Make Money Blog: Amazon vs. eBay

Now that you're savvy on how to get cash back from eBay, it's time
to learn why Amazon beats eBay. Discover two ways to make money
at Amazon and learn who is winning the fixed price wars.

Here's how to make money on Amazon:
  • Open an Amazon store. What products can I sell Amazon.
    com? You can sell items in the following categories: Automotive,
    Baby, Camera and Photo, Electronics, Everything Else, Health
    and Personal Care, Home and Garden, Musical Instruments,
    Office Products, Software, Sports & Outdoors, Tools and
    Hardware, Toys & Games and Video Games
  • Become an Amazon affiliate. When you join up as an
    associate in Amazon's affiliate marketing program, you can
    receive up to 10% in referral fees. It's a great way to make
    some extra cash on your blog or Web site. Here's what an
    Amazon Bookstore looks like (ours is all about eBay and
    Amazon).

Fixed Price Listings or Auctions?

Going, going, gone! The auction format listings have a gloomy future, according
to BusinessWeek article -- Auctions on eBay: A Dying Breed (June 03, 2008).
BusinessWeek dubs Amazon "the leader in online sales of fixed-price goods."

Amazon's sales jumped 37% in the first quarter of 2008, while eBay's results
were quite lower at just 14% in the same quarter. The differences started
brewing when Amazon opened its site to independent sellers, which was
seamless integration that from the start offered one-way feedback.

Amazon versus eBay: who wins?

Hands down Amazon wins! Why? eBay has created an environment of distrust
between its sellers and buyers. The dicotomy between buyers and sellers
culminated May 19, 2008 when eBay set forth its  "No negative feedback"
policy whereby sellers are unable to leave negative feedback for buyers.
Conversely buyers have the leg up in that they can leave positive, neutral or
negative feedback for sellers. Incidentally, neutral feedback counts the same
as negative, which is just another way that eBay is tipping the scales in favor
of buyers and forsaking sellers.

Amazon on the other hand has embraced buyers and sellers alike! Many
buyers barely know that they are buying outside of Amazon -- that's because
Amazon has done a fan-tabulous job of co-branding. This leverages high marks
for Trust and Safety between buyers and sellers! Personalized
recommendations is a wonderful cross-sell tool that buyers certainly
appreciate too. And having ONE listing for items that have different sizes or
color options simplifies the experience for all. eBay only recently made
modifications to play "catch up" to Amazon. Another key feature on Amazon is
that it has a shopping cart and wish list -- buyers on eBay often inadvertently
make purchases then squibble over the hard lined contract instilled by eBay in
the interest of its own pocketbook.

Amazon wins for SELLERS because:
1. There's no per product listing fee and it doesn't cost you a penny until your
product sells.
2. Amazon makes it easy to have a branded online store.
3. Blog authors can monetize their sites with loads of help from Amazon.
4. If have the digital rights to a book, you can make it available as an eBook on
Amazon.com (eBay banned digital items March 31, 2008).
5. You can get a free 30-day trial to open your store!

Amazon wins for BUYERS because:
1. Buyers can shop without commitments (wish lists and shopping carts)
2. the personalized shopping experience helps buyers find what they need
3. Feedback doesn't feel compulsary as it does in eBay's forum
4. Amazon estimates delivery time, while eBay leaves sellers guessing.
5. Amazon streamlines packaging tracking.

Want more proof that Amazon is winning in the marketplace?

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