EBay Tries to Entice Other Retailers to Gang Up on Amazon

The e-tailer is painting itself as a safe partner

   

EBay Tries to Entice Other Retailers to Gang Up on Amazon

Amazon (NASDAQ:AMZN) seems to conjure up one of three emotions: Love, hate or indifference.

Other retailers like eBay (NASDAQ:EBAY), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Costco, (NASDAQ:COST), Best-Buy (NYSE:BBY) and just about any other big-box chain that has felt the sting of Amazon’s low prices, are among the haters. Heck, there are even a few smaller retailers that are giving Amazon the stink eye.

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The fact that the online retail king has so many enemies has helped eBay concoct a new strategy designed to knock Amazon down a few notches; because “winning” the same-day shipping race — which has not yet been won — will only go so far.

The new plan is a classic gang-up exercise. For instance, remember how that bully in junior high seemed less terrifying when you and your friends joined forces to stand up to him? The online auction site is convincing other retailers — such as Barnes & Noble (NYSE:BKS), GNC (NYSE:GNC), RadioShack (NYSE:RSH), Aeropostale (NYSE:ARO) — to do the same type of thing against Amazon by selling products via eBay, Reuters reports.

Additionally, the company is partnering with retailers like Target, Walgreen (NYSE:WAG) and Macy’s (NYSE:M) to test same-day delivery.

For many retailers, partnering with eBay is attractive for several reasons, but here are two biggies:

  • EBay doesn’t have its own line of inventory like Amazon does.
  • The customer-base belonging to brick-and-mortar chains differs from traditional eBay customers. Since eBay customers are generally searching for huge deals, its the ideal location for retailers to showcase clearance products.

In addition to sticking it to Amazon, eBay does get a percentage of sales from transactions that take place on it’s site. Customers can also benefit from the partnerships since they receive more opportunities to purchase products from retailers they trust in a convenient format.

You can visit Reuters to read the news service’s complete analysis of the battle between eBay and Amazon.

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Article printed from InvestorPlace Media, http://investorplace.com/2012/08/ebay-tries-to-entice-other-retailers-to-gang-up-on-amazon/.

©2014 InvestorPlace Media, LLC

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