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Selling On Amazon Vs. Ebay – Sellers Guide

Let’s start by saying that Amazon and Ebay are not comparable. They each have their own characteristics, which make one or another shine depending on what you’re selling.

 

We can however still, based upon these characteristics, look at the pros & cons of selling on Amazon.com vs. Ebay.

 

These are two major online marketplaces that have millions of users and sellers worldwide. Based on these factors, we can now determine which one is the most profitable to sell on.

 

It’s impossible to compare the best options for selling on Amazon and Ebay. They each have their own characteristics, which make one or another shine depending on what you’re selling.

 

We can however still, based upon these characteristics, look at the pros & cons of selling on Amazon vs. Ebay.

 

These are two major online marketplaces that have millions of users and sellers worldwide. Based on these factors, we can now determine which one is the most profitable to sell on.

1. Marketplace Mission

Although sellers may not be part of the marketplace where they sell, their mission can have a significant impact on them.

 

Amazon is the US’s most valuable retailer. Amazon’s goal is to be the most consumer-centric company in the world. This means that they will provide access to everything people are looking for online. eBay is the world’s leading third-party marketplace. Its mission is to create economic opportunities around the globe.

2.  What You Can Sell

The items you are selling can also play a significant role in deciding whether Amazon or Ebay is the best option.

Amazon Product Categories

Amazon allows you to sell products in a variety of categories, 38 in total. However, only about half of these are available to all sellers.

Amazon approves professional sellers and sellers. They can also access additional categories like automotive parts and tools and business products.

For selling handmade products such as accessories, art and beauty supplies, clothing and jewelry, stationery and sports gear, stationery and toys and games, a special Handmade program is available. This category is open to both professional and individual sellers.

Categories of eBay Products

eBay, however, boasts an astonishing 20,000+ categories. You might have noticed that the selection is more varied than Amazon.

The requirements for listing on eBay are less stringent. All sellers require product identifiers. They can still click the “doesn’t apply” button without them.

Specific Products Selling on Amazon vs. eBay

Amazon has sold just over 600,000,000 products, while eBay has sold over 1 billion.

Selling on Amazon is different from selling on eBay. This is because you can choose to sell used or new items.

Amazon does allow you to find used products, but only in certain categories. The marketplace is primarily focused on new products. You can also sell refurbished items through the Amazon Renewed program. However, you must apply and show that your items meet Amazon’s requirements.

Used items are the norm on eBay. eBay hosts live-auction as well as fixed-price auctions in 36 countries. It began as an online auction site for unwanted or second-hand items.

There is one thing that Amazon and eBay have in common: they both allow you to sell restricted items. They both ban the sale and distribution of certain items, including alcohol, drugs, and animals, and limit the sale and distribution of items such as food, poisonous material, and adult material.

Amazon offers a price-competitive advantage to most customers. This is the best place to sell everyday necessities. eBay is the best place to sell unusual products, but your customers value quality more than price. Amazon is better for sellers who have a wide range of products, while eBay is ideal for smaller sellers.

3.  How Selling Works

There are several steps to setting up an Amazon Seller account on Seller Central. These include a business service agreement, providing contact information, bank and credit card information, as well as information about your products.

 

A basic eBay account allows you to start selling immediately after you have accepted the user agreement and given your name and email address. If you wish to set up a business account, simply enter your business name and email. 

 

After you have created your list, you will need to verify your identity (phone number or credit card number) as well as a payment method (PayPal or direct debit in addition to the standard credit card option).

Listing Items

To list new products on Amazon, you must be a professional seller. To list new items on Amazon, you will need a valid UPC or EAN. You can also list large quantities of items with professional Amazon accounts. You can sell the same product if it is already on Amazon.

 

With a regular account, you can list bulk items on eBay using the advanced listing form. While some of these features may be expensive, they are not much more than it costs to maintain an Amazon Professional account. A barcode is not required on eBay. You also have the option to set a reserve price and a duration for auctions.

Receiving Payments

Amazon sends payments to your bank account every two weeks, or as often as you like. After deducting their fees, Amazon will make the payment. Payments can take up to five business days to reflect.

 

eBay immediately releases payment to your account when an item is sold. It will reflect immediately on your PayPal account if it is a PayPal transaction. It can take up to two days for credit card payments depending on whether you use PayPal processing or a merchant gateway. If the buyer will be picking up the item, you can opt to accept a check or money order in person.

5. Seller Fees

Selling on Amazon is more expensive than selling on eBay. This is a subject that has been disputed, but we are working to resolve it. You need to understand how these fees will impact sales.

Amazon Seller Fees

A Professional account costs $40 per month if you sell more than 40 products per month. Selling fees are also different depending on which category you sell. Access to Sponsored Products Ads is also available. You will receive a dollar per item sold on an individual account for less than 40. There are no additional selling fees.

Amazon calculates what you get for a purchase as follows:

(Item price + shipping + gift wrap) – (Referral Fee + Closing Fee + per item fee, as applicable)

Referral fees are calculated on item price and gift wrapping charges. They can be anywhere from 6% to 45 percent with a minimum amount of 1 or 2 Dollars. For books and media items, the Closing Fee is $1.80. If the item is returned, the Referral fee will be refunded. Amazon charges an administrative fee of 20% up to a maximum amount of $5.

Seller fees on eBay

You pay an eBay listing fee plus a final value fee. There are additional fees for any optional features or services you use. No matter how many products are sold, the listing fee (or insertion fee) is $0.30 per listing. 

Sellers get 50 listings free per month so sellers with fewer products end up paying no fees. The final value fee is a percentage of an item’s sale price, plus shipping. The fee is usually 10%, but it can vary depending on the item’s category. If you have poor customer ratings, or lots of returns that are not as described, there is an additional 4% deductible.

eBay promises smaller sellers higher profits per sale. However, volume sellers can make more on Amazon if the fees in their chosen categories are lower. Amazon fees are generally higher than eBay fees and they also have a closing charge that eBay does not. Even with the PayPal fee ($0.30 + 2.9% on the sale), eBay sellers still retain around 5% of their profits.

6.  Fulfillment

eBay might not always be the most cost-effective when it comes to storage, picking and packing, as well as shipping. The FBA program is a great option for larger sellers. Amazon offers other services that can make selling easier. If you have valuable information, Amazon is the best choice.

 

FBA fees are calculated on the basis of a percentage, weight, size and picking, packing, and handling. This may seem like a lot. It is worth noting that the service offers many benefits, such as greater Buy Box visibility, customer service, and sellers being able spend their time optimizing and growing, rather than packaging and boxing products and getting them to post offices on time. If you are a large brand that has your own fulfillment centers, it may not be worth the cost.

 

eBay does not have fulfillment services in-house, so sellers rely on eBay’s shipping recommendations. To protect customers of video games, DVDs, and books they have established shipping limits. 

 

Sellers who can maintain a shipping time of four days and do not charge shipping fees will be awarded a badge which can increase sales by 11 percent. This protects sellers against bad reviews.

 

Customer expectations are a huge factor in selling on Amazon vs. eBay. Customers of Amazon are spoilt, while eBay customers accept listings as they are.

7.  Competition

Selling on Amazon vs. eBay requires that you consider the fact that Amazon is a seller and eBay doesn’t market its products. Amazon is in business to its benefit and will often sacrifice third-party sellers to undercut or compromise its own products.

 

Amazon can be a dangerous place to work if you’re not the kind of seller that wants to win and play with the big guys. This is particularly true when you consider that Amazon has unlimited access to the sales data they collect. A lot of this information is not accessible to third-party vendors. Amazon has a significant advantage and makes good use of this.

 

You can simply compete against other sellers selling the same product on eBay. eBay doesn’t charge any fees and will not use your sales data to determine profitable products. They can also start selling these products at a lower price than you pay.

 

Amazon can be a great place to sell Private Label products. Make sure you have strong manufacturing and distribution agreements that prevent Amazon from taking over your territory. If you don’t, eBay is the best place to launch your brand. Then you can expand to Amazon when it makes sense.

 

eBay boasts a total of 25 million sellers, compared with more than 100,000 sellers on Amazon each month.

Read More : 9 Best Strategies to Sell on Amazon

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