Who is the King of Customer Ratings? eBay vs. Amazon

amazon, ebay

amazon, ebay

I think we can agree that eBay and Amazon rule the online when it comes to customer ratings. But which is King in the world of online selling and shopping?

We can start by evaluating these two giants based on their revenues. According to Nytimes.com, eBay’s revenue climbed to $3.4 billion in the second quarter of 2012. The same article tells us that eBay’s stock gained more than 33 percent in the same time period, compared to a 25 percent gain in Amazon’s stock.

In the third quarter of 2012, Amazon’s revenue was less than analysts’ expectations: $13.18 billion in revenue, with 27 percent growth and an operating loss of $28 million, with a net income loss of $274. Amazon attributes this loss to its investment in LivingSocial. Based purely on this financial data, eBay seems to be doing better than Amazon.

But if we look past the revenues, which website do online shoppers prefer? EBay’s facebook page has a little over 5 million likes, with 80,000 people talking about it, whereas Amazon’s page has received a whopping 17 millions likes, with 330,000 people talking about it. We can also compare the traffic for each company’s main website: ebay.com and amazon.com, for the month of February 2013, for example. EBay received 405 million visits according to trafficestimate.com, while Amazon acquired 767 million visits.

Moreover, the forum from the aforementioned article shows that these consumers prefer Amazon to Ebay, in spite of what the numbers show. Consumers are convinced that Amazon has taken a loss because their strategy is, and has always been, to re-invest into the company. They prefer Amazon because they don’t “rip off” their customers, insinuating that Ebay does, and remark that hopefully, their “fairer” strategy won’t leave the company trailing behind competitors.

(Google Search: Ebay + revenue)
http://www.nytimes.com/2012/07/19/technology/ebay-profit-soars-144-as-marketplace-revenue-rebounds.html?_r=0
(Facebook: Ebay page, Amazon page)
(TrafficEstimate.com: ebay.com; amazon.com)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s