Author Topic: Alibaba Acquires eBay Solutions Provider Auctiva  (Read 8010 times)

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golddustwoman

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Alibaba Acquires eBay Solutions Provider Auctiva
« on: August 24, 2010, 09:25:21 PM »
From AuctionBytes


Alibaba Acquires eBay Solutions Provider Auctiva

Alibaba will acquire eBay solutions provider Auctiva, the company just announced. Alibaba had acquired Auctiva rival Vendio in June. Terms were not disclosed, but Alibaba said in June it had a total budget of $100 million to invest in Aliexpress.com.

The Chinese online B2B marketplace said it would use the acquisition to encourage Vendio's small-medium businesses to source product from China by integrating with the AliExpress.com website.

It will be interesting to see how Alibaba will consolidate Vendio and Auctiva's tools. I especially wonder what eBay thinks of its Chinese rival now owning two important third-party vendors and having access to rich data about its sales and its sellers.

UPDATE: AuctionBytes spoke to Alibaba.com CEO David Wei about the Auctiva acquisition, see Wednesday's Newsflash article.

Here is today's official press release.

HONG KONG, August 24, 2010 – Alibaba.com (HKSE: 1688.HK) (HK.1688), the world's leading e-commerce company for small business, has entered into an agreement to acquire Auctiva, the leading third-party developer of tools for eBay (NASDAQ: EBAY) sellers. With more than 170,000 active users, Auctiva provides a variety of listing, marketing and management tools as well as image hosting and online storefronts that make it easy for small businesses to sell successfully via e-commerce on sites like eBay.

The acquisition of Auctiva, as well as Alibaba.com's purchase of Vendio in June, combined with Alibaba.com's strength in sourcing, will create a significant source of tools and resources for U.S. small businesses looking to leverage e-commerce.   The combination of both the Auctiva and Vendio acquisitions brings more than 250,000 new customers to the Alibaba.com family of products, and significantly expands the size of Alibaba.com's U.S. operations.

Through its recent acquisitions, Alibaba.com is building the world's first global e-commerce supply chain. This end-to-end network connecting manufacturers and wholesalers with e-tailers and consumers will allow small businesses to easily source from suppliers all over the world, then conveniently manage and sell those products through popular online channels like eBay, Amazon (NASDAQ: AMZN), their own online storefronts and more.

"Time and money are the two most important things to me as a small business owner," said Don Pinard, owner of www.peggsbargains.net, an Auctiva and AliExpress customer. "I spend a lot of time online looking for products I can sell. I used to use liquidation sites, but AliExpress is much better, and more reliable. If I can trim the cost of purchasing items by just 7% that will cover all store fees and shipping costs, which will really increase my profit."

The online merchants who use both Auctiva and Vendio will have direct access to almost 1.5 million supplier storefronts on Alibaba.com's sourcing platform and AliExpress (www.aliexpress.com), a wholesale transaction platform operated by Alibaba.com. This new connection from supplier to online merchant represents significant potential cost savings to customers.  By sourcing their products directly from the manufacturer, reducing travel and taking advantage of global markets, Alibaba.com hopes to help small merchants increase their profit margin in the long term.  For example, a jewelry retailer can sell a silver bracelet with black agate stones for US$12 on eBay and make a profit of US$7.09 if he/she originally purchased their inventory on AliExpress for US$4.91 per piece.  These savings combined with the additional efficiencies of sourcing online will represent significant savings for the average online merchant.

With the acquisition, Auctiva's platform will be integrated with AliExpress, allowing Auctiva users to connect to AliExpress via a tab on the Auctiva Web-based platform. This will enable customers to easily search for suppliers, acquire merchandise and list those products on eBay through their Auctiva accounts. Exclusive promotions and special deals on AliExpress products will be available to Auctiva users.

"Small online retailers are just starting to see how they can use international sourcing to their advantage, and we have seen the significant opportunity through customer reaction to our initial integration with Vendio," said David Wei, chief executive officer of Alibaba.com. "Many small business owners never even thought that they would be able to source their products from overseas, as they didn't have the staff or technological resources to do so.  We are bringing both sides of the equation together to make international sourcing as easy as possible for any business."

"Our mission has always been to help users sell more successfully online, particularly through the eBay channel," said Jeff Schlicht, founder and CEO of Auctiva. "With more than 10,000 new users joining Auctiva each month, we are constantly looking for new ways to serve our customers and drive value for them. Joining Alibaba.com and connecting our buyers to the vast supplier base on Alibaba.com and AliExpress.com is the perfect way to help them grow and thrive in an increasingly competitive environment."

The acquisition closed on Aug. 18, 2010, and is part of the US$100 million investment plan for AliExpress that Alibaba.com announced in April 2010. Auctiva will operate as a new business unit within Alibaba.com and will retain its own brand name and operations.

Rothschild was the financial adviser to Alibaba.com for this transaction and Morgan Joseph was the adviser to Auctiva for this transaction.  Financial terms were not disclosed.




biggfredd

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #1 on: August 24, 2010, 10:29:34 PM »
At $9.95 or less, it looks like activa already is a better deal for many IF users.  Of course, if it is outsourced, that could result in enough communication problems to cancel out any savings.
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kolstromkreations

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #2 on: August 25, 2010, 09:28:52 AM »
Quote
With the acquisition, Auctiva's platform will be integrated with AliExpress, allowing Auctiva users to connect to AliExpress via a tab on the Auctiva Web-based platform. This will enable customers to easily search for suppliers, acquire merchandise and list those products on eBay through their Auctiva accounts. Exclusive promotions and special deals on AliExpress products will be available to Auctiva users.
Just in case Alibaba.com isn't bad enough.

Rick Bradford

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #3 on: August 25, 2010, 10:07:43 AM »
I would've expected to get an announcement e-mail from Auctiva but I heard about it here first.

I see they have an info page at their site though:

http://www.auctiva.com/about/AcquisitionQA.aspx

WayOutWest

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #4 on: August 25, 2010, 10:11:29 AM »
Just in case Alibaba.com isn't bad enough.
had to go check out aliexpress and not impressed.  I didnt look around very much, but the so-called "wholesale" computer cables that I saw are higher than what you can get them for from monoprice.com and the silver jewelry I looked at, the "wholesale" price was higher than our (yours and mine) retail prices.

Course, as a vendor, might be a good place to sell. . .
« Last Edit: August 25, 2010, 10:45:29 AM by WayOutWest »

Southern Jewel's Fab Finds

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #5 on: August 25, 2010, 10:43:04 AM »
Congrats to Auctiva and Jeff.

lovescotties47

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #6 on: August 25, 2010, 10:56:45 AM »
Just in case Alibaba.com isn't bad enough.
Care to elaborate for those of us who may not be familiar? TIA

kolstromkreations

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #7 on: August 25, 2010, 11:27:58 AM »
scammer heaven, fakes/forgeries, human rights violators

lovescotties47

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #8 on: August 25, 2010, 01:11:53 PM »
scammer heaven, fakes/forgeries, human rights violators
I just googled some info about them.  Sounds like a major scammer.  Wow!

planetsuze

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #9 on: August 25, 2010, 06:36:15 PM »
I did not realize they had picked up Vendio already. I bet my free store will go bye-bye once they get Auctiva settled in.  :( Grrrr. Guess I will soon be on the hunt for a new 'home' for selling.

Southern Jewel's Fab Finds

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #10 on: August 25, 2010, 07:41:03 PM »
Yep, Alibaba picked up Vendio in June 2010

August 2010, Vendio made the announcement that the company had surpassed 50,000 Online Stores in Just Over A Year 

So far they haven't messed with the Vendio model of free stores. Hopefully that will stay the same for you.

On a more positive note: I do like (and continue to be a fan of Auctiva)Auctiva Commerce and their pricing. It's really easy to use. If they do combine Auctiva Commerce, Vendio & The Alibaba stores...who knows it might be a good product we'll all want.

Auctiva Jeff

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #11 on: August 26, 2010, 03:54:33 AM »
Rick Bradford: Press leaked the news a day early so our email got to users as quick as we could hit the send button after that.

SouthernJewel.com: Thanks, feels great. 

WayOutWest: pricing is an issue we're working on along with a few others we learned about during a focus group recently.   Many suppliers don't want to list their "best" price.  A couple ideas to help with that are in the pipeline and will be testing soon, had a meeting on that today in fact.  Alibaba will be improving the Aliexpress platform a lot in the coming months with users feedback.

I think the important part is that the model of B2B2C is a sound one and good for sellers.   

Over the past few months I've personally witnessed that Alibaba is a very customer driven company.   "Alibaba’s priorities of putting customers first, employees second and the interests of shareholders third."  http://aliblog.alibaba.com/2010/08/12/alibabas-jack-ma-speaks-to-small-biz-owners-in-peru/     I think you can contrast that with many other public companies. 

Appreciate all your support here over the years.

Jeff

WayOutWest

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #12 on: August 26, 2010, 07:39:10 AM »
Hey Jeff  :)

Congrats on the sale!!!  Definitely well deserved.  :h0161  Now you just gotta keep Aidan from spending it all as he grows up  ;) 

re: AliExpress and best price - true, I hear ya.  Many of the wholesalers I deal with are that way.  I.e. there's one that I deal with that has 4 different tiers and they dont tell any of their customers about the different tiers.  You have to ask them 'how much do I have to spend to get best price'. 
« Last Edit: August 26, 2010, 09:42:20 AM by WayOutWest »

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #13 on: August 26, 2010, 09:15:47 AM »
Hey Jeff!
<waving>
Hope all finds you and your wonderful family doing well.
Continued success wished your way!

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #14 on: September 07, 2010, 02:10:01 PM »
I won't sugar coat this, I have been an auctiva customer for years and Jeff all I can say is I hope we don't get screwed the way Thomas screwed us at sparedollar. I have thousands of listings and images on auctiva and I would hate to have to start over on a different site.
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stone

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Re: Alibaba Acquires eBay Solutions Provider Auctiva
« Reply #15 on: September 07, 2010, 02:39:15 PM »
Vendio users take on  Alibaba Express

http://www.vendio.com/mesg/read.html?num=2&thread=696741

  

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