Who Will Win The Battle Amazon.com, Inc. (NASDAQ:AMZN) Or eBay Inc. (NASDAQ:EBAY)?
National Retail Federation remarked that the holiday shopping season could account for as high as 40% of annual revenue for certain retailers and hence it considers a crucial time to lure the customers to make most of sale during this season. Shop.org estimates approximately 13% and 15% online sales growth during November and December that my exceed $80 billion worth sales in aggregate.
However the shortened holiday season this year coupled with shaking consumer confidence amidst the uncertain economic environment and the U.S. shutdown, is forcing the retailers like Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc. (NASDAQ:EBAY) to do the most possible with their offers to lure consumers as this year even physical retailers and discount deals providers are popping up and battling on online pick-ups as well as mobile transitions.
While Amazon is likely to benefit from its Prime Memberships program that offers free two day shipping, as the prime members would more likely spend on Amazon.com for their purchases, it is also trying with other strategies including extension of its holiday deals promotion program for third party sellers. Under this program participating third party sellers can display their holiday deals on Amazon’s most visited holiday promotion pages that showcase time-bound discounts along the popular holiday gift picks. While this can offer more choices for Amazon.com visitors and bring more sales to Amazon, it would also benefit over 2 million participating sellers as their deals can get exposure to millions of online shoppers.
To counter the Amazon strategies, eBay Inc. (NASDAQ:EBAY) is also offering free in-store pickup at Toys R Us and Best Buy stores. Moreover eBay is also featuring time-bound offers and weekly specials as a part of its early holiday savings program that offers up to 70% on select goods up to November 18, 2013. EBay expects to attract more and more holiday shoppers this year through these offers.