In the ever-expanding realm of e-commerce, choosing the right platform can be a pivotal decision for business success. Amazon and eBay stand out as two giants, offering unique advantages and considerations for sellers.
This article compares Amazon vs. eBay to provide sellers with valuable insights to help them make an informed decision.
The nuances of these platforms are crucial for everyone from beginners to experienced sellers. Join us as we navigate the key factors that influence your choice and explore which platform aligns with your business goals.
Do Consumers Trust Amazon or eBay?
Amazon is widely regarded as a trusted platform for both sellers and consumers, with trust being a fundamental part of its vision, mission, and values. When it comes to consumer transparency and trust, here’s how Amazon compares to eBay.
Amazon returns policy vs. eBay returns policy:
- Amazon: Amazon is a popular choice for consumers because it provides easy returns. Its A-Z Guarantee ensures shoppers receive a full refund if they are dissatisfied with their purchase.
- eBay: eBay’s return policy is much more complicated. Sellers can even tick eBay’s ‘No Returns’ box, forcing buyers to keep products they are unhappy with.
Sellers may be pleased to learn they have an option not to return items to buyers. However, it can be extremely detrimental to business.
When you set your listing to ‘No Returns’, potential buyers may think they can’t trust your products. I mean, would you buy from a company that didn’t accept returns?
Amazon’s return guarantees build brand loyalty and make consumers feel comfortable buying your product. Sellers benefit from this sense of trust.
Fulfillment Methods on eBay vs. Amazon
eBay sellers have one option for order fulfillment. You must pack and ship orders yourself. You can also hire a third-party fulfillment center, but this option is not available through eBay.
Amazon offers two options. You can fulfill orders yourself through Fulfillment by Merchant (FBM), or have Amazon fulfill your orders for you through Fulfillment by Amazon (FBA).
Both options require seller fees. However, FBA sellers have to pay more than FBM sellers.
Amazon charges FBM sellers the following fees:
- Amazon seller account fees
- Referral fees
FBA sellers have to pay the following fees:
- Fulfillment fees
- Storage fees
Both FBA and FBM sellers must pay additional fees, e.g., when a refund occurs. Check out our article about Amazon fees to learn more.
Although Amazon FBA is an added expense, it makes the platform stand out from eBay and other sellers as follows:
- Operations: eBay requires sellers to run every aspect of their business themselves. Amazon helps you with shipping, picking, packing, and storage so you can focus on boosting conversions.
- Saves Money: Amazon FBA does more than save time- it saves money. Amazon’s fees are higher when you use their FBA program. But, when you calculate the cost you would pay to store, pack, and ship your products, you will realize the long-term savings.
What Types of Products Can You Sell on Amazon vs. eBay?
eBay originally established itself as a marketplace for third-party sellers, while Amazon has evolved over time to include not only third-party products but also its own private label and exclusive brands.
On eBay, the focus remains entirely on third-party merchandise. Additionally, there are no strict quality controls for the items sold. This allows sellers to offer products in a wide range of conditions, from brand-new to heavily used or damaged, leaving buyers to sift through lower-quality goods in search of value.
As compared to Amazon, people prefer shopping for used goods on eBay. Its auction model is also a popular feature allowing buyers to buy at competitive pricing. However, Amazon comes out ahead in terms of selling used books. This makes sense as it started as a used bookstore.
Although eBay has established itself as a favorite for used goods, 80% of its inventory is new. Some sellers may consider selling new items on both platforms to expand their reach.
However, shoppers looking for new items in excellent condition tend to choose Amazon over eBay. According to a Temok article, 63% of consumers use Amazon as a search engine for new products.
Advantages of Selling on Amazon
Amazon is ranked as the world’s most popular online marketplace. 1 in 5 millennials head to Amazon first 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 a 2024 Exploding Topics article, Amazon.com has 3,200,000,000 monthly visits. Amazon.de alone had 407,700,000 monthly visits.
Comparatively, eBay.com had only 685,000,000 and eBay.de had only 121,820,000 monthly website visits.
You can use Amazon Seller Tools
Amazon sellers can use tools like Helium 10 for product and keyword research, listing optimization, and more. These tools help sellers build their Amazon business, maximize profits, and automate business processes.
Although eBay offers some seller tools, there are many more on the Amazon market. Click here to learn more about Amazon Seller Tools.
Amazon experiences stronger growth
Amazon is experiencing stronger growth than eBay. This is probably one of the main reasons it attracts 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.
As you can see, people’s interest in eBay has decreased since 2004 while interest in Amazon is enormously increasing. If you want to become a professional seller, Amazon is your best choice. eBay’s market share has decreased considerably leading to uncertainty and potentially reduced interest among buyers.
The downside of eBay’s auction model
Previously, we discussed the benefits of eBay’s auction model, but it has some downsides. If you use eBay’s auction model, you cannot control your product’s selling price. 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 to scale your business. Of course, you can publish fixed-price product listings on eBay, but they are harder to sell since people are looking for something cheap on eBay.
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 the 112 million Prime members in the U.S. alone, this is a massive benefit for Amazon sellers.
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 and the other marketplaces which include:
- 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. Your options include:
- 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 which details your selling options.
Advantages of Selling on eBay
While Amazon holds undeniable prominence in e-commerce, 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.
You pay fewer 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. However, if you have the Basic Plan, these fees only kick in if you list more than 250 items monthly. For most sellers, listings are free.
- Final value fees – about 10%-15% of the selling price
The Anchor Store package charges a flat fee but offers dedicated customer support, exclusive sales insights, and promotional pricing tools. Pricing is currently $349.95 a month or $299.95 with a yearly renewal.
In the past, eBay sellers had to pay PayPal fees, which were 2.9% plus $0.30. These fees were eliminated with the introduction of eBay-managed payments. However, eBay increased the final value fees from ~10% to ~12,5% eliminating some of the savings.
Generally, Amazon fees are higher than eBay fees, especially for eBay sellers who subscribe to the Basic Package.
Less competition
Amazon has 9.7 million sellers worldwide, and 2.3 million actively sell on the marketplace. According to a Contimod Report, 3700 sellers join the platform each day. The competition on Amazon is huge, especially when it comes to the Buy Box. Although there are many sellers, a tiny fraction 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. They are generally looking to get rid of old items rather than build a business.
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 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 practically effortless to sell internationally.
eBay also offers a global shipping program. Ship your products to an eBay warehouse, and the platform will ship them to the customer. It takes care of customs forms, and international tracking, and protects you if an item is lost or stolen.
And here’s the best thing: eBay’s Global Shipping Program is free.
Conclusion – Amazon vs eBay
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: Amazon’s high level of customer trust enhances credibility for sellers and fosters a positive buying environment.
- Amazon Seller Tools: The availability of a diverse range of Amazon Seller Tools offers features like 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: Amazon’s comprehensive fulfillment services, 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 on a budget.
- Reduced Competition: eBay’s smaller proportion of high-volume sellers, offers a less competitive environment, especially for new sellers and those 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: Sellers seeking to capitalize on each platform’s unique strengths may consider setting up accounts on both. This allows you to tap into diverse markets and cater to the varied preferences of online shoppers.
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. The key is to tailor your approach to match your business dynamics.
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.
