I've been asked by several readers why I'm writing more positive posts about Amazon (NASDAQ:AMZN) than I do about eBay (NASDAQ:EBAY), so I thought I would list the reasons. I still believe eBay can be a fantastic business again but I don't see that turnaround anytime in the near future.
Why I Prefer Amazon over eBay
In regards to management:
- Amazon thinks long-term while eBay managers, manage by the quarter.
- Amazon is entrepreneurial while eBay is a consultancy.
- Amazon takes chances while eBay manages risk.
- Amazon is a technology company while eBay thinks they are a technology company.
- Amazon is proactive while eBay is reactive.
- Amazon manages the business while eBay manages the stock.
- Amazon takes responsibility for their business while eBay deflects responsibility.
In regards to online sellers/merchants:
- Amazon is easy to manage (from the seller perspective) while eBay requires so much more effort.
- Amazon customers are low maintenance while many eBay customers are high maintenance.
- Amazon generates higher ASP's then eBay for the same items.
- Amazon makes their money on sales success while eBay makes their money regardless.
- Amazon understands retail while eBay ... doesn't.
- Amazon is growing while eBay is floundering.
eBay is still a huge marketplace, where you can find just about anything, but many professional sellers are changing their eBay plans. For many eBay sellers, eBay is becoming more of a customer acquisition or a liquidation channel.
Amazon is not perfect, I'm sure, but I much prefer the way they conduct business.
Just my 5 cents!