This is as close to perfect competition as you can get.\u00c2\u00a0 It essentially says that you need to compete on costs to make money on the marketplaces.\u00c2\u00a0 There are no abnormal returns in this model and the natural evolution here is for firms to differentiate their products so they no longer compete on costs.\u00c2\u00a0 Customer service is a big differentiator.<\/p>\n
\u00e2\u20ac\u0153Merely being listed on eBay or Amazon isn\u00e2\u20ac\u2122t a sustainable business,\u00e2\u20ac\u009d said Dennis Ceru, an entrepreneurship professor at Babson College in Wellesley, Mass. \u00e2\u20ac\u0153There are a lot of people going down this path that are making little or no money.\u00e2\u20ac\u009d<\/p>\n
Building viable enterprises off these marketplaces requires sourcing inventory cost-effectively, researching each marketplace\u00e2\u20ac\u2122s procedures and commissions, polishing customer-service practices and managing your online reputation.<\/p>\n
via Small-Business Guide – Small-Business Guide – How to Sell on Amazon and eBay – NYTimes.com<\/a>.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"
This is as close to perfect competition as you can get.\u00c2\u00a0 It essentially says that you need to compete on costs to make money on the marketplaces.\u00c2\u00a0 There are no abnormal returns in this model and the natural evolution here is for firms to differentiate their products so they no longer compete on costs.\u00c2\u00a0 Customer … Continue reading Selling on Amazon and eBay- Perfect Competition?<\/span>