As the online retail space becomes increasingly competitive, industry leaders are scrambling to fight against the domineering presence of Amazon.com Inc. (AMZN) with unusual strategies to outdo each other. (See also: eBay Is a Rare Value anecdote: Credit Suisse.)
From free shipping to newly created shopping holidays, ecommerce players across industries such as food and beverage and domestic goods are rapidly stealing market share from their struggling brick-and-mortar peers. The boom in online shopping has created an increasingly crowded space, full of promotions and deals as industry pioneer eBay Inc. (EBAY) struggles to fight against Amazon and others such as BestBuy.com (BBY), Jet.com, Sears.com (SHLD), Walmart.com (WMT), Wayfair.com, HomeDepot.com (HD). Target.com (TGT) and more.
Online Competition Threatens Industry Pioneer
On Wednesday, eBay announced that it will institute a unusual price-match guarantee for more than 50,000 items listed on its digital marketplace in the “eBay Deals” section. The San Jose, Calif.-based company promises that whether a customer finds select products selling cheaper on another platform, eBay will first verify the competitor listing and, whether valid, offer a coupon for the different in price that the customer can then employ toward purchasing the item. The relevant products will also be shipped at no cost and available to entire, membership or not. Authorized items must be unusual, unopened products that are listed as in stock and precisely the same on rivals’ sites.
Currently, Walmart, Target, Sears, domestic Depot and Best Buy also offer price matching, while Amazon, Wayfair and Jet.com execute not.
The news comes as Walmart has reportedly told its partners and suppliers that their software services should not rush on AWS, Amazon’s public cloud, but Microsoft Corp.’s (MSFT) Azure instead. (See also: Wal-Mart Orders Tech Partners to find Off Amazon Cloud.)