You might be wondering what are the advantages and disadvantages between selling on eBay vs Amazon. Choosing the best place to sell online can seem a bit overwhelming at first. Both marketplaces have enormous user bases, and both can be quite profitable for your business. It might seem that one site dominates the other, but this is not necessarily the case.
When trying to determine selling on Amazon vs eBay, you need to consider several things. Amazon is a retailer themselves, and there is a good chance they will compete against you if your product is doing well. Most of the time they will undercut you, which can kill a business. eBay, is strictly a marketplace, and does not compete against you.
With respect to fees, depending on the category, they are very close. So this should not be a major consideration. eBay has a larger international presence, and Amazon has a much larger user base in the United States. Amazon's customer base is double eBay's, and Amazon offers the FBA option. EBay does not. These are two important considerations, especially if you do not have the ability to warehouse and ship yourself.
Amazon is a very centralized system. It is complex, time consuming, and most everything requires approval. They require approval to sell upon sign up, and in many instances but no all, they require category approval and subcategory approval. The approval process can last from several days, to several months. It all depends upon Amazon.com. eBay customer service tends to be more helpful and knowledgeable than Amazon’s agents. If you want to get your business up an running in a timely manner, you need to take these point into very careful consideration.
For used item, eBay has the advantage. And for new items, Amazon wins. That being said, eBay has gone much more toward regular retail pricing as opposed to auctions. They like Amazon, now ask for UPC codes and product identifiers. Both platforms offer pay per click ads. There are marketing tools as well for both marketplaces.
More and more, large brands and retailers are selling on Amazon which makes it much harder for small and mid-size businesses to compete. In addition, Amazon has some competitive private label brands of their own. Amazon offers enhanced brand content which creates sleek looking product pages that allow you to build your brand very effectively. An eBay store provides a great branding and marketing opportunity as well. With an eBay store and competitive pricing, most likely you will show on google shopping without any additional costs. With Amazon, you will not.
Finally, let us look at the Amazon and the eBay customer base. Amazon customers are highly focused on good value and are price loyal. Amazon has approximately 90 million prime members, of which many shop only on Amazon. Approximately 55% of consumers begin their search on Amazon, as opposed to 45% on google shopping. EBay shoppers are also very value conscious. They expect to pay less and tend to want brand name merchandize at a great price. They like high quality items at a very affordable price. Many products generally sell at a somewhat higher price on Amazon than on eBay. This is not always the case, but in many instances it is. But keep in mind, on both platforms, shoppers are looking for great deals and low prices.
There are positive and negatives to both platforms as I mentioned earlier. And many decide to sell on both marketplaces. Certain products will sell better on one platform verses the other. At BTW Consulting, we can help you in determining which marketplace will work best for your business. It’s not as simple as Amazon dominates so we have to sell there. Just because their user base is much larger, does not necessarily translate into sales or conversions. If customers can’t find your listings, or Amazon is directly competing against you for the same item, than the size of their customer base becomes much less relevant. For a free initial consultation with no obligation please contact us at email@example.com