Seeking Alpha

Jordan Malik

Jordan Malik
Send Message
View as an RSS Feed
Latest  |  Highest rated
  • 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. [View news story]
    All the books are discounted now. You can read them on any computer or device. Scroll down to 'Best Sellers on this page:
    http://jordanmalik.com
    Dec 17 08:15 AM | Likes Like |Link to Comment
  • 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. [View news story]
    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
    http://JordanMalik.com
    Mar 19 08:36 AM | Likes Like |Link to Comment
COMMENTS STATS
2 Comments
0 Likes