Reporting from Bloomberg has also sparked rumors that Amazon plans to significantly cut down on wholesale purchases in the immediate future, leaving many of its smaller suppliers to pivot to other marketplaces.
eBay was one of the original pioneers of the online marketplace model. Operating as a pure marketplace, where sellers don’t have to compete against private-label brands, could make eBay a desirable place for merchants to expand.
“We don't take an inventory position. We don't manufacture any of our own products; this is truly a marketplace,” said Scott Kelliher, head of brand advertising and partnerships at eBay.
However, eBay isn’t the only marketplace for Amazon merchants to expand to. Retail behemoth Walmart has a growing online presence, and Google is positioning itself to expand as a marketplace.
While it makes sense that sellers will want to appear on as many marketplaces as possible, the marketplaces themselves still have to compete to attract consumers. Given that more than half of US households will be Amazon Prime members in 2019—and are already paying a premium for the convenience of faster shipping—it may prove difficult to get them to shop elsewhere for the same products.
“It will be an uphill battle for eBay," Liu said. "With Amazon growing its marketplace and offering extensive tools to help sellers, eBay will need to focus on the things that differentiate it from Amazon.”