Seller Migration: Amazon Grows While eBay Stagnates

[mandy]

From Randy Smythe:

I've spent the last year observing two ecommerce giants in eBay and Amazon and I have to say, from what I am seeing, Amazon has the advantage in this high stakes arena:...

2. They continue to grow their 3p (Third Party Seller) business which is a high margin business that enables them to manage their own inventory more effectively. They do not need to stock the Long-Tail as deeply as in the past. Why stock 10 Dido CD's when you can stock 3 and still sell 20 through 3P sellers. This approach is as much a sales tool as an inventory management tool. This also allows them to manage their own pricing more effectively...

full article: http://rksmythe.blogspot.com/2007/09/gro...mazon.html

[mandy]

more from Randy Smythe on sellers moving to Amazon:

The marketplace dynamics are changing. eBay underestimated their hold on sellers and Amazon was there to woo them. Now a strange phenomenon is taking place. The type of product many 3P sellers are selling on eBay is trending toward end of life, liquidation, etc. Many 3P sellers are now using eBay for capital recovery while the lion share of their product is being purchased on Amazon at a higher margin. The IT has moved and continues to move to Amazon from eBay....

full article: http://rksmythe.blogspot.com/2007/10/3p-...-word.html

[amy]

The IT has moved and continues to move to Amazon from eBay....

I think the IT has moved and continues to move to websites.