Did you know that a lot of consumers shop online? Did you decide to launch an online shop this year? If you are deliberating between selling on eBay or Amazon, we can help.
In this helpful guide, we will take time going over the pros and cons of selling on eBay vs Amazon.
Want to learn more? Keep reading.
Define Your Goals
What are your goals as a seller? Do you want to sell second-hand items or a new product? Is this a part-time job or a full-time venture? Where will you get your products from, and who is your audience?
What is your unique selling proposition? Your USP is the factor that sets you apart from competitors. Use your USP to create a marketing strategy.
Finally, you will want to pick a sales goal. Keep this information in mind while you learn about Amazon versus eBay.
Choosing Between a Retail Store or an Auction House
eBay is an auction house and marketplace. eBay facilitates the sale of items between third-party sellers and buyers.
A buyer will search for a product they want to buy. They will browse different sellers’ items and bid on products.
Amazon is a direct provider of items. The items on Amazon are sold by third-party sellers or by Amazon itself. These items get sold at a fixed price.
People bid on items or choose the “buy-it-now” option on eBay. They pay a premium for the “buy-it-now” option.
Since eBay is an auction site, shoppers will have the chance to compare different listings of the same item. Shoppers might want a brand new item, whereas others don’t mind a used item.
eBay’s auction functionality means ongoing item listings will compete with the ones available to buy now.
As a seller, you can tweak your listing so it will appeal to many different people.
Do You Want to Ship the Items?
To help you choose between Amazon and eBay, you will also consider the different shipping options.
With Amazon, you could fulfill the orders by yourself. The second option is asking Amazon to complete your order. This option’s called Fulfillment by Amazon (FBA). This is what makes Amazon popular for sellers.
However, eBay asks sellers to run all aspects of their business. Do you want to ship your items? Or would you prefer someone else handles this aspect of the job?
Another benefit to Amazon is they will handle refunds and returns for you. Focus on other parts of your business.
There is a fee associated with this program. So you need to choose between shipping by yourself or shipping with Amazon.
What Are the Selling Fees?
Typically eBay is cheaper than Amazon. With eBay, there is a fee called insertion fee. You will get this fee when you create a listing on the site. You can have fifty free listings per month.
You’re probably wondering what happens when you sell a product. With Amazon, your costs will differ.
eBay will take a percent based on the final price, including shipping and handling. There will also be payment processing fees.
Some sellers will choose optional upgrades. You can add a subtitle or a bold font.
There are selling on Amazon fees and FBA fees. The prices will get affected if you choose Amazon to ship your product.
When you set up your store, you’ll choose between an individual or a professional seller’s account.
Do you plan to become a professional seller? Expect to pay a subscription fee of around 40$ a month.
Yet if you sell as an individual, you will pay around one dollar per unit sold. When it comes time to refund an item, Amazon will charge you a processing fee.
What About the Amazon Prime Benefit?
Amazon has such a massive customer base because of Amazon Prime. Members pay a subscription fee each month. Shoppers will buy from Amazon because they do not want to waste their subscriptions.
There are over 150 million Prime subscribers worldwide. As a seller, you will have access to a consistent consumer audience.
What Different Products Can You Sell On eBay Versus Amazon?
eBay doesn’t restrict what’s sold on the website. eBay sellers can sell new or old products.
Are you mainly selling second-hand goods? Then consider selling through eBay. Buyers like to compete for second-hand items.
Amazon started as an online book store. You can make use of the auction process on eBay. However, if you are selling second-hand books, choose Amazon.
If you are selling high-quality products that are new, choose Amazon. Learn more about selling on Amazon and different seller tools.
What About Advertising?
Do you need more traffic? Amazon can help you through different advertisement options. You can choose a pay-per-click service. Amazon will make sure your product ranks high in the search result.
With eBay, you can choose to pay for a promoted listing. With promoted listings, you only pay eBay if you sell the item. You could end up overspending on Amazon advertising.
Selling on eBay vs Amazon
We hope this guide about selling on eBay vs Amazon was helpful. Consider the pros and cons of both.
Are you selling second-hand items? Would you prefer someone else to ship your products? If you sell books, consider choosing Amazon.
Do you want more tips on business marketing? We have some helpful resources for you on the blog. Learn how to market your business, and grow it this year.