According to an article in the New York Sun Times, more individuals are turning to comparison shopping sites when browsing for items online. Google's comparison shopping site, for instance, jumped in ratings from No.4 to No. 2 this year. The article quotes information presented during the Internet Conference held by Cowen and Company. The research done by Cowen and a panel of four large e-commerce seller who all received their start selling on eBay revealed some interesting trends in the industry. All of the panel members during the discussion noted that they are moving more and more of their products to other channels and taking the brunt of their goods off of eBay.
Reasons for the move were credited to higher profit margins and sales rates on other sites. Amazon was a big draw as a growing competitor to eBay due to their high amount of visibility and brand trust already amongst internet users. With e-commerce set to grow by 20 percent in the next year, brand visibility and consumer trust become huge barriers to online sellers' success. To overcome these hurdles and also acknowledge the growing importance of comparison shopping sites, gaining visibility throughout multiple websites becomes essential.
One of the leading competitors to eBay, Overstock.com, announced recently that they would be doing away with their large flat fee listing packages for high-volume sellers. Could this potentially signal that although other platforms are gaining momentum, their fee structures will need to change to more closely emulate those of eBay in order to become and remain profitable??