E-business Comparison

E-business Comparison

Introduction

E-commerce is generally a service that is made possible due to the advancement of information and communication technologies. Organizations are able to use the internet so as to promote and sell their products and services. E-commerce is on the other hand broad and is composed of electronic transaction of information, products and services and payments and the formation and sustainment of web associations with clients. Ecommerce may take to play a number of processes in distribution, inventory, marketing, production, finance and other forms of services to clients. It is due to this that e-commerce by organizations has the ability to elevate income from sales and drop costs using s number of modes of processes.

There are a number of e-commerce companies that have applied varied processes and strategies so as to meet their objectives that entails high revenue and customer satisfaction. A good example is the two biggest selling sites known as Amazon and eBay. Amazon and eBay are the biggest e-commerce organizations well known globally; the advancement in these companies is reliant on the level of sales, charges and sustainability. They offer a large size of convenience as one will not have to move places so as to meet an objective. Amazon is online store that is similar to a normal store. It has a large size of stocks of goods that they sell and one is able to acquire a substitute if the product acquired is faulty. EBay on the other hand in not a store found over the internet, it is a form of auction center and is not engaged in any activity of selling products. EBay is a place that a person is able to purchase and sell the products.

Comparison between Amazon and eBay companies

Amazon practices a centralized form of e-commerce while eBay practices a decentralized form of commerce. The two companies have done their part in modeling the look that e-commerce has. The two sites have a big fan base that are of the opinion that the other is much better than the other one. In comparison to eBay, Amazon is a step ahead in regards to revenue and the impact that it has, eBay is growing at a faster speed.

Amazon is a store that is guided by laws, they are supposed to offer some form of service and warranties to the clients. On the other hand, eBay primarily is engaged with an individual and not a site. If there arises an instance where the operation is faulty, eBay is not grounded to meet the needs to the client.

The primary contrast in the auction model of Amazon and eBay make is hard to acquire the comparison of them. However considering that the two have platforms that sell goods on the internet, there are some elements that are similar. The products that are sold at Amazon are in most cases new. They are hence bent on issuing warranties to clients whom is similar to purchasing in standard centers. On the other hand, eBay one deals in products that are already used and hence one does not acquire a warranty for that. The goods are quite cheap; this is a good reason as to why most people are found at eBay.

Service Charges

In regard to a rough approximation, eBay costs are in the range of 10% of every sale that is acquired while Amazon costs are 18% making it more expensive. However, for eBay one has to pay for uploading a product for every item with no regard if it sells or does not, the selling costs for the sold goods and the PayPal cost (Robert, 2011). In Amazon, there are no such costs on services. The sellers are supposed to be charged in terms of tax for every time that they sell using the e-commerce and at times this tax is integrated into the cost of goods that to a small extent heightens the cost of service.

Community

The interactive sales tendencies created by eBay offers some form of efficiency for the buyers to focus into the varied aspects of the goods offered by the seller. If there are cases where delay is presence or any other instance comes about, the buyers at eBay meet the seller and make the requests that are required. These clients take a lot of time and make it hard to acquire a bid at eBay. On the other hand, Amazon has no form of interaction present between the buyer and seller and big network of extreme client service offered by Amazon which makes its client to meet their needs.

Payment modes

In regards to the form of payment, eBay sellers have a bigger platform of choices. They are able to acquire money using PayPal, cheques, money order among other methods. In Amazon, the payments that are used are done using Amazon payments system, the Amazon deposits the cash in the account of the seller two times in one month or constantly and this is done at no cost (Robert, 2011). The product where payment has been acquired by Amazon will be done away with from a person’s listings and one will not have to trace orders.

The Delivery time

The time that is used for delivery has been a great issue for buyers as well as sellers. A certain section of the sellers have been benefiting unfairly from these gaps so as to acquire more money. To sort this out, eBay is reaching to these sellers who charge excessively for delivery and take advantage of the buyers.

Conclusion

The difference in e-commerce between eBay and Amazon offers a vast range of experiences in regard to the use of ecommerce to the transactions of an organization and its advantages to these companies. E-commerce is applied by organizations for the purpose of advancing new goods, limiting costs, elevating the level of sales, developing efficiencies in using inventory and its allocation as well as elevating service delivers (Fruhling and Digman, 2000). In a number of instances, e-commerce is termed to as of success to a company in terms of profit and sustaining it. In whole, the advantages of e-commerce to a company are developed if the organization serves a section of the market, acquires benefit of the service providers so as to keep a working and rationalized e-commerce system, and is composed of e-commerce into a number of elements of the transactions. Of most benefit, however, e-commerce has to be seen as a vital component of an organization’s strategy, it has the ability of affecting the transactions of a company, and the organization has to look ahead in terms of resources required so as to meet the demands of the new market and clients.

References

Fruhling, A.L. and L.A. Digman. (2000). “The Impact of Electronic Commerce on Business

Level Strategies.” Journal of Electronic Commerce Research, 1(1): 13-22.

Robert, (2011). eBay vs. Amazon – A comparison of the e-commerce giants. Retrieved from: http://blog.wholesalepages.co.uk/ebay-vs-amazon-a-comparison-of-the-e-commerce-giants/