When it comes to the biggest global e-commerce platforms Amazon and eBay are usually the first ones mentioned. Sellers, however, often ask, ‘which is better- Amazon or eBay?’
Fulfillment
Fulfillment is the process of having your product ready to be delivered to the buyer. It also includes after sales aspects such as exchanges, returns and general customer service.
eBay is different from Amazon in that it’s an open auction format, while Amazon adopts a typical ‘buy now’ format. eBay sellers will have to do all the fulfillment work themselves, while Amazon sellers can choose to do the same or sign up via fba.
Those who opt for Amazon fba will have their fulfillment duties handled by Amazon, which means the grunt work is all but eliminated. It’s a good way to manage your growing business as it takes off and you start getting hundreds of orders.
Trust
Sellers on Amazon generally command more trust compared to eBay, mostly due to the processes in place.
They’re more likely to purchase on Amazon rather than eBay if it’s the same price and delivery speed. Product authenticity and quality are the determinant factors here- consumers enjoy ordering items online knowing they can send it back and get a refund if the product is not working.
Amazon has a more established refund and customer service policy than eBay. That said, trust is more likely given in Amazon which means you’re likely to get a steady stream of orders on it than on eBay.
Audience
Audience goes hand in hand when establishing customer trust.
Once you establish a business on a trusted platform you’re more likely to get a sale or buyer. You can make it easy and sign up for amazon fba and let the company handle fulfillment, then grow your audience from there.
Amazon is currently the most popular online marketplace and enjoys the biggest market size of its kind. In the US, it’s the top ecommerce app, with 200-plus million visitors per month.
eBay is no slouch in the audience department, either. It has around 60-plus million US visitors and serves as a good niche for when sellers want to branch out. After all, the greater your reach the more likely you’ll get recognition and conversions.
However, if your goal is to reach as many people as you can in a limited time then Amazon should be your first choice.
Pricing
One of the biggest downsides when competing in a huge marketplace is the level of competition you’ll face.
In order to get recognized and get the ball rolling you would probably have to set your item price lower than most. To win at sales then it wouldn’t be a good strategy to jack up your prices, as consumers will just go to your competitor and buy from there.
eBay may not feature as much competition, but it’s still there. However, the audience is slightly different, as they might be looking beyond everyday items and electronics. Instead, these buyers are looking for rare items and collectibles they might not find anywhere else.
Fees
eBay has a slight edge over Amazon in that it has less fees. You only have to pay an insertion fee to get your listing, and a final value fee when you sell the item. Optional fees include listing upgrades.
With Amazon, you’ll be paying a per item sold or flat rate of around $40 monthly, which is a good idea if you’re selling more. If you choose to have Amazon do your fulfillment that’s an additional fee. Then, there’s variable closing and referral fees.
The price of those fees can take up a fifth of your profit or even more on a monthly basis.
