GoDaddy plans to open online selling site.
In direct competition with eBay (NASDAQ: EBAY), Amazon.com (NASDAQ: AMZN), and Yahoo (NASDAQ: YHOO), domain registrar Go Daddy is launching a marketplace dubbed “Go Daddy Marketplace” for people to buy and sell goods online.
Users can set up stores and upload products. GoDaddy will handle all payments and notify sellers whenever a product is sold. Marketplace will integrate with other GoDaddy products, such as allowing users of its Quick Shopping Cart to import product listings.
By launching the marketplace, GoDaddy hopes to capitalize on its massive web site traffic, which it describes as “millions of Go Daddy visitors”. GoDaddy would be smart to syndicate product listings across domains that currently have GoDaddy parked pages on them, too.
The service seems to compete with Yahoo! Stores, Amazon Marketplace, and eBay’s fixed price listings and stores.
The service costs $4.99 per month plus a 10% commission on products sold. Pricing seems fairly comparable to Amazon Marketplace, which doesn’t charge a monthly fee or listing fee but collects a per transaction fee of 99 cents, a sales commission of 6%-12%, and a variable closing fee. Both eBay Stores and Yahoo! Stores have higher monthly fees, although eBay does offer a pay-per-item fixed price sales option.
It’s unclear if the service will use a home grown platform or if it’s being outsourced. It also seems like it will demand a lot of time from GoDaddy’s support team as it deals with fraudulent transactions and consumer complaints that plague Amazon Marketplace and eBay.
GoDaddy plans to launch Go Daddy Marketplace later this month.