eBay or Amazon?

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%)

11. eBay vs. Amazon Fees

12. eBay vs. Amazon ~ Seller’s 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

13. eBay vs. Amazon ~ Seller’s 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

14. 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

15. 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

16. 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

17. Thank You ! Questions ??????????????