Essay about eBay and Amazon case study

1233 Words5 Pages
7/30/2013 eBay, Inc. and Amazon.com (A) Situation of the case: eBay is now faced with a direct competitor, Amazon.com. Even though Amazon.com has received most of the hype and publicity surrounding e-commerce, eBay has also built an innovative business truly sited to the internet. Initially, Amazon’s goal was to be the “Earth’s Biggest Bookstore” Since then, the company also entered music, video, toys and electronics business, extending the retail capabilities it had developed for books. Meanwhile, eBay aims to offer online marketplaces for the sale of goods and services, supplemented by other e-commerce platforms and online payment solutions. This case briefly explores the situation faced by both Amazon and eBay as they compete…show more content…
It mainly targets consumers and sellers through its web service. Since the day it was founded, it had launched a program called “Prime” that allows members to free, unlimited two day shipping for an annual fee. It also launched its auction business and also an online supermall called “zShops”, allowing small and medium sized merchants to operate within Amazon’s site for a monthly fee. Lastly, Amazon also launched “Fulfillment by Amazon” that allowed third party seller to build and operate business across multiple channels. As of writing this case, Amazon had been very successful with its online business. Its market share increase and overtook its main competitor eBay, making it the market leader since 2010. Main competitor: eBay’s main competitor is Amazon. Below are some of the features which both company launched in order to compete with each other. eBay : Introduced fixed-pricing trading called Buy-It-Now feature, allowing buyers to acquire the product directly at seller’s pre-established price Launched eBay stores, allowing large retail sellers like The Home Deport to offer goods through fixed price store fronts. Launched a Feedback Forum, a rating system that allowed buyers and sellers to grade each other based on their transaction Acquired Paypal to handle almost all electronic transaction payments exchange between eBay users. Had a Bill Me Later option
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