Ebay is the Wal Mart of the online merchants. They have become a household name with their easy-to-use online auctions. It’s become very popular in middle-class America for people to put their items on Ebay to sell. Ebay reaches out to millions of people, and getting your items sold on Ebay is probably your best customer base possible.
Then factor in the biggest online payment processor in Pay Pal. You have two very strong internet companies, that have now merged as one. These two-mega companies have created a monopoly-like structure. They do have a corner on the market, that will be tough for any new online payment processor or online auction to get started. Which they are several in each area and are doing well. The Ebay/Pay Pal Company is a great model that can be copied. A company like Storm Pay is a online auction and payment processor in one. They have a model that is similar to the Ebay and Pay Pal way. Storm Pay has a extra feature with a paid-to-click service that the other guys don’t have yet. I do stress yet!
Playing the part of my hero from CNBC in Jim Cramer, I will play the game, on who Ebay/PayPal should buy. He does that a lot on his show. He makes suggestions that a company should buy this company, cause it would make the most sense for a better future. Now I would recommend that Ebay/PayPal should look to buy a paid to click service. Valu Click is a hot stock right now, and many people think someone will buy them soon. This might be a good play for Ebay, Yahoo, Google, or any of the other online media giants. I would stay away from this high price tag, and Ebay could look for a cheaper paid to click service. Perhaps a up and comming company in Ad Bux. Now they don’t have the best looking website on the internet, but they have a member base that is exploding, and has went well past the 100,000 member base in a very short time of existence. I think Ebay could buy these guys out for a reasonable price. Then Ebay would have a extra promotion site under it’s wings. They could continue to hold a firm grip over their competition. If not this company, Ebay needs a paid-to-click website. I think this will be their best move for the shareholders of Ebay.
