Amazon: Here is why eBay has sued Amazon

Ebay Reports Quarterly Earnings

Ebay Reports Quarterly Earnings

Amazon has more customers, sales and faster growth than EBay, but some sellers prefer the EBay platform since it is a pure marketplace, meaning EBay doesn't compete with its merchants for sales like Amazon.

Online marketplace eBay has filed a United States lawsuit against Amazon, claiming the retail giant used its internal messaging system to poach sellers. The lawsuit alleges that dozens of Amazon sales representatives in the U.S. and overseas were involved in an effort to recruit high-value eBay sellers to Amazon, the Journal reported.

Both companies rely on independent sellers to boost their revenue.

"For years, and unbeknownst to eBay, Amazon has been engaged in a systematic, coordinated effort to infiltrate and exploit eBay's proprietary M2M system on eBay's platform to lure top eBay sellers to Amazon", eBay alleges in its lawsuit.

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Both eBay and Amazon rely on independent sellers to boost their revenue, but it's become a big part of Amazon's growth: previous year, for the first time, more than half the items sold on Amazon were from third-party sellers.

The legal complaint says that Amazon representatives asked eBay sellers to talk on the phone to avoid detection.

Amazon declined to comment on the case, which follows a letter from eBay demanding an end to the activity.

Amazon overall is estimated to account for about half of retail dollars spent online in the US.

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