Seeking Alpha

Amazon (AMZN) is the new eBay (EBAY): just as eBay merchants have long griped over rising...

Amazon (AMZN) is the new eBay (EBAY): just as eBay merchants have long griped over rising Marketplaces/PayPal fees, Amazon's 3rd-party sellers have become agitated over a string of fee hikes - both for Amazon's cut on merchant sales, and for related services. 3rd-party sales now make up 39% of Amazon's unit sales, and have been lifting its gross margin. eBay could benefit from the backlash - one firm estimates it costs $2.72 to sell a $10 item on eBay vs. $3.92 on Amazon - but as eBay knows all too well, complaining and leaving are two different things.
Comments (9)
  • Could not agree more, Been buying on ebay for 5 years and we have been duped again and again by sellers on ebay . We have been very cautious buying one from the bay...
    18 Mar 2013, 01:14 PM Reply Like
  • We prefer selling on Amazon although we sell on eBay also and have for about 10 years. The difference in customers is glaring. A much better customer base on Amazon compared to eBay. We report buyer abuse on eBay at least a couple of times per month. We have reported buyers with abusive and foul language, threats, and even black mail. "If you don't pay return shipping we will leave negative feedback" even though it says buyer responsible for return shipping. We never get this with our products on Amazon which are identical to what we sell on eBay.
    18 Mar 2013, 01:17 PM Reply Like
  • (EBAY) is an auction. (AMZN) is an online retailer like (WMT). Not the same thing.
    18 Mar 2013, 01:31 PM Reply Like
  • Strictly from a consumers view point, I have both purchased and sold from EBay w/o issue but most of my on-line purchasing goes to Amazon - they have the process down! Great prices, fast shipping and easy returns - that's exactly what customers want!
    19 Mar 2013, 07:58 AM Reply Like
  • And free shipping on orders over $25!!!!!!!!!!!!!!! Textbooks usually cost over $100 at the university bookstore. At (AMZN), it is often 25-60% cheaper.
    19 Mar 2013, 08:31 AM Reply Like
  • I'm okay with the fee hikes for 3 reasons:


    1.) Remember that Amazon will tread lightly because it counts on its 3rd party sellers for a significant portion of its overall revenue.


    2.) The minute a formidable competitor appears with a solution that may steal 3rd party merchants' attention away, Amazon will likely think twice about raising fees or implementing further obstacles that may turn away said merchants.


    3.) If sellers leave in droves (a la eBay many years ago), it thins out the competition for merchants who stay. As an award-winning FBA merchant (I was in the top 25% of sales for the Holiday 2012 season), it's hard to argue with the potential sales volume ('eyeballs') you get via Amazon.


    -Jordan Malik
    19 Mar 2013, 08:36 AM Reply Like
  • Hm, your books look interesting. Each of the three is $19.99. Problem, I don't have a Kindle, but I do have a Kindle app on my iPhone and iPad.
    19 Mar 2013, 09:07 AM Reply Like
  • All the books are discounted now. You can read them on any computer or device. Scroll down to 'Best Sellers on this page:
    17 Dec 2013, 08:15 AM Reply Like
  • What's preventing eBay from hiking fees too, in conjunction with Amazon?
    13 Aug 2013, 11:47 PM Reply Like
DJIA (DIA) S&P 500 (SPY)