A wary wait for giant
NEW eBay Australia Tim MacKinnon is unfazed by “hype” around the arrival of Amazon and says his online operation seeks to support traditional retailers rather than “destroy” them. “What sets eBay apart is how we grow Australian businesses on the platform,” Mr MacKinnon, eBay Australia and New Zealand’s managing director, said. “We partner with them; we don’t seek to disrupt or destroy the market.” eBay, celebrating its 18th anniversary in Australia, is preparing for the arrival of competitor Amazon, which has a warehouse in Melbourne and plans to roll out its full offering soon. Mr MacKinnon said many sellers on eBay had told him they were wary of Amazon — even though some major retailers with a presence on eBay, including Myer, do not rule out also opening a store on Amazon’s platform.
“Some of them will try Amazon but some sellers are concerned about a platform that can compete with them,” Mr MacKinnon said.
“So if they are successful on Amazon, they may end up in a situation where Amazon decides to source the same inventory.”
eBay is an online platform for sellers, while Amazon is not only a digital marketplace but is also a retailer known for being able to sell products up to 30 per cent cheaper than the traditional market.
Mr MacKinnon is confident eBay has first mover advantage, with a strong network of more than 30 major retailers, including Myer, Target and The Good Guys, where people can purchase and pick up an item in one day.
But Queensland University of Technology retail expert Gary Mortimer said eBay has more to lose than other retailers because it was a fundamentally similar platform to Amazon.
“Amazon is a platform where consumers can buy products locally and that’s the same as eBay.”