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EBay vs. Amazon
What's Up Doc? |
SurvivingEbay.com News, July 31st, 2008, Vol 1, No 6
Learn to Earn on EBay and Beyond, Sally Olson |
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QUOTE FOR July 31st, 2008
"For every complex problem there is a simple solution that is wrong."
George Bernard Shaw
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| EBay vs. Amazon - What's Up Doc? |
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There is a tremendous amount of chatter going on about which is better? EBay? Amazon? So, after a great deal of thought, I have decided that both are better. That’s right. Selling on both platforms is better than selling on one platform or the other – no matter how good that platform is.
This year we are in the midst of a Presidential election. One candidate acknowledges that taxes will go up. The other says – No new taxes. One is an American hero, the other a supposed rock star. For the life of me, I can’t understand why the American public cannot embrace both sides of the same coin. Can’t some taxes be increased and others no? Can’t an American hero be a rock star too?
This is true of eBay and Amazon. We stubbornly view one side of the coin which is usually the side we have experienced at the expense of the other. If you have only sold on eBay, then choosing to sell on Amazon sounds like a betrayal. Amazon sellers, who have never come to eBay, pledge allegiance to Amazon.com.
So, in defense of my bilateral decision, I offer the following:
eBay is an auction site. Amazon is a fixed price site. The sad thing is that eBay seems determined to move away from their core value of an “auction site” and “level playing field” to become more like Amazon. Thus the term, Amazon wannabe.
Amazon just announced a new method of payment collection through their website that mirrors PayPal. Thus the term, PayPal wannabe.
eBay relies totally on third party sellers for their revenue where Amazon has their own items they sell and warehouses to ship and distribute these items all over the country as well as 3 rd party sellers.
For those of you who sell on eBay, the recently muddied waters have created some doubt as to whether you can be as successful on eBay as a seller – and for how long. The trend is there. More large stores, more fixed pricing.
What does all this mean to a seller like yourself?
- eBay buyers are different from Amazon buyers.
It is well known that Amazon buyers have more disposable income. They also shy away from eBay because they worry about “scams” and “fraud”. eBay has, to date, not been able to really deal effectively with most types of fraud on their listing site. In fact, argued in court that they are a platform for others to use and cannot be held responsible for everything that goes wrong.
By: Ina Steiner |
Tue July 29 2008 12:16:11 |
eBay users in Australia are reeling after a PowerSeller has allegedly left many buyers in the lurch after its business failed. The Age newspaper said the seller, ebusiness_supplies, did over $15 million in revenue last year. It quotes PayPal Australia's managing director Andrew Pipolo as saying, "We're actually not liable for it but it's something that, because of the circumstances of this particular seller, the impact on such a large number of buyers, we've made the decision to make a fund available to cover the expense." |
Amazon, on the other hand, is clean, crisp and very strict with their sellers. Whatever methods they use to control fraud, they are certainly more vigilant and successful in dealing with this area.
- eBay best known as an auction site, while Amazon is based on fixed price listings.
eBay should be promoting their strengths. One of these is the excitement of the auction....not the fixed price listings. The recent shifts that the eBay staff has made, are directed primarily at diminishing the auction portion and embellishing the fixed price listing.
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| Sell On Both Sides Of The Pew |

As a seller, you should realize that customers on Amazon do not cross over to eBay often and vice versa. Therefore, if you list on both, you have the possibility of doubling your customer base and increasing sales revenues with little effort on your part.
If eBay continues its migration toward a shopping mall, fixed price platform, then you will have established yourself on Amazon, which will more than likely be the best fixed price platform. You see, they each (at least right now) compliment each other.
The recent release of eBay and Amazon 2 nd Qtr financials have shown Amazon to be the most profitable and fastest growing web site. eBay is struggling in defining itself. Selling on both, protects you from changes happening today that could seriously affect your sales 6 months down the road. Don’t wait 6 months and then be forced into a game of catch up on Amazon. Plan ahead – Look at both sides of the coin.
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| The Rumors Have It |
.99 Cent Listings
You can still list items for .99 cents. However, they will never show up in the search engine and you will be charged a listing fee by eBay. You will not get a listing warning that .99 items are ineligible for listing and no email to educate you. eBay has yet to comment on this. Here is a link to an article explaining the details of this “rumor” - posted on BuildASkill.com (UK Web Site)
Completed Listings
Some of you may have realized that the “completed Listings” lists have become shorter and shorter. My friend says that her completed listings are only showing a 7-day accumulation. You used to be able to see sales for an item you were researching for 30-days. This was an invaluable research tool, especially for new sellers struggling with a starting price.
Some people are redirected to live auctions as if there were no completed listings.
My take: I see this as an indication that the eBay servers are max’d out. They simply cannot continue to hold all this information. Just a thought – not a fact.
Listing restrictions in PayPal:
I have 5 items that I list every 7-days. They are all CD’s and listed in the eBay User Tools category. On Sunday, I noticed on one of them, during the listing process, that PayPal would hold the payment 21 days on this item if it sold because of my limited transaction history on eBay. The other 4 had no such message.
Many sellers such as myself with an extensive transaction history are receiving this notice as they list their items for sale. eBay has now said they are working hard to remove this “system” bug. Thousands of warnings were issued in error. Perhaps they should consider employing “Orkin” to get that nasty bug.
Here is a graphic of what the “Hold” looks like: CLICK ON THE PHOTO

ROLLING BROWN OUTS
A friend of mine who has a successful store on eBay selling shoes told me her following experience. Her shoes cost her $7.50 to ship unless the person lives in California. Then the price is $8.00-9.00 depending on the zip code. Last week she sold 20 pairs of shoes and 19 were from California. She has been selling for 7-years and rarely sold to California.
I immediately looked at my feeble sales for the week and realized all 4 items were sold in Florida.
What’s the deal? I reviewed my sales for the past two months and realized that at some time in the beginning of June my sales dropped and my sales demographics drastically changed. One week, everything I sold was from the Southern states. Two weeks later, everything was from the Midwest. I have always sold tons of items to New Yorkers and upon review – not one New York sale in 3 months.
Was I becoming paranoid? Well, after much blogging research, I found a name for this phenomenon. It is called “tap-on-tap-off”. Also the term “geo-clustering” has been used. It is possible that all the newly rented servers housing the listings database are not working together.
Test: Here is a simple test you can perform (I would recommend you do this a couple times a day). Type in the search engine bar the exact listing name. Your item should come up. If it does not, you are a temporary victim of tap-on-tap-off.
There are many possible reasons for this, but I believe that eBay would not purposely strike at your account. They can’t even find fraudulent listings. I believe that servers limit their visibility based on traffic. So, on Sunday night – when the whole world is looking to buy on eBay, the servers simply can’t handle all that traffic, so parts of them shut down and simply don’t work. You won’t know because normally you would get an error 404 page. You just see the items that are working.
Here is a link to an article that explains this all much better than myself: (UK)
Here is an AuctionBytes Link where much of the same discussion continues today:
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| Dave's Interactive Auction Calendar |
A really fun interactive calendar that will help you pick a time to list your items up for auction.
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| Links Policy Dropped |
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Uh oh. Another change to a change. Now I have to spend two hours putting all my website links back on my About Me Page.
If eBay would only take a 7-day respite after making a decision and think about the consequences, we wouldn't be plagued with their indecision and investigative techniques.
No wonder they can't spot fraud. They can't solve a problem without creating a worse problem. |
HERE'S THE QUOTE
Hello everyone…Back in May, I (John McDonald, eBay) announced a number of important policy changes for sellers. One of the policies I mentioned was an update to our Links Policy which governs the types of links that can be included in a listing. Our Links Policy is intended to increase safety and preserve the buying experience.
After my announcement, we received questions and concerns from sellers about this change. At eBay Live!, our staff made it clear we would be going back to reconsider some aspects of the policy around how third-party links would be treated.
As promised, we’ve been reviewing all the different types of situations that our sellers have brought to our attention, and we’ve been meeting with additional stakeholders to understand how our policy update would impact them. After this additional research and discussion, we’ve decided to leave our Links Policy as is. There will be no Links Policy updates at this time.
I want to thank our sellers for your support and patience around this matter.
Sincerely,
John McDonald
Senior Director, Trust & Safety
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If you missed the last newsletter click here: July 17th, 2008
Thank again.
Sally Olson
6201 N Kenmore
Apt 201
Chicago, IL 60660
773-636-6882 |
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