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.
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 have best pioneered the 3rd party business model.
When we consider 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 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, perhaps you want to 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 product 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 the 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.
Both platforms present different benefits to sellers. Your preferred platform will depend on the type of product you want to sell.
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.
We recommend that you try selling your product on both platforms to research and find out which platform generates more sales for your business.