amazon soars, ebay falls

by seobro
8 replies
Today amazing amazon soars on news that profits were up 9%. I began to contrast the two companies. Both sell on the internet, but ebay makes life difficult for buyers and sellers. It forces people to use paypal. It constantly hits you with fees. And what is worse, never listens to its customers.

I believe we can learn our lesson from this. Do not force customers to use your products and constantly hit them with fees. Listen to customer complaints and try to make their life easier. Do not constantly threaten customers like ebay does.

Both amazon and ebay were 90's companies that did well in the internet boom, but now we see that amazon is gaining ground while big power sellers are leaving ebay. I have used both for many years; ebay as a big seller, and amazon as an affiliate.

With ebay it was always a headache and they did not want me to use paypal back in the day, but to use their product billpoint, then they bought up paypal and got rid of billpoint - typical ebay. The company was always threatening people to kick them out because they had a link back to their site, or the website URL on a photo of a product, etc.

As an amazon aff, I have never been threatened or told that my clicks come from a bad neighborhood, or that a person buying a product is a family member, or any excuse to not pay me, in fact, the money is direct deposit into my checking account.

When we build up our internet business, it is important to look at these two models. This way we see how a company that was doing great in the 90's - ebay has allowed itself to fall apart in the 21st century.

The most important lesson to learn is listen to your customer.
#amazon #ebay #falls #soars
  • Profile picture of the author Corwinnx
    I hope they get rid of the new guy who's "ONLY FOCUS IS ON THE BUYER'S" experience.
    {{ DiscussionBoard.errors[470873].message }}
    • Profile picture of the author MikeWords
      completely agree.

      It's so hard to make a profit when every time you blink you're hit with a fee. All the focus is on the buyer - and I get that - but when you're beating sellers over the head with fees, the buyers ultimately pay a higher price. That's why buyers aren't returning. But eBay will blame it on the economy and continue to lose...
      {{ DiscussionBoard.errors[470894].message }}
      • Profile picture of the author Kay King
        I wasn't surprised when I saw the Amazon results today - the usability of the site for both buyers and affiliates is excellent.

        What is interesting was the prediction by "experts" in the past year that Amazon would not meet expectations because of their free shipping policies in particular.

        What balderdash! I placed an Amazon order yesterday and then added one additional item to meet the $25 free shipping offer. Wonder how many people do that??? I know I've done it several times.

        Amazon has been eating ebay's lunch for at least a year in my opinion.

        kay
        Signature
        Saving one dog will not change the world - but the world changes forever for that one dog.
        ***
        It takes nothing away from a human to be kind to an animal.

        {{ DiscussionBoard.errors[470961].message }}
  • i think craigslist is the downfall of ebay for the most part, I list my stuff for sale there first, it used to be ebay (along with a gaziillion other people)

    amazon aff reporting is from 1997 still, takes 24 hours to update and we can't get dynamic tracking (you can get unique tracking id's but nothing dynamic)

    I love them both still though as an affiliate
    Signature


    {{ DiscussionBoard.errors[471047].message }}
  • Profile picture of the author Fermin Suero
    The downfall of eBay is itself. One wrong move after another. Between eBay and Paypal you lose between 12 to 17% of the selling price forcing their sellers to operate on thin margins.
    Signature

    Get a Google Voice Number for yourself or your Business (Buy 2 get 1 Free)
    Google Voice invites available, limited supplies...
    http://bit.ly/b6cfOW

    {{ DiscussionBoard.errors[471175].message }}
  • Profile picture of the author cwrinco
    I was recently reading a report on selling books. It focused on Half.com (ebay) and Amazon. When I began studying the information, I came away wondering why anyone would still do business with Ebay but the author recommends using both.

    My question is do we need both? Can you do a better business by staying with Amazon alone or should you also sell on ebay?
    {{ DiscussionBoard.errors[471187].message }}
  • Profile picture of the author skinnye
    I found this site to be helpful in comparing different auction sites. I knew ebay's fees were high, but compared to the other sites its just gotten rediculous.
    Online Auction Sites Review 2009 - TopTenREVIEWS
    {{ DiscussionBoard.errors[471220].message }}
  • Profile picture of the author grumpyb
    I sell a lot of goods on EBay and thats the only reason I am still there.
    However as someone else said hear EBays demise will be caused by EBay its self.
    EBay buyers are very high maintenance in comparison to say our normal web site customers and this is caused by EBay giving all the power to the buyer and no recourse to the seller.
    The forcing of Paypal on all and sundry by using false propaganda saying that paypal is the only safe way to pay on line will no doubt eventually be part of the downfall of a once great selling venue.
    the reality is that Paypal is riddled with fraudelent claims from unscrupalous people who can manipulate the system to suit them selves.
    It is a breeding ground for on line fraud perpetuated by buyers who calim they did not get the goods falsely to obtaain bothe goods and their money back.
    However I will stay on EBay whilst it is still profitable to do so but it is becoming more difficult.
    EBay have commissioned many new surveys BUT the questions are all geared to give them the answers they want to hear whilst they are STONE DEAF to any valid comments made by its sellers.
    {{ DiscussionBoard.errors[471783].message }}

Trending Topics