{"id":9191,"date":"2009-04-29T01:37:31","date_gmt":"2009-04-29T00:37:31","guid":{"rendered":"http:\/\/www.corporate-eye.com\/blog\/?p=9191"},"modified":"2009-04-29T13:29:41","modified_gmt":"2009-04-29T12:29:41","slug":"amazon-soars-ebay-tanks-which-brand-will-win-in-the-end","status":"publish","type":"post","link":"https:\/\/www.corporate-eye.com\/main\/amazon-soars-ebay-tanks-which-brand-will-win-in-the-end\/","title":{"rendered":"Amazon Soars, eBay Tanks – Which Brand Will Win in the End?"},"content":{"rendered":"

\"ebay\"A year or so ago, eBay<\/a> made the decision to change the fee structure it charges sellers as well as a few other aspects of its business model that ultimately hurt both sellers and buyers looking for bargains on the top auction site.\u00a0<\/p>\n

Remember, eBay began as a second-hand merchandise auction site where anyone could try to make a few bucks and get rid of clutter in their homes while buyers benefited from great prices that left more money in their wallets.\u00a0 When eBay made significant changes, the brand was tarnished and neither sellers nor buyers felt like they were benefiting anymore.\u00a0 Suddenly, a site where anyone could compete on semi-even footing now became a site that featured primarily new products sold by retailers and eBay stores — and not through auctions!<\/p>\n

That still doesn’t explain why Amazon<\/a> is reporting a nearly 25% increase in revenue during the first quarter of 2009 over the same period a year earlier and eBay continues to report losses<\/a>.\u00a0 Naturally, eBay blames their decline on the economy, but is that really the case?\u00a0 Have you tried to buy or sell anything on eBay lately?\u00a0 From the seller’s perspective, it’s very difficult for individual seller’s to compete, and from the buyer’s perspective, it’s harder to find good deals than it used to be.\u00a0 However, I argue that you can’t compare Amazon and eBay for\u00a0one\u00a0very simple reason\u00a0(and this is coming from the consumer side, because I shop at both sites although I always check and prefer Amazon first).\u00a0 Shipping costs!<\/p>\n

eBay sellers have to make money or they don’t have a business, so they often bundle high shipping charges to make up that money.\u00a0 If you spend $25 on an Amazon purchase (not always but typically), you get free shipping.\u00a0 You can’t beat easy checkout, dependable service, and free shipping.\u00a0 In other words, eBay can’t compete.<\/p>\n

How can eBay save itself?\u00a0 I don’t have an answer to that question, but the business model certainly doesn’t seem to be thriving regardless of the economy.\u00a0 Heck, sales should be up on eBay during a recession\u00a0(at least one would think sales would have been if the original eBay business model was still in place).<\/p>\n

I was asked to provide a jacket endorsement for a book about the options for online sellers to actually make money and move away from eBay called Selling Online 2.0<\/a>.\u00a0 It’s an interesting read even if you don’t sell items on eBay.\u00a0 I learned a lot about the complaints buyers and sellers have with eBay and that there are alternatives to ebay.\u00a0 According to\u00a0author Michael Miller, it looks like eBay has more competition to worry about than just Amazon.<\/p>\n

What do you think?\u00a0 Can eBay regain its brand relevancy or is it too late?<\/p>\n

Image: <\/em>Flickr<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A year or so ago, eBay made the decision to change the fee structure it charges sellers as well as a few other aspects of its business model that ultimately hurt both sellers and buyers looking for bargains on the top auction site.\u00a0 Remember, eBay began as a second-hand merchandise auction site where anyone could […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[95],"tags":[2311,310,100,110,2301,520],"class_list":{"0":"post-9191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-brand","7":"tag-amazon","8":"tag-brand-positioning","9":"tag-brand-strategy","10":"tag-corporate-branding","11":"tag-ebay","12":"tag-online-branding","13":"entry"},"yoast_head":"\nAmazon Soars, eBay Tanks - 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