How eBay Competes with Amazon

Doesn’t it seem as if Amazon drives out almost all the competition in the market?

Think about it?

Amazon has almost everything you can possibly want to purchase from a store.

It has shoes, books, clothes, and even groceries!

How can any other company compete with Amazon?

It can’t. Most companies who try to compete with Amazon either die out or Amazon buys it.

One of the few ecommerce companies left is eBay. It still stays afloat even though Amazon has continued to grow.

What is eBay’s secret? Is it eBay’s latest offers or other promotions?

In this article, you’ll find out how eBay is competing with Amazon and staying in business.

Think Like a Retailer

What makes eBay unique is that customers can find rare, limited edition, or antique products at a fraction of the price.

However, its uniqueness is turning against itself when it tries to compete with Amazon.

The new CEO, Devin Wenig, is trying to shift the structure of the eBay’s website. Instead of thinking of it as a marketplace selling millions of items, consider it as if it is a retailer.

To compete with Amazon, eBay has put more focus on new or gently used items with a fixed price.

Modify Its Structure

eBay is set up so that its customers can search for an item and get a wide range of results.

This is great for people who have the time to scroll through hundred or thousands of options until they find what they want.

However, customers who are shopping on their smartphones don’t want to scroll through hundred of items on their screens.

eBay’s new search engine helps customers to narrow down their search from the start. This is particularly helpful for smartphone shoppers.

For example, if someone types in Macbook in the search engine she can specify what type of Macbook, brand new or gently used, and many other modifications.

Product Reviews

eBay is trying to mimic Amazon with product reviews and encouraging its users to leave product and seller reviews.

The product offerings on eBay are becoming better and of higher quality so prospective buyers find reviews especially helpful when they’re comparing products.

eBay is now offering sellers more analytic tools to help them sell more and grow their business.

eBay’s Sellers Coach gives sellers tips on how to make a product sell quicker, insights to which of their items did sell quickly and the reasons behind it.

Move Away from PayPal

eBay decided to ditch PayPal as the primary method of payment for its users.

Since the split from PayPal, eBay has seen improvements in three different ways.

  1. Lower Costs- Without using PayPal sellers now have lower costs, since PayPal has high processing fees. When PayPal was the payment method, sellers would have to mark their prices higher to cover the PayPal and eBay processing fees. Now, eBay has simplified the payment system so all the fees as rolled in one place.
  2. Sale Tracking- When all the payments and fees are taken care of through eBay, the company can keep better track of all sales. Sellers can use eBay’s analytic tools to measure their business growth instead of the third party ones.
  3. Conversion Rates- The conversion rates have improved tremendously since it dropped PayPal. Now, users don’t have to leave the site to make a payment. It’s all in one.


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