Bloomberg: Google 'key word' ads undercut eBay

In explaining how eBay and Google are becoming closer and closer competitors, the author of this piece uses the example of a toy seller that shifted most of his business away from eBay auctions to Google adwords.

I have to confess that I hadn't realised that competition between these two parties had become quite so direct. Consider this statement from our toy seller:

"If we were selling what we are now on eBay, our fees would be $8,000 to $10,000 a month," Boblit said. He spends $1,200 a month on Google. "EBay is inconsequential at this point."

This must be of concern to eBay.