Yahoo Shopping India uses eBay!

I had no idea. I just discovered today that Yahoo! Shopping India operates through eBay India. This is an interesting business model. I didn’t now Yahoo and eBay cooperated so closely in the Indian online shopping market. Here’s a screenshot:

Yahoo Shopping India

I’m still trying to get my head around this concept. I mean, eBay (auction based) is so different that traditional online shopping sites: Yahoo Shopping interacts with big retailers (and is probably a retailer itself for many products) whereas eBay lets anyone (read: individuals) become sellers. This makes Yahoo! Shopping India just so different in terms of end user experience compared to the Yahoo Shopping global (shopping.yahoo.com). I wonder why the management chose to go this route as opposed to setting up/expanding Yahoo Shopping in India. Clearly one problem is setting up the supply chain, packaging and tracking processes in India. But how are they planning to monetize with eBay? Given that its an auction model, the logistics become far more complicated than a simple fixed-commission per purchase model. If any one has more idea on this, please drop me a note.

5 comments

  1. Shashikant

    To me, Yahoo Shopping looks a specialized eBay. On eBay, there are “quick buy” items which are not auction-based, the USP of eBay. Anybody can sell on eBay, including the big retailers from Yahoo.

    It makes sense for Yahoo to leverage eBay, as the online shopping market is not that big to justify the investment.

    As far as monetization goes, I guess, this will be same as CPC or revenue share, where Yahoo gets paid only if the user from Yahoo makes a purchase (by winning auction or with “quick buy”).

    Surely, there is not much sense to build own shopping, jobs, matrimony, dating, classifieds services for every region. Wherever possible, they are using existing players’ services.

  2. Diwaker Gupta

    *@shashikant*: I would strong debate the claim that “quick buy” non-auction items are the USP of eBay. The “buy now” concept was introduced much later, and eBay was already wildly popular by then. Of course, I have nothing but anecdotal evidence, but I suspect you have no better :)

    True, big retailers sell on eBay as well. But I’d still argue that the dynamics of shopping on eBay vs. a Yahoo! like portal are significant enough that leveraging one for the other doesn’t seem like an obvious step to me. For instance, if you buy something from Yahoo or Amazon and its faulty or you want to return it, you typically deal with Yahoo or Amazon. eBay goes to great pains to _remove_ themselves from the path between the buyer and seller. If your item is faulty, you talk to your seller. eBay provides tools and a platform to aid this communication, but it explicitly tries not to be part of it.

    But I agree that with time the distinction is narrowing. Amazon now has a lot of sellers where the item ships directly from the seller and not from Amazon (in which case the liabilities go to the seller).

  3. Allen Harp

    The concept, although a bit strange makes sense in the long run with a little extra consideration. Once the two giants join forces the resulting Yahoo Shopping eBay India will be a very powerful outlet for many retailers ( both Fortune 500 and individual as well). The end customers can benefit as well by having increased competition for their business. It should result in more favorable pricing in the local area. This may only be their first step at a joint geological venture.

Leave a Reply