Amazon vs. eBay (Part 432)
Aug 17th, 2008 | By Max Leisten | Category: Amazon NewsWith eBay rumored to announce shortly a new “no listing fees” policy, here’s an interesting article from the Mercury News on eBay’s challenges in light of Amazon’s e-Commerce market share land grab.
This one pretty much sums it up for me:
But what was once seen as eBay’s strength is now regarded as a weakness. As a virtual player, eBay has limited control over transactions on its site. EBay can fight against dishonest sellers and deadbeat buyers. Ultimately, however, its marketplace is built on trust.
Amazon took a different and more costly approach. It built its own warehouses and a massive distribution network. As a result, Amazon can guarantee delivery. For buyers, that has made a big difference.
“Amazon is a retailer; it understands online commerce,” said Derek Brown, an analyst with Cantor Fitzgerald, who was the first to warn investors of eBay’s weakness. “They own the experience from start to finish.”
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Having no inventory is still an eBay strength. People keep trying to compare two business models that are very different. Some sellers that sell products with a UPC can also sell on Amazon. There are still many items Amazon does not carry that eBay will have because of their flexible listing system.
Um I believe that exerpt came from The Seattle Times here, no?
http://seattletimes.nwsource.com/html/businesstechnology/2008165190_amazonebay08.html
If you look in the byline, you’ll see that the Seattle Times syndicated it from the Mercury News.
check this amazon vs eBay analysis:
http://www.blog.imonlinegroup.com/2008/12/21/amazon-vs-ebay-where-does-the-wind-blow/