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Selling on Amazon vs eBay

Which is better for sellers, Selling on Amazon vs eBay ? This is a tough topic to answer since each market has its own set of benefits and drawbacks. Amazon is presently the world’s largest online marketplace, followed by eBay. While there is an increasing number of alternative marketplaces accessible to merchants, these two online shopping giants continue to tower above the competition.

Let’s compare Amazon and eBay in depth so you can make an educated choice about which is better for your company.

1. Market Size and Selling Potentials:

To begin, let’s consider the main question: when comparing eBay and Amazon, which platform provides the best opportunity for you to sell your products? Which marketplace is larger, giving the raw power of a greater number of potential eyeballs on each product?

Of course, there are other factors to consider. Given that some demographics may be more relevant to the goods you’re offering, let’s examine who uses each platform. Different target audiences will have varying expectations and standards, necessitating a customized strategy to meet their requirements.

Amazon – market size:

The user numbers on Amazon are mind-boggling. It accounted for 13.7% of the worldwide eCommerce retail industry on its own in 2019. This equates to a massive 52.4 per cent market share in the United States.

In terms of raw traffic, Amazon had 2,507 million visits from desktop and mobile devices.

It’s also worth remembering that 44% of US households subscribe to Amazon’s premium Prime program. Given Amazon’s complete dominance throughout the nation, it’s understandable that consumers are willing to pay a premium for quicker delivery and cheaper individual item pricing.

eBay – Market Size:

eBay’s market share in the US eCommerce sector is projected to be about 5%. They were recently displaced from the third position by Walmart, which currently controls about 7% of the market.

eBay has a monthly user base of about 167 million. These customers are very selective, preferring to purchase only from vendors with the highest feedback ratings. We’re talking about 100-point scores or perhaps higher. As a result, safeguarding your eBay reputation is essential to your company.

Given eBay’s origins as an auction site, its purchasing culture is centred on pricing. It’s possible to argue that eBay consumers are more concerned with pricing and peace of mind than with the bells and whistles associated with premium membership services.

Conclusion:

Market size and selling potential:

The comparison here is borderline erroneous. When Amazon and eBay are compared in terms of raw market size, Amazon easily wins, being outdone only by Alibaba and China’s overwhelming consumer power.

However, it is not all doom and gloom for eBay. They remain a significant worldwide participant in eCommerce, with more than half of their yearly sales income generated by tens of millions of international customers.

Additionally, eBay’s audience is somewhat younger, with 32% of users aged 35 to 49. When compared to Amazon’s typical consumer age of 45 to 54, you have a target group that is maturing and flexing their purchasing power.

eBay may be a good fit for you if you have a specialized product and a highly targeted customer profile. However, in the majority of instances, Amazon’s market dominance is just untouchable.

2. A Comparison of Competitiveness

Due to eCommerce’s hyper-competitive character, the consumer retains control. Sellers are often forced to compete on price or face extinction. That’s difficult enough when competing websites are involved, but what about marketplaces like eBay and Amazon?

Here, when tens of thousands of vendors are promoting the same goods on the same website, you must exercise caution if you want to benefit. Thus, is eBay more competitive for sellers than Amazon?

Amazon – competitiveness:

Amazon operates based on a product catalogue, with the aim of giving a single, distinct listing for each product. Thus, regardless of how many individuals sell a certain product, a buyer looking for it will theoretically be directed to the best result.

You will see more prospective sellers only after clicking through to the product page. However, by that time, the winner of the Amazon Buy Box will have earned the confidence (and money) of the majority of consumers.

Amazon does not specify how to win the Buy Box; it is determined by an algorithm. However, it is well established that pricing is a major consideration, as is the appearance of the Amazon Prime logo on the item.

This simplifies the process of obtaining a good bargain for the consumer. Meanwhile, sellers may be vying with hundreds of other sellers for that one great position in the Buy Box.

eBay – competitiveness:

As befits its auction-based origins, eBay enables buyers to compare numerous listings for the same item. Some will be new, some will be used, some will be in better shape than others, and the majority will have varying delivery choices.

Additionally, due to eBay’s auction feature, continuing item listings will compete with those that are available to purchase now at a fixed price. This all adds up to make buying on eBay a much more deliberate, nuanced experience.

This is beneficial for vendors. You have additional options for fine-tuning your listing to appeal to a variety of audiences. Additionally, products are more visible, allowing consumers to search for the best bargain.

Conclusion:

competitiveness:

Selling on Amazon vs eBay , The disparity between eBay and Amazon’s competitiveness seems to benefit eBay, at least for sellers. Simply said, you have more chances to have your goods noticed and a more receptive audience.

Amazon is a cutthroat marketplace, with many vendors vying for the same spot: the Buy Box. This, though, may work to your advantage. If you provide the finest goods in your niche at the best price point, you have a good chance of winning the Buy Box and generating significant sales. However, eBay offers a more acceptable experience for sellers in the majority of instances.

3. Shipping and Fulfillment Options

Naturally, a large market and an effortless sale are just the beginning. Delivering goods physically to a customer’s front door is what ensures repeat business and a great review.

So, which of eBay and Amazon is more solidly on the seller’s side in achieving that goal? Which eCommerce platform enables the fastest and most convenient shipping and fulfilment?

Amazon – fulfillment options:

Fulfillment by Amazon (FBA) is a service that allows you to store your goods at an Amazon warehouse near you. When a transaction is made, Amazon will select, pack, and ship the item on your behalf.

Selling on Amazon vs eBay , They provide customer service, erase bad comments related to delivery, and can even fulfil orders sent via other channels. Yes, eBay is included.

Although it is not the cheapest option, it qualifies you for the Amazon Prime badge, which moves you closer to the Buy Box.

SFP (Seller Fulfilled Prime) is a less expensive alternative. Although you ship from your own facilities, you remain eligible for the Amazon Prime badge.

eBay – fulfillment options:

eBay does not currently provide shipping and fulfillment services to domestic sellers. It does, however, provide a Global Shipping Program, which we will discuss in more detail later.

Currently, if you sell on eBay to customers in your own country, you are responsible for selecting, packaging, and shipping your own orders. There are many service providers that will do it for you if you are willing to accept a blow to your business margins.

This may be particularly difficult for new vendors. Obviously, having to build up shipping and fulfillment from scratch without platform compatibility is expensive.

Conclusion:

fulfilment options:

Given that Amazon offers more shipping assistance to eBay sellers than eBay does, this one is a no-brainer. Selling on Amazon vs eBay , Even if eBay launched such a service tomorrow, it would be competing with the world’s most sophisticated delivery service from scratch.

There is a chance that such a service from eBay would seek to undercut FBA in terms of pricing, thus opening up new markets. However, until it happens, Amazon wins.

4. Seller Fees

We cannot discuss the eBay vs. Amazon debate without addressing the subject of selling fees. Jeff Bezos must still make an honest livelihood, but when Amazon and eBay are directly compared, who gives sellers the better deal?

Amazon – seller fees:

Amazon charges a fee to become a Professional Seller and also charges a referral fee on each item sold. If you’re paying for FBA, you might consider this an extra seller charge, although a voluntary one.

A monthly membership to Amazon Professional Seller is $39.99. This entitles you to up to 100,000 free listings, and perhaps more if you continue to generate consistent revenue.

Selling on Amazon vs eBay , Amazon referral payments vary significantly by category. Consider 15% with a $0.30 per item minimum. Additionally, you will be charged a $1.80 closing fee for media goods.

eBay – seller fees:

On eBay, there are two types of selling fees. To begin, there are insertion costs associated with listing your goods. Then there are final value fees, which are assessed when the goods are sold. Additionally, you’re likely to be charged a PayPal processing fee, which is not paid to eBay but is a necessary part of the transaction.

eBay charges about $0.35 for each listing and category for inclusion. Establishing an eBay Store entitles you to a monthly listing allowance. The Basic Store is $28 per month and includes 250 free listings, while the Anchor Store is $350 per month.

eBay’s final value fee is a percentage of the product’s price. While the actual percentage varies by product category, you’re typically looking at about 10%.

PayPal’s processing costs for eBay sales are usually 2.9 per cent of the item’s selling price, plus a $0.30 flat charge. Sellers will no longer need to depend on PayPal and its associated fees as the marketplace rolls out eBay Managed Payments.

Conclusion:

seller fees:

Comparing seller fees between eBay and Amazon is a close call. When PayPal processing costs are taken into consideration, eBay is just approximately 2% cheaper than Amazon.

Selling on Amazon vs eBay , While such costs are gradually being phased out, eBay also charges additional payments to make a listing competitive, such as the subtitle upgrade. If you opt to pay for FBA, the difference in selling costs between eBay and Amazon may be minimal.

This is a tie, with the best choice being determined by the kind and amount of goods you offer.

5. Advertising Options

Gaining an advantage over your competitors is always beneficial, and is often worth paying for. Both Amazon and eBay provide extra services that help your goods stand out from the competition. However, which is the seller’s preference?

Amazon – Advertising options:

Amazon Sponsored Goods guarantees that your products appear on the first page of search results for specified keywords. You may choose which keywords to target yourself or let Amazon do it for you.

This is a pay-per-click (PPC) service, which means you pay only when your advertisement is clicked. As a result, it’s critical to keep an eye on your expenditures. However, it is a sophisticated service with a plethora of applications and tools to assist you in managing your campaigns more precisely.

Sponsored Products is only one of Amazon’s advertising choices; the company also offers additional services focused on brand and affiliate promotion.

eBay – Advertising options:

eBay provides Promoted Listings, which increase the visibility of your goods in search results. You ‘bid’ a sum that will be paid in addition to your final value charge, often about 5-10%, and your goods are promoted alongside that of other vendors, each with their own bid.

eBay Promoted Listings are simple to use; you only pay when an item sells. Although this is not a very sophisticated program, it performs an adequate job of drawing attention and increasing sales.

Conclusion:

Advertising options:

When it comes to comparing Amazon and eBay’s services for promoting goods, the comparison is closer than it seems.

eBay offers a reasonably straightforward service, although the marketplace is already less competitive. A little prod at a reasonable price may be all you need. Amazon Sponsored Products is light years ahead of Promoted Listings but requires time to master and costs a fee even if you do not make a sale.

Overall, Amazon narrowly wins by providing sellers with greater choices and control over how they market their goods.

The Final Verdict on eBay vs. Amazon:

Therefore, let us review. As shown today, Amazon assists merchants by:

  • Providing them with a much bigger audience.
  • unmatched shipping and fulfillment services.
  • Providing more sophisticated advertising choices.

Meanwhile, eBay is fantastic because it:

  • Provides a less intensely competitive market.
  • It significantly simplifies the process of selling abroad.

With both companies charging about the same seller fees, it seems to be a 3-2 victory for Amazon. However, consider the issue objectively and choose what is best for your company. If you’re looking to reach a more specialized audience in a variety of worldwide regions, Amazon may be the perfect fit so check out ways to Make Money on Amazon to get started .

With the information in hand, you can make the best decision and win more business than ever before.

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