EBay, the popular online auction website has fuelled its competition with Amazon. The website has acquired the e-commerce service company, GSI Commerce for $2.4 billion.

More, but better?

More, but better?

Post this acquisition, EBay will be seen in the same space as that of Amazon. GSI Commerce has been around in the e-commerce space for long, and is known to provide e-commerce solutions to merchants. It has more than 180 retailer brands to its credit. Brands like Aéropostale, Timberland, Mattel, Zales and Major League Baseball use the services of GSM Commerce.

EBay services will now include order-management, fulfilling (packing of shipments) and shipping business. These additions will put it directly in the space Amazon has been using. The GSM Commerce isn’t the only acquisition EBay has gone ahead with. In the past, too, EBay has been on an acquisition spree. It acquired Skype SA in 2005 for $2.5 billion, as well as smaller entities like Red Laser, Milo, among others. These acquisitions have helped EBay retain itself in the fast growing e-commerce market.

GSM Commerce, however, will be expected to function as a separate wing of business and will be managed by its old marketing-services business, Chris Sardakis. Both businesses, of course will move towards a common direction.

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