experience, however, eBay already has that covered. Already integrated in their service is an anonymous messaging service that prevents personal information from getting out. Adding a voice service to this removes the anonymity. As a seller, there are always plenty of questions to field, often people looking to strike a deal to avoid waiting and actually bidding. Dealing with the questions can be time consuming, or, as often the case, they do not event merit a response. Why would I want to give potential buyers the opportunity to harass me via a “phone” call?
Skype is good for phone and video conferencing around the world. I use it for both business and personal communications, but I do not want ebayers to be contacting me through it. When I ebay I enjoy not having to worry about it, I want the market to decide the price, I’m not looking for a debate on my Buy-it-now price or to repeatedly answer the same questions, especially via phone call.
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