Ebay Versus Amazon Case Solution

The social jobs for e-commerce are less evident, but according to research, people who enjoy shopping online do it for certain social reasons as well. Purchases made online lead to conversations being built around that product. It allows them to feel a sense of belonging by allowing them to buy products used by their peers. Moreover, when people buy novel or distinct products, it helps them stand out in a social group (Joines, Clifford, and Scheufele).

The emotional jobs that e-commerce does are that it allows customers to get the products they want at the right time. It allows customers to get the products that they won't be able to get otherwise due to certain limiting factors such as resources, time, etc. Another emotional job that e-commerce fulfils for customers is impulsivity, where for certain emotional reasons, customers may have an urge to buy products instantly. E-commerce allows users to buy products at any time of the day (Huang, Yu-Feng, and Feng-Yang).

2. In terms of price, for customers, Amazon and eBay offered products of a wide range of prices. However, the companies earned in terms of the price they charged to sellers. For uniformity in the analysis, the prices that were charged to the sellers for the website’s services will be compared here. For auctions, both eBay and Amazon charged a listing price as well a final value fee based on the value of the final sale made on the auction site. 

For eBay, the price to be paid by sellers for listing depended on the value of the product. On the other hand, Amazon charged a flat listing fee of $0.10 for listing, which shows that the price offered by Amazon was lower. The final value price for both eBay and Amazon was the same. In 2011, eBay was charging higher prices for its selling site as well as the auction site. The final value commissions were ranging from 8% to 15%. The customers also had to pay the PayPal fees, which made it more costly for both customers and sellers. Amazon was comparatively charging lower prices from sellers in 2011. This is because, unlike eBay, Amazon was charging fixed fees from its sellers rather than commissions based on percentages and this made it less costly for sellers if they were selling in large volumes.