eBay’s competitors include leading online marketplaces like Amazon, Walmart Marketplace, and Etsy, offering a wide range of products. Auction and bidding platforms such as ShopGoodwill and DealDash provide unique shopping experiences. Consumer-to-consumer marketplaces like Craigslist and Facebook Marketplace facilitate local trading, while specialty and niche marketplaces like Reverb, StockX, and Newegg cater to specific product categories.
A multinational e-commerce and technology company that offers a wide range of products, services, and online marketplace operations. Amazon competes with eBay in the e-commerce market.
Amazon provides an extensive online marketplace where users can buy and sell new and used items, alongside its other retail and tech services.
Both compete in the e-commerce market, offering platforms for buying and selling products, but Amazon has a broader range of services and products.
Amazon’s vast product catalog, Prime membership, and fulfillment services.
Alibaba
A Chinese multinational conglomerate specializing in e-commerce, retail, internet, and technology. Alibaba competes with eBay in the global e-commerce market, with a strong presence in China.
Alibaba operates various e-commerce platforms, including Taobao and Tmall, connecting buyers and sellers in China and globally.
Both compete in the global e-commerce market, but Alibaba has a significant focus on the Chinese market and cross-border e-commerce.
Alibaba’s dominance in the Chinese e-commerce market and cross-border trade.
Walmart
A multinational retail corporation that offers a wide range of products, both in physical stores and through its e-commerce platform. Walmart competes with eBay in the online retail and marketplace space.
Walmart offers an e-commerce platform where customers can purchase products directly from Walmart or from third-party sellers.
Both compete in the online retail and marketplace space, providing a platform for third-party sellers, but Walmart also has physical stores.
Walmart’s hybrid approach with physical stores and online marketplace.
Etsy
An online marketplace known for its focus on handmade, vintage, and unique products created by independent artisans and sellers. Etsy competes with eBay in the niche market for handmade and vintage items.
Etsy specializes in connecting artisans and sellers with customers seeking unique, handmade, and vintage products.
Both compete in the online marketplace space, but Etsy’s niche is focused on handmade and vintage items.
Etsy’s niche marketplace for unique and artisanal products.
Rakuten
A Japanese e-commerce and online retail company that operates a diverse range of services, including an online marketplace. Rakuten competes with eBay in the global e-commerce market.
Rakuten offers an online marketplace where users can buy and sell products, along with various other services, including e-books, streaming, and financial services.
Both compete in the global e-commerce market, offering online marketplaces, but Rakuten has a broader range of services.
Rakuten’s diverse ecosystem of online services and entertainment.
Overstock.com
An online retailer and marketplace that offers a variety of products, including furniture, home decor, and electronics. Overstock.com competes with eBay in the online marketplace space.
Overstock.com provides an online marketplace for sellers to offer various products to customers, with a focus on furniture and home goods.
Both compete in the online marketplace space, offering a platform for sellers, but Overstock.com has a specific focus on home goods and furniture.
Overstock.com’s specialization in furniture and home decor.
Mercari
A Japanese e-commerce company and mobile marketplace app that allows users to buy and sell a wide range of products. Mercari competes with eBay in the mobile marketplace and resale market.
Mercari operates a mobile marketplace app that enables users to list and purchase a variety of products, including electronics, clothing, and collectibles.
Both compete in the mobile marketplace and resale market, offering platforms for buying and selling used items.
Mercari’s mobile-centric approach and focus on simplicity.
Craigslist
An online classified advertisements platform that allows users to post listings for various goods and services. Craigslist competes with eBay in the online classifieds and local marketplace space.
Craigslist provides a platform for users to post local classified ads for items, services, housing, and jobs.
Both compete in the online classifieds and local marketplace space, but Craigslist focuses on local listings and transactions.
Craigslist’s simplicity and emphasis on local listings.
Facebook Marketplace
An online marketplace integrated with the Facebook platform that allows users to buy and sell products locally and nationally. Facebook Marketplace competes with eBay in the online marketplace and classifieds space.
Facebook Marketplace provides a platform for users to list and discover products for sale within their local communities and beyond.
Both compete in the online marketplace and classifieds space, with Facebook Marketplace leveraging the social network’s user base.
Facebook Marketplace’s integration with the Facebook social network.
OfferUp
An online mobile marketplace app that enables users to buy and sell a variety of products locally and nationally. OfferUp competes with eBay in the mobile marketplace and local resale market.
OfferUp operates a mobile app that facilitates the buying and selling of used items, with an emphasis on local transactions and user ratings.
Both compete in the mobile marketplace and local resale market, offering platforms for buying and selling secondhand items.
OfferUp’s mobile-first approach and focus on local transactions.
General Online Marketplaces:
Amazon: A leading global online marketplace for various products.
Walmart Marketplace: Walmart’s online marketplace for sellers.
Etsy: An online marketplace for handmade and vintage items.
Auction and Bidding Platforms:
ShopGoodwill: An online auction platform operated by Goodwill Industries.
DealDash: An auction-based shopping site offering deals on various products.
Listia: An online marketplace for trading and auctioning goods.
Consumer-to-Consumer (C2C) Marketplaces:
Craigslist: A classified advertisements website for various local services and items.
Facebook Marketplace: A platform for buying and selling items within Facebook.
Letgo: A mobile marketplace for buying and selling secondhand items.
Specialty and Niche Marketplaces:
Reverb: An online marketplace for musical instruments and gear.
StockX: A marketplace for sneakers, streetwear, and collectibles.
Newegg: An online retailer specializing in electronics and computer hardware.
Key Highlights:
General Online Marketplace Competition: eBay competes with Amazon, Walmart Marketplace, and Etsy, which offer a wide range of products and services to online shoppers.
Auction and Bidding Platforms Rivals: Auction-based platforms like ShopGoodwill and DealDash provide unique shopping experiences, engaging users in bidding and securing deals.
Consumer-to-Consumer (C2C) Marketplaces Challengers: Craigslist and Facebook Marketplace are competitors in the C2C marketplace space, enabling local trading and exchanges between individuals.
Specialty and Niche Marketplaces Alternatives: Specialty platforms like Reverb (musical instruments), StockX (sneakers and streetwear), and Newegg (electronics and hardware) cater to specific product categories and enthusiast communities.
eBay’s main shareholder is its founder, the billionaire Omidyar, who stepped down from the board of eBay. By 2020, he owned (and might still own 4.69% of the company’s stock) followed by other institutional investors, such as Vanguard (11.41%) and Blackrock (8.51%).
eBay’s core business is a platform business model that makes money from transaction fees through its marketplaces. In short, eBay primarily makes money by charging fees on successfully closed transactions. For instance, in 2021, on an $87 billion worth of gross merchandise value sold on eBay, the company generated $9.77 billion in transaction revenues at an 11.19% take rate (fee).
eBay reported $73.2 billion in gross merchandise volume in 2023, compared to $73.9 billion in gross merchandise volume in 2022 and $87.36 billion in 2021.
eBay was profitable in 2023, as it reported a profit of $2.77 billion. Compared to a net loss of $1.27 billion in 2022, a net income of $13.6 billion in 2021, and a net income of $5.67 billion in 2020.
eBay bidding is a way for buyers to bid on a product whose sale price is decided by auction. The bidding process itself is automated, with eBay acting on the buyer’s behalf.
eBay was until recently a multi-divisional (M-form) organization with semi-autonomous units grouped according to the services they provided. Today, eBay has a single division called Marketplace, which includes eBay and its international iterations.
In 2023, eBay generated $10.11 billion in revenue, compared to nearly $574.78 billion from Amazon in the same period. Whereas in 2022, Amazon generated $513.98 billion in revenue, vs. eBay’s over $9.79 billion. In comparison, looking at revenues, Amazon was over 57 times larger than eBay in 2023.
Amazon has a diversified business model. In 2023, Amazon generated nearly $575 billion in revenues while it posted a net profit of over $30 billion. Online stores contributed over 40% of Amazon revenues. Third-party Seller Services and Physical Stores generated the remaining. Amazon AWS, Subscription Services, and Advertising revenues play a significant role within Amazon as fast-growing segments.
Amazon’s mission statement is to “serve consumers through online and physical stores and focus on selection, price, and convenience.” Amazon’s vision statement is “to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices.”
In the Amazon Shareholders’ Letter for 2018, Jeff Bezos analyzed the Amazon business model, and it also focused on a few key lessons that Amazon as a company has learned over the years. These lessons are fundamental for any entrepreneur, of small or large organization to understand the pitfalls to avoid to run a successful company!
With 64,588,418 shares, Jeff Bezos is the primary individual investor. Owning 12.7% of the company. Other top individual investors include Amazon’s CEO Andy Jessy, who has 94,729 shares. Top institutional investors include mutual funds like The Vanguard Group (6.6% ownership) and BlackRock (5.7% ownership).
Amazon generated over half a trillion dollars in revenue in 2023, of which $231.87B from online stores, over $140.05B from third-party seller services, $90.76B from AWS, $46.9B from advertising, $40.21B from subscription services, $20.03B billion in physical stores, and $4.96B from other sources.
Amazon was profitable in 2023. On nearly $575 billion in revenue for 2023, Amazon generated a net profit of over $30 billion. Since 2014, Amazon hasn’t recorded a net loss, but it did record a net loss of over $2.7 billion in 2022, while it recouped that in 2023. Indeed, in 2014, Amazon reported a net loss of $241 million, and it would be profitable until 2021. In 2022, Amazon turned unprofitable again and highly profitable again in 2023.
Amazon AWS follows a platform business model that gains traction by tapping into network effects. Born as an infrastructure built on top of Amazon’s infrastructure, AWS has become a company offering cloud services to thousands of clients from the enterprise level, to startups. And its marketplace enables companies to connect to other service providers to build integrated solutions for their organizations.
Amazon subscriptionrevenue in 2023 was over $40 billion, compared to over $35 billion in 2022 and nearly $32 billion in 2021. Amazon Prime grew from a $4.5 billion revenue segment in 2015 to an over $40 billion segment in 2023.
The Amazon Working Backwards Method is a product development methodology that advocates building a product based on customer needs. The Amazon Working Backwards Method gained traction after notable Amazon employee Ian McAllister shared the company’s product development approach on Quora. McAllister noted that the method seeks “to work backwards from the customer, rather than starting with an idea for a product and trying to bolt customers onto it.”
The Amazon Flywheel or Amazon Virtuous Cycle is a strategy that leverages on customer experience to drive traffic to the platform and third-party sellers. That improves the selections of goods, and Amazon further improves its cost structure so it can decrease prices which spins the flywheel.
In the letter to shareholders in 2016, Jeff Bezos addressed a topic he had been thinking quite profoundly in the last decades as he led Amazon: Day 1. As Jeff Bezos put it “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.”
A regret minimization framework is a business heuristic that enables you to make a decision, by projecting yourself in the future, at an old age, and visualize whether the regrets of missing an opportunity would hunt you down, vs. having taken the opportunity and failed. In short, if taking action and failing feels much better than regretting it, in the long run, that is when you’re ready to go!
A network effect is a phenomenon in which as more people or users join a platform, the more the value of the service offered by the platform improves for those joining afterward.
A platform business model generates value by enabling interactions between people, groups, and users by leveraging network effects. Platform business models usually comprise two sides: supply and demand. Kicking off the interactions between those two sides is one of the crucial elements for a platform business model’s success.
Jeff Bezos was best known for founding eCommerce giant Amazon in 1994. However, the entrepreneur owns companies in several industries, including health care, retail, robotics, real estate, and media. Many of these companies have been acquired by Amazon over the years, but some have been the result of direct investment from Bezos himself (through his investment arm is called Bezos Expeditions).
Amazon is a consumer e-commerce platform with a diversified business model spanning across e-commerce, cloud, advertising, streaming, and more. Over the years Amazon acquired several companies. Among its 12 subsidiaries, Amazon has AbeBooks.com, Audible, CamiXology, Fabric.com, IMDb, PillPack, Shopbop, Souq.com, Twitch, Whole Foods Market, Woot! and Zappos.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
