Who would win the fight in eBay vs Amazon? This is a tricky one! Both eBay and Amazon are ecommerce powerhouses whose reputations go before them.
They both rank among the top online shopping sites in the world and between eBay vs Amazon make billions each year from millions of members. So is it any wonder that both are attractive platforms for sellers both experienced and start up?
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What Is eBay?
What is eBay? eBay has snapped up quite a few companies since it first launched in 1995 including PayPal, Kijiji, StubHub and had 159 million active buyers as of the second quarter of 2021.
So how does eBay make money? First, and most importantly, is PayPal. PayPal was spun off from eBay in 2017. The money transfer/payment website is enormously profitable for eBay and makes up almost half of the company revenue.
PayPal fees can easily cut into a seller’s margins with a 2.9% + $0.30 fee for each sale. But let’s focus on the part of eBay that’s comparable to Amazon the Marketplace.
Back in its heyday, the eBay Marketplace would charge users an insertion fee based on the item’s starting bid and a final value fee when the item is sold. Today, every seller on eBay gets several free listings.
Related: How to Sell on eBay: Guide for Beginners and 7 Helpful Tips!
What Is Amazon?
Amazon has an even more complex fee structure than eBay. The company offers two options for sellers: they can either list as Individuals or as Professionals. For Individuals, Amazon charges $0.99 per item to list along with a referral fee that ranges from 8%–45% depending on the item’s listing category.
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On top of that, there is a variable closing fee which, for BDMV (books, DVD, media and video) items is not variable at all, at a fixed $1.80 per item. Other products are charged a variable closing fee that is calculated by the item weight.
Sellers can list their items in 20-30 different categories (depending on whether they are selling as Individuals or as Professionals) and for BDMV sellers, have set shipping rates set and collected by Amazon.
These fixed shipping rates are great for buyers who know that, when purchasing BDMV items on Amazon, the total price can be easily calculated without searching for individual seller shipping rates.
How Is eBay and Amazon Different?
What is e-commerce? The electronic commerce (e-commerce) movement is bigger than ever and only shows signs of becoming bigger. Under the purview of e-commerce companies, both eBay (EBAY) and Amazon (AMZN) stand out as long standing, major players in the marketplace.
Both eBay and Amazon are online shopping sites, providing visitors the ability to browse through available products listed for sale or auction through each company’s online storefront.
While eBay and Amazon have both evolved over time to meet the needs of today’s consumers, there are distinct differences between the two companies. Amazon and eBay differ in terms of business models and pricing, services for sellers and ancillary services for buyers.
Who Is Bigger eBay or Amazon?
Amazon has more potential customers than eBay and it offers more products than eBay.
While Amazon scores well for trust, loyal customers, lower fees, branding opportunities and their fulfilment service, eBay wins for competitiveness, lower fees, loyalty and fewer restrictions. It is a battle hard fought and ultimately, each marketplace has its own unique advantages and disadvantages.
However, you should not limit yourself to one or the other. Just because Amazon may appear to be a better fit for your products, doesn’t mean you can’t also sell on eBay.
Diversification is critical and by spreading your ecommerce presence across multiple channels is the safest way to protect your income streams and to grow your business.
Is eBay Still Popular 2021?
eBay meaning one of the top eCommerce marketplaces in 2021 that provides a platform for selling items through listings and online auctions. Here people can buy and sell products and services worldwide. eBay is the second top marketplace in the US. Moreover, eBay is an arcade of products for sellers as well as customers.
The most significant thing is to know about the best and top selling products on eBay to boost your revenues in 2021. By adding the products most purchased by the client to your inventory is a solution to increase your proportion of sales.
Pros and Cons When Selling on eBay and Amazon
Getting to know those pros and cons of selling on eBay vs Amazon will help you make the decision of whether you should be selling on one of them or maybe even both. Here the pros and cons between eBay and Amazon:
The Pros and Cons of Selling on eBay
Here selling on eBay pros and cons:
| eBay | |
| Pros | Cons |
| Less Competition | Smaller Audience |
| Customer Loyalty | Less Buyer Trust |
| Fewer Category Restrictions | No Fulfilment Service |
| Easier to List | Higher Fees |
The Pros and Cons of Selling on Amazon
Here selling on Amazon pros and cons:
| Amazon | |
| Pros | Cons |
| Lower Fees | Restricted Categories |
| Buyer Trust | Extra FBA Fees |
| More Branding Opportunities | Harder to List |
| Fulfilment Service | More Competition |
Which Platforms Should You Sell Your Products onto?
Amazon or eBay, which is better for sellers? Is eBay an auction site? It’s a difficult question, as each marketplace has its advantages and disadvantages. Amazon is currently the biggest online marketplace in the world, with eBay in third place.
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While there are a growing number of alternative marketplaces available to sellers, these two titans of online shopping still stand head and shoulders above the rest.
eBay, unfortunately, built a reputation for hosting scammers a few years back and in some respects, this has stuck a little. The number of overseas sellers on eBay also does little to encourage peace of mind.
However, trust on eBay has improved massively over the years because eBay now protects buyers if items don’t arrive. Amazon is harsher on sellers should you fall foul of their rules and regulations. Suspensions regularly occur and so from a buyers perspective, this is where more trust has been built.
Buyers know that should a questionable seller be touting products on Amazon, they will likely be dealt with quickly. This, alongside their easy returns and refunds guarantee, puts them a step ahead of eBay.
Conclusion
However, you should not limit yourself to one or the other. Just because Amazon may appear to be a better fit for your products doesn’t mean you can’t also sell on eBay.
Diversification is critical and by spreading your ecommerce presence across multiple channels is the safest way to protect your income streams and to grow your business.
Ultimately, the decision can only be made by you, based on your business, strategy and products.
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