Economic difficulties due to financial crisis does not contain one, and in this context, eBay disadvantage to the Amazon in the market shopping online because of the wrong strategy.
Days people still thought e-commerce less affected by economic crisis in comparison with trade in the world that the argument that when consumers do not go shopping in the supermarket they can still go online, looking for cheap goods, essential goods ...
However, in fact, when a consumer is so confined, they reduce spending regardless of the target in restaurants or on the Internet. A survey of eBilme, a pay service over the network, showed that 48% of respondents said they will delay the shopping over the network in the coming time. This situation causes a competition between two manufacturers retail largest online world is as Amazon and eBay put into place stress and the win is now a case of Amazon.
Previously, two manufacturers have two different directions so often declare they complement each other and not compete directly. focusing on eBay Auction with thousands of shops of consumers to create, Amazon also sold retail directly.
But now, eBay moved the focus to the sales price is fixed, the Amazon also encourages consumers to open retail shops should Amazon carrots on the progress the two sides closer together in the development strategy.
Only the Amazon is to take advantage offered is their database customers each transaction on Amazon to sell its direct interests of each person. Those who purchase through the Amazon knows chuyện are then carried this occasionally inviting offer the same product or product they each search, learn about the Amazon. The firm also inviting customers commented on the product purchase. EBay also due to give people dealing with each other so it appears increasingly remote leaving customers.
In fact, three years ago, eBay has higher traffic than Amazon, but up to 30% today, volume users often have registered for an account on eBay is 84.5 million, just over 81 million customer Amazon's regular negligible.
Amazon and eBay exceeded in many other aspects. In 2005, the total market price of the eBay fold three times Amazon. Meanwhile, Wall Street enjoyed a eBay does not take money to reserves and cash flow is very stable. This year, the price of eBay stock reduced by half and prices of Amazon first overcome eBay on May 7 / 2008.
General Director of eBay, John Donahoe, who has just laid off 10% of the number of employees of eBay's 16,000 people, to acknowledge the New York Times that eBay did not arrive in time according to the new trend of e-commerce. He said, is concentrating rebuilding eBay for customers shopping not want to labor in the auction prolonged time.
Meanwhile, Executive Director of Amazon, Jeffrey Bezos, said the many years after the pilot failed, the current retailers third seat on the Amazon rent makes up 29% of airline revenues this. This is the type of business the traditional eBay.
Someone commented, that eBay has probably can put the remote Amazon when it was also the place to sell books and music tapes and discs. But eBay has lethargy with the market, only want to build a house where a coordinated auctioning should have ignored many opportunities. Therefore, Amazon immediately successful in battle strength of the eBay site, eBay also doubt have to compete with Amazon on a well-known area retailers directly.
E-commerce is usually derived from the specific products such as MP3 music, digital movies, electronic books by distributors directly over the network. However, eBay has virtually no strategy to exploit what trends it. eBay on the floor should focus attention on sales, the level of losses each quarter and once focused on short-term goals, they lose the long-term vision.
According to New York Times, eBay has been known for many years from now people are shopping over the network ever been cheated when buying through auction or at least every dissatisfied with the actual goods at will away from the type of auction. However, they do not want to do what is causing disorder may ten million customers have registered for this is the main source of their income.
In fact, eBay also try to open a new development direction as the Skype purchase, phone manufacturers online famous; StubHub, site specializing in buying and selling all types of tickets, and a series of site ads Classifield. eBay also building a new site, called eBay Express specializes in retail, to transfer operation of retail price fixed at eBay to only use the method of payment through PayPal and eBay's purchase again. But also by the eBay does not dare to promote a strong eBay Express for fear affect eBay.
Question by the largest operator eBay did not respond well known is that eBay is the What? One group believes that it is the eBay sales discounts, is where the buyer finds a member even if they participate in any form. A different group that eBay brand name attached to the operation auctioning so too stressed if other factors will make the brand loang this tradition.
Because hesitation that eBay should stand a raw spot while Amazon advanced strongly on the front. Last year, eBay must be reduced in the Skype purchase price is 1.7 billion U.S. dollars although the actual purchase price of up to 3.1 billion Dollars.
Conversely, Amazon has a review progress slow but sure. Jeff Bezos, when answering interview to the New York Times, that they're willing to wait for the seeds sown in seven years to pick fruit. While eBay expanded orientation Classifield advertising, online payment and telephone Internet, Amazon spent hundreds of millions of dollars to build a brand where the retail reliable - as ready to pay for guests when the purchase to be impediments.
Amazon has enable the shop on eBay by his side. As Deb and Andrew Mowery, each selling household items on eBay since 1999, said today 60% of their revenue from Amazon, eBay is only about 20%. Thanks to the slow but sure, the Amazon where the filter is selling reliable and eliminating the hand specialist fraud or deceit defraud.
An analysis for comments that for the same, failure of eBay is by how they treat customers, the purchasing needs have really do not want to because the quality of goods sold varies according to the vendor.
What hours a place to sell all types of gold lower and upper house cam, which is mainly the view of the items, eBay do not attract those who are considered e-commerce is serious, not to shop, said. Perhaps it is also a lesson drawn for those who want to do electronic commerce.
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