Amazon Vs Ebay
Amazon Vs Ebay
Amazon Vs Ebay
S.NO.
1
TOPIC
Certificate
PAGE NO.
3
Acknowledgement
Introduction
6-20
Literature Review
22-24
Research methodology
25-28
Data interpretation
29-40
Conclusion
41
Recommendation
42
Bibliography
43
10
Appendix
44-45
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INTRODUCTION
Marketing Strategy
1.1 Concept meaning
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The terms marketing strategy and strategic market planning are often used interchangeably,
which sometimes leads to confusion. We will use the term marketing strategy to mean the overall
strategy of an organization in relation to a particular market. In this learning guide we will
explore the process of analysis and decision making which organizations go through as they
define and implement their approach to that market. Marketing plans will form part of this
process, in particular when it comes to implementation.
Key aspects of the process are that it is cyclical, i.e. subject to constant review and reiteration;
that it is dynamic, subject to changes in the environment (including customers and competition);
and that it should be shared within the organization, rather than being the sole preserve of the
marketing department, if it is to be wholeheartedly adopted and implemented by the whole
organization.
Two interrelated trends in marketing approaches have changed the emphasis of marketing
strategy in recent years. These are relationship marketing and customer economics. The
increased use of sophisticated database information in marketing has helped further the adoption
of these two approaches and indeed both require such information in order to be successfully
implemented. If you are specifically interested in relationship marketing, there is a further
learning guide specifically on this topic.
This overview will introduce a framework for the steps to be followed in a comprehensive
marketing strategy process, the information and analysis required at each stage and the decisions
to be taken at each stage. There are of course other possible frameworks and approaches which
would be equally acceptable, provided all the key steps are included. What is crucial is to see
each stage, and the whole process, as dynamic and iterative.
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eBay Inc. is an American multinational corporation and ecommerce company, providing consumer to consumer &business to consumer sales services
via Internet. It is headquartered in San Jose, California. eBay was founded by Pierre Omidyar in
1995, and became a notable success story of the dot-com bubble. Today, it is a multi-billion
dollar business with operations localized in over thirty countries
The company manages eBay.com, an online auction and shopping website in which people
and businesses buy and sell a broad variety of goods and services worldwide. In addition to its
auction-style sales, the website has since expanded to include "Buy It Now" shopping; shopping
by UPC, ISBN, or other kind of SKU (via Half.com); online classified advertisements
(via Kijiji or eBay Classifieds); online
event ticket trading (via StubHub); online money
transfers (via PayPal) and other services.
It is a free website, but charges users an invoice fee when sellers have sold or listed any
items
CEO :
Devin waning
Address:
eBay Headquarters
2065 Hamilton Avenue
San Jose, California 95125
USA
Phone no:
Type of company:
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Address:
Phone no:
1-206-266-1000
Type of company:
E-commerce
Located in seattle.
1.4.4 Product Range:
And
Mobile and accessories.
A mobile phone (also known as a cellular phone, cell phone, hand phone, or simply a phone)
is a phone that can make and receive telephone calls over a radio link while moving around a
wide geographic area. It does so by connecting to a cellular network provided by mobile phone
operator, allowing access to the public telephone network. Mobile phone accessories include
any hardware or software that is not integral to the operation of a mobile phone as designed by
the manufacturer.
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with sensors, including cameras, a microphone and an accelerometer, and the touchscreen
display uses finger or stylus gestures substituting for the use of computer
mouse and keyboard. They usually feature on-screen, pop-up virtual keyboards for
typing. Tablets may include physical buttons for basic features such as speaker volume
and power, and ports for network communications and battery charging
Fashion
Fashion is
a
popular
style
or
practice,
especially
in clothing, footwear, accessories, makeup, body piercing, or furniture. Fashion is a
distinctive and often habitual trend in the style in which a person dresses. It is the
prevailing styles in behavior and the newest creations of textile designers. [1] Because the
more technical term costume is regularly linked to the term "fashion", the use of the
former has been relegated to special senses like fancy dress or masquerade wear, while
"fashion" generally means clothing, including the study of it. Although aspects of fashion
can be feminine or masculine, some trends are androgynous
And
Home accessories are furniture items which are easy to replace and easy to move, and include almost
any items that aren't strictly functionally necessary in the decorated space. These accessories include
such items as curtains, sofa sets, cushions, tablecloths and decorative craft products, decorative
wrought iron, and so on. These items are commonly used in indoor furnishings and layout and can
include cloth items, paintings, and plants.
Beauty product.
Cosmetics, also known as makeup or make-up, are care substances used to enhance
the appearance or odor of the human. They are generally mixtures of chemical
compounds, some being derived from natural sources (such as coconut oil) and many
being synthetics. Lips stick, foundation eye liner, mascara etc. come under it
And
Consumer electronics are electronic equipment intended for everyday use, most often
in entertainment, communications and office productivity. In British English they are
often called brown goods by producers and sellers.Radio broadcasting in the early 20th
century brought the first major consumer product, the broadcast receiver. Later products
include personal computers, telephones, MP3 players, audio
equipment, televisions, calculators, GPS automotive electronics, digital cameras and
players and recorders using video media such as DVDs, VCRs or camcorders.
Increasingly these products have become based on digital technologies.
And
Employees = 1,83
1.4.6 Organization structure:
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With so many different products and services, Amazon has a divisional structure.
In a divisional structure, different departments for different products and services
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allow department heads to appropriately focus their resources and results, as well
as monitor the organization's performance.
This structure is best for such a large organization because it is the most flexible.
Amazon's organizational structure is comprised of CEO and founder Jeffery Bezos
(pictured above) and an eight-member board of directors. The CEO oversees the
Chief Financial Officer (CFO), the Chief Technology Officer and the following 8
departments: Business Development, ecommerce Platform, International Retail,
North America Retail, Web Services, Digital Media, Legal & Secretary, and
Kindle. The CFO oversees the Real Estate and Control department. International
Retail oversees three separate departments: China, Europe and India. North
America Retail oversees the following five departments: Seller Services,
Operations, Toys, Sports & Home Improvement, Amazon Publishing and Music &
Video. The Web Services department oversees Amazon S3 and Database Services.
Other departments include Product Development & Studios, Europe Operations,
Global Advertising Sales, Computing Services, and Global Customer Fulfilment.
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1.5 Industry:
and
Both are belongs to E- Retailor is a form of electronic
commerce which allows consumers to directly buy goods or services from a seller
over the Internet using aweb browser. Alternative names are: e-web-store, e-shop,
e-store, Internet shop, web-shop, web-store, online store, online storefront and
virtual store. Mobile commerce (or m-commerce) describes purchasing from an
online retailer's mobile optimized online site or app
1.5.1 History
English entrepreneur Michael Aldrich invented online shopping in 1979. His
system connected a modified domestic TV to a real-time transaction processing
computer via a domestic telephone line. He believed that videotex, the modified
domestic TV technology with a simple menu-driven humancomputer interface,
was a 'new, universally applicable, participative communication medium the
first since the invention of the telephone.' This enabled 'closed' corporate
information systems to be opened to 'outside' correspondents not just for
transaction processing but also for e-messaging and information retrieval and
dissemination, later known as e-business. His definition of the new mass
communications medium as 'participative' [interactive, many-to-many] was
fundamentally different from the traditional definitions of mass
communication and mass media and a precursor to the social networking on the
Internet 25 years later.
In March 1980 he went on to launch Redifon's Office Revolution, which allowed
consumers, customers, agents, distributors, suppliers and service companies to be
connected on-line to the corporate systems and allow business transactions to be
completed electronically in real-time.
During the 1980s he designed, manufactured, sold, installed, maintained and
supported many online shopping systems, using videotex technology. These
systems which also provided voice response and handprint processing pre-date the
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Internet and the World Wide Web, the IBM PC, and Microsoft MS-DOS, and were
installed mainly in the UK by large corporations.
The first World Wide Web server and browser, created by Tim Berners-Lee in
1990, opened for commercial use in 1991.[6]Thereafter, subsequent technological
innovations emerged in 1994: online banking, the opening of an online pizza shop
by Pizza Hut, Netscape's SSL v2 encryption standard for secure data transfer,
and Intershop's first online shopping system. The first secure retail transaction over
the Web was either by NetMarket or Internet Shopping Network in
1994. Immediately after,Amazon.com launched its online shopping site in 1995
and eBay was also introduced in 1995. Alibaba's sites Taobao and Tmall were
launched in 2003 and 2008, respectively.
Retailers are increasingly selling goods and services prior to availability
through pretail for testing, building, and managing demand.
Figure no.1.2
Visitors
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Literature review
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VS
2. Literature review
EBay and Amazon, vis-a-vis their market valuations to see which stock looks cheaper.
Examining various factors that impact free cash flow and thereby valuation such as top-line,
bottom-line, and capital expenditure indicators we note that eBay seems slightly under-priced
currently.
Though Amazon is clearly ahead of eBay in terms of factors including number of active buyers,
transaction volumes, revenue growth, etc., its profitability levels are very low compared to
eBays. The latters asset-light business model lends to high cash flows and margins; coupled
with the rapidly growing payments business, eBays Marketplaces businesss outlook for revenue
growth is quite strong, in our view. In addition, eBays low capital expenditure requirement
allows significant cash for expansion and share buybacks. Stacking these fundamentals against
relative valuation metrics, we believe eBays P/E and P/FCF ratios trade at a discount to
Amazons metrics. We have summarized our findings in the below given info-graphic so that our
readers can go through these comparisons easily.
Amazon Is Winning In Terms Of Market Share and Revenue Growth.In terms of revenue and
market share growth, Amazon is clearly the winner against eBay. Amazons global active
customer base of around 260 million, far outnumbers eBays 152 million buyers in its
marketplaces segment. In terms of GMV, this translates into Amazons transaction volumes being
around 50% greater than eBays volumes. The revenue of both companies is not directly
comparable, as eBays marketplaces model primarily generates revenue through its take rate on
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pricing, our absolute valuation models also present a similar picture. Our valuation model for
eBay results in a $67 price target for the company, which represents around 20% premium to its
current market price. In comparison, our $303 price estimate for Amazon, is in line with the
current market price.( Forbes Dec 19,2014)
eBay India, fully owned by the US listed eBay Inc., today said it is still in investment mode in
the country. We are still in investment mode in India. This is an important market for eBay as it
is seen growing at more than 100 per cent, an eBay India official told PTI.According to
available information, eBay India has posted a loss of around Rs 88 crore in 2014.The company
was focusing at new customer acquisition at a time when competition has intensified. To do that
it needs investment and hence, there are little chances that loss will reduce significantly if not
widened, the official said. Over the last decade, eBay India has focused on delivering a
fantastic user experience. We are offering first time user rewards this festive season, eBay India
head, retail exports and lifestyle, Navin Mistry said here today during the launch of Loudest
Diwali Ever program. EBay promises huge discounts on products. But the company will not go
into deep discounting or disruptive marketing model, company spokesman Girish Huria said.
The company has seen the number of buyers grow from 3.5 million in 2014 to 4.5 million till
now of 2015.The number of sellers on eBay has also seen sharp jump to 45,000 now, the
company said adding Tier I and tier III cities are gradually gaining momentum in online sales
and 60 per cent of the new buyers are coming from these regions. EBay said the company will
continue to work with more state agencies like those in Gujarat and Odisha for putting up
products of Indian diaspora before the global buyers. Meanwhile, the company hopes its used
and refurbished category grows from 5 per cent of total sales to 20 per cent. (Oct.5, 2015 The
Financial Express).
Statistics show that in 2012, Asia-Pacific increased their international sales over 30% giving
them over $433 billion in revenue. That is a $69 billion difference between the U.S. revenue of
$364.66 billion. It is estimated that Asia-Pacific will increase by another 30% in the year 2013
putting them ahead by more than one-third of all global ecommerce sales.
The largest online shopping day in the world is Singles Day, with sales just in Alibaba's sites at
US$9.3 billion in 2014.
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Research Methodology
VS
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Sample size - 75
VS
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Type of Data
Primary Data;Primary data means original data that has been collected specially for the purpose in
mind. It means someone collected the data from the original source first hand. Data collected this
way is called primary data.
The people who gather primary data may be an authorized organization, investigator,
enumerator
or they may be just someone with a clipboard. Those who gather primary data may have knowledge
of the study and may be motivated to make the study a success. These people are acting as a
witness so primary data is only considered as reliable as the people who gathered it.
Example: Questionnaire made for research.
Advantage:
1.
2.
There is no doubt about the quality of the data collected (for the
investigator).
3.
Secondary Data ;Secondary data is data that has been collected for another purpose. When we
use Statistical Method with Primary Data from another purpose for our purpose we refer to it as
Secondary Data. It means that one purpose's Primary Data is another purpose's Secondary Data.
Secondary data is data that is being reused. Usually in a different context.
Example: Data from newspaper, books and etc.
Advantage:
1.
2.
It is less expensive
3.
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DATA INTERPRETATION
VS
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4. DATA INTERPRETATION
4.1 Figure
Opinion
Frequency
Yes
72
96%
No
4%
According to research 96% i.e. of people shop online, whereas 4% people i.e. 3, not buy
anything from online website.
VS
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4.2 Figure
Opinion
Frequency
Yes
65
89
NO
According to research 89% i.e. 65 consumer think that online shopping is more secured .however
11% consumer think or may experience that online shopping is not secured.
VS
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4.3 Figure
Online website
Frequency
Daily
12
16.4
Monthly
41
56.2
Annually
11
15.1
Weekly
12.3
According to research 16.4 % consumer are visiting daily online website for shopping, 56.2%
consumer visit monthly online website for shopping however only 15% consumer like to visit
online shopping website annually and 12.3 % consumer like to visit online website weekly
VS
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4.4 Figure
Choice
Frequency
Cheaper price
16
22.5
12
16.9
10
14.1
33
46.5
According to research 22.5% consumer like shop online due to cheaper rate , 16.9% purchase
goods from online website due to good quality products availability ,14.1 % people like shop
online due to easy return policy and 46.5 % means majority of people prefer online shopping due
to free home delivery.
VS
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4.5 Figure
Online website
Frequency
Amazon
Ebay
25
2
25
2
Flipkart
35
35
Snapdeal
Others
9
2
9
2.7
According to research amazon fulfill requirement of 25 % consumer however ebay able to fulfill
only 2.7% people requirement, 47.9 % consumer think that flipkart fulfill their requirement and
snapdeal full requirement of 12.3 % consumer however 2.7% consumer s requirement from
other website fulfill.
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VS
4.6 Figure
Medium
Magazine
Newspaper
T.V
People
Other
Frequency
2
11
28
21
11
%
2.7
15.1
38.4
28.8
15.1
According to research 2.7 % people come to know about online website, 15.! % of consumer
know about online website from magazine,38.8% of consumer come to know about online
website from t.v.,28.8% people come to to know about online website though other people.
VS
4.7 Figure
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Feature
Delivery
Discount offer
Return and Exchange policy
Packaging
Other
Frequency
8
31
25
5
4
%
11
42.5
34.2
6.8
5.5
According to research 8% of people observe delivery time while shop from online website,
however 42.5% of consumer consider discount offer while shop online from any website,34.2 %
of consumer observe return and exchange policy of online website before shop,6.8% consumer
consider packaging before shop online ,5.5% observe other factor while shop online.
VS
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4.8 Figure
Online Site
Amazon
Ebay
Flipkart
Snapdeal
Others
Frequency
22
5
34
8
4
%
30.1
6.8
46.6
11
5.5
According to research 30,1% say that amazon take less time in dispatch and delivery,6.8% of
people say that eaby take less time in dispatch and delivery,46.6% of people say that flipkart take
less time in dispatch and delivery,11% people said that snapdeal take less time in dispatch and
delivery and 5.5% people says that other website take less time in dispatch and delivery
VS
4.9 Figure
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Item
Mobile and Accessories
Laptop and tablet
Beauty products
Home appliances
Books
Clothing and footwears
Others
Frequency
41
6
0
3
2
16
5
%
56.6
8.2
0
4.1
2.7
21.9
6.8
According to research 56.6%people like to purchase mobile and accessories from online
website,8.2% people like to purchase laptop and tablets from online website, no one want to
purchase beauty product from online website,2.7% people like to purchase books from online
website,21.9% of people like to purchase clothings from online website however 6.8% people
like to purchase other things from online website.
VS
4.10 Figure
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Payment methods
Cash on delivery
Credit or debit Card
Paypal
Mobikwik
Paytm
others
Frequency
61
8
1
3
0
0
%
83.6
11
1.4
4.1
0
0
According to research 83.6% consumer prefer cash on delivery method for payment,11 % people
prefer credit and debit card method for payment,1.4 % of consumer like to pay through PayPal,
no one want to pay through paytm,3% of consumer like to pay through mobikwik.
VS
4.11 Figure
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Online site
Frequency
Amazon
30
41.7
eBay
1,4
Flipkart
31
43.1
Sanpdeal
12.5
other
1.4
According to research 41.1% consumer consider that amazons marketing strategy is best,1 %
people consider eBays marketing strategy and brand is best,43.1% of people says that flipkart
marketing strategy is beast ,12.5% consumer consider snapdeals marketing strategy is best and
1.4% people says that other websites online websites.
VS
4.12 Figure
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Online site
Frequency
Amazon
25
35.2
Flipkart
25
35.2
Snapdeal
11
15.5
Ebay
Other
According to research 35.2 % of consumer says that amazon gives more exciting offer, 35.2
consumer says that flipkart gives more exciting offer,15.5 % people says that snapdeal give more
exciting offer ,12.7% of people says that eBay gives more exciting offer and 1.4% people says
other website gives more exciting offers.
5.) CONCLUSION
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While free and disseminated shipping is a big story. There is more. to online" shopping and the
customer experience. In fact, many shoppers are willing to pay a nominal Fee to receive the
product faster if given the option. Shipping and delivery timing is important during check-out
it's all about communication!
To reduce shopping cart abandonment, retailers should show the shipping costs, present how
much more should be purchased to get free shipping, and give consumers the option of time
frames. Customers are willing to wait for their packages. but need to know what is happening
they want estimated delivery time clearly stated and they want email or text alerts about their
delivery.
Also important to the customer is the feeling of control. Options such as special delivery
instructions, the ability to schedule a late delivery, or having a delivery Window give the
consumers the control they need to better their shipping experience. According to the research
study on role of logistic in online shopping in eBay and Amazon, both the company has a better
logistic system in Indian market by keeping a strict watch on just in time strategy.
Both the company focusing on better customer service to the consumer who are engage in online
shopping. As there is a stiff competition between amazon and eBay, therefore they are offering
product at a les price to achieve the market strength.
6.) Recommendation
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7.) BIBLIOGRAPHY
1. www.google.com
2. www.ebay.com
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3. www.amazon.com
4. www.wikkipedia.com
5. www.forbes.com
6. www.thetimesexpress.com
7. www.google.com/image
8. www.slideshow.com
9. www.thetimesofindia.com
10.www.investopedia.com
11.www.ncchannel.com
12.www.shopify.com
13.www.moneynation.com
8.) Appendix
8.1 Questioner
1. Have you ever experience of online shopping?
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2.
3.
4.
5.
6.
7.
8.
Yes
No
How often you visit online website for shopping?
Daily
Weekly
Monthly
Annually
Do you feel that online shopping is secured?
Yes
No
Why you shop online?
Good quality product
Cheaper price
Easy return policy
Free home delivery
Which online shopping website can meet you requirement?
Amazon
EBAY
Flipkart
Snapdeal
other
How you know about online website?
Magazine
Newspaper
By friends
T.V.
Other
Which of the following feature you observe before obtaining?
Discount offers
Delivery Time
Packaging.
Easy replace and refund policy.
Which online site take less time in dispatch and delivery?
Amazon.
Ebay.
Flipkart.
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Snapdeal.
Others.
9. Which kind of product you like to purchase online?
Books
Beauty product
Clothings
Laptop and tablets
Mobile and assessors.
Other electronics.
Others
10.What would be your best payment method if you buy online?
Cash on delivery
Credit and debit card
Postage draft
Paypal
Paytm
Mobikwik
others
11.Which online company has best marketing strategy and brand?
Amazon.
Ebay
Flipkart
Snapdeal
Shopclues.
Other
12.Which online company gives you more exciting offers?
Amazon
Ebay
Flipkart
Snapdeal
7.2 List of Figure
Figure no
1.1
1.2
Shows
Process of marketing
Revenue chart
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1.3
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
Total no of visitors
No. of consumer shop online
Suffering on online shopping website
Online shopping is secured or not?
Region of purchase online
Most preferable website of consumer
Advertisement
What effect consumer choice
Less time taking dispatch and delivery website
Consumer want to buy product online
Payment method
Best Marketing strategies of company
online company gives more exciting offers
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