FutureStarr

Selling on Amazon vs eBay

Selling on Amazon vs eBay

Audience

Both Amazon and eBay each have a large reach. However, they’re not equal altogether respects. Knowing your buyer personas are often helpful in determining if your audience already shops in these marketplaces.

While eBay and Amazon are both household names, Amazon is undeniably the e-commerce giant. over 197 million people worldwide visit Amazon.com monthly. Amazon is answerable for 5% of all U.S. retail spending. And while internet buyers will price check various sites before purchasing a product, 44% of them begin their product searches on Amazon.

Selling on Amazon vs eBay

Amazon has a global presence with 14 marketplaces worldwide where third-party sellers can list their products, and it's customers in additional than 180 countries. However, only 33% of sales are from outside U. S.

In terms of demographics, U.S. Amazon shoppers tend to be wealthier and more educated than the final U.S. population. the typical Amazon shopper is 45-54 years old and married, quite half have children, and nearly half have a school education.

Woman With White Shirt Raising Her Right Hand

eBay

eBay might not be able to compete with Amazon’s massive amounts of organic traffic, but it's a live audience all its own.

Its 182 million users hail from across the world, and it's 23 international websites, reaching consumers from Afghanistan to Zimbabwe. In fact, over half eBay’s annual sales revenue comes from its 60 million buyers outside us, setting it other than Amazon in global reach.

As for its American shoppers, 57% of them are male, 32% of all shoppers are between the ages of 35 and 49, and therefore the next largest age bracket is 50-64-year-olds at 29%.

One thing that sets eBay and its audience except Amazon is eBay’s buyer-feedback system. eBay’s users are savvy, and most will buy only from sellers with a feedback score of 100 or higher.

Just like Amazon, eBay has an intensive list of products that may be sold. However, this eCommerce platform is exclusive because it emphasizes its sale of rare and collectible items. In fact, 432,000 collectible items are sold on the website daily.

White and Black Typewriter on Green Grass

Because of its concentrate on these specific products, eBay doesn’t require sellers to urge special permission to sell within certain categories, like coins and jewellery. It does maintain an intensive list of prohibited and restricted items, covering such categories as food, alcohol, and event tickets, though.

eBay’s top-selling product categories are literally fairly kind of like Amazon’s, beginning with electronics and accessories at 16.4% and closely followed by clothing and accessories at 13.8%. However, eBay sets itself apart with its third most well liked product: automotive at 10.5%. In fact, 360 cars and trucks are purchased via mobile devices on eBay daily.

While eBay contains a reputation for being the Internet’s sale location, 81% of the things in its 1.1 billion listings are literally brand-new products.

Products

With billions of various products available, you'll find a spread of things available on Amazon and eBay — both new and used — but the sites have varying rules for what is sold and who can sell them.

Amazon

With over 119 million products listed on its site — of which 4,000 are sold per minute — it looks like you'll find virtually anything on Amazon nowadays. And third-party sellers are eligible to sell items that be most Amazon product categories, from clothing and accessories to toys and games, without requesting approval.

However, some items purchasable on Amazon fall under what is called gated categories, which are typically expensive, sensitive in nature, safety-related, rare, or collectible. These products include items like sports memorabilia, fine art, collectibles, industrial and scientific equipment, and food and groceries.

There are restricted items, which can require you to supply additional information to Amazon or proof that you just meet certain regulations. and a few items simply aren’t permitted to be listed on Amazon the least bit, like magazine subscriptions, lock-picking devices, and cigarettes.

While most items listed on Amazon are new, used and refurbished ones are available through third-party sellers, but there are restrictions in some product categories, as you’ll see within the chart below.

Amazon product categories

 

Fees

To list products on eBay or Amazon, you’ll have to pay seller fees, and the variety of fees on each site can certainly add up. Some users have even taken to calling eBay “feeBay,” claiming its fees are excessive. However, Amazon has its share of seller fees as well and depending on what exactly you’re selling, you may keep more money in your pocket selling on eBay vs. Amazon.

Let’s take a look at how the fees break down when it comes to selling on Amazon vs. eBay.

 

eBay

eBay’s subscription plans are almost like Amazon’s selling plans, and there are several to decide on from, as illustrated below. However, you mustn’t buy a store so as to sell on eBay.

Ebay store subscription comparison

Regardless of whether you choose an eBay subscription plan though, you may need to pay both insertion fees and final value fees.

Insertion fees are essentially the fees you get listing an item available on eBay. Sellers rise up to 50 free listings per month. After that, you’ll pay a fee of 35 cents per listing and per each product category, you list your item in. These fees aren’t refunded if your item doesn’t sell, and you’ll be charged the insertion fee when you relist your item.

Final value fees are charged after an item sells, and they’re a percentage of the item’s price, plus shipping and handling costs. the proportion you pay depends on your style of eBay account. as an example, sellers with a daily eBay account pays a tenth final value fee for many items. Sellers with a store subscription are charged lower final value fees counting on their subscription model.

Refunds and Returns

While eBay permits sellers to opt-out of returns, Amazon provides a higher level of protection for users who purchase items from third-party sellers, which can inspire more trust in buyers.

Amazon

As noted earlier, consumers may have a better level of trust when making Amazon purchases due to the policies the e-commerce giant has in situ.

Black Flat Screen Computer Monitor

Amazon’s A-Z Guarantee protects buyers who purchase from third-party sellers, allowing them to simply request refunds and returns during a sort of situation. The guarantee covers both the timely delivery of things furthermore because of the item’s condition. If the client is unsatisfied with either and doesn’t resolve the problem with the vendor, they will then file a claim with Amazon.

EBay

EBay, on the opposite hand, can present additional challenges when it involves refunds and returns.

Sellers can like a better cop-out of returns when listing an item, so once the acquisition is created, the vendor can’t return the item for a refund except in specific circumstances.

However, eBay does have a reimbursement Guarantee policy that covers buyers once they don’t receive an item, receive an item that doesn’t match the listing or receive a broken or faulty item.

Shipping and Fulfillment

Another big way that Amazon and eBay differ is how they handle shipping and fulfillment. They both offer different options for sellers, so here’s what you need to consider about selling on Amazon vs. eBay.

Amazon

One of the best benefits for third-party Amazon sellers is that the choice to enroll in FBA.

Letting Amazon store your products and fulfill your orders simplifies things for sellers, and FBA also provides customer service for retailers furthermore as certain marketing advantages, like being eligible for Super Saver Shipping and Amazon Prime. Amazon Prime members — of which there are 105 million subscribers within the U.S— receive free two-day shipping, which might entice shoppers to click “buy.”

Overall, FBA’s benefits are found to provide Amazon retailers a 30% to 50% increase in sales.

eBay

While eBay doesn’t currently have a program similar to FBA, it has announced plans to launch Managed Delivery, an initiative that enables sellers who sell a lot of inventory to more easily and quickly fulfill orders, in 2020.

Person Using E-book Reader While Drinking Coffee

Because eBay makes international sales very easy, it also offers a world Shipping Program, which enables sellers to ship purchased items to eBay’s global shipping center in Kentucky. From there, eBay handles any customs paperwork and ships the products to buyers across the world. Because eBay is taking care of the shipping, eBay is in command of any delivery mishaps which will occur.

Also, while eBay doesn’t offer a program the same as Amazon Prime, it’s important to notice that free, fast shipping can make your listings more appealing. With the recognition of Prime, internet buyers have come to expect convenient and affordable shipping options. In fact, 71% of eBay purchases are shipped free.

Selling on Amazon vs. eBay: The Breakdown

While there’s not a definitive answer of whether it’s better to sell on Amazon or eBay, here are the highlights to help you decide which marketplace is right for you.

Sell on Amazon if…

  • You sell new items.
  • You plan to sell larger quantities of items.
  • You don’t want to handle inventory management and fulfillment.
  • You’re primarily targeting American consumers.

Sell on eBay if…

  • You’re primarily selling used items or collectibles.
  • You want the lowest fees.
  • You plan to handle inventory management and fulfillment.
  • You want to sell to an international customer base.

Related Articles