This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

eBay Is Undervalued Against Peers

NEW YORK ( TheStreet) -- After 17 years of marriage, my wife and I have a tendency to tell each other the same things more than once. The following conversation repeats itself often in my home after receiving a package.

My wife "Where did you get that?"

Me "I ordered it on eBay (EBAY - Get Report).

My wife "I don't think anyone buys stuff there anymore, why didn't you order it from Amazon (AMZN)?"

My response is usually the same, "I checked both and eBay had the better price".

She is right about one thing; a lot of sales have shifted to Amazon from other Web sites. eBay isn't always the lowest cost on any given item so if you're looking for the best price it's worth a few extra mouse clicks to compare.

From a user's vantage point, eBay and Amazon appear almost parallel in their sales approach. You can order from many merchants offering tens of thousands of almost every product imaginable, and have one checkout to finish the transaction, even if ordering from several merchants at the same time.

eBay and Amazon aren't the only two that allow third parties to sell within their system. If you visit (SHLD - Get Report) you may notice third party merchants offering products also. I think that's a brilliant move by Sears due to their already massive nationwide retail store footprint.

Amazon is already testing retail pickup lockers in various locations. So far, the results are mixed. Staples (SPLS - Get Report) and RadioShack (RSH) decided to pull the plug on their stores for Amazon pickup lockers. I don't know what the terms of the deal were, but Amazon must not have given much if RadioShack pulled the plug considering they are on the ropes.

Not to be outdone, eBay is testing "Click & Collect" in the UK. eBay shoppers continue to buy products on eBay, and instead of shipping the product to their home, they pick it up at a selected retail location. The concept appears much the same as Amazon's.

There is one noticeable difference that investors should keep a keen eye on. The terms of the retail location agreements could impact the collection of sales tax. It's reasonable to believe that if Amazon places a locker location inside a state without an otherwise physical location, that may create the nexus needed to allow the location's state to demand sales tax.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
EBAY $23.80 -0.75%
SPLS $10.36 0.48%
SHLD $14.72 -4.97%
RSH $0.31 12.76%
AAPL $94.19 -1.04%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs