Novice Investing - eBay Versus Amazon

Date: Monday 13th 2008f October 2008 06:08:40 PM

eBay Versus Amazon - 04/07/2006

By: Novice Investing Staff

Ladies and gentlemen, please grab your seat. The battle of the two titan in the internet space has finally begun. eBay Inc. (EBAY) has finally arrived at Amazon.com (AMZN)'s home turf, the e-commerce. In the past, Amazon has tried to invade but to no avail. eBay's business moat for its online auction business proves to be too deep for Amazon to penetrate. Internet users still flock to eBay for this purpose. Amazon is not the first company to try to overtake eBay's castle for online auction. Yahoo! Inc. (YHOO) tries and it fell short of obtaining that goal.

Now, after so long, eBay finally will enter the e-commerce space, selling books, DVD, electronics and the like under the new platform, Ebay's express. In one swoop, eBay wants to overtake Amazon's $ 8.5 Billion business. At a glance, eBay seems to have the upper hand. It has its high margin auction business to provide capital for the fight. Furthermore, eBay will accept more choices for online payments since it owns the widely popular paypal. Thus overall, eBay has a stronger financial position to wage a long battle.

But don't count Amazon out just yet. Despite eBay's superior financial strength, Amazon has the most experiences in e-commerce landscape. It knows how to handle inventory efficiently. It has tons of experiences dealing with prompt, fast delivery while standing above other e-commerce outfits such as buy.com. While others such as overstock.com wage a nasty price cut, Amazon still find its way to be the biggest and the baddest e-commerce outfit in the internet. What it does best is to provide customers with the best shopping experience online. eBay did not do that much since it was merely meeting sellers with buyers.

This will be a lengthy war to fight. Both companies will not admit failure that quickly. The beneficial party in this war is online customers. Therefore, pull off your chair and enjoy the show. It will be worth it.

END
You can view other helpful commentary by clicking here
Distributing your own investing content is easy. Simply, click here.

Disclaimer: The sole purpose of this article is educational. This article is merely the opinion of the writer and is not in any way a buy/sell recommendation regarding eBay Inc. (EBAY) or any other securities.

[Resources] [Forum] [Link Partner ] [Novice Investing Directory ] [ Submit Your Article Here ]