Two years ago eBay acquired GSI Commerce for $2.4 billion, this is the company’s second-largest acquisition, surpassed only by its purchase of Skype for $2.8 billion in 2008. Today eBay renamed GSI Commerce as eBay Enterprise, the new name as one of eBay Inc.’s three main business units.
eBay say that the name change best captures their business today: a strong enterprise commerce partner of choice for retailers and brands, backed by the full capabilities of eBay Inc, a global commerce platform and payments leader.
I find it very interesting that eBay believe that “eBay” is a stronger brand than GSI Commerce – in the past eBay has so often but somewhat understandingly been referred to as “fleaBay”, harking back to the days of the carbootish auction house it once was. eBay have worked hard to reimagine themselves as a new fixed price markeplace with quality goods, many of which supplied direct from well known brands. Obviously they think the rebranding of eBay is now strong enough to retire the GSI Commerce brand.
Of course one advantage of the rebranding of GSI Commerce to eBay Enterprise is that many of their top retailer clients don’t currently sell on eBay marketplaces. By rebranding to eBay Enterprise, eBay are subliminally suggesting to their existing retailers that they’re on the Enterprise version of eBay which automatically opens up selling on the marketplaces as well. Or as eBay themselves put it “The name highlights the enormous synergies between eBay Inc.’s portfolio of businesses and the solutions we are uniquely able to provide”.
eBay expect that by the end of 2013 more than 30 Bay Enterprise clients will have stores on the eBay Marketplaces platform, creating an additional distribution channel to help grow their businesses. Also by the end of 2013, eBay expect PayPal coverage to extend to over 90% of eBay Enterprise client’s volume.
It’s also interesting that eBay recently rebranded themselves with distinctive new logos, a four colour logo for eBay marketplaces and a blue logo for eBay. The new eBay Enterprise logo mirrors the blue eBay Inc corporate logo whilst eBay marketplaces retain their own four colour logo.
There’s little chance that PayPal will be renamed as “eBay Payments” as the PayPal brand is so strong. However it does raise the question of rebranding Magento at some time in the future. Whilst eBay Enterprise supports more than 1,000 of the leading retailers and brands today for their off eBay sales, Magento aim to provide similar services for smaller retailers.
