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You’ve probably already considered selling on Amazon but its way easier than you think.
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Today, we have many ecommerce platforms that make it easy for sellers to market their products to millions of buyers on the online space. From Etsy to Shopify, Walmart, Amazon, eBay, and many more.
The Amazon marketplace and eBay online marketplace are two of the oldest, biggest, and most popular platforms in the market today. Each platform comes with its unique features, seller guidelines, and policies.
However, the big question is: what is the difference between eBay and Amazon? Is it better to sell on eBay or Amazon?
In this article, we will zoom in on both Amazon and eBay to better understand both platforms and help you determine if selling on eBay or selling on Amazon is best for your type of business.
The Amazon Marketplace is a dynamic online platform that serves as a global marketplace for both individual sellers and established businesses. Launched by Jeff Bezos in 2000, the Amazon Marketplace has grown exponentially, transforming Amazon from an online bookstore into the ecommerce giant it is today. The Amazon brand is synonymous with trust and reliability. Many customers turn to Amazon for their online shopping needs due to its reputation for fast shipping, and efficient customer service.
Amazon operates in numerous countries around the world, providing sellers with access to an expansive and diverse customer base. It has dedicated websites for major markets, including the United States, the United Kingdom, Germany, Japan, and many others.
The Amazon Marketplace has over 30 product categories and over 25,000 sub-categories, from electronics and books to clothing, home and kitchen, and much more. As an Amazon seller, you can list new or used items, giving you a broad spectrum of products to sell on the platform.
The Amazon Seller Central dashboard is the hub for sellers on the Amazon Marketplace. Through Seller Central, sellers can manage their inventory, monitor sales, track performance metrics, and access a range of tools and resources to optimize their selling experience.
Founded in 1995 by Pierre Omidyar, eBay is a pioneering online marketplace that has transformed the way people buy and sell goods.
The platform is famous for its auction-style structure, allowing sellers to list items for bidding. This structure encourages competition among buyers, potentially leading to higher prices for unique or sought-after items.
eBay operates in numerous countries worldwide, creating a global marketplace that connects buyers and sellers from diverse regions. This global reach allows sellers to access a broad customer base. The platform's diverse user base and auction-style structure make it an ideal marketplace for niche products that may not have broad appeal on other platforms.
In this section, we will compare both Amazon and eBay, two of the most prominent ecommerce platforms in the world.
Amazon is one of the biggest and most popular marketplaces in the world. Founded in July 1994 under the name Cadabra, this platform has drastically grown over the years and has become the one-stop platform for customers to find anything they want to purchase online.
On the other hand, eBay emerged the following year in September 1995. The platform hosts live auction items in over 36 countries and has pioneered the 3rd party business model.
When considering competition and sales, the Amazon marketplace is highly competitive with thousands of sellers competing for the Buy Box. Winning the Buy Box results in huge sales and revenue.
As an Amazon seller, winning the Buy Box involves various important requirements including shipping options, inventory, and a well-optimized product listing. You need to follow strict requirements to compete successfully for the Buy Box.
On the other hand, eBay, like Amazon, comes with its own unique SEO rules. eBay considers factors like customer feedback, credibility, sales rate, and more. High-performing sellers are awarded a high rank on search results and the tag “Top Rated Plus”.
While Amazon has strict requirements for winning the Buy Box, sellers on eBay have a better chance of gaining visibility than on Amazon. Sellers can adjust product listings to attract different audiences.
When we consider fees for both Amazon and eBay, eBay incurs lower fees.
When you sell on Amazon, you can choose between two selling plans: the Individual Selling Plan and the Professional Selling Plan. On the Individual Selling Plan, you will need to pay $0.99 for every item sold.
The Professional Selling Plan attracts a monthly fee of $39.99.
You will also need to pay referral fees depending on your product category. If you sell with Fulfillment by Amazon (FBA), you will also need to pay fulfillment fees which you can calculate depending on the size and weight of your product.
eBay charges two major seller fees: Insertion fee and Final Value fee. The insertion fee is charged when sellers create a product listing.
The first 250 listings created are free. However, for subsequent listings, a fee of $0.35 is charged.
Final Value fees are charged once you sell a product. In other words, eBay takes a percentage of a product’s final sales price. If you want to create a special product listing, change to a bold font, or add a subtitle, you will need to pay for an optional listing upgrade.
Unlike the Amazon marketplace, eBay does not restrict the type of products you can sell. You can sell brand-new products, second-hand items, or virtually anything.
Thanks to its auction model, buyers can buy second-hand items at competitive prices. However, using their auction model limits your control over the final sales price and profit margin.
On the other hand, Amazon gives you total control. You can set your own prices and control your profit margin.
Overall, Amazon is a better platform for selling high-quality products. The platform also has a ready-to-buy audience which means you can grow and expand your business much faster.
If you are selling second-hand products, eBay may work as a better platform to grow and scale your business. Also, if you are selling new products, you may want to sell them on the Amazon marketplace.
Overall, either platform could work for any type of product you want to sell.
When it comes to selling on eBay, you are restricted to one fulfillment option which is to pack and ship orders yourself or use a third party.
On the other hand, Amazon offers two major fulfillment methods. You can choose to sell with Fulfillment by Amazon (FBA) where Amazon handles everything from storing, packing, and shipping of your products. They also handle customer service. Although this comes at a cost this gives you enough time to handle other important aspects of your business.
The second fulfillment method is Fulfillment by Merchant (FBM) which allows you to ship orders yourself.
On Amazon, you can leverage both fulfillment options depending on the type of product you're selling.
So is eBay better than Amazon? Which platform is best for your business? Let’s explore the pros and cons of selling on Amazon vs eBay.
As an ecommerce seller, you may be thinking of pitching your tent on either or both platforms. Is selling on Amazon or eBay best for your business? Here are a few factors you may want to consider:
The type of products you want to offer plays a crucial role in choosing between Amazon and eBay. If the products are brand-centric and need exposure to a wide audience, Amazon might be the preferred choice. On the other hand, if the products are unique, collectible, or will do well with auction-style sales, eBay could be more suitable.
Understanding your target audience is vital. Amazon's extensive customer base is diverse, spanning various demographics and geographic locations. If you aim to reach a broad audience, Amazon might be the better choice. However, if your target audience is more niche or specific, eBay's flexible listing options and auction format may be more effective for you.
You also want to consider whether brand building is a priority for your business. Amazon is more focused on the product itself, while eBay allows for greater brand customization. If you’re looking to establish a strong brand identity you may find eBay more accommodating. But if you prioritize quick sales and exposure, you could lean towards Amazon.
You want to carefully evaluate the financial aspects of selling on each platform. Amazon's higher fees may be justified by its vast customer base and comprehensive services like FBA. On the other hand, eBay's lower fees may be attractive if you have tight profit margins or you are testing the waters in ecommerce.
Both platforms present different benefits to sellers. Your preferred platform will depend on the type of product you want to sell amongst other factors as mentioned above.
To choose the best platform, research is an important factor. You want to carry out proper market research to find out how well your product will do on any of the platforms.
You should try selling your product on both platforms to research and find out which platform generates more sales for your business.
You’ve probably already considered selling on Amazon but its way easier than you think.
Call Us Now