In the fight of e-commere with Amazon, eBay needs to determine whether it needs to maintain the existing business model or transform its design and broaden into new areas. eBay and Amazon have various type of organisation designs and strategies. eBay’s business model was based upon producing and maintaining a person-to-person trading community. Being the world’s largest online auction business, eBay provides e-commerce platforms and online payment options to an emergency of sellers and buys. eBay generates income by charging charges to sellers through charges for listing products and commission fees payable on completed transactions.
Besides, eBay also launched eBay shop to allow retailers to use fixed-price items on its platform. In addition, eBay concentrates on enhancing purchaser and seller experience by offering practical score system and effeicient payment approaches like Paypal. Amazon’s core company model is online retail. The online retail line of work includes those products sold by Amazon as a traditional merchant, many typically as a low-cost seller with fully grown distribution and storage facility systems.
In addition, the Web service, such as Amazon Prime and Amazon Web Provider, deeply intertwine with its retail service and supplies additional consumer value.
Types of business:
Ebay:
Online retail-auction
Online payment processing
In the past 10 years, eBay has slowly lost competitive advantages in e-commerce industry, compared to its rivalry Amazon.
eBay and Amazon have various sort of service designs and strategies. eBay’s service design was generally based upon developing and keeping a person-to-person trading neighborhood. Being the world’s biggest online auction company, eBay uses e-commerce platforms and online payment options to a crucial mass of sellers and purchases.
Besides, eBay likewise released eBay store to permit merchants to offer fixed-price items on its platform. In addition, eBay focuses on enhancing purchaser and seller experience by providing hassle-free rating system and effeicient payment techniques like Paypal.
Amazon’s core business model is online retail. The online retail line of business includes those products sold by Amazon as a traditional retailer, most commonly as a low-cost retailer with mature distribution and warehouse systems. In addition, the Internet service, such as Amazon Prime and Amazon Web Services, deeply intertwine with its retail business and provides additional customer value.
In the battle of e-commere with Amazon, eBay has to determine what strategy to use to regain control: maintain its current business model platform or make a radical change to become a service provider.
In the past ten years, eBay has gradually lost competitive advantage in e-commerce industry, compared to its rivalry Amazon. eBay and Amazon have different kinds of business models and strategies. EBay’s platform business model basically includes online auction, fixed-price selling and online payment methods like Paypal. Amazon’s retail business model includes online retail business combined with Internet service, such as Amazon Prime and Amazon Web Services, and cooperation with third-party sellers. In the battle of e-commere with Amazon, eBay has to determine what strategy to use to regain control: maintain its current business model platform or make a radical change to become a service provider.
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