Are you contemplating launching an online business through which to fulfill your entrepreneurial desires and thereby generate some extra income? If so, one of the earliest and most crucial decisions before you is where to set up your online store. You may have to choose to either go with selling on Amazon or eBay while weighing the main platforms available for hosting your e-commerce effort. Learn Amazon vs eBay: Where to Sell?
Both marketplaces are rated among the very best available; however, each possesses its peculiar pros and cons that could be more suitable given the requirements of the e-commerce project. How do you establish which platform delinks with the business on the other side, while the other could hurt?
We will outline what distinguishes these two platforms and provide insights into each so that you will thereafter be able to assess whether selling on eBay or Amazon would enhance your online sales and channel your online business toward success.
Selling on Amazon
A significant 38 percent of consumers worldwide begin their product search on Amazon. The efficiency of Amazon’s customer service, fulfillment, and other features accounts for a lot of its success. But with these services come some fees too.
Amazon Fulfillment
Brands selling on Amazon have different ways to fulfill orders. This becomes critical during any comparison of Amazon versus eBay.
First off, Amazon has Fulfillment By Amazon (FBA). You just send your product into one of Amazon’s fulfillment centers, and they pack, ship, and even handle the product when an order is made. They also take care of returns, refunds, and customers’ questions.
FBA costs vary between products, depending on their size and weight. On the downside, companies do not have much say concerning how their products are packed, what their return policies are or how customers interact with them: a real concern for established brands. Still, those using FBA enjoy a ranking boost in the search results, as well as the visibility afforded by the Amazon Prime badge, which ultimately leads to increased purchases on Amazon.
If sellers prefer to handle their own fulfillment and customer service, they can opt out of FBA and choose Fulfilled by Merchant instead. Yet, looking to achieve some semblance of visibility and Prime advantages otherwise gained by FBA sellers, Seller Fulfilled Prime offers a middle ground whereby successful brands can gain the Prime badge if they satisfy certain requirements.
To qualify for this, you need to ensure that at least 99% of your orders are shipped on time and keep your cancellation rate lower than 0.5%. Moreover, you are expected to deliver the orders via Amazon Prime within one or two days of delivery counting per the delivery time mentioned on the product page, alongside returning the items following Amazon’s return policy, utilizing the Amazon Buy Shipping Services, and allowing Amazon to manage customer support for you.
Two Primary Business Models on Amazon
- Reselling: Selling a plethora of brands of products that one can acquire via wholesale, dropshipping, or arbitrage methods.
- Private Label: Focusing on selling your brand to sell gives the seller greater control over product quality and pricing.
Selling on eBay
When selling an item through eBay, one does not come across any fulfillment service like that of Amazon FBA. Every seller on eBay will need to organize the actual shipping or resort to a third-party fulfillment service for assistance. In other words, after you sell something using eBay, you are required to package and send it to the buyer. This is because, as far as shipping is concerned, eBay has partnered with UPS, FedEx, and USPS, allowing you to buy a shipping label directly through eBay Labels once a sale is made.
To send items to buyers overseas, eBay has a program called eBay International Shipping. In this case, you send your item to a local shipping center where eBay pools orders together for eventual shipping out of the country to buyers worldwide.
I sell trading cards and sports cards on eBay, most of which are very cheap. The cheapest shipping through the US Postal Service typically costs about $4. However, one can take advantage of the eBay Standard Envelope service that can save you as much as 70% against the lowest USPS rates for size, weight, or cost of items sent. For example, an envelope weighing 2 ounces will cost 87 cents to send!
Comparing Selling on eBay and Amazon
A fast comparison of selling on eBay and Amazon seems to indicate that both platforms operate on different models. While Amazon mainly focuses on fixed-price listings, eBay allows for auction listings or fixed prices. This can sometimes be a boon for the sellers who are new to this field since auction listings can provide a faster sales opportunity.
For fixed-priced selling, Amazon seems to be more suitable for the seasoned sellers who have done their homework and fixed their target profit. Although it is buyer-oriented, eBay seems to be the seller type. Amazon has a very strict returning policy that allows customers to return products if they are unhappy with the item. On eBay, sellers can also choose the option “No Returns”.
However, this is not a reason to say that eBay is not a completely bad selling platform. Ask yourself: Which platform do you feel is safer to trust your money to? One that assures returns if there’s a catch, or one that might take your money with no recourse?
Amazon’s A-to-Z guarantee, rigorous product standards, and added features have created a strong sense of loyalty among its customers. A large percentage, 89%, of Amazon shoppers primarily purchase from Amazon. Many US consumers often use Amazon to search for products rather than Google.
Final Thoughts
Deciding to sell on either Amazon or eBay will depend on the kinds of products you are offering, your sales methods, and what financial resources you have available.
FAQs
Which platform is better for selling, Amazon or eBay?
It is generally simpler and less competitive to sell on Amazon compared to eBay.
Where does Amazon have the most sales?
The US market stands out as Amazon’s largest and most renowned marketplace.
Which platform is faster, eBay or Amazon?
Typically, purchases made on Amazon are delivered more quickly.