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In an effort to expand it’s global retail reach, Japanese e-commerce company, Rakuten announced the acquisition of a leading online U.S. retailer, Buy.com . The $250 million dollar buyout would put Rakuten in position as the world’s largest online retail marketplace. Combined, both companies would bring 35,000 global merchants and offer consumers over 60 million products. The acquisition will be handled by Rakuten USA (based in Boston), the U.S. subsidiary of Ratuken.

To date, Rakuten, in the Asian market, tops Amazon Japan’s sales and boasts 64 million members and $3.2 billion in sales. This isn’t the first move that Rakuten has made to further reach the American market. Five years ago, the Japanese online retailer acquired Linkshare, a New York-based advertising network for a whopping $425 million.  Rakuten CEO Hiroshi Mikitani views this Buy.com acquisition as an opportunity to truly expand into the U.S. e-retail market and would allow sellers and buyers to connect no matter where they are located.

Here is a glance at both companies as they stand before the deal is completed next month.

Company: Rakuten, Inc.

Founded: February 7, 1997

Based in Tokyo, Japan

Website: rakuten.co.jp

Rakuten, Inc. is currently ranked as the 5th most popular site in Japan for online shopping and has over 28,000 merchants and 35 million different products.

Company: Buy.com

Founded: 1997

Based in Aliso Viejo, California, U.S.

Acquired by Rakuten, Inc. on May 20, 2010, for $250 million dollars.

Buy.com brings more than 12 million customers with a focus on entertainment and technology retail. Part of the dot-com boom from the late 1990s.

Tags: ecommerce | shopping | online | georgia | import | export

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by Angela Cavallari Walker

According to a recent study conducted by Performics, online shopping got an early start this holiday season.  "2009 Online Buyer Econ

omic Trends" found that one in five consumers got a jump on the bustling season starting as early as September. Of those shoppers, 29% started sooner than prior years.

The confusion and stress of traditional black Friday shopping has pushed consumers to keyboards instead of parking lots.  "You have to decide what is worth your time and frustration," said online shopper Denise Wall.  For Wall, no-hassle ordering and free shipping were big factors for shopping at home this holiday.

Wall decided against standing in line for more than two hours at a local Wal-Mart, and stayed home to peruse online ads in her pajamas instead. Online shopping trends have E-commerce retailers scrambling to meet the early demands of consumers. Popular stores such as Lands End and Zappos.com promoted their black Friday sales and wares to compete with more traditional brick-and-mortar retailers like Wal-Mart and Target.

By outsourcing their fulfillment needs, online retailers can compete in a hard economy and make a lasting impression during the busy holiday season. "Retailers are able to concentrate on product development and marketing," says Brian Schoenbaechler President of SBC Fulfillment.

Fulfillment companies offer more than just pick-pack-and-ship operations, and the E-commerce industry has taken notice. Full-service fulfillment solutions are now specialized to meet the unique requirements of retailers. This year, SBC rolled out a new E-commerce application called Magento Connect, which allows online retailers to directly tie-into SBC''''s fulfillment products.

"We can offer online retailers the leverage to make a lasting first impression for their business during the peak holiday season and throughout the new year,” says Schoenbachler.

To learn more about fulfillment services click here

Tags: christmas | online | fulfillment | ecommerce | shopping | holiday

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