Mergers That Could Dethrone Amazon: Facebook (FB) and eBay (EBAY)
Add the union of Facebook and eBay to the list of mergers and acquisitions that Amazon would prefer not to happen.
There are two end-results such a merger would drive.
One of them is the addition of more physical goods that are easy to purchase via Facebook. A closer look at all its ads reveals many of them are for digital goods, or links to other websites that are simply trying to generate traffic. If Facebook and eBay could set up an arrangement that connects buyers and sellers of actual items (Facebook provides the traffic, and eBay provides the e-commerce platform), that could create a headwind for the e-commerce giant.
The second result isn’t as obvious, but perhaps even more important. That is, combining Facebook’s marketing knowhow with eBay’s merchandise — and some of its own online-marketing reach — the duo could start to rob some of Amazon’s third-party advertising business.
Remember, eBay has gotten pretty good at advertising its goods on other sites, and though Amazon’s header bidding platform is already turning heads in that it provides much-needed alternatives to Google, Facebook’s header-bidding solution is arguably even more potent simply because Facebook is generally the centerpiece and most-visited venue for all of a user’s devices.
Facebook knows you very well (better than Amazon, to be sure) and could easily tap that knowledge to sell you more physical merchandise.