The biggest question floating these days is which platform is more profitable, Amazon or eBay?
The answer depends on multiple factors because each market has its features, guidelines, policies, terms, and conditions Therefore, to understand which platform is better, you need to understand how they both perform.
Nowadays, sellers have so many options where they can sell their products online in the market like Walmart, Shopify, AliExpress, Esty, etc. That offers sellers an opportunity to sell their products globally. Especially after the pandemic, everyone understands the worth of an e-commerce store which undoubtedly revolutionized the e-commerce industry.
The two most popular online platforms are Amazon and eBay, with 5.2B and 1.7B monthly visits, respectively. The concept of both marketplaces is the same displaying products for sale but talking specifically about each threats seller differently.
For better understanding, here is the detailed article that will help the seller compare both platforms deeply and learn the difference between selling on Amazon vs eBay.
So, let’s dive into the guide
eBay vs Amazon
which one is better, Amazon or eBay?
It’s a very difficult question as each platform has advantages and disadvantages. Therefore, we compare both platforms based on some factors to see which platform is best for selling.
If we compare both platforms on market size, then Amazon on its own accounted for 41% of U.S e-commerce retail whereas followed third place by eBay with 4.2%.
After comparing the market size, let’s talk about the revenue Amazon 2020 revenue is approximately 386.1 billion USD which is incredible growth.
On the other hand, eBay’s 2020 revenue is approximately 10.27 billion USD. As per the figures, Amazon has outranked eBay in revenue growth.
Amazon vs eBay selling Fees
If we talk about the selling fee, eBay’s fees are generally lower than Amazon’s fees.
Amazon charges a subscription fee of $39.99 per month for a professional seller along with a referral fee per item sold and gives you 100,000 free listings. However, Amazon’s referral fee varies from category to category.
On the other hand, eBay charges an insertion fee of $0.35 per listing category. The monthly store subscription of eBay’s starter store type is $7.95, which gives you up to 250 free listings.
Selling on Amazon gives you two options: you want to fulfill an order by yourself, FBM (Fulfillment by Merchant), or you want Amazon to fulfill that order for you by FBA (Fulfillment by Amazon).
This will not only save your time but will also manage your returns and refunds so you can focus on other aspects of your business. Although Amazon fees are when you use Amazon FBA service because they store, pick, pack and ship for you.
On the other side, eBay gives you only one option to pack and ship by yourself. This means that eBay requires its sellers to manage every aspect of their business by themselves.
Amazon offers a variety of advertising options that help you display your product on the first page using specific keywords. The process is known as pay-per-click or (PPC) service. You only pay when your ad gets clicked in Amazon PPC, which is a very convenient advertising method for promoting your brand.
On the other side, eBay offers promoted listings that boost your product in a search engine. The concept is the same, and you bid on a keyword, pay a final value fee and display your product in the top search result.
In terms of payment, selling on eBay is easier than on Amazon because you get paid as soon as the buyer pays you.
While on the other side, in Amazon, you won’t get paid until Amazon ships that item to the customer. After the item is shipped, there is a holding period of two weeks on your payment.
If you wonder which marketplace gives you wider expansion, then the answer is eBay.
If you are selling on Amazon, you need a separate account to sell in each marketplace. Currently, Amazon provides its services in 14 global marketplaces and groups some marketplaces like Europe covering the five European marketplaces similarly North America is covering the US, Canada, and Mexico marketplaces.
This makes listing and branding more difficult. Meanwhile, eBay allows you to trade in 23 separate international sites in over 100 countries. With only one account, you can start selling worldwide.
When it comes to restrictions, Amazon puts more restrictions than eBay.
For listing a product in Amazon, you need a UPC barcode, and in some cases, you have to tell Amazon who your supplier is. Furthermore, it restricts several categories, requiring documentation to list them.
On the other side, eBay is more lenient than Amazon. You don’t need any product identifies or UPC to list products on their platform.
Pros and cons of selling on Amazon
- Buyer trust
- Have more branding opportunities
- Fulfillment services
- Larger audience
- Easier to manage
- Have more advertising options
- More restricted categories
- Larger competition
- Charges extra FBA fees
- Difficult to list products
- Paid advertising is expensive
- Higher fees
Pros and cons of selling on eBay
- Less competition
- Easier to list
- Fewer category restrictions
- Lower fees
- Smaller audience
- No fulfillment services
- Less advertising options
- fewer buyer trusts
After reading this article, I hope you better understand the difference between the two platforms and decide which platform is best for your business Amazon or eBay?
No matter what you choose, both have their advantages and disadvantages. The only important thing is you should know the difference between them to decide which is more beneficial for your business.
So, let’s know in the comment section your choice, Amazon or eBay?
If you still have any questions feel free to share. We will be happy to help you. Thank you.
Why is eBay not as successful as Amazon? I believe eBay does not produce as many new things as Amazon. I’d never say never, but I don’t believe eBay is a good match for Amazon.
Amazon is a big platform in all ecommerce industry because of its number of subsidiaries. They have millions of customers all across globe which differ them from other competitors. eBay is lagging in bringing more innovation to their business and they are not popular all across globe.
One of the major disadvantages of an eBay shop is the cost of final value fees. The portion of the transaction that eBay keeps after an item sells is known as the Final Value Fee. To extract concessions from rival cities, Amazon organized a competition for its second headquarters.
One of the most significant drawbacks of having an eBay site is the cost of paying forecasted profit penalties. When such an item sells, eBay appears to keep the Terminal Valuation Fee as part of the transaction. Obtaining agreements from neighboring cities
This blog was… how do you say it? Relevant!! Finally I have found something that helped me. Thank you.
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