10k Reports

Not personification of companies running a 10k marathon, nope; today I will inspect the 10k reports of both of these companies Amazon and eBay and compare some results from Consolidated Income Sheets.  This is important as you can tell a companies goals from the trend in their income.  Beyond importang health and financial statistics for businesses, the trend of net income helps show a businesses activities.  Although Amazon has made major success in diversifying its efforts, they both remain viable options for entrepreneurs hoping to participate in retail as a third-party seller on either platform.

Amazon

Amazon has diverse income streams, and value propositions in its eCommerce, services, and investment efforts.  Although a diversification of value creation services can cause higher overhead, significant market share in its spaces, can offset the costs and be very rewarding.  Further, Amazon does procure and retail on it’s own platform which eBay does not.   This practice may be controversial to third party sellers; seeing their creative efforts to develop a competitive advantage, just to see the product offered by Amazon a short time later as it proves itself profitable.  Amazon started from it’s inception two major strategies that changed the market and secured itself as a major competitor forcing other retailer participants to follow suit.  These two moves were that of 2-day shipping, and customer focused return policies.  These two strategies caused Amazon to build a great amount of brand equity, as consumers associated the company with quick and convenient shipping, and return policy.  Amazon established before eBay, exclusive agreements with the United States Postal Service and established fulfillment centers nationwide, which gave it a large distribution advantage.

eBay

eBay has traditionally kept it’s operations in retail and its eCommerce platforms.  Before Amazon even, eBay was a reliable source of collectible, antique, relic or discontinued items.  To this day some parts and star products of other years can still be found available here.  Due to eBay concentrating it’s efforts in eCommerce, it remains a market leader right beside Amazon.  Due to the concentration of efforts, it is not as diverse in it’s income streams and value propositions as Amazon.  Although, it is not diverse, concentration of efforts may be enough to secure a significant amount of market share into the future, and successful concentration of efforts can sustain it as a leader in eCommerce platform market.  eBay has been a follower to some extent in the shipping and return policy leading of Amazon, matches and has lowered to some extent the market entry strategies from Amazon on building brand equity.

Significance

The reports are important to find out crucial health measures of a company.  Amazon is seeing steady growth overtime.  This is evidence of professional financial and investment actions within the firm.  The company sees so much more revenue but most likely actively invests to give rise to slow and gradual increase in income.

eBay has a sporadic statement of income over the past few years.  The income may have been into investments.

Compare ratios between both countries for two periods to learn beyond the numbers on the page.  Amazon shows steady growth versus eBay shows significant net revenue two years ago, and a lost last year.  Although, Amazon shows a good pattern, eBay has a better Current Ratio.  Amazon had 1.04 in 2016, and 1.039 in 2017.  eBay had 2.5 in 2016, but 2.0 in 2017.  Amazon operates just enough to pay off its liabilities.  eBay has twice enough of assets to cover liability.