eBay and Amazon on Collision Course There was a time when eBay created a brand new business model, one of the most successful business models (Auctions) on the Internet, leading to high cash flows (eBay) with a very strong market share in their respective core market and with an image that was superior to any other business in this market segment.

It was possible to make a bargain superior to any other purchase: High quality combined with an excellent price.

Today making a purchase at eBay is no longer the same as it was a couple of years ago. Taking part in an auction has become a more and more frustrating experience resulting in high prices, low quality and an uncertain result - in my opinion it's just wasted time.

But over the time eBay has amassed a variety of products that is superior to that of Amazon. It's good fun to research products and even the most fancy product can be found at eBay. Bargains are still possible, espacially through sellers that offer a fixed price model.

This is at least one reason why the fixed price model is the fastest growing business on the eBay platform.

I found an excellent article on the NyTimes (Amid the Gloom, an E-Commerce War), that describes the current situation and collision of Ebay and Amazon.

And there is at least one other competitor in the market: Google!

• Google eBay Collision after eBay Live!

From a consumer perspective I appreciate this kind of collision competition, because usually it leads to better prices, higher quality and a better customer experience over all.

With the holiday season ahead and the ongoing financial crisis in mind consumers are becoming increasingly web-savvy in the way they look for bargains, as a current survey form Harris Interactive shows:

'Consumers are increasingly turning to the Internet to do their shopping. The majority of online adults (83%) are willing to make online purchases. Of those who make purchases online, the most popular items included:

• Books, 71%
• Music, 62%
• Electronics, 55%
• Gift certificates, 53%
• Clothing, 51%
• Travel, 50%
• Office supplies, 39%
• Health and beauty products, 34%'

'Eighty-five percent of online shoppers use tools or websites to find good deals online. Predictably, 56% of online shoppers are using search engines to find bargains; however, online shoppers have found many other ways to save, including:

• 32% use price comparison websites
• 25% use online coupon websites
• 23% use online advertisements
• 12% use bargain tracking websites
• 5% use shopping-themed social networks'

Assuming that just 7% of all retail purchases are made online there is plenty of room to invest and expand into eCommerce. I still think that eCommerce is moving "full steam ahead" and is years away from saturation.

• Current and Future eCommerce Challenges

Labels: amazon, bizdev, ebay, ecommerce, google

  ¶ 'eBay and Amazon on Collision Course' posted by eA : 2:45 PM