Centralized or Decentralized E-Commerce: Which Approach?

February 26, 2012

Chris Dixon examines the differences between e-commerce approaches in his blog post, “eBay vs. Amazon: Decentralized vs. Centralized E-Commerce.” The piece gives a little interesting history behind the two companies, and on e-commerce in general. It also notes that most eBay’s sales are no longer auction-based; that means structural differences are now the main distinction between the two.

The write up insists:

I’m not arguing that one approach is superior to the other. My point is simply that when you understand that the battle is between centralized and decentralized commerce, the strategic moves of the two companies make a lot more sense.

I suppose. What does not make sense is that the search function on both services is pretty lousy in our opinion. The focus is not on making the customer’s purchasing experience better; it is on moving stuff. Both companies could benefit from focusing a little more on customer needs.

Cynthia Murrell, February 26, 2012

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Comments

One Response to “Centralized or Decentralized E-Commerce: Which Approach?”

  1. Sachin on February 28th, 2012 6:21 am

    Decentralized approach is still working I guess.And it is something smaller eCommerce companies should concentrate upon.
    Centralized approach can also be fruitful it depends. But we need not to experiment much I guess.