In the ever-expanding realm of e-commerce, choosing the right platform can be a pivotal decision for the success of your business. Among the myriad options, Amazon and eBay stand out as two giants, each offering a unique set of advantages and considerations for sellers.
In this article, we delve into the comparison of Amazon vs. eBay, aiming to provide sellers with valuable insights to help them make an informed decision.
Whether you are a seasoned entrepreneur or just venturing into online selling, understanding the nuances of these platforms is crucial. Join us as we navigate through the key factors that can influence your choice and explore which platform aligns best with your business goals.
Advantages of Selling on Amazon
Amazon is ranked as the world’s most popular online marketplace. 1 in 5 millennials “always” head to Amazon first when they want to purchase something online. (Inviqa)
Also, Amazon has more web traffic than eBay. There are twelve marketplaces in total (Amazon.com, Amazon.de, Amazon.fr, Amazon.uk, etc.). According to Statista, Amazon.com had 2.7 billion website visits in June 2021. Amazon.de alone had 548 million website visits in November 2021.
Compared to that, eBay.com had only 819.46 million, and eBay.de had only 185.71 million website visits in November 2021.
Amazon, renowned as the world’s most popular online marketplace, holds a distinct edge over eBay across various dimensions. Here are key benefits that make Amazon a preferred choice for sellers:
People trust Amazon
Amazon and eBay are both well-established marketplaces with a strong customer base. However, when it comes to customer satisfaction and trust, Amazon comes out on top.
On their About Page, Amazon states that they are the world’s most customer-centric company.
And that’s actually true – 89% of buyers say they prefer to buy their products on Amazon rather than on other ecommerce marketplaces.
A big reason for Amazon’s high customer satisfaction is the simplicity of returning products.
Thanks to Amazon’s A–Z Guarantee, online shoppers can return a product if they are not satisfied with its quality or delivery time and get a full refund.
Compared to that, eBay sellers can tick eBay’s “No Return” Box to make sure that eBay customers won’t return a product.
You can use Amazon Seller Tools
Amazon sellers can use tools like Helium 10 to do product research, keyword research, listing optimization, and more.
These tools help sellers build their Amazon business, maximize profits, and automate business processes.
Although there are also some tools for eBay sellers, there are significantly more Amazon Seller Tools on the market.
You can learn more about Amazon Seller Tools here.
Amazon experiences stronger growth
Amazon is experiencing stronger growth than eBay. This is probably one of the most important reasons for new sellers.
Here is a chart showing people’s interest in Amazon from 2004 until today. And here’s a chart showing people’s interest in eBay from 2004 until today.
While people’s interest in eBay has been decreasing since 2004, the interest in Amazon is enormously increasing.
If you want to become a professional seller, you should sell on Amazon because eBay’s market share continuously decreases.
Amazon offers a fulfillment service
If you want to sell on eBay, you only have one choice when it comes to fulfillment: you have to store, pack, and ship products on your own.
This will cost you a lot of time and, above all, a lot of opportunity costs.
Compared to that, Amazon offers their third-party sellers two options: FBM and FBA.
FBM means Fulfillment by Merchant. With this option, you have to store, pack, and ship products on your own.
FBA means Fulfillment by Amazon. Amazon takes care of all logistics with this option, including storage, packaging, shipping, and customer support.
You only have to send your products to an Amazon warehouse, and Amazon handles the rest for you.
The main benefit of Amazon FBA is that sellers have more time to market their own brand and grow their businesses.
However, FBA sellers have to pay more Amazon fees than FBM sellers.
Amazon charges FBM sellers the following fees:
- Amazon seller account fees
- Referral fees
In addition to that, FBA sellers have to pay the following fees:
- Fulfillment fees
- Storage fees
Both FBA and FBM sellers have to pay additional fees, e.g., when a refund occurs. Check out our article about Amazon fees to learn more.
The downside of eBay’s auction model
If you use eBay’s auction model, you cannot control the selling price of your product.
Consequently, you won’t be able to control your profit margin and scale your business.
On Amazon, you can set fixed prices. Thus, you can control your profit margin, making it easier for you to scale your business.
Of course, you can also publish fixed-price product listings on eBay, but they are harder to sell since people are looking for something cheap on eBay.
Customers want to buy new products on Amazon
Compared to eBay, most customers prefer to buy new products on Amazon.
According to a study by Feedvisor, 66% of respondents typically start their search for new products on Amazon.
Since you need to sell new products if you really want to build a sustainable business, Amazon might be the better marketplace for you.
Prime members spend more on Amazon
Another thing that sets Amazon apart from eBay is Amazon Prime. It’s also one of the main reasons why Amazon has such a large customer base and customer satisfaction.
Prime members pay a monthly fee in exchange for free two-day shipping, free same-day shipping for selected items, and many other cool perks.
The benefit for Amazon sellers is that Prime members spend an average of $1,400 per year on Amazon, while non-Prime members spend only about $600.
Considering that there are 112 million Prime members in the U.S. alone, this is a massive benefit for sellers on Amazon.
You can expand your business globally
You can expand your business to other Amazon marketplaces. For example, if you started selling on Amazon.uk, you expand your business to Amazon.com.
Here’s an overview of all Amazon marketplaces:
- Amazon Australia
- Amazon Brazil
- Amazon Canada
- Amazon China
- Amazon France
- Amazon Germany
- Amazon India
- Amazon Italy
- Amazon Japan
- Amazon Mexico
- Amazon Spain
- Amazon Great Britain
- Amazon United States
You can sell everything on Amazon
While you can only sell ordinary products on eBay, you can sell almost anything on Amazon.
Amazon offers lots of opportunities to make money.
Here’s what you can sell on Amazon:
- Products
- Services
- Handcrafted products
- Self-designed T-Shirts (Merch by Amazon)
- Software, Apps, etc.
We created a detailed article about how to make money on Amazon.
Advantages of Selling on eBay
While Amazon holds undeniable prominence in the e-commerce realm, eBay offers distinct advantages for sellers, catering to specific needs and preferences. Here are key benefits that make eBay a favorable platform for certain sellers:
Used products are popular on eBay
If you want to sell used products, Amazon is not the best marketplace.
eBay is the most popular online marketplace to buy second-hand products.
So, if you want to sell second-hand products, I highly recommend selling them on eBay.
The only exception is when you want to sell used books online.
Amazon is the better place to sell used books in most cases – obviously – because it started as an online bookstore.
You have to pay fewer fees
To compare Amazon’s and eBay’s selling fees, one must ignore the FBA fees.
As an Amazon FBM seller, you have to pay the following fees:
- Professional Account – $39,99 per month
- Referral fees – roughly 15% with a minimum of $0,30
The Premium Seller Account gives you 100,000 free listings and even more if you make sales regularly.
As an eBay seller, you have to pay the following fees:
- Insertion fees – about $0,35 per listing and category
- Final value fees – about 10%-15% of the selling price
You have to pay the insertion fees when publishing a listing on eBay and final value fees when making a sale.
If you set up an eBay store, you can publish a certain number of monthly listings for free. The Basic Store package costs $28 per month and gives you 250 free listings. The most expensive package is the Anchor Store for $350 per month.
In the past, eBay sellers had to pay PayPal fees, which were 2.9% plus $0.30. However, since the introduction of eBay managed payments, one no longer has to consider these fees. However, eBay increased the final value fees from ~10% to ~12,5%.
Comparing Amazon fees to eBay fees, there’s very little difference between the two. However, eBay might be a little cheaper sometimes.
Less competition on eBay
Amazon has 6.4 million sellers worldwide, and 1.5 million are actively selling on the marketplace. 2021 alone, 543,000 new sellers joined the marketplace. (Marketplace Pulse, 2021)
The competition on Amazon is huge, especially when it comes to the Buy Box. Although there are so many sellers, a tiny fraction of sellers generates a significant portion of total sales.
Fewer than one in ten active Amazon sellers made more than $100,000 in sales per year, and just one percent made $1 million in sales or more.
Although there are 25 million sellers on eBay, most are low-volume sellers.
There are so many people who once wanted to get rid of some old stuff and sold it on eBay.
In general, one can say that there’s less competition on eBay than on Amazon.
Less work to sell internationally
You can sell with Amazon on 18 marketplaces, but you need a separate account for each marketplace.
The exceptions are Europe with its five marketplaces and North America with the US, Canada, and Mexico.
Since you use a separate account for each marketplace, your feedback is also separated, making it difficult for sellers to create a local brand.
In comparison, you only need one eBay account to sell on 23 sites in over 100 countries. It’s very effortless to sell internationally with eBay.
In addition, eBay offers a global shipping program. All you need to do is ship your products to an eBay warehouse, and eBay will ship your products to the customer.
And here’s the best thing: eBay’s Global Shipping Program is free.
Amazon vs eBay: Conclusion
Ultimately, the choice between Amazon and eBay hinges on the intricacies of your business model, your overarching goals, and your individual preferences.
We trust that this article serves as a valuable resource to guide you in making an informed and definitive decision.
Why Amazon Might Be Your Ideal Choice:
- Most Popular Online Marketplace: Amazon’s unparalleled popularity and extensive user base make it an attractive platform for reaching a vast audience.
- Trust in Amazon: The high level of customer trust in Amazon contributes to enhanced credibility for sellers and fosters a positive buying environment.
- Amazon Seller Tools: The availability of a diverse range of Amazon Seller Tools empowers sellers with tools for product research, keyword optimization, and business automation.
- Robust Growth: Amazon’s consistent and robust growth trajectory provides sellers with opportunities to expand their businesses within a dynamic marketplace.
- Fulfillment Services: The comprehensive fulfillment services offered by Amazon, including FBA, simplify logistics and allow sellers to focus on brand building and business growth.
Why eBay Might Be Your Preferred Solution:
- Popularity for Used Products: If your product range includes used items, eBay’s status as the go-to marketplace for second-hand goods positions it as an ideal platform for your offerings.
- Lower Fees: eBay presents a cost-effective option with lower fees, particularly for certain selling models, making it advantageous for sellers mindful of their financial considerations.
- Reduced Competition: With a smaller proportion of high-volume sellers, eBay offers a less competitive environment, especially for those who are new or operate with lower sales volumes.
- Simplified International Selling: eBay’s streamlined approach to international selling through its Global Shipping Program minimizes the complexity of reaching customers across borders.
Embracing Both Platforms: For sellers seeking to capitalize on the unique strengths of each platform, a dual presence on both Amazon and eBay can be a strategic approach. This allows you to tap into diverse markets and cater to the varied preferences of online shoppers.
In conclusion, weigh the distinctive advantages offered by each platform against your specific business requirements to determine the platform that aligns best with your vision for success. Whether you choose Amazon, eBay, or both, the key is to tailor your approach to match the dynamics of your business landscape.
FAQ – Frequently Asked Questions
Your business model, goals, and preferences play a crucial role in the decision-making process. Evaluate aspects such as product type, fees, competition, and international selling to align with your specific needs.
Amazon’s strengths lie in its popularity as the most visited online marketplace, high customer trust, the availability of Amazon Seller Tools, consistent growth, and comprehensive fulfillment services like FBA.
eBay is advantageous for sellers specializing in used products due to its popularity in this niche. It also offers lower fees in certain scenarios, reduced competition, and simplified international selling through the Global Shipping Program.
Yes, many sellers choose to leverage both platforms for a dual online presence. This strategy allows you to tap into diverse markets and cater to different customer preferences.
Yes, Amazon offers a range of Seller Tools, including Helium 10, which facilitates product research, keyword optimization, and listing enhancement, among other functionalities.
