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Amazon and eBay Competing for Small Vendors
07/23/2002

Small businesses hoping to reach a wide customer base online may benefit from increased competition between Amazon.com and eBay, the Wall Street Journal reports.

While Amazon is traditionally known for selling its own assortment of books, electronics and other goods, its option of purchasing the same items used has been gaining popularity since its introduction in late 2000. Amazon now offers new and used items through independent vendors, who could also choose to sell through eBay auctions.

eBay has stayed competitive with the Amazon used marketplace by opening the site Half.com, where merchants can sell their goods for a fixed price. The companyÆs effort to attract sellers may be most apparent in the announcement earlier this year of its plans to offer insurance to merchants who make between $2,000 and $25,000 a month selling on the site.