Ebay finally realizes that it needs it’s own full-fledged ecommerce platform to keep merchants happy. Many Merchants have left the platform in the past years due to rising fees and restrictions on thoese who choose to sell inside the ebay marketplace. But last March eBay paid $22.5 million investment for a 49% stake in Magento.
“The investment revelation came on the heels of Magento’s own announcement earlier this week that it will release Magento Go, an open-source e-commerce platform aimed at very small e-retailers that are just getting started with e-commerce. Magento Go is the company’s first cloud-based e-commerce platform, meaning it is hosted online, and will be available to e-retailers at the end of this month. Service plan pricing is based on the number of products listed, traffic volume and required bandwidth, and starts at $15 a month.”
This move positions eBay position itself as a resource for e-retailers, whether they conduct business on eBay.com or elsewhere. Furthermore, it proves what Exorbyte has been saying all along:
This is confirmation that there will be an ongoing market of small online retailers who do not want to operate within the restrictive and expensive platforms of eBay.com or Amazon.com ; where fees are high and they have no or little control of the customers relationships. This market of small online retailers using installed or hosted ecommerce platforms is where Exorbyte Commerce operates.
Furthermore, the launch of Magento Go, cloud-based starter ecommerce at $15/mo is the proof of the SaaS model is taking hold more than ever in the ecommerce space.
Read more: Newsmakers – eBay is Magento’s secret investor – Internet Retailer.


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