Comments on: Market consolidation continues http://www.b2cpartners.com/vendors/market-consolidation Ecommerce Consulting, RFP Platform Selection Tue, 28 Apr 2009 15:28:18 -0500 http://wordpress.org/?v=2.8.3 hourly 1 By: Michael http://www.b2cpartners.com/vendors/market-consolidation/comment-page-1#comment-170 Michael Thu, 05 Feb 2009 04:32:18 +0000 http://www.b2cpartners.com/?p=292#comment-170 GSI Terminates Merger With Innotrac What happened: Before the market open today (1/29/09),GSI Commerce announced the termination of the Innotrac (Nasdaq: INOC) acquisition based on a mutual agreement between the two companies. GSI quoted unfavorable market valuations as the primary reason for termination the merger. Recall GSI announced the acquisition of the eCommerce fulfillment and customer care services provider for a total of $52mn ($22mn in cash and $30mn in stock) on 10/6/08. The deal was subject to Innotrac shareholder approval and was expected to close in 1H09. However given the GSI and Innotrac stock prices were trading down 28% and 57% respectively since the announcement date, the offer price has declined accordingly from $52mn to $43.5mn (based on yesterday's close of $9.35). GSI Terminates Merger With Innotrac

What happened: Before the market open today (1/29/09),GSI Commerce announced the termination of the Innotrac (Nasdaq: INOC) acquisition based on a mutual agreement between the two companies. GSI quoted unfavorable market valuations as the primary reason for termination the merger. Recall GSI announced the acquisition of the eCommerce fulfillment and customer care services provider for a total of $52mn ($22mn in cash and $30mn in stock) on 10/6/08. The deal was subject to Innotrac shareholder approval and was expected to close in 1H09. However given the GSI and Innotrac stock prices were trading down 28% and 57% respectively since the announcement date, the offer price has declined accordingly from $52mn to $43.5mn (based on yesterday’s close of $9.35).

]]> By: BetterRetail http://www.b2cpartners.com/vendors/market-consolidation/comment-page-1#comment-127 BetterRetail Fri, 14 Nov 2008 14:26:52 +0000 http://www.b2cpartners.com/?p=292#comment-127 Hi David: Different niche verticals have unique customer acquisition, retention and service strategies but why would they need a specialized platform? Why not bake multiple vertical strategies into the same platform? Even if such niche platforms exist (and I know they do) it's not because they are needed, its just that the platform developer has craftily convinced customers niche level specialization is needed. If the world of analytics is supported by a big 3 why should platforms be any different? BetterRetail Hi David:

Different niche verticals have unique customer acquisition, retention and service strategies but why would they need a specialized platform? Why not bake multiple vertical strategies into the same platform?

Even if such niche platforms exist (and I know they do) it’s not because they are needed, its just that the platform developer has craftily convinced customers niche level specialization is needed. If the world of analytics is supported by a big 3 why should platforms be any different?

BetterRetail

]]> By: Elbrus Consulting http://www.b2cpartners.com/vendors/market-consolidation/comment-page-1#comment-79 Elbrus Consulting Mon, 13 Oct 2008 19:22:04 +0000 http://www.b2cpartners.com/?p=292#comment-79 I disagree with BetterRetail. I believe the market will support many more than 3 ecommerce players. Each niche vertical needs a unique platform. Fashion companies typically have different needs than an average e-commerce platform and run with different providers. Multi channel businesses have different needs than pure play e-commerce. Car dealerships & hotels have unique needs. Multi lingual international sites have substanially different needs. Each niche market may only support 3 but I believe that still provodes a great oppurtunity for many platforms. Specialize and conquer I say. In regards to Mercado software I believe e-commerce platforms will slowly buy indepedant search solutions and integrate it into their platform long term. This also applies to custom product cross promotion companies (rich relevance, certona, etc). It is inevitable. David Patterson I disagree with BetterRetail. I believe the market will support many more than 3 ecommerce players. Each niche vertical needs a unique platform. Fashion companies typically have different needs than an average e-commerce platform and run with different providers. Multi channel businesses have different needs than pure play e-commerce. Car dealerships & hotels have unique needs. Multi lingual international sites have substanially different needs. Each niche market may only support 3 but I believe that still provodes a great oppurtunity for many platforms.

Specialize and conquer I say.

In regards to Mercado software I believe e-commerce platforms will slowly buy indepedant search solutions and integrate it into their platform long term. This also applies to custom product cross promotion companies (rich relevance, certona, etc). It is inevitable.

David Patterson

]]> By: BetterRetail http://www.b2cpartners.com/vendors/market-consolidation/comment-page-1#comment-68 BetterRetail Tue, 07 Oct 2008 13:33:50 +0000 http://www.b2cpartners.com/?p=292#comment-68 Great article. You are quite right, I have sensed Mercado was in trouble and they are not alone. The truth is ecommerce platforms are gradually becoming commodity. This makes sense because we don't have hundreds of companies making cash registers. Cash registers are commodity, as are ecommerce platforms. I say the market has room for maybe three large ecommerce platform players. The rest will slowly, but surely die away. Great article. You are quite right, I have sensed Mercado was in trouble and they are not alone. The truth is ecommerce platforms are gradually becoming commodity. This makes sense because we don’t have hundreds of companies making cash registers. Cash registers are commodity, as are ecommerce platforms. I say the market has room for maybe three large ecommerce platform players. The rest will slowly, but surely die away.

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