The Reason For Popularity Of Online Shopping

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EXECUTIVE SUMMARY: This research project was carried out to identify the reason for popularity of online shopping, to describe why eBay and Amazon became successful without having a High Street store, to compare eBay and Amazon in terms of revenues and customer’s opinions and to develop ideas on how they could improve their performance in future. This research draws the attention to facts that despite both companies have many bad reviews, potential consumers are still attracted to shop using their websites, while present customers are consciously complaining about eBay’s and Amazon’s unprofessional customer service and after sale service, yet they still shop using both websites, resulting in eBay overcoming analysts’ predictions about their profits every quarter and Amazon investing big amounts of money in its growth. Primary research that was conducted, showed that lower prices and wider range of products are the two main factors that attract consumers to shop online (despite the awareness of bad customer service and after sale service). This project also finds that prospects of eBay financial position are positive, however Amazon is not doing well. Amazon is not able to prove that it can generate steady profits and Jeff Bezos is constantly re-investing its revenues for future growth which results in shareholders losing their patience. Recommendations discussed include:  Improving the quality of customer service and after sale service for eBay and Amazon  Decreasing
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