How is the competition between eBay, Amazon, and Alibaba Shaping Up?

Alibaba, eBay, and Amazon are among the leaders in the sector of global eCommerce. Because all of this eCommerce giants perform in the same sector so there has been a fierce competition between all of these. As a customer, you can also notice that they are continuously offering a significant amount of
discounts and deals on different products to compete with one another. This competition is continuously helping the consumers to get products at least possible prices.

A large number of festival deals, special discount offers are being offered by the e-commerce stores time to time in which they often offer even 70-80% discounts on the actual price of the products. Such deals are being loved by the online buyers to a great extent.

Negative Aspects of Competition

Besides various advantages of this competition between eBay, Amazon, Aliexpress and various other popular eCommerce stores, there have been several disadvantages associates especially in relation to the sellers of the products. The ample amount of deals offered by these stores is affecting the selling processes of sellers who also intend to enjoy a handful of return on their investments. As the quantity of online purchasers is increasing day by day and sellers are also left only with the option of selling products through these giant eCommerce portals.

The competition among the different online stores is making them offer products at lesser prices as compared to one another. As a result, the quality of products has also been noticed to decline comparatively. Various research and studies have been carried out on online selling and eCommerce among which a research by the University of Illinois revealed that besides all the major positives of eCommerce, the declining quality of products is becoming a negative aspect. One of the major reasons behind this increasing decline in the quality is the lower prices being offered to the customer. In order to enjoy maximum revenue, sellers are manufacturing low quality and cheap goods.

Additionally, the global market of eCommerce has been inclined only towards a few of the stores and therefore individual retail stores are not being noticed at all. As a result, they find themselves forced to sell products through these giants. The competition among the eCommerce stores makes them
sell their products online at very less incentives when they produce high-quality items. As to overcome competition they have to offer their products at lower costs plus upon sale, the commission of the eCommerce platform also ruins their overall figure.

This reduced quality of products is quite alarming for the online consumers who wish to purchase good quality items. Online shopping can give a resounding experience to the customers for whom the price of goods matters more than the quality.

Although these eCommerce stores have certain standards to maintain the quality of products being sold through them, however as a buyer cannot have a personal experience of the item online so, quality of products remains unidentified till the time it is actually delivered to the buyer.