Can you imagine the shopping bohemoth created if Ebay and Amazon would merge? I’m sure its been proposed in executive meetings at both companies. I’ve done my fair share of shopping on each. Here is what I’ve gathered:
What Ebay does well

• Feedback – It’s a HUGE part of Ebay. Some people sell and buy just to see their feedback numbers go up, just to get that extra special star beside their name. Amazon has feedback too. I’ve sold quite a bit of used stuff on Amazon, but have yet to receive any feedback. Amazon buyers just don’t care about feedback.
• No warehousing – Amazon has absolutely no warehousing and supply overhead. They simply hook up buyers and sellers. What a concept.
• The trill of buying (and sniping) on an online auction – Many buyers get caught up in trying to get the last bid in for the auction. They actually plan their days around when an auction is ending.
• Online money transfer – Paypal. Yeah the system is not without bugs, but general I’ve found it to work well.
• Ebay has spawned subindustries – There are actually stores that make money by selling stuff for 3rd parties on Ebay. Other individuals make their living by soley selling stuff on Ebay.

What Amazon does well

• Tracking customer purchases – If you visit Amazon’s front page, you’ll notice they’re pushing stuff which you search for or bought last time you were at Amazon. Ebay’s front page is pretty static.
• Amazon has a bigger base of buyers looking for brand new items – Amazon is a trusted seller. With Ebay you never know what you’ll get. Many people equate Ebay as some type of hi-tech garage sale of used crap.