This is a question that many ‘wannabe’ e-commerce entrepreneurs ask. Well, the thing is both Amazon and eBay are different platforms with different business models. The answer depends heavily on the type of product you are selling, the infrastructure, and the available free time, including what you want – sales, selling support, freedom.
For some sellers, it makes sense to sell on eBay, and for others, Amazon is a better option. In the end, there is no definitive winner since there are multiple factors involved. Although the concept of both the marketplaces is the same, talking about sellers, in particular, eBay and Amazon treats them differently.
This is where sellers may prefer one over the other. For a better perspective, we have outlined a detailed article to help you understand these two channels deeper and look at how eBay and Amazon stack up.
Let’s get started.
eBay and Amazon: The Difference
The main difference between eBay and Amazon lies in the fact that Amazon is a retail site, whereas eBay is (mostly) an auction website. As a seller on Amazon, you are fundamentally competing with other merchants. eBay, on the other hand, is an online marketplace that facilitates the sale of both new and used products between sellers and buyers.
On eBay, you can find auctions where people bid on antiques and some cool products. This is something you will not find on Amazon. Lastly, price listings on Amazon are affected by the following factors:
- Quality of product and brand awareness
- Uniqueness of product
On eBay, it is totally different. The price listings are influenced essentially by the number of bids, and how aggressively customers bid on specific products.
So, in terms of selling, Amazon has the upper hand. And since there are plenty of Amazon seller tools available, new sellers will find it easier to set up business and sell on Amazon.
One of my favorite amazon seller tools is SellerMotor, to learn more about how it can help to boost your sale, simply visit us.sellermotor.com.
While it might appear that Amazon has outperformed eBay, both the channels are successful in numerous ways.
Still, it is difficult to determine which channel is best for sellers, especially the new ones. To ease down on it, let us take a look at the advantages and disadvantages of selling on both the channels.
eBay and Amazon: Advantages and Disadvantages
|Pros: high conversion rates
Cons: intense competition
|Pros: lower fee
Cons: small customer base
|Pros: substantial reach
Cons: strict performance metrics
|Pros: trustworthy reviews
Cons: basic messaging system
|Pros: a reasonable fee
Cons: restricted brand ownership
|Pros: bigger brand exposure
Cons: no delivery fulfillment
|Pros: Access to FBA (Fulfillment by Amazon)
Cons: expensive and complicated
|Pros: access to numerous seller tools
Cons: slow bulk upload of listings
|Pros: excellent support and trust
Cons: lack of patron loyalty
|Pros: enhanced affiliate program
Cons: charges may add up
Which costs more – Amazon or eBay?
You will be charged a certain fee to get started on both the channels.
Fee structure of Amazon:
Amazon offers two plans for the sellers –
- The Individual Plan allows you to sell up to 40 products for about $1 ($0.99 approx) per month, including additional charges
- The Professional Plan allows you to sell more than 40 products at $39.99 per month, including additional charges
Amazon offers straightforward fee plans for sellers to set up their business and start selling.
When we talk about eBay’s fee plan, it is a bit more complicated than Amazon. For starters,
- eBay charges a final value fee for every item sold
- eBay charges a feature fee for using sub-titles to attract customers
- eBay charges an insertion fee for every listing
- eBay charges a separate shipping fee for goods and services
Amazon and eBay – competitiveness
Both Amazon and eBay are based on the free market model of entrepreneurship and are competitive in their own right.
#1 Product Quality
Simply put, if customers need a second-hand or used product, they will go to eBay. And if customers are looking for a pristine, new product, they would gravitate towards Amazon to buy that item. It doesn’t mean that eBay doesn’t sell new products. However, the cases of customers receiving fake or used products (when ordered a new product) are higher on eBay as compared to Amazon. Customers don’t trust eBay when it comes to buying a brand new item.
Depending on what your business model looks like, both could work in your favor. If you want to sell second-hand or used items from your garage or loft, eBay is the best. But if your goal is to sell brand new items, Amazon is the best.
First, answer this question – would you rather buy from a shop who you feel is secure and reliable or from a shop that doesn’t take the responsibility or supports you after the purchase?
From a customer point of view, you would go to a seller who takes the responsibility of the product once it is sold (at least for a certain period). This is where Amazon dominates eBay. With A-Z Guarantee, it is the core selling point for customers all across the globe to buy from Amazon. Customers feel secure and protected when they buy from Amazon. Even if they are unsatisfied with the product or if they receive the wrong product, they can rest assured that Amazon customer service will take care of it.
This is not the case with eBay. Once you buy the product, you are on your own. It will not support you after the purchase is made. Although it will sell you quality products, you never know you may receive a poor product.
This is the reason why there are more than 304 million Amazon users and only 170 million on eBay. As a seller, you have access to a network of more potential buyers on Amazon as compared to eBay.
Choosing between Amazon and eBay for selling products is completely a personal decision that will depend on your business and business strategy. However, if you ask which is the most flexible of both, Amazon officially wins it.
Take your time to analyze both the channels and then figure out which would suit you the best.
That’s it from our side. If you have any queries regarding the topic, feel free to ask us.