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How eBay wants to compete with Amazon and JET


eBay Makes Big Plan to Take on Amazon and JET in 2016

eBay – the famous auction e-commerce website – has made public its big plan to take on Amazon and JET aggressively. eBay’s CEO Devin delivered his plan to Goldman Sachs Technology and Media conference on February 10, 2016. Part of its plan includes redesigning its mobile app by using filters, rather than scrolling through a hundred different search results. [1]

Growing Competition from Amazon and JET is Forcing eBay to Take them Head on

Amazon’s incredible growth in technology, distribution, and digital content is eating away at potential profits that eBay could be earning. However, eBay’s advantage is that it has very low capital requirements, because it does not store inventory, or ship it. Despite these differences, Amazon has experience more growth than eBay, and this is forcing eBay to come up with a “head on” strategy to compete with Amazon. eBay wants to make buying and selling even easier, such as waiving selling fees, and making the buying experience more streamlined. With this in mind, eBay’s goal is to increase its revenue growth in 2016. [2]

eBay Acquires Cargigi to Enhance eBay Motors Analytics and Business

eBay purchased technology company, Cargigi, to enhance and compliment its already existing eBay Motors. Cargigi provides advertising on classified websites (i.e. Craigslist), and will now work alongside the eBay Motors team. Dealers that sell on eBay Motors will quickly gain access to analytics software that previously was not available from eBay Motors. In short, this acquisition will help eBay grow and manage eBay Motors. [3]

Profit Confidential Site Says “eBay Stock Could Soar” due to Big Changes Coming

Website Profit Confidential is making a prediction that eBay’s business model of connecting buyers and sellers will continue to grow. Part of this is credited to an increase in online shopping (e-commerce sales), and a decline in brick-and-mortar consumer shopping. In addition, eBay made acquisitions in StubHub, and recently, Cargigi. Lastly, Profit Confidential points out that eBay’s decision to buy back $1.8 billion in stock was a good move to increase the value of its stock.[4]






Disclaimer: Neither GeekSeller nor the author of this blog post own any shares of eBay stock.

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This post was written by the GeekSeller team.

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