Monday, March 28, 2011

Ebay's Purchase of GSI Good For Consumers

Ebay's purchase of GSI and subsequent competetion with Amazon in the ever growing market of online retail spells lower prices for consumers across the board. With the purchase of GSI E-Bay ensures acess to brands from over 100 international retailers. Of course, as a rule of economics, two companies in the same market competing for business will drive down prices on thousands of products on Amazon and Ebay. In a period of significant struggle for Amazon Ebay's purchase very may well spell the end for the long time internet retailing giant who was at one time the major player on the online retailing scene specializing in delivering products such as books, electronics, and other highly sought after items potentially sold out in stores. Of course the 2.4 billion dollar buyout is quite a risk for EBay. For which the opportunity cost is most likely the much needed refinement of their online security protocols which must deal with the wide scale rampancy of frud and illegalities. A prime example of failing to keep up with a companies bread and butter is the newly defunct large scale book retaler Borders. Newly bankrupt as of last week, stores across the country are failing as Borders failed to use capital to increase reachability to new readers through internet retailers. As a result products such as the amazon kindle, ipad 2, and other ereaders now dominate the book market. Barnes and Noble you are on notice.