ReadWriteWeb

I am not a shopper. I am a buyer. I need something; I locate it; I buy it. By some accounts, this makes me a total gender traitor. On the other hand, it makes me a prime target for any startup willing to do the shopping for me.

Take consumer electronics site Woya, for example. When faced with the daunting task of buying a new laptop without the requisite Gs needed to make that process sufficiently simple, I have been paralyzed into procrastination. In about 30 seconds, Woya showed me inexpensive, well reviewed laptops I wanted from eBay, Craigslist, Overstock, Amazon, and other sites. It did the legwork and analytics for me, making the process entirely painless.

StumbleUpon, the popular content recommendation service, just launched a major new version of its web toolbar, which brings the StumbleUpon experience to users without having to install a browser extension. The web toolbar is similar to Digg's DiggBar, and this new and enhanced version features a fully personalized experience as well as enhancements to its sharing features. While the WebToolbar doesn't quite feature the same functionality as the standard StumbleUpon toolbar, it does make up for this by being a lot more convenient to use, and, of course, you can use it on any computer as you don't have to install the browser extension to use it.

Online auction giant eBay, rumored to be shopping around for a buyer for its 2005 acquisition of voice-over-IP phone service Skype, announced in a press release today that it has now decided to prep the ground for a 2010 Skype IPO launch. The announcement also says that this is one of several outcomes considered for Skype when eBay president John Donahoe became CEO early in 2008.

Want a geeky way to chill out after a long work day of focus, focus, focus? There are few better ways online to keep the synapses lubricated than through the semi-serendipity of social sharing service StumbleUpon.

Now you can Stumble outside of the shadow of the mega-corporate overlords at eBay - two years after Stumble founders Garrett Camp and Geoff Smith cashed out and handed their baby over to the ecommerce giant, they've come back with a team of investors and bought StumbleUpon back from eBay. It's pretty exciting.

Today eBay is launching their eBay Selling Manager Applications beta, a new platform which allows third-party developers to embed their own custom applications within the Selling Manager at eBay. If you're not a heavy eBay user, you may not be aware what this is: the Selling Manager is the part of the site where sellers, primarily those using eBay professionally, can manage every aspect of their business from invoicing, to inventory tracking, to shipping and a lot more. With the new Applications Beta, these sellers will now have the capability to pick and choose from a number of third-party apps which will help them better manage their eBay business.

Skype does not get the respect it deserves, because eBay not only publicly admitted to overpaying for it but is making a mess of its core business. Another reason may be that Skype flies in the face of conventional Valley wisdom that says it has to be all about social media. Or maybe the fact that Skype came from Europe, and we all know that Europeans are just lunch-eating dilettantes. Whatever the reason, a company that has $500 million in revenue, is profitable and growing, and has a shot at becoming the largest player in what is now a $2 trillion (yes, "t" for trillion) market, should get more respect.

Over the last year, eBay has been trying to slowly move users away from its auctions and more towards purchases of fixed-priced items. Last week, however, eBay announced that it plans to return to its roots and that the company wants to put more emphasis on its auctions business again. Judging from the latest data from Compete, eBay's former strategy was clearly not working and was actually driving users away from eBay and toward other fixed-price retailers like Amazon and Walmart.

The Internet economy has been built on the network effect (i.e. the effect that one user of a good or service has on the value of that product for other people). Investors and entrepreneurs have treated this like Moore's Law. But just as Moore's Law hits physical constraints, network effects have a limit in many types of online communities. Indeed, in some cases, a reverse network effect may exist: as new people join, others are motivated to leave. This dramatically affects the length of the competitive advantage enjoyed by these ventures. In this post, we'll look at which ventures suffer from reverse network effects, which don't, and which may suffer depending on the strategy they choose to adopt.

In June of 2008, Seattle programmer Bill Harding launched an online marketplace called Bonanzle. The site, a completely grassroots effort with zero VC or angel funding, is in many ways the anti-eBay. Instead of focusing solely on the goods being sold, Bonanzle is attempting to build a marketplace where the people are relevant, too. On Bonanzle, buyers can chat with sellers in real-time or over instant messaging, an experience that delivers a more social experience to the online shopping process. These interactions have allowed Bonanzle to build a strong community, but will that be enough to take on eBay?

At the Accel Symposium, we heard John Donahoe, eBay CEO, admit that there was little synergy between core eBay, PayPal, and Skype. He lauded PayPal, showed some false modesty around Skype, and talked about core eBay in a way that indicated a clear understanding of its limitations and challenges. If that sounds a tad negative, that was not what I took away. What I did take away was that eBay is a great collection of parts, a really great collection of parts, that would be more valuable as independent entities.