With Fulfillment by Amazon, a seller can even have their items stored and shipped directly from Amazon’s warehouses. I dont get why they are so popular. For starters, the site does a really good job of making a buyer feel that they are buying directly from Amazon. I sold on both platforms starting in 2018 when i officially started my business in TX. Is eBay even worth selling on today or is it all Amazon? For Individuals, Amazon charges $0.99 per item to list along with a referral fee that ranges from 6%–45% depending on the item’s listing category. eBay is still competitive with eBay motors (automotive/boating/etc.) Users are automatically signed up for a Professional account and for Fulfillment by Amazon. Not once was something cheaper on Amazon. Which Has More Customers: eBay or Amazon? "Selling with Buy It Now." Notably, eBay actively invites sellers to participate in its auction marketplace, and the company provides platforms for sellers to offer products to buyers within an eBay store or through the auction site's classified section. , Amazon is more buyer-oriented, actively inviting buyers to visit the site to browse through and subsequently purchase its own inventory. The Bottom Line Whether selling through eBay or Amazon, the key … Amazon. This saves a lot of work. Specifically, eBay is an auction house and marketplace that simply facilitates … A real estate agent is a licensed professional who represents buyers or sellers in real estate transactions. These set shipping rates are great for buyers who know that, when purchasing BMDV items on Amazon, the total price can be easily calculated without searching for individual sellers’ shipping rates. "Pricing." Ebay. But you do have to pay the selling fee to Amazon—$0.99 for every item you sell on the site. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Despite the fact eBay and Amazon are the juggernauts of online selling, there are other channels to sell your products on. Electronic Commerce (e-commerce) is a business model that enables a firm or individual to conduct business over the internet. A bitcoin exchange is a digital marketplace where traders can buy and sell bitcoins using different fiat currencies or altcoins. Under accrual accounting, a deferred credit is money that is received by a business, but which is not recognized as income until a later date. Ebay. On top of that, there is a variable closing fee which, for BMDV (books, media, DVD, and video) items, is not variable at all, at a fixed $1.35 per item. Statisa. Amazon essentially only allows photos and plain text product descriptions making listings much easier. We used an example of a package selling for $49.99 and measuring 15″x12″x4″. There is only one listing per unique UPC (the bar codes you see on products). eBay offers more customized listings, as well as the ability to have eBay employees put together listings for sellers. eBay offers far more branding opportunities than Amazon. Because eBay needs sellers to list products on its site to generate revenue, the company is far more seller-oriented than Amazon. Amazon by a long shot is easier to manage than eBay.This one isn’t even close. In terms of payment time, this is one area where eBay is much better than Amazon. The one downside is that you have no exposure to your products through Amazon's Sponsored Product Ads., Here's how Amazon calculates end revenue for an item sold by a third-party seller on the platform:, Notably, eBay charges its sellers two different fees: an insertion fee and a final value fee. 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. eBay does have a place in e-commerce and many sellers will find value on it. Which Has Less Seller Competition: eBay or Amazon? Every time I was looking for something Amazon was always a lot more expensive and I couldnt understand why anyone would buy there. Sellers can list their items in 20-30 different categories (depending on whether they are selling as Individuals or as Professionals) and for BMDV sellers, have set shipping rates set and collected by Amazon. Which has Lower Advertising Fees: eBay or Amazon? eBay’s North America revenues are even smaller relative to Amazon’s. eBay allows HTML/CSS in its listings which means sellers are constantly trying to edge on another in sophistication and design of their listings. Which Has Lower Selling Fees: eBay or Amazon? He sold his multi-million dollar ecommerce business in 2016 and create another 7-figure business within 18 months. Finally, there’s a section for Tax Identity Information. We also reference original research from other reputable publishers where appropriate. Along with the Marketplace, sellers can choose to upgrade their listings (better placement in the search results, more pictures, etc.) Dave Bryant has been importing from China for over 10 years and has started numerous product brands. However, Amazon will charge you inbound shipping fees if you use their FBA program and outbound shipping fees as well. Getting paid from Amazon as a seller involves having money deposited directly into your bank account, while eBay still uses PayPal for the most part. Given the different pricing schemes associated with each company, an item that might be cheaply sold on Amazon could demand high fees from eBay. They also severely limit how much branding of your products you can use by severely limiting HTML/CSS use. The Best Customer to Customer Sellers Can Be People Like You, How a Real Estate Agent Differs From a Real Estate Broker, evolved over time to meet the needs of today's consumers, eBay employs a wholesale pricing strategy, how each company works to facilitate sales, Percentage of paid units sold by third-party sellers on Amazon platform as of 4th quarter 2019, Amazon Services Business Solutions Agreement. Investopedia requires writers to use primary sources to support their work. Amazon excels in most product categories but eBay still dominates others.Generally, if you’re selling a new, commodity item, Amazon is your place to be. Amazon has cheaper fees than eBay. On the other hand, a seller might prefer to use eBay in order to customize and personalize their listings. When I sold the brand in 2016, eBay was well below 30% of our revenue. More importantly, as we’ll get to shortly, competition for advertising is also significantly less on eBay so it’s cheaper. Amazon and eBay differ in terms of business models and pricing, services for sellers and ancillary services for buyers. However, it means expensive storage fees and is not a good option for people wanting to fulfill items from a garage or basement. One major downside to Amazon FBA is that it potentially creates sales tax nexus for sellers in dozens of states meaning they have to collect and remit sales tax in those states. While eBay does not want you directing customers off of eBay, you do have a lot more flexibility, including getting access to their email address and being able to somewhat brand your store and listings. "About eBay." So how does eBay make money? The information was very helpful. eBay charges a flat 10% in commissions but does not include payment processing fees in that calculation. Amazon’s revenue was $282 billion in 2018 compared to eBay’s meager $10.75 billion. The cost is that Amazon is a cutthroat marketplace where you will have constant schizophrenia in fear of other sellers sabotaging you and/or Amazon suspending you. Amazon has a multi-step procedure to set up a seller’s account. eBay is less Competitive than Amazon: There are almost certainly less eBay sellers than Amazon and more importantly, advertising costs are cheaper. Whether you list things while at home in your pajamas, have money sent directly to you, or drop packages off in the mail, using eBay or Amazon is easier than the yard sales of yesteryear. This one isn’t even close. "Amazon Services Business Solutions Agreement." i dont remember what it did but i know fees were less by opting in this program. This option doesn't have any selling fees, but referral fees do apply., This plan is tailored for anyone who plans to sell less than 40 items each month. Accessed April 26, 2020. Amazon, by comparison, can be confusing and frustrating to navigate. Sometimes a Seattle seller will be sending their inventory all the way to Florida. With Amazon FBA, sellers ship their items into Amazon and Amazon handles all fulfillment and shipping. When comparing two packages that are exactly the same, Amazon is roughly 20% cheaper, including shipping costs. I had the tv sent to me instead of the supplier who sent it, sure enough, i received a different tv, different upc different everything. Listing on Amazon allows buyers to purchase right from the Amazon website and sellers can even have Amazon fulfill the order if they choose to have it stored at one of the Amazon warehouses. eBay is more fair to sellers than Amazon.Let’s be clear – both eBay and Amazon have reputations for poor service for sellers but Amazon is the hands-down winner for the level of poorness. Amazon typically charges a 15% commission which includes payment processing fees. With the ability to post catchy full-color ads within a listing, it might be more appealing and more likely to result in a sale than Amazon’s neutral listings. Ill stick with Ebay. The company that many, many people used a decade ago has fallen out of favor a bit in recent years. Sample calculations would be helpful to compare the two sites, but with multi-tiered pricing structures and closing fees which vary by item category, item weight, and buyer payment option, any examples could be construed as cherry-picking or biased towards one company or the other. Perhaps the biggest difference between eBay and Amazon is the fact that Amazon has its Fulfilled by Amazon program, more commonly know as FBA. Amazon FBA is a huge boon for MOST sellers as it removes the hassle of shipping. Accessed April 24, 2020. However, the eBay of today has snapped up quite a few companies since it first launched in 1995, including PayPal, Kijiji, and StubHub, and had 180 million active buyers as of the first quarter of 2019. Payment is completed by periodic bank transfers to the seller’s account and sellers are protected by Amazon’s Fraud Protection service. Amazon. Common on Facebook, rare on Craigslist. The greatest difference between eBay and Amazon is the business model under which each company operates. Both eBay and Amazon operate as online shopping sites, providing visitors the ability to browse through available products listed for sale or auction through each company's online storefront. You can see our full summary of other sales channels here.The best channels are: Once you’ve maxed out eBay and Amazon’s potential, the next logical channel is to start selling on your own website (and most people will do this through Shopify). In this article, I’ll review both platforms and reveal some surprising information you may not have expected. In an effort to improve efficiency among sellers, eBay has begun a Valet Service that allows sellers to have their items listed and sold by eBay employees. i would get they email is how i knew, and they never suspended the account. eBay knocks out Amazon with lower advertising costs. If you’re not selling a home related product though, Houzz will be of little use to you. However, the final value fee calculations have been simplified, and these days, eBay is charging a flat final value fee of 10% of the sale price. For Amazon, however, you do not get paid until after the buyer has purchased the item and Amazon has shipped the item to the buyer. eBay pays you Quicker Than Amazon If you want your money quickly, eBay is the clear winner. Ebay. The reality is that Amazon is almost always the better platform for sellers to start selling on. Amazon has a few advantages over eBay. Both eBay and Amazon are buyer-centric. Consignment is an arrangement wherein goods are left in the possession of another party, who sell the goods and take a piece of the profit. Amazon is as close to a ‘set it and forget it’ marketplace as you can get. Ebay.com. The money transfer/payment website is enormously profitable for eBay and makes up almost half of the company’s revenue. Do you think Amazon is the best sales channel for sellers? Amazon offers third-party sellers two different plans based on their prospective selling habits and other key features.. However, Amazon tends to be more ruthless. Neither channel likes you steering customers away from their platform but eBay offers, at the very least, more flexibility for the branding of your items. Amazon is dominant in nearly all product categories where there is existing customer demand and the products are not found through discovery and/or purchased on impulse. Amazon users get paid via a direct deposit to their bank account whereas eBay users (usually) get paid through PayPal. Summary: Pros and Cons of Selling on eBay and Amazon, Other Channels Outside of Amazon and eBay. i may go back someday to ecommerce so its good to know my account is already to go if i do. The biggest advantage of Amazon is the sheer size of the marketplace. Further, there’s a holding period of approximately two weeks on your funds. It might help to understand how each of these companies makes money. While both do offer some level of customized support for customized products, none have the level of support for customization that your own website can provide. eBay’s North America revenues are even smaller relative to Amazon’s. i sold a 50in and about an hour after delivery i am notified they want to return it, red flag, I already knew i was screwed. The electronic commerce (e-commerce) movement is bigger than ever and only shows signs of becoming bigger. In fact, an entire cottage industry of account suspension “specialists” have popped up to help sellers get unsuspended. Under the purview of e-commerce companies, both eBay (EBAY) and Amazon (AMZN) stand out as longstanding, major players in the marketplace. Each month we would generate 100+ emails from this strategy. This process cuts down on the time a seller needs to prepare a listing because the relevant information has already been input by Amazon employees. when i started moving items is when i noticed the bad side, ebay has made me eat losses even when fraud is clear and proof is provided, they don't look at evidence and don't care, they say its part of business. But which major e-commerce site is best? Consignment is an arrangement wherein goods are left in the possession of another party, who sell the goods and take a piece of the profit. If you ever met a seller who seems like a hardass, this is why. The biggest disadvantage of Amazon though is the fact that Amazon owns the customer in every regard. They thought everything should be free and thought nothing of buying something they needed, using it then returning it for a refund when they no longer needed it. By using Investopedia, you accept our. While various sellers may list the same product, there is no need for a customer to place bids or win an auction before purchasing. Once you start selling products, you want to actually get paid for them! Amazon has an even more complex fee structure than eBay. The greatest difference between eBay and Amazon is the business model under which each company operates.