Final answer:
eBay, Inc. and Amazon act as intermediary platforms, transforming the retail space by providing vast selections, convenient purchasing, and efficient delivery, undermining traditional bookstores with their online model and economies of scale.
Step-by-step explanation:
eBay, Inc., and Amazon serve as intermediary platforms for a multitude of sellers, revolutionizing the retail landscape over the past two decades. Amazon, for example, started by altering the traditional book sales model, where previously consumers relied on independent bookstores and physical chain stores with limited inventories and higher retail rents. The introduction of Amazon's online platform, with its vast selection and convenient purchasing, along with prompt delivery services, has significantly disrupted and outperformed the older retail models. The company has been adept at utilizing economies of scale, maintaining huge warehouses in low-rent areas equipped with advanced technology and robotics to control costs and improve efficiency. These strategic business moves have allowed Amazon to offer competitive prices and a wide range of products, attracting a large customer base and providing a global marketplace for sellers. eBay operates on a similar model, though with a more auction-focused approach, enabling sellers to reach customers worldwide without the need for a traditional physical storefront.