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Make Money Blog: Amazon vs. eBay
Discover two ways to make money on Amazon and learn who is
winning the fixed price wars.
Going, going, gone! The auction format listings have a gloomy future, according to
BusinessWeek article -- Auctions on eBay: A Dying Breed (June 03, 2008). BusinessWeek dubs
Amazon "the leader in online sales of fixed-price goods."
Check Statbrain (a place to check all visitor stats) and you'll see the estimated number of daily
It's no wonder. Amazon's sales jumped 37% in the first quarter of 2008, while eBay's results
were quite lower at just 14% in the same quarter. The differences started brewing when
Amazon opened its site to independent sellers, which was seamless integration that from the
start offered one-way feedback.
Amazon versus eBay: who wins? Hands down Amazon wins! Why? eBay has created an
environment of distrust between its sellers and buyers. The dichotomy between buyers and
sellers culminated May 19, 2008 when eBay set forth its "No negative feedback" policy
whereby sellers are unable to leave negative feedback for buyers. Conversely buyers have
the leg up in that they can leave positive, neutral or negative feedback for sellers. Incidentally,
neutral feedback counts the same as negative, which is just another way that eBay is tipping
the scales in favor of buyers and forsaking sellers.
Amazon on the other hand has embraced buyers and sellers alike! Many buyers barely know
that they are buying outside of Amazon -- that's because Amazon has done a fanulous job of
co-branding. This leverages high marks for Trust and Safety between buyers and sellers!
Personalized recommendations is a wonderful cross-sell tool that buyers certainly appreciate
too. And having ONE listing for items that have different sizes or color options simplifies the
experience for all. eBay only recently made modifications to play "catch up" to Amazon.
Another key feature on Amazon is that it has a shopping cart and wish list -- buyers on eBay
often inadvertently make purchases then squibble over the hard lined contract instilled by
eBay in the interest of its own pocketbook.
Amazon wins for SELLERS because:
- There's no per product listing fee and it doesn't cost you a penny until your product sells.
- Amazon makes it easy to have a branded online store.
- Blog authors can monetize their sites with loads of help from Amazon.
- If have the digital rights to a book, you can make it available as an eBook on Amazon.
com (eBay banned digital items March 31, 2008).
- You can get a free 30-day trial to open your store!
Amazon wins for BUYERS because:
- Buyers can shop without commitments (wish lists and shopping carts)
- The personalized shopping experience helps buyers find what they need
- Feedback doesn't feel compulsary as it does in eBay's forum
- Amazon estimates delivery time, while eBay leaves sellers guessing.
- Amazon streamlines packaging tracking.
Want more proof that Amazon is winning in the marketplace?
Here's how to make money on Amazon:
- Open an Amazon store. What products can I sell Amazon.com? You can sell items in the
following categories: Automotive, Baby, Camera and Photo, Electronics, Everything Else,
Health and Personal Care, Home and Garden, Musical Instruments, Office Products,
Software, Sports & Outdoors, Tools and Hardware, Toys & Games and Video Games
- Become an Amazon affiliate. When you join up as an associate in Amazon's affiliate
marketing program, you can receive up to 10% in referral fees. It's a great way to make
some extra cash on your blog or Web site. Here's what an Amazon Bookstore looks like
(ours is all about eBay and Amazon).
Who wins - Amazon or eBay? Cast your vote now:
Amazon Customer Discussions
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