|Tue July 6 2010 20:23:41|
eBay Should Not Follow Amazon in Offering Fulfillment Service
By: Ina Steiner
To the Editor:|
Re: Barrons blog post - "eBay Should Start Amazon-Style Fulfillment Unit, RBC Says"
The author indicates his belief that eBay needs to develop it's own fulfillment division similar to Amazon. It is obvious that the author does not get the nature of eBay's model.
eBay's business model has never included maintaining physical inventory or possession of third party seller merchandise for shipping purposes
I believe this points to how much negative influence Wall Street has on eBay, and why eBay suffers when it's CEO bows to analyst expectations in the hopes of pumping up the stock price at any cost.
I decided not to sell on Amazon mainly because I did not want to trust Amazon with my supplier details or with my physical inventory, and I certainly would not trust my physical inventory to an eBay fulfillment operation either.
Having my inventory in my possession guarantees I am protected from inventory shrinkage, and I would not give up control of my inventory to Amazon, eBay or any other third party to manage or ship my orders.
A Wall Street analyst's suggestion that eBay enter the order fulfillment business is ludicrous at best.
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