Amazon vs ebay Essay

Custom Student Mr. Teacher ENG 1001-04 8 May 2016

Amazon vs ebay

In the battle of e-commere with Amazon, eBay has to determine whether it should maintain the existing business model or transform its model and expand into new areas. eBay and Amazon have different kinds of business models and strategies. eBay’s business model was based on creating and maintaining a person-to-person trading community. Being the world’s largest online auction company, eBay offers e-commerce platforms and online payment solutions to a critical mass of sellers and buys. eBay makes money by charging fees to sellers through fees for listing items and commission fees payable on completed transactions.

Besides, eBay also launched eBay store to allow retailers to offer fixed-price products on its platform. In addition, eBay focuses on improving buyer and seller experience by offering convenient rating system and effeicient payment methods like Paypal. Amazon’s core business model is online retail. The online retail line of business includes those products sold by Amazon as a traditional retailer, most commonly as a low-cost retailer with mature distribution and warehouse systems. In addition, the Internet service, such as Amazon Prime and Amazon Web Services, deeply intertwine with its retail business and provides additional customer value.

Types of business:
Ebay:
Online retail-auction
Online payment processing

In the past ten years, eBay has gradually lost competitive advantages in e-commerce industry, compared to its rivalry Amazon.

eBay and Amazon have different kinds of business models and strategies. eBay’s business model was mainly based on creating and maintaining a person-to-person trading community. Being the world’s largest online auction company, eBay offers e-commerce platforms and online payment solutions to a critical mass of sellers and buys. Besides, eBay also launched eBay store to allow retailers to offer fixed-price products on its platform. In addition, eBay focuses on improving buyer and seller experience by offering convenient rating system and effeicient payment methods like Paypal.

Amazon’s core business model is online retail. The online retail line of business includes those products sold by Amazon as a traditional retailer, most commonly as a low-cost retailer with mature distribution and warehouse systems. In addition, the Internet service, such as Amazon Prime and Amazon Web Services, deeply intertwine with its retail business and provides additional customer value.

In the battle of e-commere with Amazon, eBay has to determine what strategy to use to regain control: maintain its current business model platform or make a radical change to become a service provider.

In the past ten years, eBay has gradually lost competitive advantage in e-commerce industry, compared to its rivalry Amazon. eBay and Amazon have different kinds of business models and strategies. EBay’s platform business model basically includes online auction, fixed-price selling and online payment methods like Paypal. Amazon’s retail business model includes online retail business combined with Internet service, such as Amazon Prime and Amazon Web Services, and cooperation with third-party sellers. In the battle of e-commere with Amazon, eBay has to determine what strategy to use to regain control: maintain its current business model platform or make a radical change to become a service provider.

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