eBay Inc (EBAY), Amazon.com, Inc. (AMZN): Its $300 Billion Gravy Train

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Amazon competes directly on pricing. eBay, being a player in marketplace and paying processing businesses that do not require the company to sell its own inventory, does not have to compete entirely on pricing.

Most importantly, eBay isn’t distracted. It isn’t throwing its cash into “price investments” nor is it building out a hardware business to defend its main turf like Amazon– it doesn’t have to. It’s the go-to place to buy used products, sell new products, and process online payments.

eBay knows what it does well, and it’s stuck to it, silently rewarding investors along the way. This is the kind of company investors should dream of.

The article eBay’s $300 Billion Gravy Train originally appeared on Fool.com and is written by Jordan Wathen.

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