Making the best choice when taking your retail business online

1
eBay or Amazon?

• Making the best choice when taking your retail
  business online
• Skip McGrath
• www.skipmcgrath.com

2
eBay

• Annual Sales (GMV) 60 BILLION(2000 per second)
• eBay Sites in 30 Countries
• Approx 600,000 Active Sellers
• 90 Million Registered Members
• 37 Merchandise Categories
• Owns PayPal largest online merchant processor
• Community Based membership focus

3
eBay for Retailers

• Three selling formats
• Auction
• Fixed Price
• Store
• Listing Fees
• Final Value (selling) Fee
• Optional promo Fees

4
eBay for Retailers

• Fee Overview 50 Crockpot
• Listing fee 0.35
• Final Value Fee 4.50
• PayPal Fee 1.28
• Total Selling Fees 6.13 (12.25)

5
eBay for Retailers

• Fee Overview 10 DVD
• Listing fee 0.20
• Final Value Fee 1.20
• PayPal Fee .50
• Total Selling Fees 1.90 (19)

6
Amazon

• The Amazon is the largest and densest rainforest
  on earth
• The Amazon covers 2.5 million miles, about the
  size of the USA west of the Mississippi
• If the Amazon were a country, it would be the 9th
  largest on earth
• Each minute the Amazon River discharges 3.4
  million gallons of water into the Atlantic, 14
  times the discharge of the Mississippi

7
The Other Amazon

• Annual Sales (GMV) 24.5 BILLION
• Largest Media Seller in the World
• Operates in US, UK, Germany, France, Japan
  China(Has shipped goods to over 200 countries)
• Approx 1.4 Million Active Sellers
• 45 Million Registered Members (estimate)
• 12 Major Product Categories
• Processes payments for merchants
• STRATEGIC FOCUS Low Price Superior Service

8
Amazon

• One Selling Format
• New and Used Goods
• Two Types of Accounts
• Basic Free Account
• Paid Professional Account
• No Listing Fee
• Listings last 60-days
• Amazon processes payments
• A-Z Guarantee means sellers must offer no
  questions asked refunds

9
Amazon for Retailers

• Fee Overview 50 Crockpot
• Listing fee 0.00
• Final Value Fee 7.50
• Payment Processing Fee 0.00
• Total Selling Fees 8.10 (15)

10
Amazon for Retailers

• Fee Overview 10 Music CD
• Listing fee 0.00
• Final Value Fee 2.30
• Payment Processing Fee 0.00
• Total Selling Fees 2.30 (23)

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eBay vs. Amazon Fees
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eBay vs. Amazon Sellers Comparison

• eBay
• High touch customer service
• Seller collects payment and has payment risk
• Sellers have to earn their selling position
• Sellers determine shipping handling cost
• Flexibility through auctions, FP, Second Chance
  Offer and Make Offer
• Seller Determines Return Policy
• Lower Fees

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eBay vs. Amazon Sellers Comparison

• Amazon
• Higher fees
• Fixed price format only
• Amazon collects payment and takes payment risk
• Lowest price gets search visibility
• Amazon does most of the customer service
• Amazon sets the shipping cost
• Seller must honor A to Z Guarantee

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eBay vs. Amazon Product Fulfillment

• Amazon
• Fulfillment By Amazon (FBA)
• Product qualifies for Amazon Prime
• With FBA you can ship to eBay, Amazon or any
  customer from any venue but shipped in Amazon
  box
• Seller supplies labels and bar codes
• Ad message inserts prohibited

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eBay vs. Amazon Product Fulfillment

• eBay
• Shipwire
• Independent company but integrates with eBay
  checkout
• More flexible and slightly less expensive
• Products shipped in plain box or your custom box
• Advertising messaging inserts allowed

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www.SkipMcGrath.com

• Books and training courses for eBay, Amazon and
  small website sellers
• Free twice-monthly Newsletter
• Tons of free material
• Blog.skipmcgrath.com
• Available for Workshops and Seminars

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Thank You !

• Questions
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