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Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon Dec 17 2012 22:12:02

eBay vs Amazon Becomes Amazon vs Google

By: Ina Steiner
Sponsored Link
It's interesting to see eBay promoting ToysRus frequently on Twitter and other channels. The two are united in a mutual dislike of Amazon (remember ToysRUs' bad breakup with Amazon?).

It's clear from attending ecommerce trade shows that retailers just aren't crazy about Amazon, given the fact that it competes directly with them. Many merchants would be happy if they didn't have to use Amazon as a channel, but its power to deliver sales is irresistible.

An article published in Adweek today reveals more reasons why retailers and brands may resent Amazon's market power yet be even more bound to use its services: Amazon is wielding its might in the ad space.

Turnabout is fair play, so as Google increasingly gets into the ecommerce space with Google Shopping, Google Trusted Stores, Google Offers, Google Catalogs, Google Commerce Search and Google Wallet, Amazon.com is entering Google's turf and getting into the online ad space.

Adweek provides some eye-opening information about Amazon's advertising program and what's to come in 2013, and - like almost anything Amazon does - it's impressive. Anyone who buys ads on Google or Facebook should read the article (multiple times).

Adweek revealed that Amazon will offer retargeting and is taking its pay-per-click program beyond the Amazon.com marketplace. The magazine also points out that if Amazon chooses to offer a cost-per-acquisition model, it would then have conversion data. I like this quote from iCrossing's Jonathan Adams: "Search behavior is not the same as conversion data. These guys have been watching you buy things ... for years."

Julia Wilkinson wrote about Amazon's ad programs last month, including Product Ads and its new pay-per-click service called "Sponsored Products." She spoke to a couple of early beta testers of the new Sponsored Products program who shared details about how the program works, including when to use Sponsored Product Ads vs. Product Ads.

It's hard to remember, but eBay had a "Products Ads" type of offering of its own years ago called eBay Keywords that was popular with many of the eBay PowerSellers who used it. I had speculated in 2005 about the potential for eBay to ramp up advertising, even suggesting it could go head to head with Yahoo Search Marketing and Google AdWords, and serve up ads on independent websites. But within a year, eBay dropped the Keywords ad program.

Not to say eBay isn't running ads on its marketplaces - on the contrary, it's gotten much more aggressive in the past 2 years. But rather than build its own ad technology, it hired Triad Retail Media to began managing all on-site display advertising for eBay.com and eBay Motors in 2011. (And now online sellers are stuck with ads on their Item pages.)

Given how powerful Google has become in terms of product advertising (it has merchants eagerly signing up to pay for previously free traffic from Google Shopping), it's not necessarily a bad thing for merchants that Google will have some serious competition.

But it's pretty certain merchants won't be pleased to find out it's Amazon coming to their rescue.




Comments (9) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay vs Amazon Becomes Amazon vs Google   eBay vs Amazon Becomes Amazon vs Google
by: Ydeveloper This user has validated their user name.
       Web Site
Tue Dec 18 03:39:29 2012
So, the competition is going on and there are three players - Amazon, eBay and Google! Recently Google has joined this race and there are good chances getting it popular as it can be benefited with their own search engines.
Perminate Link for eBay vs Amazon Becomes Amazon vs Google   eBay vs Amazon Becomes Amazon vs Google
This user has validated their user name. by: elpereles
       Web Site
Tue Dec 18 10:03:45 2012
I don't understand how somebody can compare in this moment Google vs. Amazon. Google Shopping isn't a marketplace. It is an Ad service.  
Perminate Link for eBay vs Amazon Becomes Amazon vs Google   eBay vs Amazon Becomes Amazon vs Google
This user has validated their user name. by: Ina
       
Tue Dec 18 10:41:49 2012
Google vs Amazon referred to Amazon getting into advertising, competing with Google AdWords. Not Google competing head-to-head w/ Amazon in terms of its marketplace.

The AdWeek article says that's what Amazon is doing and is worth a read!
Perminate Link for eBay vs Amazon Becomes Amazon vs Google   eBay vs Amazon Becomes Amazon vs Google
This user has validated their user name. by: thehosst
       
Tue Dec 18 11:13:47 2012
Google shopping has a very big issue, besides the monopolistic practices: out of stock items.
It won't be long for the few merchants still there who will be sick and tired of seeing the conversion rates go down much deeper than before, to lose millions a day to those "untracable clicks" and clicks to out of stock items. It is quite difficult for most small merchants to keep track of clicks and to update out of stocks in google shopping, I have seen that even big merchants have this costly issue.

If you want to see the loses, keep track of clicks, sometimes you will be amazed to see that you have to pay for more clicks that visitors showing in your site.

Google started issuing 100 dollar cards for free clicks back in August, clicks were costing 1 penny, today (only a few weeks after) they "suggest" that if you want to be in a good position, you need to unload 75 to 85 cents Per Click.

Another notorious money losing feature. Timing. Yes, watch out for when most clicks happen, midnight to 6 am, or in other words, India & Bangladesh billion workers doing "research for competitors". No way to stop feeds at certain times or days.

Is important to ask yourself, how is google able to make so much money? Then ask them, if you are making so much money, why do you need to choke the people who made you, the content producers, both merchants and editors.

But if you test both, or all 3, lets include eBay, conversion rates have fallen to the lowest numbers ever.

Ina, great article as usual, it will be interesting to see how the government plans to add an online tax when google is already charging a huge toll to all merchants, there is no way google is giving any room for merchants to add yet another expense to the product cost and expect all of us, buyers to purchase online.


Perminate Link for eBay vs Amazon Becomes Amazon vs Google   eBay vs Amazon Becomes Amazon vs Google
by: millcreekrescue This user has validated their user name.
       
Tue Dec 18 12:18:22 2012
''Another notorious money losing feature. Timing. Yes, watch out for when most clicks happen, midnight to 6 am, or in other words, India & Bangladesh billion workers doing ''research for competitors''. No way to stop feeds at certain times or days.''

Actually,  Google Adwords does offer the option of stopping feeds as certain times of the day.
Perminate Link for eBay vs Amazon Becomes Amazon vs Google   eBay vs Amazon Becomes Amazon vs Google
by: Tiffee Jasso This user has validated their user name.
       
Tue Dec 18 14:49:55 2012
Google now charges for looks and that drives the cost of items up. They want a share of everything that sells and everything that anyone looks at. I stopped using Google when they announced that they were going to charge sellers for looks. The nice thing about Google is I don't have to use it to make sales. Google's charge for looks is every bit the same as an Internet TAX, but much more expensive.  
Perminate Link for eBay vs Amazon Becomes Amazon vs Google   eBay vs Amazon Becomes Amazon vs Google
by: comet This user has validated their user name.
       
Tue Dec 18 21:11:14 2012
Why does everyone here get all frenzied when ebay does ads etc---but not Google?  No seriously--I HATE ebay ads.  And I have ZERO experience with Google other than using it as a search feature.

But----when ebay does it it is to drive AWAY buyers from the "service" we PAY for them to provide--and when they place these obnoxious and distracting ads on OUR listings---we go NUTS.

Now---how do Google ad "clicks" WORK?  Are they "subsidized" by the companies attempting to make their items visible?  Soooo---they are driving their OWN products?  Isn't that a GOOD thing?

Admit to confusion here!  
Perminate Link for eBay vs Amazon Becomes Amazon vs Google   eBay vs Amazon Becomes Amazon vs Google
This user has validated their user name. by: elpereles
       
Tue Dec 18 21:27:48 2012
Thanks for the info Ina. I was confusing all the Amazon Ad stuff with the Google Shopping Ad pay position in the search.  
Perminate Link for eBay vs Amazon Becomes Amazon vs Google   eBay vs Amazon Becomes Amazon vs Google
This user has validated their user name. by: thehosst
       
Tue Dec 18 22:38:53 2012
''Another notorious money losing feature. Timing. Yes, watch out for when most clicks happen, midnight to 6 am, or in other words, India & Bangladesh billion workers doing ''research for competitors''. No way to stop feeds at certain times or days.''

Actually,  Google Adwords does offer the option of stopping feeds as certain times of the day.

It does not work, I have been trying and testing and clicks happen 24/7 non-stop


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