Business / Amazon Or Ebay?

Amazon Or Ebay?

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Autor:  anton  24 November 2010
Tags:  Amazon
Words: 940   |   Pages: 4
Views: 622

Who is better,, Inc. or eBay Inc? That is a question I hope to offer insight on by touching base on the general aspects of each company, their business strategy and financial status. In the end, I’ll share with you my preference of company. The one that I feel would use my investments wisely.

General Company Information:, Inc. (AZMN):, Inc. has been operational on the World Wide Web since July 1995. Today it is listed as a Fortune 500 company and operates several web sites in North America and Internationally. They “seek to be earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavor to offer customers the lowest prices possible.” is continuously making changes; new to 2005 is a shipping membership program, Amazon Prime. In this program members pay a yearly fee of $79 and they receive free two-day shipping and discounted overnight shipping. They hope to entice a more loyal and frequent shoppers.

eBay Inc, (eBay): eBay was created in 1995 in Southern California. It is considered as one of today’s greatest online auction marketplaces. “We (eBay) currently have two major businesses: the eBay Marketplace and PayPal. Our eBay Marketplace mission is to create the world’s online marketplace. Our PayPal Mission is to create the new global standard for online payments.” eBay is constantly improving their market position in both North American and Internationally.

Business Strategy:

AMZN: "Our business strategy is to relentlessly focus on customer experience by offering our customers low prices, convenience, and a wide selection of merchandise.” Their strategy to achieve this is to improve operating efficiencies, continue to work with third party sellers and improve the functionality of the web site. also offers discounts in many forms. One of the most favorable discounts is the free shipping offer, this seems to attract buyers to the site. Word of mouth is a strongly used marketing strategy. feels this is a very important way to attract new buyers. One of my favorite features of is the Wish List. This is a place were one can list all items they ‘wish’ to own. It is very convenient if you have people to buy for people out of state, you can easily buy online and they ship for you.

eBay: “ We (eBay) intend to achieve our mission of creating the world’s online marketplace by improving and expanding across three main areas: categories, formats, and geographies.” To date eBay has over 40 categories, antiques, collectibles and music to name a few, in which customers can sell or buy items. is currently expanding their services to classified-style trading and online housing and apartment rental market. The biggest business draws is the antiques and collectibles you can find on their sites. If you are looking for that one special thing, chances are has it. Every year is expanding it brand across the world. 2005 is a year of investing in China and PayPal. They hope to make “the online payment standard around the world.”

Financial Status:

AMZN: Over the last five years has successfully improved their financial situations. Going from ($4.02) per share in 2000 to $1.45 in 2004. They were able to repay more than $600 million dollars of convertible debt last year.’s long-terms financial focus is growth in free cash flow. Another strong note is the fact that the Euro is stronger than the dollar so the International facets of the company are seeing increased revenue and opportunity. The International sales mix is approaching 50%, a target hopes to reach in the near future.

eBay: Glancing over the consolidated statement of income is doing fine financially. Their gross profits have increase over the past five years from $335,971 to $2,656,894 in 2000 and 2004 respectively. The income per share has gone from $.05 in 2000 to $.59 a share in 2004. As and gain entrance into more counties I need them improving their financial over time. American’s have always loved garage sales and is the garage sale of e-commerce.

Where to Invest:

Since one should never invest in a company based solely on its financial aspects, but on the company as an organization, I would choose to invest my money in, Inc. They have the better qualities that I would choose to invest in. has more obtainable goals in my eye. The customer first, what can make the customers experience better, they are the highest priority. on the other hand just wants to be the biggest, which is not necessarily the best thing. has the better interface of the two and they have a much higher reputation for security than After reading many blogs I noticed how annoyed the customers can be with “…PayPal has a terrible reputation,…it’s a big pain in the arse.” I feel people want that instant gratification, when buying a product, they don’t always want to wait for the auction to be over with. I think there is a much higher demand of new products with a guarantee. has the name recognition and foresight to see that through. I prefer to invest in a company I believe in and one that I think would represent my personality. It don’t just invest in a company to make money, you also invest to support them.


Cohen, Alan. "eBay vs. Marketplace. How does Amazon’s emerging marketplace stack up against the king?" Fortune Nov. 2002. .

Stone, Amy. "Amazon vs. eBay: Their Duel Extends to Wall Street" BusinessWeek 31 May 1999. .

eBay Inc. 2004 Annual Report., Inc. 2004 Annual Report.

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