In a consumer-driven market, the ease of access plays a major role in deciding which business house will flourish more. E-commerce and online shopping sites have created a pool of consumers for themselves. The two of the largest and most long-standing online shopping companies: eBay and Amazon can be compared on a multitude of factors, namely:
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1. Mode of Operation:
Amazon is a customer-centric business house that strives to deliver a selection of products at competitive prices. Amazon keeps its complete foothold on almost all the products it offers on its website. Amazon has an in-house inventory of all products it delivers to the consumers.
eBay, on the other hand, works more like an auction house where the products on the website are bided upon by the consumers. These products can be used or can be brand new in the market. E-bay doesn’t maintain an in-house inventory; rather it mediates between the third party and the final consumer.
2. Diversification:
Since its inception, Amazon has diversified itself to Amazon Prime which offers entertainment via online streaming of TV series, movies, reality shows etc. to its members. Amazon churns a lot of revenue from its new branch.
eBay, on the other side, has expanded its market into “half.com” which is concentrated on the dealing of books which are either new editions or second hand.
3. Transportation of Goods:
Amazon, as discussed previously, maintains an in-house inventory to facilitate to its customers. That is why Amazon takes care of the shipping and transportation of these products. Such monitored logistics result in transparency and ease for customers.
On the flip side, E-bay is a mere mediator between third party sellers and bidder so naturally, the logistics are to be carried out by both of these parties alone. This creates miscommunication and chaos in case of misplacements or mishaps.