Amazon: Still trailing eBay in third party sales but...
If Amazon cut its fees and commission rates for third party sellers it could become a much more viable threat to eBay.
In an analyst note, Piper Jaffray analyst Gene Munster estimated that Amazon has sold $6 billion in goods by third parties in the last 12 months. That tally is still well behind eBay's $62 billion worth of goods via third parties, but Amazon is poaching market share.
On Amazon, third parties can sell 17 different categories, but face higher fixed fees than eBay and pay a 13 percent average commission rate. Those fees are the biggest reason that Amazon, which is benefiting from the popularity of fixed pricing and a better customer experience, hasn't become a bigger threat to eBay. Munster writes:
Amazon's higher fees and commission rates are the most significant factor holding back retailers from selling more products on the platform. Amazon charges higher initial fixed fees than eBay and has a 13% average commission rate that does not step down as the value of the sold product increases, compared to eBay's 8.1% average take rate. Based on our discussions with third party sellers, we believe that if Amazon reduced its fees and commissions for selling products, it could meaningfully accelerate the pace of third party sales growth.
Given Amazon's scale and penchant for new services it wouldn't be surprising if it went for eBay's jugular at some point in the not-too-distant future.Also see: