Key success factors for, Amazon Vs. Ebay

Topics: Electronic commerce, Online shopping, Pages: 3 (678 words) Published: June 8, 2008
Factors beyond global acceptance and success can be categorized into 4 categories: offering competitive prices, straightforward web design and friendly interface, convenient payment system, and most importantly the unique shopping experience.

1.Price: Amazon differentiates itself mainly on the basis of price and by making sure that it offers the same quality products as any other company with a noticeably lower price. In addition, sellers do not pay any fees for product listing and it cost nothing until the product is sold.

In order to make this happens, is doing great effort with wholesalers and tends to "connect to resources that give it scale rather than adding internal physical mass." The online bookstore allows lesser geographical constraints and easier expansion. According to John Jordan, Amazon is roughly 10% cheaper than a physical retailer with more cost saving with order size. Independent sellers or affiliates play a major role in selling the products and they constitute about 40% of the entire sales.

2.Web design: Amazon is considered an undisputed leader in online shopping with a well defined website. The organized visual hierarchy, page organization, and friendly interface and layout allow easy navigation and enjoyable shopping. Amazon believes in customer differentiation and consumers easily recognize and differentiate experience from others. Personalized shopping experience is on of a kind in which users get recommendations and summary related to the user's interest and purchasing or search history.

3.Convenient payment: all payments are handled securely by itself. Sellers do not have to establish different payments account as in eBay and Paypal. provides a convenient "1-click" ordering that allow customers to make purchases without getting into the hassles of other online checkout payment systems.

4.Extraordinary convenient shopping experience:Wide selection: being exclusively...

Bibliography: 1 Alan Wolf (2006, June 19), Staples strategy: new branding, more stores, Twice, Pg 16.
2 Maribeth Kuzmeski (2008, March 3), Your brand defines you, National Underwriter. Life & Health, pg 18.
3 Robert Faletra (2003, April 7), If you don 't brand your business, someone else will-and take your customers, Sciences Module, pg 82.
4 Stephen Marvin (2007, December), From Branding toward values, Information Outlook, Pg 34.
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