New service for corporate clients
eBay (EBAY) launched a new service for its corporate clients on its Enterprise unit termed as “industry-first.” Although the company’s enterprise unit will be acquired by a consortium of buyers for $925 million, something we discussed in Part 7 of the series, the initiative is part of an expansion effort. The deal is expected to close later this year.
The Enterprise unit’s Affiliate Network service will now have a new tool named “Dynamic Commissioning.” The tool will facilitate businesses with high-tech marketing that will allow them to optimize their advertising efforts. The tool will enable the brands to assign variable commission rates based on the type of customer.
eBay Enterprise’s line of business
eBay Enterprise operates three primary lines of business: commerce technologies, omnichannel operations, and marketing solutions. Each of these three primary lines of business complements the other. This allows for cross-selling opportunities.
- Commerce technologies provide retailers with storefront commerce solutions including a secure shopping cart and checkout offerings. These technologies also facilitate analytical tools, site management tools, like a catalog, content and promotions management tools.
- Omnichannel operations operate five e-commerce fulfillment centers in the US, one in Canada, and one in the Europe (EFA) in the United Kingdom.
- Marketing solutions help clients acquire new customers, convert more website visitors into buyers, build customer loyalty, and drive revenue across various channels.
In June 2011, eBay acquired GSI Commerce. It provided commerce technologies, omnichannel operations, and marketing solutions for large and nationally recognized retailers and brands. GSI was rebranded as eBay Enterprise in 2013. It developed technology partnerships with big retailers including Barnes & Noble, GNC Holdings (GNC), Dick’s Sporting Goods (DKS), NBA, Radio Shack, and PBS.
This certainly gave eBay a competitive edge over brick-and-mortar players like Walmart (WMT) and Best Buy.