Amazon, eBay war

The New York Times chronicles the state of competition between e-commerce giants Amazon and eBay, as both firms become increasingly more like each other.

E-commerce, "was once thought to be a refuge from economic storms. People who stay away from the mall might actually be more tempted to shop online and hunt for deals, or so the thinking went," reporter Brad Stone writes. "But analysts are now revisiting that assumption."

The article suggests that Amazon is gaining market share on eBay because the Seattle firm was patient and willing to adopt new ideas, such as selling mp3s, while eBay was more stagnant in its decision making.

Amazon CEO Jeff Bezos told the Times, "We are willing to plant seeds that take five to seven years to grow into reasonable things. You can't do big, clean-sheet invention unless you are willing to invest for long periods of time."

Despite eBay's woes, the online auction house still has a larger selection of certain items sold at lower prices. Source>>>

Read More