Interesting Comment On Ebay

You Might see Wal Mart jump into the forray especially if the over 500,000 person civil suit makes it past the supreme court today. Not that they don't have the ability to do what they want but this one could potentially cost billions. Maybe it'll be walbay! Can't see their feedback rating staying 100% for long.

scubu: I heard about what Amazon did in Illinois. Pretty unfair to the affilates, but that's blowback from what the state of Illinois tried. No winners there.

It does seem ebay will be getting into the business of selling items for large companies as they are going to acquire five fulfillment centers out of this mega-deal and that includes processing and shipping them too! :

4th UPDATE: ebay To Buy Ecommerce Co. GSI Commerce For $2.4B

NEW YORK (Dow Jones)--EBay Inc. ( ebay) agreed to buy ecommerce company GSI Commerce Inc. (GSIC) for $2.4 billion in cash and debt in a move that extends the Internet auction pioneer's reach into larger brands and retailers, and makes it a bigger rival to Amazon.com Inc. (AMZN).

The move is ebay's boldest attempt to capitalize on changes to global commerce, which the company has said is at an inflection point in which the boundaries between online shopping and offline retail are blurring. GSI will provide ebay with technology to help large merchants cope with these new challenges, said ebay Chief Executive John Donahoe.

"The number of retailers, large and small, that have come to us saying -- we are grappling with how you deal with mobile commerce, we are grappling with how to deal in a social commerce world, we are grappling with how to go global -- has been striking," he said in a conference call.

The move comes as ebay continues a multi-year effort to overhaul its online marketplace business, which has underperformed overall growth in Internet commerce, by moving away from auctions and making the site more attractive to larger merchants.In the meantime, the company's PayPal payments unit has been posting strong results.

"It's a powerful move," said BGC Partners analyst Colin Gillis of the GSI deal. "It's a push into bigger brands and it gives them the ability to compete with Amazon."

GSI provides fulfillment, marketing services, analytics tools and other technology that helps about 180 big brand retailers run their ecommerce stores. EBay said it would acquire five U.S fulfillment centers and two international facilites from GSI, with which the ecommerce company will be able to process orders and ship goods on behalf of merchants.

That will enable ebay to compete more effectively with Amazon and its Prime business, which can guarantee delivery of items in a timely manner.

"The acquisition gives ebay more competitive weapons to minimize the market share shift to Amazon," said Stifel Nicolaus analyst Jordan Rohan. "This is a big hole strategically that ebay is trying to plug...It's the right thing to do long term."

Donahoe declined to specify how much merchant overlap there currently is between the two companies and he declined to speculate on how many large retailers ebay might be able to attract as a result of this deal. But he said that after integrating the two companies software, GSI customers will be able to list their products on ebay with a simple push of a button.

"What GSI Commerce, in essence, does is it enables large sellers, large retailers and brands, to meet buyers successfully and effectively," Donahoe said. That's ebay's strategy "that we've outlined for the last several years, where we connect buyers and sellers."

The deal will hurt ebay's earnings this year but add to them in 2012. As a result of the acquisition, ebay increased its revenue and earnings growth outlook through 2013. The company now expects to have $14 billion to $16.3 billion in revenue by 2013, up from the $13 billion to $15 billion forecast provided at its recent investors conference. ebay said its non-GAAP EPS compound annual growth rate is now expected to be 12%-16% from 2010 to 2013, up from 10%-14%. ebay also said free cash flow would be $8 billion to $9 billion through 2013, up from $7.5 billion to $8.5 billion.

According to the deal's terms, ebay will pay $29.25 a share--or a 51% premium to Friday's closing price--for each share of GSI, which develops and operates ecommerce businesses for retailers and other organizations. The deal includes a "go-shop" period during which GSI can solicit other offers through May 6, though ebay has the right to match a superior proposal.

GSI shares recently jumped 50% to $29.14. ebay declined to disclose how much of the deal is cash and how much is debt. The company also plans to operate it as "a third leg" and a separate unit in 2011, Donahoe said.

While industry analysts largely praised ebay's bold deal, investors seemed concerned, sending shares down 2.6% to $30.89 in recent trading.

"Anytime a company does a deal of this size, especially when people were not expecting it, understandably there's going to be some uncertainty and related concerns," Standard & Poor's Equity analyst Scott Kessler said. " ebay has a track record that people point to that is not particularly perfect when it comes to M&A. I think that's unfair."

The company struggled with its $2.6 billion purchase of Skype from 2005, selling most of the company--which allows voice communication between members at no cost--back to an investor group in 2009. But Kessler said ebay's PayPal purchase has proved to be one of the most successful Internet deals.

ebay said that assuming the GSI acquisition closes mid-third quarter, the deal will hurt its per-share earnings by 30 cents to 34 cents this year. The company, however, said its 2011 outlook for earnings excluding special items remains unaffected. The deal should add to earnings next year, ebay said, and produce cost savings of about $60 million by 2013.

ebay plans to divest GSI's entire licensed sports merchandise business and 70% of its ShopRunner and Rue La La operations, which it doesn't believe are core to its long-term growth strategy. A newly formed holding company, led by GSI CEO Michael Rubin, will buy the assets. ebay plans to loan the holding company $467 million, while Rubin plans to invest additional cash of $31 million in the holding company.

Hello to members. I came across this discussion and needed to contribute. As one of many disgruntled members of G.S.'s forum I agree with Jubilee and Stampvirgin observations on page 2. In my view his negativity and total disrespect towards some collectors continues escalating to intolerable levels.

In his Posts he encourages Forum members to officially complain to e/bay regarding content of listings he sees as dubious. Most of the time he's proven absolutely wrong, "never" posting an Apology. As Philb stated, "I feel a lot cozier here".

Welcome finches, you're among friends here!

I am an old guy now..i will walk away from a fight if I can...the big marketplace has never harmed me..i have bought and sold there...i notice on the stockexchange thats its stock is well back into the 30 dollar range again...i really do not think they need us stamp collectors but their come ons act as if they do....when I look at the worldwide collections/lots..there is an awful lot of junk out there..years ago my wife bid on a Europa forerunners collection from a fellow in Germany...she won it for $330.00 he really wanted euros but she seems to have a way of getting things and he took dollars...i almost flipped when she said she sent him $330 cash..you can imagine the thoughts going through my head...the book came..what a beautiful thing..worth 3 times what she paid... a very fair transaction..everyone should do as well !

philb,

I think that most of us are "Old Guys" I'm 64 and most of my collecting friends are older than I. Like you, I'll walk away from a fight but don't back me into a corner, I still remember the how too's, though doubt if I could.

The eBays and Amazons of the business world started small and perhaps have gotten greedy and make a ton of $$$. Isn't that the American dream? I'll still buy from those that can provide an acceptable product at an affordable price. I have bought a lot of material off ebay and hope to continue to do so. If someone has a gripe about them then they have the option of not using them. I don't think this forum is the place for taking a negative crusade against these companies.

Philb
I'm Europa collector and never made a move towards those forerunners. They would fill spaces in my Minkus album. I'm thinking about the Greece set. Looks beautiful. I just saw a dealer price list for complete forerunners at $850. So yes, Jopie had a good deal!

Ok forgive me ..this is about ebay and not stamps...we had Easter dinner at the home of my sons girlfriend..her two sons were there and I did not bring the topic up..one of the sons mentioned he went to Woodbury Commons a large outlet center and one store had a certain brand of mens dress shirt marked down from $400 to $20 (if I can imagine a dress shirt going for $400) He purchased 20 shirts and sold them on ebay...i had to ask what he got for the shirts..$70 each..i guess some people can seize an opportunity when they see one !

Philb,
With reference to your Post above, about 'genuine opportunities to make a profit', no problems, all involved received a bargain and walked away happy.

In my Philatelic experience I noticed that the Senior stamp collectors/sellers tend to facilitate one price-wise, a magnet for further business, when finances allowed.

GS is entitled to is opinion on Stampboards, it is his site. He is always right (just ask him) and while not everything he says is wrong, there is plenty said for his own benefit disguised as friendly advice.

ebay is a wonderful resource for a buyer, where else can I find used pairs of SWA postage dues? But ebay is a bargain shop, I think the benefit is more for the buyer than the seller (more often than not I've been disappointed by my sales but you can't obtain bargains in one place and expect great prices when you sell in the same place. I think the whole stamp auction process of 20%+ commissions on a seller, buyers premiums, long delays via traditional auction houses or increasing fees and sometimes poor realisations on ebay is just the stamps sellers lot.

Personally, I think the best way to utilise ebay is create a client base by selling cheaper priced stuff then directing them to your own web site for better items at proper prices.

Ooooh, watch this space..............

64Idgaf,
Before wising up to G.S. sales hype we paid him $76 for this damaged 1st w/m Used 1d K'roo. Described by him as a "little gem", due to the early postmark from a mining town, especially with the 100th Aust' K'roo issue anniversary close.

If a Collector had sold this on E/bay the asking price would have been $10-$15 max', in my opinion.

At least you got something finches.

My last purchase made in February 2010 is still yet to arrive! And no refund either.

I am firmly of the belief that ebay isn't the only problem out there when it comes to buying stamps on the internet.

I would have to agree with you there, Plateflaw!

And welcome to the forum, finches. This is a much more tolerant place to be than GS's board.

BTW when I started this thread I didn't mean to promote GS. I merely thought that some of his comments were spot on. That said, I'm glad now that I changed my mind about making a large purchase from his online store a year ago.

The last decent purchase I made from GS was this Jubilee set, MUH (that's MNH for our cousins across the pond), great centring, at a cost of close to full catalogue. I was happy, as I wanted a really good set



However, the hyperbole took over on one particular cover.

"Despite the 17 different stamps, total franking is only 2/2d, which I think was actually the correct air postage. For starters there is a 1913 1d Engraved - cat $750 on cover. A 1d violet ... scarce on any cover - minimum $45. Even a 1913 ½d Roo .. "SG #1". The 1d Red is a rare Die 3 .. and better still, has the scarce plate flaw "White Flaw Below Right Wattle Stem" (ACSC 75N). Now that one is a $150 flaw OFF cover, and ANY Die 3 on cover is cat $400+ - without flaws! The 1d Green is Large Multiple Wmk (cat $90 on cover.) 2d brown has a plate flaw etc. Even the 3d Airmail pair are from the scarce BOOKLET plate, with the small green booklet dots in margins - minimum cat $125 on cover etc. Melbourne Registered plus Ararat plus and UK Registered arrival backstamps. A show-stopper. $600"

BUT, I bought an almost identical cover, shown below, from the same sender, to the same recipient, with an almost identical franking, at a charity auction for $125



Either I got a bargain, or someone sold a severely overpriced cover (and, yes, it did sell).

His constant slaying of ebay (but, it must be said, not Delcampe as Monsieur Delcampe is a member of SB), is totally focused on increasing his own sales. He also berates the auction-house industry for making a profit. Therefore, he is the only option!

If someone is true to form, I will now receive an abusive email from him re copyright of his over-the-top sales pitch. If I get one, I'll post it here for all to see.

But jubilee, if you buy off "him" you are a specialist - if you buy off ebay, auctions or anyone else still living you are a bunny!