Yahoo Rethinks Its eCommerce-as-a-Service Play

Yahoo Small Business, the Yahoo unit that provides eCommerce services to small merchants, is reportedly gearing up for some changes. A recent blog post from the company revealed a rebranding for the arm, now known as Luminate, the same name of a photo advertising service acquired by Yahoo last year.

The corporation hasn’t provided much information on the business but said in the post that the name “reflects how we illuminate the path forward for our customers and underlines our commitment to helping small businesses grow.”

The post was signed by Yahoo Small Business Vice President of Product Management Amer Akhtar.

Reports said the rebranding could signal a new focus on growth and development, especially since it is now spun-off from Yahoo. “Because it’s part of such a big company, it hasn’t received the growth and attention a lot of its customers were looking for,” said Kevin Richards, CEO of eCommerce marketing firm Ventura Web Design, in an interview with SiliconBeat. He added that as an independent company, Luminate will likely see greater success in its SME services.

According to the executive, Luminate already services businesses ranging from entrepreneurs to major firms with distribution warehouses.

But analysts say that the unit is more likely a vehicle for Yahoo to spin off its $30 billion stake in Chinese eCommerce firm Alibaba tax-free. Earlier this year Yahoo said it plans to merge Yahoo Small Business with that Alibaba stake, collectively becoming a new company called Aabaco Holdings, according to a filing with the Securities and Exchange Commission.

Reports say that regardless of the financial purpose of Yahoo Small Business or Luminate, the unit could have significant impacts for current and future businesses that use the service. It is unclear, reports added, how the company will move forward with its eCommerce-as-a-Service operations, however.

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