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From eBay to Amazon?

Feb 13th, 2008 | By Max Leisten | Category: Random Stuff

Via Steve Weber’s Selling Books blog comes this Fortune Small Business article on eBay’s recent changes and the reaction in the 3P community. Of course the expansion, rather then migration, to Amazon is not a new phenomenon (3P sellers now drive around 30% of all products sold on this channel world-wide) but gains new interest in light of the somewhat controversial new policies and features announced by eBay at its recent eCommerce Forum in DC.

Amazon refrains from offering auctions because its buyers and sellers prefer the convenience of a set price, according to business solutions general manager Matt Williams. Amazon has devised a number of different rate programs for sellers; one takes a percentage of gross revenues, while another charges a referral fee per item.

“We’ve certainly heard of frustration with other marketplaces, and we’ve seen a significant increase in registrations,” said Williams.

I was fortunate enough to be able to attend the forum in late January and speak to a good deal of online retailers active on both eBay and Amazon, and personally I believe most of these changes will yield exactly what eBay intends: a simpler and more attractive shopping eBay experience (Finding 2.0), increased seller quality (via DSR ratings and discounts) and stronger sales (reduced listing fees will drive supply, PayPal’s Extended Seller Protection). All that for auctions — Amazon has a huge and ever-growing lead in the fixed-price arena thanks to significant consumer trust, a strong brand and a shopping experience that caters to the convenience buyer (not the eBay flea market shopper).

And as an online retailer you need to reach both consumer segments (otherwise your competition will).

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