eBay's Strategy for Competing with Amazon - Interesting Article

[jeffweico]

Here is an interesting article from the New York Times regarding how eBay is planning to compete with Amazon. It does not DIRECTLY relate to stealth, but it offers some interesting insights into the way eBay (and Donahoe) think.

eBay's Strategy for Taking on Amazon

[SaiJin]

Im surprised that Amazon's making less money than eBay...

[jeffweico]

Originally Posted by SaiJin

Im surprised that Amazon's making less money than eBay...

I'm not. For years, Amazon has been sacrificing profits to gain market share - and they reinvest what they DO make back into the business.

This has actually been a smart growth strategy. Amazon started as an online bookstore, now they are the largest ecommerce site in the world. And they provide hosting services for other businesses. And, they are getting into streaming video. And a million other things.

One day, Amazon's ecommerce business could be small compared to their other endeavors.

eBay, on the other hand, faces an uphill battle...

[JamesNorth101]

Amazon have been pursuing very aggressive expansion over the last few years at the cost of profit. Any profit they ever do make gets reinvested to gain more market share.

As a very long term investment its well worth a look at, continuing to grow as it has done over the last few years in the economic climate it faced is impressive, but as a short term stock investment not so great. IMO at least

[zoneout]

This is the problem with Donahoe and partially why he will ultimately fail. Instead of focusing on doing what ebay does best, he has constant penis envy of Amazon and tries to turn ebay into an Amazon clone. His attempts thus far have been clumsy at best.

[Sandy D]

Ebay will never be Amazon. It already has burned it britches with too many mistakes.

Tells you something when a business like ebay wants to be like Amazon.

Amazon is smart, much smarter then ebay ever will be.

Donahoe is a total idiot. Meg ran it better then he did.

Donahoe thinks he can just toss major long time good sellers to the curb and not be effected.

[vogeltron]

Originally Posted by Sandy D

Ebay will never be Amazon.

Donahoe is a total idiot. Meg ran it better then he did.

Donahoe thinks he can just toss major long time good sellers to the curb and not be effected.

Couldn't have said it better myself. Back when Meg was CEO at least there was some level playing fields for Buyers and Sellers. Also the site was set up to have more like a big flea market or garage sale feel, where you could find anything. The strategy they have taken now is to boot all the smaller sellers and leave a few bigger commercial sellers who all sell the same items.

It is pretty sad to see what has happened.

[Omgoozle]

Originally Posted by Sandy D

Ebay will never be Amazon. It already has burned it britches with too many mistakes.

Tells you something when a business like ebay wants to be like Amazon.

Amazon is smart, much smarter then ebay ever will be.

Donahoe is a total idiot. Meg ran it better then he did.

Donahoe thinks he can just toss major long time good sellers to the curb and not be effected.

Originally Posted by vogeltron

Couldn't have said it better myself. Back when Meg was CEO at least there was some level playing fields for Buyers and Sellers. Also the site was set up to have more like a big flea market or garage sale feel, where you could find anything. The strategy they have taken now is to boot all the smaller sellers and leave a few bigger commercial sellers who all sell the same items.

It is pretty sad to see what has happened.

+1


Agreed.


There is definitely something to be said about biting the hand that feeds.

[Laritha]

eBay spends so much time suspending users, that eventually they'll be no one left to buy items on their website.

Unless eBay and Paypal lighten up on their security policies, they will never even get close to developing anything like Amazon.