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Making the best choice when taking your retail business online Skip McGrath www.skipmcgrath.com eBay or Amazon?

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Presentation on theme: "Making the best choice when taking your retail business online Skip McGrath www.skipmcgrath.com eBay or Amazon?"— Presentation transcript:

1 Making the best choice when taking your retail business online Skip McGrath www.skipmcgrath.com eBay or Amazon?

2 WWW.SKIPMCGRATH.COM 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 WWW.SKIPMCGRATH.COM eBay for Retailers Three selling formats: − Auction − Fixed Price − Store Listing Fees Final Value (selling) Fee Optional promo Fees

4 WWW.SKIPMCGRATH.COM Fee Overview $50 Crockpot Listing fee$0.35 Final Value Fee 4.50 PayPal Fee 1.28 Total Selling Fees$6.13 (12.25%) eBay for Retailers

5 WWW.SKIPMCGRATH.COM Fee Overview $10 DVD Listing fee$0.20 Final Value Fee 1.20 PayPal Fee.50 Total Selling Fees$1.90 (19%) eBay for Retailers

6 WWW.SKIPMCGRATH.COM 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 WWW.SKIPMCGRATH.COM 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 WWW.SKIPMCGRATH.COM 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 WWW.SKIPMCGRATH.COM 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 WWW.SKIPMCGRATH.COM 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%) Amazon for Retailers

11 WWW.SKIPMCGRATH.COM eBay vs. Amazon Fees ItemeBayAmazon 10 lb Crockpot $50$6.13$8.10 $10 Music CD$1.90$2.30

12 WWW.SKIPMCGRATH.COM 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 WWW.SKIPMCGRATH.COM 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 eBay vs. Amazon ~ Seller’s Comparison

14 WWW.SKIPMCGRATH.COM 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 WWW.SKIPMCGRATH.COM 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 eBay vs. Amazon ~ Product Fulfillment

16 WWW.SKIPMCGRATH.COM 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 WWW.SKIPMCGRATH.COM Thank You ! Questions ??????????????


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