eBay Has a New Plan to Take on Amazon

Amazon.com (NASDAQ: AMZN) sells more items from third-party merchants than it sells directly to customers itself. The company's marketplace business is worth more than twice as much as its retail operations, according to at least one analyst. And with the percentage of sales coming from third parties growing every year, Amazon represents a huge threat to eBay (NASDAQ: EBAY), which exclusively offers a marketplace to connect sellers and buyers.

One of the biggest drivers of Amazon's third-party sales is its Fulfillment by Amazon service. Merchants can ship their inventory to an Amazon warehouse where Amazon then places that inventory throughout its fulfillment network. Doing this, it can ensure those products get to customers' doorsteps in two days or less with Prime shipping.

eBay wants in on that action.

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Quelle Fool.com