@timemachine777 wrote:
@slippinjimmy wrote:
@timemachine777 wrote:
@pingpong517 wrote:
oh...i get you...yes but I think I read where they have stated that is the goal...to Be an Amazon... you like them...whatever...so writing in on the wall for us little ones
Pretty much, but eBay will fail as usual, and kick all the small sellers to the curb while they're at it. eBay believes in burning down the bridge while they're still on it, only to crash in the river below. eBay's idea is to be like Amazon without selling the product yourself. Sorry, it doesn't work that way.
There's no way eBay will be able too pull that much profit out of the pockets of the sellers. eBay wants to somehow latch on to the sellers profits, and keep it for themselves. They're all nuts if they think that sellers would even stay here as their profits keep going to eBay by larger percentages. Amazon makes the bulk of it's money from its own sales, as it has very few merchants compared to eBay.
You know if you are going to continue to make claims about eBay you really should study your facts!
Fact #1
Amazon has NEVER in their entire history shown a profit on their marketplace revenues. What pittance of a profit they have shown in the past few years has ALL come from Amazon Web Services. Even those profits are likely to diminish as they are coming under severe pressure from the likes of Microsoft, Google, Apple, Oracle, IBM, HP and dozens of other companies who have MUCH deeper pockets than Amazon.
Fact #2
Third-Party sellers on the Amazon Marketplace now represent about 50% of total GMV and they are the only reason Amazon isn't bleeding more money.
Fact #3
While there are an estimated 60 Million Amazon Prime members, the cost of servicing those members only adds to Amazon's operating losses. Streaming audio and video is not free, besides the technical costs there are production costs for Amazon created material and rights fees paid to suppliers on non-original material. Of course we should also not forget that Amazon are losing Billions (over $6B in 2016) on shipping costs, mostly to provide free 2-day shipping to Prime members.
If it wasn't for borrowing (currently about $8B) and dumping more shares (about $25B over the past 5 years) Amazon would have run out of cash several years ago. This is only going to get worse given Amazon will borrow another $12B+ to finance the Whole Foods purchase.
Jeff Bezos may be a visionary but his vision has been financed by investors who may be in for a rude awakening. The current stock price is unsupportable by the numbers and one day (as happened in the past) the share prices could be in for a massive tumble.
I can see you don't know how Amazon works an why Bezos named his business Amazon. Amazon doesn't need to turn a profit per se, and I don't really want to conflate the two, but here goes. Amazon generates a huge amount of revenue.
Lets take 2014 for example eBay produced 17.9 bil to Amazon's 89 bil., however, Amazon doesn't turn it over as profit. Instead Amazon spends most of the profits from revenue to keep growing bigger and bigger, while making sure that the added growth, keeps generating more revenue, so that the company keeps getting bigger.
That's it in a nutshell. An eBay can't compete with that.
Actually it's clear that it's you who doesn't understand Amazon's accounting and reporting and how it differs from the way eBay reports revenue.
Let me break it down for you.
Amazon's reported "revenue" includes the total gross value of the goods sold on the Marketplace, that includes sales of goods by Amazon AND sales of goods by third-party sellers.
eBay on the other hand reports revenue which consists only of the fees they collect from sellers.
You are also probably not aware that the way Amazon reports R&D expenditures is a fraud as it includes capital leases on fullfilment & data centers and massive expenditures for the servers that run AWS. Neither of these are true R&D and not only that they barely qualify as Capital investments since servers have a lifespan of only 3 - 4 years before they become worthless junk and leases on warehouses, planes and trucks also depreciate rapidly.
In theory one day Amazon will drastically cut back on "R&D" expenditures in order to actually produce profits, of course that day may never come. Does Jeff Bezos care? No he doesn't, after all he can just dump a few more Billion in shares enriching his pocket and leaving investors holding the bag. For sure some investors who are actively trading Amazon stock may make a bucketload of money if their timing is right but for those who are holding out for the big payoff they may get a rude awakening.
evry1nositswindy • seller since 2013
