Who will win the battle against Amazon on eBay? This is confusing! Both eBay and Amazon are e-commerce powerhouses. They are both ranked among the top online shopping sites in the world and earn billions from millions of members each year. Is it any wonder that it is an attractive platform for sellers, both experienced and beginners?
As established brands, most online shoppers are familiar with eBay and Amazon. About 10 years ago, “Where do I sell – eBay or Amazon?” The question remained. Not considered.
Why? Well, because honestly eBay will probably win, give up at that point! For years, eBay has been the most accepted place to sell online.
This is not only the second time for products, but the starting point for everything, and it was a great starting point for small businesses that want to launch quickly with minimal start-up costs and 24 accessible, prepared, dedicated audiences. / 7. Originally known as the destination for books, videos, computer software, and CDs, Amazon continues to diversify to this day. They now store products from A to Z as their logo suggests!
So, for e-commerce entrepreneurs, you can understand why deciding to sell on eBay or sell on Amazon can be a challenge. As you might expect, both places have arguments, so debate. Although they appear to be in fierce competition – for the most part – for sellers, there are fundamental differences to consider.
What is the difference between eBay and Amazon?
First things first! Let’s take a look at the key differences between eBay and Amazon. Unlike Amazon, eBay only supports third-party sellers. In other words, eBay does not have its own products.
Products from individual sellers or businesses are listed in the auction format or in a fixed price format, so the good news is that you will never compete with eBay just because they provide the market!
You can see that Amazon Essentials is competing with you – with third-party sellers, often private label sellers, selling products in their own range.
More Competitive for Amazon Marketers?
Amazon has its own brand, but eBay is a bit competitive in this regard. You will have competition on both platforms – this is a natural part of the business.
Some sellers will offer a lower price to attract buyers and sell by volume, while others will offer a higher price, based on quality rather than their sales volume – this will always happen wherever you sell.
Are buyers loyal to eBay or Amazon, or do they both buy?
Well, eBay and Amazon audiences are different as you might expect. There is no denying that both eBay and Amazon have great access, but significantly each platform reaches a different kind of audience!
Both have an international presence.
Amazon has 14 markets worldwide; There are 23 global sites on eBay. Both receive large numbers of visitors. Amazon receives over 197 million visitors worldwide each month. This is more than 2.3 billion visitors in 12 months.
EBay has more than 180 million active buyers and about 2 billion daily transactions, but more than half of eBay’s annual sales revenue comes from 60 million buyers outside the United States.
But according to demographics, Amazon buyers tend to get rich. Research has shown that the average Amazon shopper is between the ages of 45 and 54, married, and has a university education with children.
EBay Population is 57% male and you might be surprised that 43% are female. The largest group of children between the ages of 35 and 49 is 32%. However, these numbers mean nothing if you do not know the personality of your buyer!
Determining this allows you to identify whether your audience is already active in this market and which market they are primarily using. It’s also interesting that some buyers are actually loyal to one platform or another!
Some shop only on Amazon and do not dream of buying from an eBay dealer, while others are eBay die-hard and believe the products on Amazon will be more expensive! So, from a seller’s point of view, is this true?
Can you sell more on eBay or Amazon?
If you sell a product on eBay for a fixed price of $ 10 and your profit margin is 30%, you will earn $ 3.00 per sale. You just have to be more discriminating with the help you render toward other people.
If you choose eBay and lists at auction, you too will be at the mercy of your bidders and you will not reach the expected $ 10 price. On the other hand, you will get a final price of over $ 10! Not so on Amazon!
Here you will always be listed at a fixed price so that you know where you are with your profit and always sell for $ 10. This is why the fixed price model offered by both platforms provides some protection and allows you to predict your sales and profits and keep them. Then there are the fees to consider.
Generally, eBay charges a flat 10% sales fee (this varies for each category), but does not include payment processing fees via PayPal. These are usually an additional 2.9% + 20p. Amazon charges an average of 15% commission, including payment processing fees. However, you will be charged extra if you use their FBA service. The point is, the list price will determine how much money you make, and there are many factors to consider, including:
The quality of your product. If your product is of high quality and superior to your competitors and you are guaranteed to get this on your listings, chances are you can set a higher price and reach that price. Your competition. If you have little or no competition and your product is popular you will make more sales – this makes sense!
The uniqueness of your product. If your product is rare, if there is a demand, if there is a wonderful USP, or if for any reason it stands out, you will make more sales! Awareness of your brand. If you have a great reputation on one or another website, you will be able to set a higher price for your product because you already have the trust of your customers. At the same time, Amazon is great for selling your own branded products, and if that’s the way you go, your business will grow there.
All of these things apply to both eBay and Amazon. You can choose to price differently between your product sites, but in the end, the amount of money you earn depends on your product, branding, your profit margin and how well you are listed!
Is it easy to sell on eBay or Amazon?
EBay is faster and less complicated when it comes to listing your products and selling and receiving payments. You can list in minutes, choose your listing format, after selling your product, your eBay buyers’ money will go directly to your PayPal account where you can withdraw it manually when you need it.
Amazon makes payments for you, but keeps them up to 14 days before transferring them directly to your bank account. It goes straight to the point but it is a long listing process. Ease of sale also depends on your product!
In general, quality products that attract a large market, such as new clothing, baby products, health and beauty items, nutritional supplements, fitness products and toys, are popular on Amazon. On eBay, sellers can list used, unique or unusual items that can be sold for low margins but with cheaper versions of high volume products.
The real difference is that Amazon has the added advantage of their FBA service, saving you considerable time and effort by packing and handling all the hassle of storage. Of course, extra fees are involved.
Do buyers trust eBay or Amazon sellers?
Unfortunately, eBay built a reputation for hosting fraudsters a few years ago and in some ways this is a bit stuck. The number of overseas marketers on eBay also does not do much to promote peace of mind. However, over the years, eBay’s “trust” has greatly improved, and iBeam now protects buyers if they do not buy. Amazon is tough on sellers if you ignore their rules. Suspensions occur regularly, and from a buyer’s point of view, this is where more confidence is built. Buyers know that if a skeptical seller talks about products on Amazon, they will deal quickly. This puts them one step ahead of eBay, with their easy returns and money back guarantee.
Advantages and disadvantages of selling on eBay
|Less competition||Smaller audience|
|Customer Loyalty||Less buyer trust|
|Fewer category restriction||No fulfilment service|
|Easier to list||Higher fees|
Advantages and disadvantages of selling on Amazon
|Fulfilment service||More competition|
|More branding opportunities||Extra FBA Fees|
|Buyer trust||Harder to List|
|Lower fees||Restricted categories|
Overall: Who wins – eBay or Amazon?
Amazon gives good points for trust, loyal customers, low fees, brand opportunities and their fulfillment service, and eBay wins for competitiveness, low fees, loyalty and low limits! It is a tough fight and in the end every market has its own advantages and disadvantages.
However, you should not be limited to one thing or another. Because Amazon seems to be more suited to your products, that means you can’t sell on eBay. Diversification is very important and expanding your e-commerce through multiple channels is the safest way to protect your revenue streams and grow your business. In the end, the decision can only be made based on your business, strategy and products.
The bottom line is that no matter which platform you run your market on, you need to make the most of the time and effort you put into it. Also, in any of the above markets, selling their products is more lucrative, giving you the opportunity to trade on both eBay and Amazon if you can, for a huge amount of money.
If you are interested in dropshipping in the above mentioned market, also pay attention to the following articles.