Amazon vs eBay Selling (whos top dog?)LAST UPDATED: April 11, 2023 | By Conrad Golly
Are you considering selling products online but can’t decide between Amazon vs eBay selling?
Look no further!
We’ll explore the differences between these two ecommerce giants in terms of fees, customer base, and ease of use.
Find out which platform is right for you so that you can start making those profits today!
TL;DR Amazon vs eBay Selling
- Amazon has a larger customer base and strong support for amazon sellers, but higher fees compared to eBay
- eBay selling fees are lower, but a smaller customer base and mixed reviews on seller support
- Both platforms have their own features and benefits, and the best choice for you will depend on your specific needs and goals as a seller.
Table of Contents
Amazon vs eBay Fees
When selecting which ecommerce platform is the most advantageous for your business, fees are a critical factor to consider.
Amazon charges sellers a range of fees, including a professional seller account fee, referral fees, and per-item fees.
- Professional seller account fee: $39.99/month. This fee includes access to additional features and tools, as well as the option to use Fulfillment by Amazon (FBA) for an additional fee. Individual sellers do not have to pay a monthly fee, but they do have to pay a 99 cent per-item fee as well as referral fees.
- Referral fees: These fees are based on the category of the item being sold and are generally between 6-45% of the sale price.
- Per-item fee: Professional sellers must pay a per-item fee of 99 cents for each item sold. This fee does not apply to individual sellers.
If you’re a professional seller, Amazon’s fees may cost more than eBay.
But don’t worry; the FBA feature can help alleviate some of these expenses by taking care of shipping and order fulfillment for an additional price.
eBay sellers have two main types of fees: insertion fees and a final value fee.
- Insertion fees: These fees are charged for each listing you create on eBay. Insertion fees are free for up to 50 listings per month, and then 30 cents per listing after that.
- Final value fees: These fees are based on the category of the item being sold and are generally between 10-12% of the sale price.
With eBay, you will never have to worry about a monthly subscription fee like what is charged by Amazon.
This makes it the most cost-effective option for those who don’t sell in bulk, especially when selling high-priced items as final value fees can add up quickly.
It’s important to remember that both platforms charge PayPal processing fees on each sale regardless of any other associated costs.
When it comes to fees, eBay is often the more cost-effective option for those who don’t sell a lot of products.
But before picking one platform over the other, you should weigh up both platforms’ fee structures and determine which will provide greater profits in the long run.
Which Marketplace Is More Competitive?
When choosing which platform is the best fit for your ecommerce business, it’s essential to bear in mind the level of competition from other sellers, one of the major distinctions between Amazon and eBay.
eBay can be difficult platform to compete on when compared to Amazon due to the fact that it has 5 times fewer sellers trying to make their way in a market 46 times larger than eBay’s.
With more than 7 million sellers actively selling on Amazon, the website is much more competitive than eBay for those in popular categories.
Due to the sheer amount of big vendors present on this platform, it can be a struggle to differentiate yourself from other merchants.
However, with smart marketing strategies and an eye-catching storefront design, you too can succeed as a seller on Amazon.
What’s more, Amazon’s search algorithm can make it tough for some items to be found by customers, thus making the competition even stiffer.
With the “buy box” being a prime example of giving preference to select sellers; those who don’t meet these qualifications may find themselves at an unfortunate disadvantage.
If you’re looking to sell niche items or products, eBay is your ideal platform; with 25 million active sellers as of 2021, the competitive environment is much lower than Amazon.
However, it’s worth keeping in mind that their smaller customer base could result in fewer potential buyers for your goods.
On the other hand, if you are considering selling popular merchandise then Amazon would be more suitable since competition runs higher on this website.
However, eBay’s smaller customer base and seller pool can mean less competition for some sellers. It’s important to carefully consider the level of competition when choosing a selling platform.
Amazon vs eBay Customer Base
When selecting a platform to list your items, it’s critical to focus on the dimensions and characteristics of its customer base.
The larger the customer pool, the greater chance there is for buyers of your products; however, you should also be mindful that there will likely be a heightened level of rivalry from other sellers.
Amazon Customer Base:
With a staggering 310 million customer accounts, Amazon is the perfect marketplace for retailers who wish to reach an extensive demographic.
From all age groups to different income brackets, this platform provides tremendous potential for sellers of virtually any product or service.
And with an impressive amount of Prime members, these loyal customers are willing to pay a yearly subscription fee in order to get exclusive benefits such as free shipping, increasing their chances of making purchases on the site even more.
Consumer Intelligence Research Partners conducted a study that shows Prime members have an average yearly spending of $1,400 on Amazon while non-Prime members spend only half as much.
With this in mind, it is apparent how lucrative selling on Amazon can be if you focus your efforts towards targeting these Prime customers.
eBay Customer Base:
If you’re looking for a platform with fewer sellers and more targeted customer base, eBay might be your best bet.
Although Amazon has an impressive 182 million active buyers compared to eBay’s relatively smaller number, its users are primarily aged 18-34 which can be great news if that is who you are aiming to reach out too.
Smaller competition could work in your favor as well since there will likely be less other businesses selling the same products or services as yours, giving customers reason enough to choose YOU.
It’s beneficial to recognize that both Amazon and eBay have a widespread presence, connecting customers from every corner of the earth.
This can be an incredible benefit for entrepreneurs who are looking to expand beyond their current market boundaries.
Ultimately, the size and composition of your customer base should weigh heavily when selecting which selling platform is best suited for you.
For those seeking to reach a vast array of consumers, Amazon’s expansive customer base may be the best route.
But if you are specifically targeting young adults, then eBay with its smaller but more youth-oriented audience could prove beneficial.
Amazon vs eBay Ease of Use
While there’s no denying that both Amazon and eBay have highly user-friendly designs, upon closer inspection you will notice some noteworthy variations between them concerning ease of use as well as seller support.
Amazon’s listing process is a breeze for both individual and professional sellers, with the choice to use FBA, making it so that once you make a sale, Amazon will take care of the packing and shipping.
This makes selling on Amazon more effortless than ever before.
Not only does Amazon provide a user-friendly interface, but its merchant account for professional sellers provides an array of tools and resources to help manage one’s business.
Plus, with the Global Store service you can reach customers worldwide – providing your product or services on an international market.
eBay allows greater pricing and categorization versatility in both fixed-price and auction formats.
Unfortunately, it does not provide automated fulfillment choices requiring sellers to package and ship items independently, a hurdle for those avoiding the bother of managing logistics on their own.
eBay has garnered some reviews that are inconsistent when it comes to the quality of their seller support.
While certain retailers have experienced commendable customer service, others had negative experiences.
It is essential to be aware that eBay does offer an internal completion system, eBay Fulfillment, as well as permitting vendors to create and maintain their very own e-store with a minimal monthly fee.
When deciding on a platform, it’s essential to take into account both the convenience and support provided.
Amazon provides simplicity as well as excellent seller support while eBay offers more customizable pricing and listing options.
Before committing, carefully weigh your choices to determine which best fits your needs.
Fulfillment Methods on Amazon vs eBay
Looking for an efficient way to stock, package, and send out products? Amazon and eBay have got you covered.
However, it’s important to be aware of the differences between these two services before making a decision.
Amazon Fulfillment Options:
Amazon offers several fulfillment options for sellers, including:
- Fulfillment by Amazon (FBA): This option allows sellers to store their products in Amazon’s fulfillment centers and have Amazon handle the shipping and handling when an order is placed. FBA is a popular choice for sellers, as it can make the fulfillment process much easier and more efficient.
- Seller-Fulfilled Prime (SFP): This option allows sellers to handle the fulfillment process themselves, but still offer Prime shipping to customers. Sellers must meet certain requirements to qualify for SFP, including high order accuracy and fast shipping speeds.
- Amazon’s Global Store: This service allows international sellers to reach customers in countries around the world, and offers fulfillment options through FBA.
eBay Fulfillment Options:
Unlike Amazon, which offers a convenient automatic fulfillment service called FBA, eBay requires sellers to manually handle the entire fulfillment process.
Fortunately for them, eBay provides its own in-house solution, aptly named ‘eBay Fulfillment’ – that allows sellers to store their products at one of many designated warehouses and have all subsequent activities such as shipping and handling handled by eBay themselves!
With Amazon, you have the wide range of FBA-enabled options that make fulfillment automatic and straightforward.
However, if you prefer to outsource the fulfilment process altogether, eBay’s in-house fulfillment service can be an ideal solution.
Before deciding which platform is right for your business needs, it is essential to consider each one’s respective offerings regarding delivery services carefully.
Which is Better for Making an Established Brand?
When constructing an online business, it is essential to evaluate whether a platform is appropriate for developing a reputable brand.
While both Amazon and eBay provide viable alternatives for this purpose, there are certain critical differences between the two that should be taken into account.
If you’re looking to create a reliable, well-known brand, Amazon is the ideal platform.
With its expansive customer base and unparalleled seller support services, it’s simple to get your products noticed by potential buyers and develop an enthusiastic customer following.
Moreover, Amazon’s fulfillment services like Fulfillment by Amazon (FBA) can help sellers to concentrate on marketing and expanding their brand instead of worrying about shipping and handling.
Establishing a brand on eBay is an advantageous option—especially for businesses in niche categories.
With fewer customers, you can easily stand out from your competition and gain the loyalty of consumers.
To make this endeavor even more successful, sellers should take advantage of eBay’s opportunity to establish their own branded store within the marketplace; this will give them greater control over how their store appears aesthetically.
When it comes to developing a prominent brand, Amazon and eBay are both worthy of consideration.
Nevertheless, you will want to make sure that the platform chosen is in alignment with your objectives and requirements for success.
Amazon vs eBay Revenue
The options for online selling are plentiful, however selecting the right platform is essential if you’re looking to maximize your profits.
Amazon and eBay can both be exceptionally profitable platforms; nonetheless, there are some differences that must be taken into account before making a decisive decision.
Amazon is an ecommerce giant, with a 2021 revenue that reached $386 billion. The company offers limitless product options and services, such as its main platform, Amazon Prime and AWS.
As time passes by, Amazon’s income keeps on rising, meaning sellers have the advantage to gain from this growth through increased customer base and potential for higher profits.
As one of the leading players in ecommerce, eBay has yielded a 2021 revenue of $10.8 billion, which has remained relatively consistent over the past few years despite fiercer competition from companies such as Amazon.
Regardless, it still remains an attractive platform for both buyers and sellers because of its significant global customer base, offering potential earning opportunities to those who sell on it.
Amazon vs eBay Pros and Cons
Before you make the decision of whether to sell on Amazon or eBay, it’s important for you to think carefully about the advantages and disadvantages of each platform.
Pros of Selling on Amazon:
- Large customer base: With 310 million active customer accounts, Amazon has a massive customer base that can provide a wide range of potential buyers for your products.
- Strong seller support: Amazon has a reputation for strong support for sellers, including a merchant account for professional sellers and the Global Store service for international sellers.
- Automatic fulfillment options with FBA: Fulfillment by Amazon (FBA) allows sellers to take advantage of Amazon’s shipping and handling services, making the process much easier.
- Option to sell on Amazon’s global store: The Global Store service allows sellers to reach customers in countries around the world.
Cons of Selling on Amazon:
- Higher fees compared to eBay: Amazon charges sellers a range of fees, including a professional seller account fee, referral fees, and per-item fees. These fees can add up, especially for professional sellers who must pay the monthly subscription fee and per-item fee.
- Strong competition from other sellers, including those using FBA: With so many sellers on the platform, it can be difficult to stand out from the competition.
- Potential for your products to get lost in the search results: Amazon’s search algorithm can make it difficult for some products to be seen by potential buyers.
- The “buy box” feature, which gives preferential treatment to certain sellers, can be difficult to win: Winning the buy box can increase sales, but it can be difficult for some sellers to qualify.
Pros of Selling on eBay:
- Lower fees compared to Amazon: eBay charges sellers two main types of fees: insertion fees and final value fees. These fees are generally lower compared to Amazon’s fees.
- More flexibility in terms of pricing and listing options: eBay offers both fixed price and auction-style listings, giving sellers more flexibility in how they price and list their products.
- Option to set up your own eBay Store: Sellers can create their own branded eBay Store with a monthly subscription fee.
- Potential for higher profit margins due to lower fees: eBay’s lower fees can mean higher profit margins for sellers.
Cons of Selling on eBay:
- Smaller customer base compared to Amazon: With 182 million active buyers, eBay has a smaller customer base compared to Amazon.
- No automatic fulfillment options: Sellers must handle their own shipping and fulfillment, which can be a hassle.
- Mixed reviews on seller support: Some sellers have had positive experiences with eBay’s customer service, while others have had negative experiences.
- Potential for more work and hassle, as sellers must handle their own shipping and fulfillment: Without the option for automatic fulfillment, sellers must handle all aspects of shipping and handling themselves.
Both Amazon and eBay have their own pros and cons, and the best choice for you will depend on your specific needs and goals as a seller.
Which is Right for You?
Deciding between Amazon and eBay ultimately depends on your individual requirements and objectives as a seller.
For those just beginning in the world of e-commerce, it may be worth considering eBay because of its lower fees and more adaptable structure.
That being said, keep in mind that shipping responsibilities must be managed independently by you; plus there is likely to be greater rivalry from other vendors.
If you’re searching for a reliable platform with an extensive customer base and excellent seller support, Amazon may be your best bet.
However keep in mind that there are higher selling fees and more competitive sellers, including those utilizing FBA services.
Evaluating the possibility of selling through multiple outlets, such as your own website or online store in addition to other platforms, is a savvy decision.
Doing so offers you greater exposure and an opportunity to assess which platform yields the best results for your products.
The Bottom Line amazon vs ebay selling
Whether you’re a seller looking to make an online presence, Amazon and eBay are the frontrunners.
While Amazon offers extensive customer service and access to larger volumes of customers, it also charges higher fees for these benefits.
Conversely, eBay’s fee structure is more attractive but comes with much smaller consumer reach as well as varied reviews on its seller support system.
Ultimately which option works best for you will depend entirely on your individual requirements and aspirations.
If you’re a novice seller, eBay is ideal since it offers lower fees and flexible pricing and listing options.
However, if you are seeking to establish yourself as an experienced seller with access to more customers paired with reliable vendor support, Amazon could be the preferred platform for your business.
Additionally, selling across multiple platforms including eBay and Amazon in tandem with your own website or online store can help extend your reach while also allowing experimentation of which marketplace provides optimal results for each product category.
When assessing the ideal platform for your online store, fees, customers and intuitively must be carefully taken into account.
Both Amazon and eBay have merits as well as drawbacks; ultimately, it’s down to you to decide which suits your individual requirements best.
Your aims will inevitably shape the outcome of this crucial decision-making process in determining success or failure!