ebay-vs-amazon

Report
eBay or Amazon?
Making the best choice when taking
your retail business online
Skip McGrath
www.skipmcgrath.com
eBay
 Annual Sales (GMV) $60 BILLION
($2000 per second)
 eBay Sites in 30 Countries
 Approx 600,000 Active Sellers
 90 Million Registered Members
 37 Merchandise Categories
 Owns PayPal – largest online merchant processor
 Community Based membership focus
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eBay for Retailers
 Three selling formats:
− Auction
− Fixed Price
− Store
 Listing Fees
 Final Value (selling) Fee
 Optional promo Fees
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eBay for Retailers
Fee Overview $50 Crockpot
Listing fee
Final Value Fee
PayPal Fee
Total Selling Fees
$0.35
4.50
1.28
$6.13 (12.25%)
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eBay for Retailers
Fee Overview $10 DVD
Listing fee
Final Value Fee
PayPal Fee
Total Selling Fees
$0.20
1.20
.50
$1.90 (19%)
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Amazon
 The Amazon is the largest and densest rainforest on
earth
 The Amazon covers 2.5 million miles, about the size of
the USA west of the Mississippi
 If the Amazon were a country, it would be the 9th largest
on earth
 Each minute the Amazon River discharges 3.4 million
gallons of water into the Atlantic, 14 times the discharge
of the Mississippi
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The Other Amazon
 Annual Sales (GMV) $24.5 BILLION
 Largest Media Seller in the World
 Operates in US, UK, Germany, France, Japan & China
(Has shipped goods to over 200 countries)
 Approx 1.4 Million Active Sellers
 45 Million Registered Members (estimate)
 12 Major Product Categories
 Processes payments for merchants
 STRATEGIC FOCUS: Low Price ~ Superior Service
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Amazon
 One Selling Format
 New and Used Goods
 Two Types of Accounts
− Basic Free Account
− Paid Professional Account
 No Listing Fee
 Listings last 60-days
 Amazon processes payments
 A-Z Guarantee means sellers must offer no questions
asked refunds
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Amazon for Retailers
Fee Overview $50 Crockpot
Listing fee
$0.00
Final Value Fee
7.50
Payment Processing Fee 0.00
Total Selling Fees $8.10 (15%)
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Amazon for Retailers
Fee Overview $10 Music CD
Listing fee
$0.00
Final Value Fee
2.30
Payment Processing Fee 0.00
Total Selling Fees
$2.30 (23%)
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eBay vs. Amazon Fees
Item
eBay
Amazon
10 lb Crockpot $50
$6.13
$8.10
$10 Music CD
$1.90
$2.30
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eBay vs. Amazon ~ Seller’s Comparison
eBay
 High touch customer service
 Seller collects payment and has payment risk
 Sellers have to “earn” their selling position
 Sellers determine shipping & handling cost
 Flexibility through auctions, FP, Second Chance Offer
and Make Offer
 Seller Determines Return Policy
 Lower Fees
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eBay vs. Amazon ~ Seller’s Comparison
Amazon
 Higher fees
 Fixed price format only
 Amazon collects payment and takes payment risk
 Lowest price gets search visibility
 Amazon does most of the customer service
 Amazon sets the shipping cost
 Seller must honor A to Z Guarantee
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eBay vs. Amazon ~ Product Fulfillment
Amazon
 Fulfillment By Amazon (FBA)
 Product qualifies for Amazon Prime
 With FBA you can ship to eBay, Amazon or any
customer from any venue – but shipped in Amazon box
 Seller supplies labels and bar codes
 Ad message inserts prohibited
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eBay vs. Amazon ~ Product Fulfillment
eBay
 Shipwire
 Independent company but integrates with eBay checkout
 More flexible and slightly less expensive
 Products shipped in plain box or your custom box
 Advertising messaging inserts allowed
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www.SkipMcGrath.com
 Books and training courses for eBay, Amazon and
small website sellers
 Free twice-monthly Newsletter
 Tons of free material
 Blog.skipmcgrath.com
 Available for Workshops and Seminars
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Thank You !
Questions
??????????????
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