eBay Competing with Amazon: Are the Two Companies Even in the Same Niche?

 

eBay has come out with their first quarter earnings for 2013, and they claim they are off to a hot start. They now have over 100 million users, and their income was up 19 percent and their revenue was up 14 percent from this same time period in 2012. The only problem is that eBay is still falling short of where experts predicted the company to be at for this time in 2013. This fact in combination with the lower than average second quarter projections released by experts dropped the value of eBay’s stock.

Some experts believe that eBay is really going after Amazon in an attempt to capture the largest portion of online buyers and sellers. Sure, eBay does an excellent job of having a site where buyers and sellers from all backgrounds can exchange products. And, they make things even easier when it comes to making a payment as eBay also just so happens to own PayPal, one of the most popular payment systems throughout much of the world.

But, the real question that needs to be answered is whether eBay and Amazon should even be seen as competitors. Yes, they both carry an extensive line of products placed on the site by sellers, and they both allow customers from virtually all countries to purchase products on the site. However, they also differ in lots of ways.

First of all, eBay specializes more in selling used items; whereas, a large majority of the items on Amazon are new. Secondly, Amazon has a much larger market share when it comes to digital products, such as books and music. In fact, anyone can publish and eBook and place it for sale on Amazon. You could sell these digital products on eBay, but they have not really done much in the way of marketing the buying and selling of digital products. As a result, it comes as no surprise that the vast majority of people turn to buying and selling these types of products on amazon.

So, when people are claiming that eBay is going after Amazon in an attempt to take over the market, it probably is not a huge issue for now. Sure, eBay could start offering more Amazon-like products, but nothing would stop Amazon from offering more eBay-like products. In fact, Amazon might beat eBay to it.



Jason Russell is our resident technology expert covering everything technology related. He is a total technology geek and no one knows technology better than him.

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