Thursday, November 11, 2010

Case Study 11/11/2010

Compare between eBay and Amazon online businesses in terms of
a) Setting up. Hardware and special software requirements.
b) Security
c) Operations
d) Benefits
e) Concerns/limitation
f) Payment of services


Post your findings in this blog.

2 comments:

Tasin said...
This comment has been removed by the author.
Tasin said...

I think it must be noted that both Amazon and ebay are different in nature. Although they are both sell goods online, e-bay is more of an auction house, where you bid. Unlike, Amazon which is an online store where prices are fixed.

With Amazon, there is no upfront fee to deal with, although they do take a larger percentage off the sale price. Amazon also takes on the responsibility of collecting all payments. The money is then deposited into the account that you specify, and in the event of non-payment, the item is automatically re-listed. With eBay, you will have to take care of all the details of the sale yourself, although the money is instantly available in your PayPal account upon completion of payment.

When it comes to issues with selling, Most of Amazon's buyers are more interested in getting high-quality merchandise than getting a great deal, so you will likely get more money out of the sale. Most people who shop on eBay are on the lookout for the best deals possible, so you may have to settle for a lower selling price. That being said, eBay is the better option if you want to sell your items quickly, since you can set your auction to end in a few days and even provide potential buyers with the option to "buy it now". With Amazon, you could be in for a long wait before people even click on your listing.
In a way, users have the option of choosing either site depending on what they looking for, a quality product or a bargain.

Another issue when it comes to security, is that the presence of scammers on eBay. They usually disappear upon payment.
To counter this eBay have put in place a feedback mechanism which allows other users to grade and post comments on the honesty and reliability of users who are selling based usually on past experiences.

With Amazon since it is an online store it is bound by the laws that stores have to follow and so majority of the time the good will be received upon payment. If your good does not come then it may have been mixed up while shipping or perhaps a wrong addressed was given.