Amazon and eBay the Race Becomes Closer – selling online

Sell successfully online

I read a couple of interesting things recently.  The first is an article on Time.com about John Donahoe the CEO of eBay and the driving force behind the recent (and dramatic) changes to eBay.  Read it here. The second thing I read was about some research done by Channel Advisor.

We all know that times are hard, we have seen the recession coming from the first time the scandal of people who could not afford it borrowed from those who did not have it broke.  So it comes as no surprise that the rate of growth in online sales has declined.  Channel Advisor says that in the third quarter of 2008merchant sales at Amazon was up by 45% (year on year) and eBay’s by 7%.  Time says that eBay has 84.5 active users and Amazon 81 million customers.

What does all this mean?  The my main conclusion is that Amazon is catching up eBay very quickly (remember that that 45% growth comes from a smaller base line) but that eBay is still ahead, at least for now.  Now more than ever can you really afford not to look at selling on Amazon as well as eBay?

My second conclusion is that the Channel Advisor figures explain why Donahoe has been acting so quickly to change the cost base and direction of eBay.  Will his changes work? we can only wait and see.

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