Some of eBay's direct competitors are Yahoo and Amazon, other online marketers that are very similar with eBay. In fact, Scot Wingo, president and chief executive of ChannelAdvisors estimates that there are about 30 to 40 percent overlap between Amazon and eBay in products.
In order to separate herself from competitors, eBay has introduced new product lines, and has launched many campaigns to promote her brands, such as network television advertisement campaigns. She also continues to make deals with brand-name retailers. For example, eBay announced a new store that features Hewlett-Packard products, primarily canceled orders and returned, unopened items. Dell and IBM also sell on eBay. .
eBay has also launched her new electronics marketplace at computer trade show Comdex. She announced shoppers at eBay's new electronics store could get some products shipped free, which is a key Amazon selling point.
4. What advantages do direct marketers have over traditional 'mall retailers'?.
Lower Cost.
Mall Retailers have to pay for a lot of things. Rent, wage for employees, insurance etc. They also have to buy goods from the middle-man'. Part of the price of the goods is paid to the middle-man'. eBay is an online marketer. She doesn't have to rent a place, or pay for the basic utilities like electricity. Different from mall retailers, eBay can employ only the minimum amount of employers, since she doesn't need them to stationed' in the website. .
Lower Risk.
eBay only provides a Web-based trading platform, collecting listing and transaction fees. She owns none of the goods, so even if the goods are not selling well, eBay will not suffer lost. .
Unlimited Market.
A mall retailer has a limited market. On the contrary, eBay has an unlimited market. Anyone can shop on eBay in anywhere at anytime. Mall retailers are limited to the local market, while eBay has a global market. .
Customer Relationship Management.
eBay can collect customer information and know their buying habits.
