Analysis: EBay lures big retailers in Amazon battle

By Alistair Barr and Dhanya Skariachan

(Reuters) - EBay Inc, once a scrappy auction site for mom and pop sellers, is enticing some of the world's largest retailers by arguing it can help them compete better against e-commerce leader Amazon.com Inc.

EBay Chief Executive John Donahoe and other executives have been telling retailers that Amazon is their enemy, while eBay is a friend because, unlike Amazon, it holds no inventory.

Amazon buys products wholesale, stores them in inventory and sells them to consumers at higher prices - like all retailers. EBay says it just matches buyers and sellers.

That message is sinking in, especially among brick and mortar retailers that are losing market share to Amazon.

"As retailers look for new vehicles for growth eBay becomes a natural partner - a better partner than Amazon," said Sucharita Mulpuru, an e-commerce analyst at Forrester Research.

When RadioShack Corp reported a surprise quarterly loss last month, Chief Executive Jim Gooch told analysts that the electronics retailer had set up an eBay storefront to help the company reach new customers online.

Barnes & Noble, Toys "R" Us, GNC Holdings, Aeropostale and Neiman Marcus are among other big retailers that now have storefronts on eBay. Best Buy Co Inc sells mobile phones and wireless plans on eBay.

On Monday, eBay said it was testing a same-day delivery service called eBay Now with Target Corp, the second-largest U.S. retailer, and other big retailers including Macy's Inc, Nordstrom Inc and Walgreen Co. Amazon offers same-day delivery in some areas already.