You Can't Keep a Good Amazon Down

Implications: Amazon’s stock price is up more than 25 percent today after its second blockbuster quarterly earnings report in a row. eBay is losing market share to Amazon. This trend appears likely that it will continue.

Analysis: Amazon is changing the way products are being sold on the internet. 
One significant contributor to that shift is the growth of Amazon’s Marketplaces business, which lets visitors to Amazon buy from third-party merchants, instead of directly from Amazon.com.  30 percent of Amazon’s sales, up from 29 percent in the same quarter last year – allows the site to offer more of a selection and to boost its operating margins, since it does not have to stock or ship these products since third parties are involved.  Naturally as this evolution takes place the old ways of business become less attractive.  Case in point, eBay.

eBay has also caused a business shift by raising listing fees and blocking products.

Amazon itself is expensive however produces results.  These results are catching the eyes of the small web retailers and they are the ones leading the shift over to Amazon.  The numbers speak for themselves and if that is any indication for things to come, Amazon is poised for a bright future using third party merchant stores.

Now the only thing left to do is to make searching easier/clearer on the Amazon site and truly everybody will win.