eBay vs. Amazon: Study In Contrasts

from the compare-and-contrast dept

A writer at the Washington Post is trying to compare the success of eBay and Amazon. While eBay is clearly a much bigger company right now and has been doing great for quite a long time, there are some questions as to whether or not they can sustain it. They’ve been raising their “prices” (listing fees and such) repeatedly, which risks a backlash from their customers. Meanwhile, Amazon seems to be growing into the potential of their business, and are doing everything (even against Wall Street’s wishes) to lower prices – knowing that that’s what it will take to keep consumers happy. Clearly, the two companies are in different (though, increasingly overlapping) businesses. eBay raising prices on listing fees is very different from Amazon lowering sales prices. However, the point is valid that Amazon is looking for ways to improve customer experience and offer them lower prices, while eBay is looking to squeeze more money (with no additional benefits) from their customers.

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