Will the online auctioneer’s Kijiji.com be able to lure advertisers away from the popular local classified-ad site?
BusinessWeek:
Online commerce giant eBay knew Craigslist had the right idea when it purchased a 25% stake in the online classified ad site three years ago. EBay has become so enamored with online classifieds that it’s about to go head-to-head against Craigslist with the launch of its international classified-ad site Kijiji in 220 U.S. cities. But battling Craigslist in its own backyard won’t be easy.
It’s not hard to fathom why eBay cares about classifieds. EBay is expanding beyond its core business of online auctions in a bid to become a global e-commerce engine that’s able to connect small businesses to buyers online, regardless of how they want to sell or shop. In addition to its flagship auction site, eBay offers comparison shopping through Shopping.com, payments through PayPal, ticket sales through StubHub, and Web store development tools through ProStores.
Outside the U.S., eBay also provides classified ads through a host of sites, including Kijiji, Netherlands-based Marktplaats, and LoQUo in Spain. “We are in one business, we are in the e-commerce business,” explains Bill Cobb, president of eBay North America, in a recent interview. “And there are other forms of e-commerce [besides selling goods], especially selling services.”
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