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Write 6 pages thesis on the topic amazon and ebay during recession period. The slow growth of the economy, therefore, has also resulted in the declining performance of many large firms due to a drasti
Write 6 pages thesis on the topic amazon and ebay during recession period. The slow growth of the economy, therefore, has also resulted in the declining performance of many large firms due to a drastic reduction in consumer spending. Consumers are however focusing more on the internet as an alternative source of purchasing. During recession times, the number of consumers referring to websites like Amazon.com and eBay is increasing and people are making money even during the recession also. (Gribben, 2009). However, generally, the trends are not very encouraging for eBay as its profits fell during recent times and it divested from its Skype business also. (Timesonline.co.uk, 2009).
The case of Amazon is however relatively different as the decline in the book sales on the high street stores is captured by online sellers such as Amazon. (Hall,2010). The profitability of Amazon has therefore risen even during the period of recession and it is generally believed that Amazon has successfully withstood the credit crunch. (Arthur, 2009). This indicates that Amazon.com might have performed better than eBay during the recessionary period.
As discussed above that the consumers are referring to online sites like Amazon to order their book purchases. It may be important to note that other firms are gradually going out of the business due to credit crunch and it is generally because of this reason that firms like Amazon are gaining more market power and increasing sales in the online retailing market. This aspect generally indicates the overall strength of the business model of the firm which is allowing withstanding the recessionary times also.
Fool.com declared amazon.com as one of the five companies which have been able to resist the recession and performed better during the days of the downturn in the economy. It is, however, critical to note that Amazon has been able to do this mainly due to the fact that smaller companies based on brick and mortar model have failed during the recession. (Munarriz, 2010).
