<![CDATA[Valleywag: e-commerce]]> http://cache.gawker.com/assets/base/img/thumbs140x140/valleywag.com.png <![CDATA[Valleywag: e-commerce]]> http://valleywag.com/tag/e-commerce http://valleywag.com/tag/e-commerce <![CDATA[ October e-commerce up a humiliating 1 percent ]]> The accompanying chart from TechFlash says it all: Online sales just aren't growing anymore. October's 1 percent growth over October 2007 is the worst performance measured by ComScore since they began tracking stats in 2001. TechFlash quotes Gian Fulgoni, chairman of the research firm: "We can only hope that the recent sharp drop in oil prices will cause a continued easing of inflation and a strengthening in consumer spending as [we] enter the critical holiday shopping season." We can only hope? Dude, we can get down on our knees and pray.

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Tue, 18 Nov 2008 15:20:00 PST Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5092469&view=rss&microfeed=true
<![CDATA[ The Singularity arrives as TiVo adds Domino's Pizza to menu ]]> For decades, mankind's brightest minds have struggled to crate the ultimate convergence device, a machine so powerful that it could play Simpsons cartoons and order an extra-cheese combo at the same time. Today, November 17, 2008, that convergence has arrived. First Obama/Biden, now Tivo/Domino's. It's a great time to be alive.

11/16/2008

TIVO ADDS DOMINO’S PIZZA TO ITS MENU

Domino’s is Pioneering a Whole New Way of Ordering…Via TV

ALVISO, CA & ANN ARBOR, MI — November 17, 2008 — TV has never tasted this good. That’s because TiVo Inc. (NASDAQ: TIVO), the creator of and a leader in television services for digital video recorders (DVRs), and Domino's Pizza, Inc. (NYSE: DPZ), the recognized world leader in pizza delivery, have teamed up to give broadband connected TiVo subscribers the ability to order pizza for delivery or pick-up, and track delivery timing, right from their TV sets using the TiVo® service. It’s a service that cooks up the perfect pizza purchasing recipe.

“Our commitment to customer satisfaction is what has helped us become the leader in the global pizza delivery market,” said Rob Weisberg, vice president of precision and print marketing at Domino’s Pizza, Inc. “We are confident that teaming with TiVo on this novel, easy, and convenient way to order pizza right from the TV will be very well received by our customers. This is the first step in the future of customer interactions with the brands they seek to engage with and buy from. This is the first time in history that the ‘on-demand’ generation will be able to fully experience couch commerce by ordering pizza directly through their television set. You’ll see a television ad for Domino’s and you’ll click ‘I want it’ through your remote. In about 30 minutes, your pizza will show up at your door.”

Karen Bressner, Senior Vice President of Advertising Sales, TiVo Inc said, “Joining forces with Domino’s Pizza creates an effective marketing and commerce tool for Domino’s while enhancing and further distinguishing TiVo as the ultimate way to watch TV with a closed-loop advertising experience. This exciting new partnership offers yet another advertising solution as commercial avoidance continues to increase. With just a few clicks of the remote, TiVo users can pause their program, order a pizza, and then sit back, relax, and return to their favorite show without missing a single second. Now, TiVo delivers the absolute best television viewing experience…and a pizza.”

TiVo subscribers can seamlessly access their Domino's Pizza order from various advertising entry points on the TiVo user interface including Gold Star Sponsorship, Program Placement, Interactive Tags in live TV spots, and through Music, Photos, Products, & More by clicking on “Order Your Dominos Pizza Now.” TiVo is serving up a piping hot new service that’s truly made to order and gives a whole new meaning to the term “TV dinner.”

TiVo subscribers can set-up a user name and password on Dominos.com so that each time they use their TiVo remote to place an order, they can log-in with a simple account number. Alternatively, TiVo subscribers can enter their delivery address, build their pizza order right from the television set by selecting type of crust, toppings, and sauces, and get the pizza delivered by their local Domino’s Pizza.

Bressner added: “Our commitment to revolutionizing interactive advertising and commerce on the television is a direct result of the innovative solutions and features we provide. TiVo’s growing list of interactive features also includes the ability to find and purchase products on Amazon.com related to a customer’s favorite TV show or the convenience of being able to search for a movie that’s playing nearby and purchase tickets through Fandango – all by using the TiVo remote.”

Starting today, this new service is free of charge to all broadband connected TiVo subscribers and supports both delivery and pick-up orders. Viewers pay in cash when the pizza is delivered.

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Mon, 17 Nov 2008 09:37:57 PST Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5090858&view=rss&microfeed=true
<![CDATA[ Rearden Commerce cuts 50 people ]]> A tipster sent in word that Rearden — an e-commerce startup from Foster City — is rumored to have cut 72 people. We hear the actual number is closer to 50 out of 375. The company provides a "personal assistant portal" that streamlines travel planning, reservations, and general logistics within corporations. Or something. Our tipster's contention is that no one, especially customers, is quite sure just what exactly the company does. Rearden raised $100 million in funding back in April of this year and claims to have signed off service contracts with 1,700 companies. Let us know if there's anything more.

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Fri, 14 Nov 2008 15:20:00 PST Alaska Miller http://valleywag.com/index.php?op=postcommentfeed&postId=5087783&view=rss&microfeed=true
<![CDATA[ Zappos layoff turns into lovefest ]]> Tony Hsieh, the CEO of Zappos, has a promising career as a cult leader. In a blog post, the online shoes-and-clothes retailer's boss acknowledges the layoffs his employees were Twittering about this morning, writing that the company had laid off 8 percent of its workforce. He all but admits the cuts were forced on him by investor Sequoia Capital. The severance packages are generous in comparison to most startups; two months or more of pay, and six months of health insurance. Sweet enough, perhaps, that people won't ask a key question about the layoffs

"Tony cares about his company and his employees more than anyone else around," says an entrepreneur who knows Hsieh. His employees, even the former ones, seem to be returning the favor on Twitter. But if he loved his employees so much, why didn't he resist the pressure from Sequoia to make the cuts?

We hear Sequoia is insisting that all of its portfolio companies cut payrolls by around 10 percent, regardless of the particulars of their businesses. Zappos seems to be doing well in its e-commerce niche — well enough, at least, to afford a generous severance. Hsieh's company offers free returns if the shoes its customers buy don't fit. Why didn't he just mark Sequoia's orders "return to sender"?

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Thu, 06 Nov 2008 15:20:00 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5078824&view=rss&microfeed=true
<![CDATA[ Overstock.com chief lying about company's finances since 2001 ]]> When Patrick Byrne, the CEO of Overstock.com, isn't issuing paranoid rants about "naked shorts" ruining Wall Street, or admitting that his online store's buggy software has been producing false financial reports, he keeps busy lying to journalists. Including yours truly. Back in 2002, I interviewed Byrne for Business 2.0 magazine, a tipster recently reminded me. Here was the exchange:

Are you profitable?
Byrne: Yes, that's real GAAP profit, not Amazon-bullshit-accounting profit.

In fact, it was neither. Overstock.com was then a private company, but it later revealed, when it filed for an IPO, that it had lost $13.8 million in 2001. With the latest financial restatements, it's been revealed that the company has never made an annual profit since its inception. And yet Byrne would rather blame a conspiracy of rogue traders for his company's woes.

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Tue, 04 Nov 2008 11:40:00 PST Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5076219&view=rss&microfeed=true
<![CDATA[ Online shopping down ]]> Online shopping is now mainstream enough to be a solid barometer of consumer sentiment. So this news from Hitwise, the website-measurement research house, is disturbing: Traffic to e-commerce sites has been dropping for eight straight weeks.

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Tue, 28 Oct 2008 14:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5070096&view=rss&microfeed=true
<![CDATA[ Why isn't Amazon.com talking about its $150 million windfall? ]]> Amazon.com got a big payday when eBay bought Bill Me Later, the payment service, for $945 million earlier this month. So why isn't it admitting it? In an SEC filing, Amazon.com didn't name Bill Me Later as the source of a $150 million cash payment it will receive in return for an investment. But it's obviously Bill Me Later, which Amazon.com invested in last December. Here's the curiously vague wording of Amazon's disclosure to shareholders, and three possible reasons for it.

Note 10 — Subsequent Event
In October 2008, a third party announced the acquisition of a company in which we held an equity-method investment. Subject to the closing of the acquisition, which is expected to occur in Q4 2008, we will receive approximately $150 million in cash for our equity ownership.

  • Jealousy. Amazon.com CEO Jeff Bezos wished his company, not eBay, had bought Bill Me Later, and didn't want to give his rival credit.
  • Remorse. Did Amazon.com actually profit from its Bill Me Later investment? We may learn more next quarter, but note that Amazon only disclosed how much cash it received, not how much money it made.
  • Shame. Bill Me Later charges a 19.99 percent interest rate, which is higher than many credit cards. Sure, that's lucrative — but does Amazon want to be associated with a website personal-finance experts say you shouldn't touch "with a 10-foot gift-wrapped pole"?

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Thu, 23 Oct 2008 09:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5067490&view=rss&microfeed=true
<![CDATA[ Amazon.com predicts bleak Christmas ]]> In its third-quarter earnings call, Amazon.com executives say they expect sales between $6 billion and $7 billion for the December quarter. A consensus of Wall Street analysts had predicted $7.05 billion. The stock is down 14 percent. [Silicon Alley Insider]

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Wed, 22 Oct 2008 17:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5067404&view=rss&microfeed=true
<![CDATA[ eBay to ban check and money orders, except for vibrators ]]> Starting next month, eBay will no longer allow most transactions to be paid for by check or money order. Now you must used one of the approved electronic methods, especially PayPal and certainly not Google Checkout or Checkout by Amazon. Makes business sense: Mail transactions are probably a sink on customer service resources, as payments don't arrive or bounce bounce when they do. And eBay earns no vigorish from check or money order transactions as it does with PayPal, marginally increasing per-transaction profit — as the release states, "Ultimately, it's eBay's goal to have buyers always pay for their purchases within the secure confines of eBay." There are a few exceptions, however, notably including the "Mature Audiences" category. Because really, who wants to buy a used dildo with a credit card?

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Tue, 23 Sep 2008 07:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5053496&view=rss&microfeed=true
<![CDATA[ Baby's first gay porn, courtesy of Google ]]> A tipster tells us his boss searched Google Products for a "'Spit Happens' t-shirt" for his infant. Google found him a suitably innocent bodysuit on CafePress.com. It also found him a pair of gay porn videos, one called Nasty Nasty featuring "a stunning young man, the spitting image of a young Ben Affleck," and another called Bedrock, featuring actors who "take turns pounding each other on a bunch of iron beds," — ouch. We're not sure who to blame for the confusion here.

Google is the one whose X-rated product directory turned up even when the searcher turned on "moderate filtering." On the other hand, say "spit happens" to most any man in the 18-to-34 year old demographic, and you'll either get a jovial fist bump or a politely restrained grimace. The phrase hardly connotes innocence. And the algorithm tries to give the people what they want. Maybe Google knows something you don't?

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Tue, 16 Sep 2008 12:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5050460&view=rss&microfeed=true
<![CDATA[ Facebook makes as much as $42 million off pointless "Gifts" ]]> After too much math, Jeremy Liew of Lightspeed Venture Partners estimates that Facebook earns between $28 million and $42 million allowing its users to buy icons as gifts for each other. Lightspeed came up with the revenue numbers by watching how much users spent on the icons for a week and then multiplying that number by 73.3. Uh, why not 52? Because Facebook Gift sales go up during the holidays, just like real useless merchandise. We'll let Liew explain the rest of his math, below. Bring your coffee:

Facebook creates a certain fixed number of each type of gift. When the number remaining for any particular gift drops below 100,000, Facebook displays the number left. (The most common size runs are 100,000 and 1,000,000 but they range as high as 10,000,000 and as low as 15,000.). For those items where less than 100,000 remain, we can track how many gifts had been sold in the preceding week by subtracting the number remaining from the number remaining the previous week.

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Tue, 02 Sep 2008 07:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5044214&view=rss&microfeed=true
<![CDATA[ Botched software upgrade costs J. Crew $3 million ]]> Luxer-than-thou retailer J. Crew has mostly avoided the economic pinch, since its customers barely notice that they're paying $4 a gallon for gas. Instead, the retailer has been laid low by buggy software, reports the Business Technology blog. One outraged customer, shown here, was billed $9,208.50 and shipped baby-size shirts, not the mediums he'd ordered. J. Crew's net income in its most recent quarter fell 12 percent from the same period last year to $18.1 million, and the company said it spent $3 million to fix the problem. Do the math: Had J. Crew not had the software problem, its income would have been up 2.5 percent. It's a shameful comeuppance for J. Crew CEO Mickey Drexler. "Retail is detail; Mickey lives that," a Wall Street analyst told the New York Times in March for a profile which tracked Drexler's obsessive visits to stores, where he talked to customers at length about style and fit. Alas, no such attention to detail was on display when it came to J. Crew's website — which increasingly is how customers interact with the company. Drexler reads and answers a lot of email, according to the Times. But it sounds like he should spend less time in stores, and more time camped out in the datacenter. ]]> Wed, 27 Aug 2008 11:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5042558&view=rss&microfeed=true <![CDATA[ Netflix shipping system crashes for two days running ]]> Woe be unto Netflix if my parents don't get the latest installemnt of Foyle's War. In an email sent out to customers and a notice posted to the site, the DVD-by-mail company says it is having problems with its shipping system affecting around a third of the company's customers. It has now persisted for two days. So if your friendly mail carrier doesn't show up with a red envelope or three today, don't blame it on a Postal Service "blue shorts of death" error. Graciously, the company has preemptively offered a credit for any delays. Why not tout its online-video offerings, like Watch Now streaming on its website or the Roku set-top box? Oh, right, website outages and inventory problems. But hey, at least if your request gets returned "404 Not Found," it won't cost you a stamp. Netflix's alert, after the jump:

We're Sorry DVD Shipments Are Delayed

Dear [Netflix customer],

Our shipping system is unexpectedly down. We received a DVD back from you and should have shipped you a DVD, but we likely have not. Our goal is to ship DVDs as soon as possible, and we will keep you posted on the status of your DVD shipments.

We are sorry for any inconvenience this has caused. If your DVD shipment is delayed, we will be issuing a credit to your account in the next few days. You don't need to do anything. The credit will be automatically applied to your next billing statement.

Again, we apologize for the delay and thank you for your understanding. If you need further assistance, please call us at 1-888-638-3549.

-The Netflix Team

(Photo by Seth Anderson)

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Thu, 14 Aug 2008 12:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5037125&view=rss&microfeed=true
<![CDATA[ eBay trying to buy into billion-dollar Korean auctioneer ]]> eBay, having failed to catch on in the heavily-wired nation of South Korea, is in talks with Korean site Gmarket. A few days ago, Gmarket announced Q2 sales of nearly $1 billion, which generated $35 million in revenue. Yahoo bought 10 percent of the company in 2006 for approximately $60 million. [NYT]

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Wed, 13 Aug 2008 13:00:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5036683&view=rss&microfeed=true
<![CDATA[ Tiffany, eBay extend unstylish spat ]]> Luxury goods-maker Tiffany — you know, the one which sells the gays their wedding rings — is appealing a federal district court's decision clearing eBay of responsibility for counterfeit product listings. The jewelry company sends eBay 135,000 takedown notices a year, and wishes eBay would do more of the work for it. eBay's play-it-cool response: "Tiffany's decision to carry this litigation on after the District Court's decision doesn't do anything to combat counterfeiting." Much like eBay itself. [Atlanta Business Chronicle]

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Tue, 12 Aug 2008 15:00:00 PDT Alaska Miller http://valleywag.com/index.php?op=postcommentfeed&postId=5036240&view=rss&microfeed=true
<![CDATA[ Amazon offers 1-Click, PayPal-like services to other online stores ]]>
Checkout by Amazon and Amazon Simple Pay are two different levels of PayPal-like services Amazon.com quietly launched on Tuesday. No press release, no front-door promo. Simple Pay works a lot like PayPal — customers at another e-commerce site can use it as an alternative to entering a credit card number. Checkout by Amazon goes further, letting websites make use of Amazon's 1-Click ordering and allowing shoppers to put Amazon.com purchases in the same virtual cart. Previously, Amazon had required retailers to set up on Amazon.com itself. Now, the company is looking to get a piece of the action any way it can.

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Wed, 30 Jul 2008 09:20:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5030970&view=rss&microfeed=true
<![CDATA[ Amazon.com and TiVo enable couch-potato lifestyle ]]> Finally realizing the dreams of advertising professionals since the 1950s, Amazon.com and Tivo announced new features to closely integrate shopping with TV watching. Viewers of talk shows — where pitching movies, music, or books vaguely masquerades as entertainment — will now have an opportunity to buy exactly what's being discussed on TV! Fancy the newest obsession of Oprah in her book club or like the CD being flogged by David Letterman's new favorite band? Just buy it with one click of TiVo's remote, and Amazon will deliver. If you like obvious product placements now, you're going to love the future. [NYT]

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Tue, 22 Jul 2008 16:20:00 PDT Alaska Miller http://valleywag.com/index.php?op=postcommentfeed&postId=5027873&view=rss&microfeed=true
<![CDATA[ Justin.tv to let users launch their own home-shopping networks ]]> At first we found lifecasting the most depressing thing around; now, the practice of living your life attached to a camera seems depressingly popular, Silicon Alley Insider reports. Justin.tv has reached 1 million registered users. The site still has no business model, but CEO Michael Seibel says the company is working on an online payments system that will let lifecasters hawk wares to their viewers. Cancel that bit about lifecasting being a downer: The prospect of letting a million QVCs bloom is far scarier.

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Tue, 22 Jul 2008 09:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5027732&view=rss&microfeed=true
<![CDATA[ A Facebook payments system? Zuckerberg not sure he wants your money after all ]]> Facebook will not launch a payments system for its platform application developers at the upcoming F8 conference. Inside Facebook says though Facebook engineers are working on a system, it just won't be ready in time — even though Facebook began asking developers to participate in a payments beta test last December. Silicon Alley Insider offers a stranger explanation: The Facebook payments system hasn't come out yet because Facebook founder Mark Zuckerberg "hasn't bought in to the idea completely."

If that's the case, Zuck needs to hurry up and buy in. Venture capital for Facebook-application startups is drying up. One way Facebook could make its hangers-on flush again would be with a payments system which allows users to buy and sell things — two activities we've heard many experts consider crucial to any economy.

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Thu, 17 Jul 2008 15:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5026355&view=rss&microfeed=true
<![CDATA[ eBay profits rise 22 percent, in line with seller rage ]]> eBay's second-quarter net income rose 22 percent to $460 million, as PayPal and other newer businesses led broad-based growth. The total value of all goods sold on the site in the quarter was $15.7 billion, up 8 percent from a year ago — which suggests that the sustained whining of smaller sellers who are displeased by the inclusion of listings from the likes of Buy.com, which pays lower fees to sell items on the site, has mattered less than new sales generated by the larger merchants. [Wall Street Journal]

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Wed, 16 Jul 2008 16:20:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5026011&view=rss&microfeed=true
<![CDATA[ eBay cleared on counterfeit lawsuit ]]>
"In a long-awaited decision in a four-year-old trademark lawsuit against eBay brought by the jeweler Tiffany and Company, Judge Richard Sullivan of the Federal District Court in Manhattan ruled Monday that the online retailer does not bear a legal responsibility to prevent its users from selling counterfeit items on its marketplace." [New York Times]

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Mon, 14 Jul 2008 15:40:00 PDT Paul Boutin http://valleywag.com/index.php?op=postcommentfeed&postId=5025036&view=rss&microfeed=true
<![CDATA[ Facebook's marketplace quits updating and nobody noticed ]]> Facebook has a Craigslist-like marketplace where users can buy and sell things. Or, at least, for now it does. Product manager Jared Morgenstern launched the marketplace in May 2007, but Facebook hasn't updated marketplace listings since the middle of last month. AllFacebook's Nick O'Neill wonders if that means Facebook plans to phase it out with its upcoming site relaunch. If so, it's going to be great loss for all those Facebook users depending on "Natural Techniques You Can Try @ Home To Re-grow Lost Hair."

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Thu, 10 Jul 2008 08:00:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5023792&view=rss&microfeed=true
<![CDATA[ Why outsource when you can replace humans entirely? ]]> When online shoe retailer Zappos isn't paying newly trained employees to leave the company, it's replacing them entirely. Robots developed by Kiva Systems zip around a Zappos warehouse picking up items and deliver them to their meatbag underlings for packing, and then move the packages to another small group of primates where the boxes are shipped. The only problem I foresee is that the robots have wheels, so when they inevitably take over, they won't be buying any shoes from Zappos. [CNET]

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Fri, 27 Jun 2008 14:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5020405&view=rss&microfeed=true
<![CDATA[ eBay demolishes "level playing field" for Buy.com ]]> On eBay, some merchants are now more equal than others. eBay signed up Buy.com to sell on the site with a special deal: no listing fees, a perk which has allowed Buy.com to litter the site with junk listings like a single AA battery — an offering that makes no economic sense under the rules that apply to other eBay sellers. That goes against the site's core principle of a "level playing field," reiterated here by founder Pierre Omidyar, in an interview with current CEO John Donahoe, just two months ago.

In the video, Omidyar talks about how retailers shouldn't be rewarded "by virtue of their stature outside the online community." And yet isn't that exactly what eBay has done for Buy.com? Donahoe is set to address eBay sellers in a keynote Friday morning at its annual eBay Live conference. How will he explain the Buy.com deal? It will surely take the very best corporate doublespeak — the sort that only a former management consultant can come up with.

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Tue, 17 Jun 2008 15:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5017352&view=rss&microfeed=true
<![CDATA[ Auction site eBay gets out of brokering TV and radio ads ]]> While the occassional videoblogger might put up sponsorships for sale through eBay's auction site, networks and radio stations weren't so interested, so eBay is cutting its few deals with cable networks loose and ending its partnerships with Bid4Spots in brokering AM and FM ads. Which is a shame, because I was totally going to buy some radio ads right after I purchased some Beanie Babies. [Industry Standard]

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Thu, 12 Jun 2008 14:20:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=5015919&view=rss&microfeed=true
<![CDATA[ Amazon.com invests in a home shopping network, but not Diller's ]]> Amazon.com's new, new thing is straight from the 1980s: a home-shopping network. Live on your TV! Amazon today announced an investment in the Talk Market, which the flacks call "a user-generated TV Shopping Channel" because businesses can upload and edit commercials on the site. [PR Newswire]

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Mon, 09 Jun 2008 13:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=5014671&view=rss&microfeed=true
<![CDATA[ Bid for relevance ]]> Through higher fees and other changes, eBay is trying to push auctioneers off its site, as consumers favor fixed-price purchases. [BusinessWeek]

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Tue, 03 Jun 2008 11:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=5012699&view=rss&microfeed=true
<![CDATA[ Amazon.com exploits corporate welfare in the Keystone State ]]> jeff_bezos_carnegie_mellon.jpgTexas isn't the only state going after Amazon.com for abusing the Supreme Court decision that requires mail-order retailers to collect sales taxes only on purchases in states where the company has a significant physical presence. In Pennsylvania, which is about to become host to a new Amazon distribution center, a local editorial is questioning the legality of the company avoiding state sales taxes by putting the warehouse titles under the names of subsidiaries.

It cites a case pending in New York that would close the loophole, and garner the state $50 million in possible revenue. Instead, Pennsylvania is giving the book-business behemoth — or its customers, rather — a $1,750,000 tax break. And here I wondered how Carnegie Mellon was able to convince Bezos to fly to Pittsburgh for a commencement address.

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Fri, 30 May 2008 13:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=394325&view=rss&microfeed=true
<![CDATA[ Vancouver couple offers baby for sale on Craigslist ]]> A Vancouver couple listed their week-old newborn for sale on Craigslist for $10,000, prompting a horrified user to call the police. When the cops arrived, they found the tyke breastfeeding and the parents claimed it was a hoax. Which didn't stop the authorities from confiscating the baby. Susan MacTavish Best issued the by-now boilerplate statement that reads "Misuse of Craigslist for illegal purposes is absolutely unacceptable to us." Those kooky Canadians just hate the free market. When they aren't unjustly subverting self-interest with their free health care, they're criminalizing the trade in human babies. Once Peter Thiel builds his Objectivist paradise at sea, expect him to make another fortune on PayBaby. (Photo by Badr Naseem)

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Wed, 28 May 2008 15:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=393802&view=rss&microfeed=true
<![CDATA[ Amazon.com encourages Kindle casual encounters ]]> Amazon.com founder Jeff Bezos may not be a sexless monk, but what about owners of the Kindle e-book reader? Hoping to ignite the flame of consumer desire across America, Amazon has set up a page for people to "See a Kindle in Your City."

Whether you want to meet at your local coffee shop, a public park, or your favorite watering hole is up to you. We hope you enjoy meeting your fellow Kindlers.
I give the program two weeks before "Kindle owner seeks Tina for PnP" hits the site. ]]>
Wed, 28 May 2008 12:00:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=393769&view=rss&microfeed=true
<![CDATA[ Zappos advertising in some unexpected places ]]> zappos_advertising_dhs.jpgLas Vegas-based e-tailer Zappos, which prides itself on innovative management techniques like paying new hires to leave, is also an "innovator" in the advertising space. Not for the company's TV ads, but for leveraging the post-9/11 security landcape to get the word out. "When I'm coming through security I know that it can be frustrating and this is to provide a little lightheartedness," senior marketing manager Andy Kurlander said of the ad-buy for space in the buckets used by travelers to feed shoes and other items through the x-ray machine. The company should also consider a market which can only buy mail-order that's an even more captive audience: Prisoners. Heck, they could order new kicks straight from a Microsoft TouchWall.

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Tue, 27 May 2008 14:40:00 PDT Jackson West http://valleywag.com/index.php?op=postcommentfeed&postId=393494&view=rss&microfeed=true
<![CDATA[ Borders can't "out-Amazon Amazon," so why open a store on the Web? ]]> Longtime Amazon.com partner Borders opened an independent storefront on the Web today. Analysts don't hold high expectations for the new Amazon rival and Borders Group Inc. president and CEO George Jones told the AP the company knows what's up its up against. "It's not the intent that we're going to out-Amazon Amazon at what they do," Jones said. So what is the intent behind Borders's store on the Web? Likely, Borders opened shop on the Web to help sell the company. Two months ago, Borders announced it was for sale and only last week, Barnes & Noble confirmed a team of its executives are looking into a deal.

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Tue, 27 May 2008 09:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=393361&view=rss&microfeed=true
<![CDATA[ PayPal closes the border ]]> Prohibited!When Peter Thiel launched PayPal a decade ago, he had a vision of a global payments mechanism which would accelerate the withering-away of the nation-state. And then he sold it to eBay. eBay's latest failure to transform the international monetary system is quite literal; for almost two weeks, PayPal has had a bug which prevents it from collecting cross-border payments for subscriptions — this while its new president, Scott Thompson, has been touring the globe. The error: a bit of code in a drop-down menu. Subscriptions are a small part of PayPal's business, though vital to the complaint-prone blogging class. Regardless, it's a trivial bug that should have taken minutes, not weeks, to fix; that eBay has not yet done so would seem to speak to a profound rot in its technical organization — which Thompson headed up as CTO before his promotion.

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Mon, 26 May 2008 13:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=393214&view=rss&microfeed=true
<![CDATA[ Repair your F-14 with parts from eBay ]]> The United States Armed Forces no longer use the F-14 fighter jet, which can make it a real pain for armies that do, such as the Iranian air force, to repair theirs. Fortunately, there's eBay and Craig Newmark's Internet-based love-in, Craigslist. The U.S. Government Accountability Office reports that F-14 spare parts and troop equipment such as night vision goggles can be found and purchased from both sites. "Many of the sensitive items we purchased could have been used directly against our troops and allies, or reverse engineered to develop counter measures or equivalent technologies," read the GAO report. Another instance when a few buyer ratings could go a long way. (Photo by James Gordon)

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Mon, 19 May 2008 10:40:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=391622&view=rss&microfeed=true
<![CDATA[ Overstock.com nixes New York affiliates to frustrate taxman ]]> OverstockLetterSmall.jpgNew York's state legislature passed a law that will require Internet vendors with any business ties to the state to collect sales tax. The law is so sweeping that it includes nonphysical ties, such as affiliate-marketing programs, which pay a slice of sales to websites which refer customers to an online store. Amazon.com responded with a lawsuit. Now Overstock.com says it's cutting loose its 3,400 affiliates in New York. The idea is to show "the New York governor and legislature that this is bad for New York businesses," Overstock VP Jonathan Johnson told the New York Times. "There are affiliates in New York who will see their business go away because of a not-so-thoughtful action by the New York State legislature." Amazon will keep its affiliates and begin paying sales tax June 1. New York hoped to increase its tax revenues by $50 million with the measure. Overstock's letter to affiliates is included below:

Overstock-NY-Affiliates - Upload a doc
Read this doc on Scribd: Overstock-NY-Affiliates

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Thu, 15 May 2008 09:20:00 PDT Nicholas Carlson http://valleywag.com/index.php?op=postcommentfeed&postId=390752&view=rss&microfeed=true
<![CDATA[ Republicans almost want you to have cheaper Internet porn ]]> Madison Young Writhes for Julie SimoneCalifornia's Republicans are deliberating whether or not to tax your porn downloads. State Assemblyman Charles Calderon (D.-City of Industry) first proposed a tax on all online porn, estimated to bring in $500 million to offset Gov. Arnold Schwarzenegger's budget cuts, and now wants to levy a 25 percent tax on any adult businesses operating in California, and on consumer's purchases of porn, too. It's fiendishly clever.

Implying that buying and selling online porn should be taxed to offset the "harms" of porn, as Calderon says in his bill AB2914 thrusts Republicans into a nasty position when it comes to their constituents. How can cultural conservatives promise to not raise taxes and appease their smut-hating bases — especially when those same voters would never admit they don't want to eat a hefty tax for their monthly membership fee for NakedSword.com, too? (Photo: Madison Young, San Francisco-based porn star, writhes somewhere in-state for JulieSimone.com)

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Fri, 09 May 2008 14:40:00 PDT Melissa Gira Grant http://valleywag.com/index.php?op=postcommentfeed&postId=389126&view=rss&microfeed=true
<![CDATA[ Meg Whitman cleans house, but not at eBay ]]> Meg Whitman, optimisticMeg Whitman isn't losing any sleep over eBay's role in prepping Virginia Tech gunman Cho Seung-Hui for his rampage that left 33 dead. Asked what was her worst moment at eBay, Meg confides to confides to Portfolio: "The site outage in 1999," adding that she had to sleep on a cot "for multiple nights." Whitman goes on to give eBay kudos for being "incredibly vigilant around trust and safety and keeping the .01% [of customers who aren't 'basically good'] in line," a boast made all the more ridiculous by the company's recent defense of its sale of combustion-enhancing fertilizer to troubled teen Ryan Schallenberger. (The gist of eBay's defense: Ammonium nitrate isn't just used to blow up high schools and federal buildings.) Seeking Alpha has a complete transcript of the interview, in which you'll find these nuggets Portfolio's editors skipped:

  • Jeffrey Dahmer drove Whitman out of the "murderabilia' business: " I had gotten emails from customers not only about Dahmer's refrigerator but autopsy photos - the whole category of items around murders — so-called 'murderabilia.' And we heard from victim's families. The team talked about it and decided we don't want to go there."
  • Bored eBay users emailed Whitman because they were lonely: " I can get anywhere from 50 to thousands of emails a day. And because we are the locus of their economic life and also in some ways their social life, there is lots of commentary on almost anything that we do."
  • Whitman may have camped out with the technology team during the 1999 outage, but she all but admits she did so as a media stunt: "There was nothing I could do other than be a cheerleader and a coach to the technology team.... We had CNN parked outside the building wanting an update on the status every 60 minutes.... Every hour I had to go out, looking more tired each time.So it was in some ways just leadership by being there."
  • Whitman is now spending her time cleaning out her house. She started with the garage.

(Photograph by Art Streiber)

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Thu, 24 Apr 2008 11:40:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=383687&view=rss&microfeed=true
<![CDATA[ Amazon.com, like Google, defies economic worries ]]> Jeff Bezos can safely unclench his legs. Amazon.com reported first-quarter earnings of $143 million, up 29 percent from the same quarter last year, on sales of $4.14 billion, up 37 percent. Wall Street dithered over the forecast, sending shares down in after-hours trading, but the underlying reality is this: Amazon.com, already large, is growing at a prodigious rate at a time in its life when most expected it to slow down. And the growth had little to do with digital sales or Web services. No, people are simply buying more online, more often. CFO Tom Szkutak said the company saw no signs of a recession in U.S. shoppers' buying behavior. How can that be, as other companies complain of economic woes?

Like Google, which also claimed to see no dark clouds on the business horizon, Amazon.com made a good, long-term bet. The ongoing shift to e-commerce obscures any short-term business-cycle bumps.

Also, Amazon.com's customers tend to be wealthy, and in America's bifurcated economy, the well-to-do are feeling the pinch less than the poor. (Wal-Mart shoppers choose between gas and groceries; Amazon.com shoppers choose between Starbucks and steak.)

There are other reasons, such as the winner-take-all nature of the Web. Google may have created a theoretical level playing field for online stores. Who needs to go to a one-stop shop when you can just search for what you want to buy? But the reality is that search is a tedious way to buy things online, and going to one store is convenient. That one store, for most people, is Amazon.com, and no one else has come along with a site worth changing that habit for.

The thing that's helping Amazon.com the most, I think, is simply the adoption of broadband. Fast Web connections make it quicker to buy something online than to drive to a store. And the longer someone has been an Internet user, the more likely they are to shop online. For the Facebook generation, it's second nature. Until broadband hits saturation in the U.S. and other markets, Amazon.com will have a powerful growth engine behind it. Bezos may like to talk about all the innovative things Amazon is doing, but the truth is, he can now afford to coast.

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Wed, 23 Apr 2008 15:00:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=383343&view=rss&microfeed=true
<![CDATA[ CNN's self-parodying headlines now available on T-shirts ]]> Valleywag loves CNNIs CNN for real? The headlines on its website — "Minced onions force emergency landing" — cause some to wonder if its Atlanta-based producers aren't having a jape at the expense of news junkies. Now, an expansion into selling T-shirts confirms that CNN is laughing at us, not with us. Capitalizing on the trend of mass-personalized e-commerce, CNN.Shirt lets readers pick any recent headline and put it on a T-shirt. As blogger Andy Baio notes, the feature is easily manipulated, allowing users to construct any story they want and get it printed. But why bother making up the news when CNN shows just how much stranger truth is than fiction?

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Mon, 21 Apr 2008 11:20:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=382198&view=rss&microfeed=true
<![CDATA[ Australians question eBay's PayPal-only policy ]]> PayPalYears ago, PayPal was an independent company which fought constantly with eBay to be allowed on the site as a way to settle accounts after an auction was won. Now, years after eBay bought PayPal, the payments service is elbowing out all manner of competition. In Australia, eBay is limiting purchases to either PayPal or cash on delivery — no checks or money orders allowed, let alone rival electronic payment methods. In the U.S., eBay was sued last year for tying PayPal too closely to its online marketplace. How soon they forget: PayPal is aiming to quash an economic freedom its founders, including noted libertarian Peter Thiel, fought for.

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Tue, 15 Apr 2008 20:30:00 PDT Owen Thomas http://valleywag.com/index.php?op=postcommentfeed&postId=380235&view=rss&microfeed=true