Amazon Vs. eBay – Which One Is Better For e-Commerce Sales?

amazon vs. ebay

eCommerce owners around the world knows that eBay and Amazon rule the ‘online marketplace’ . No other company even come closer to them in terms of volume, traffic, sales, engagement and support. eCommerce owners get enhanced exposure for their products and at the same time marketplaces gain due to increased product inventory.

Now the big question remains for the ecommerce store owners – Where shall I expand my products more , on eBay or Amazon? The simple answer is ‘it depends’ . Here are some attributes you should keep in mind while choosing between these 2 marketplaces:

Selling Fees

You are free to list your items and relist on eBay. Ebay will charge 10% , once there is a sale, and everything would be recorded in a monthly invoice.

The referral and variable closing fees on Amazon are listed below:

Type of products determines the referral fees. For example high priced items, like tyre and wheels has 10 % fees, while stuff like ‘video games’ has 15% cut.

Variable rates are based on item categories. For example, media products charge a flat rate of $1.35, while non-media products are rate are based on their weight.

Also, you need to pay .99 cents per item, irrespective of categories. However, if you pay a nominal subscription fee, it is waived off. You will receive the final selling amount after deducting all the fees.

Payment Process

PayPal is a preferred payment partner with eBay. Seller receives the amount into his PayPal ID directly, only when the shipment is complete. There are some hassles if you want to transfer the amount to your bank account, and there is a limit to that. On Amazon, you need to opt for ‘Amazon payment’ , through which money will be deposited directly to your bank account at 2 weeks interval.

Convenience for Shoppers

eBay adheres to auction style listing which might test the patience of shoppers as they need to wait till the auction is over. And over and above that , approximate one day time is needed to ship the order. So in this regard, eBay is more suitable for items that are rare, limited editions or used items; items that are not regular commodities.

Amazon on the other hand is more convenient to shoppers of regular commodities like coffee beans, toys, cosmetics, etc. Also, by paying a $79 annual subscription , ‘prime members ‘ can avail ‘ free 2 day shipping’ rights.

Consumer Engagement

Amazon enables less engagement with sellers, but in recent years more stress has been put on ‘customer reviews’ . On eBay, it’s all about ‘good feedbacks . Sellers with good feedbacks receives more orders invariably. Such is the importance of feedback in eBay, that some sellers prefer to compromise in the event of disagreement, rather than letting the buyer put a negative feedback.

Common Issues

The chances of fraud are higher on eBay, as the model is auction-based. Winners sometimes harass sellers by not buying the item. As an outcome, legitimate buyers sometimes need to pay the higher amount. There is an option ‘second chance offer’ where the item can be passed on to the next highest bidder. ’last minute bidding’ or ‘snifing’ is one other options where buyer can bid at the last moment.

Amazon on the other hand offers ‘one click purchases ‘ for all the items. Amazon customers are not that worried with the thoroughness of the description of the items.

Listing Format

On eBay , every item is listed with photos, and in case of rare and uncommon items, multiple photos are mandatory. Listing presentation is important on eBay. Amazon, on the other hand offers ‘shared listing’ – multiple sellers offering same item can share listing. One stock photo is enough and sellers differentiate through price and drop box.

Shipping Cost

You can determine your own shipping costs on eBay, but make sure it’s not too high that’s detrimental. The process is simpler and you can print the shipping label at home drop off the package at the mailbox.

You can get a shipment credit on amazon to cover the mailing expenses. You need the pay the extra amount if the actual expenses are higher than the credit. However, most of the items have flat shipping rates. For example, books have $3.99 rate.

So, while choosing between ebay and Amazon, consider these factors and the items that you are going to sell. EBay is most suitable for . Amazon , on the other hand is more suitable more repeat customers on a regular basis. If you are not sure or starting for the first time, test your products on both these marketplaces to analyze buyer behavior and can even keep both the stores, if profitable.

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