Who will prevail in the battle between eBay vs Amazon? This one is difficult! eBay or Amazon are popular online retailers with a solid reputation. Both of them are among the most popular online retailers worldwide, and their total annual revenue from millions of users is in the billions. Is it any surprise, therefore, that both are appealing venues for sellers, novice and seasoned alike?
The global retail sales market for e-commerce will grow to reach $6.3 trillion in 2023, indicating its continued growth. The e-commerce industry has grown astronomically in recent years, particularly during the pandemic. To meet consumer demands, many established merchants had to learn how to integrate their operations into online markets and purchasing platforms.
Continue reading and exploring more to learn which is a better choice for you in 2024, Amazon or eBay.
Table of Contents
What is eBay?
Since its founding in 1995, eBay has maintained an open marketplace where anybody may sell almost anything. Consider it as a virtual garage sale. For example, it’s the finest location to find vintage vinyl records.
Thus, eBay is most appropriate for small enterprises, startups, collectors, and sole proprietors. eBay’s auction method helps sellers who offer rare or historical goods, and it also allows entrepreneurs to test new products and determine market demand. eBay gives merchants more control over pricing and facilitates customized interactions between consumers and sellers.
Also Read: Amazon Ecommerce: Strategies For The Modern Seller
Some users of eBay’s marketplace face an insertion fee depending on the item’s beginning bid to post and a fee for the final cost when the item has been sold. The marketplace allows sellers to offer products for sale or auction. Therefore, selling on eBay vs Amazon is a necessary point to discuss to better know where you can start your e-commerce journey.
All eBay sellers now receive many free listings before these insertion costs take effect. For instance, sellers who subscribe to an eBay shop will receive a more significant number of fee-free listings each month than those who do not. However, all sellers on eBay are still subject to a final value fee. In addition to $0.30 for each order, the fluctuating final value charge is determined by the item type and selling amount.
What is Amazon?
Comparing Amazon to eBay, the fee schedule is much more intricate. Sellers have two choices from the company: they can list as Professionals or as Private Individuals. Amazon charges $0.99 for each item that an individual lists, plus a referral fee that varies according to the listing category of the item.
Additionally, there is a variable closure charge that is fixed at $1.80 per item for BMDV (books, media, DVDs, and videos) products. A variable closure fee according to the item’s weight is applied to other goods. Check out our best and most affordable Amazon Cloud Hosting!
Its broad client base and array of services for sellers make it a desirable choice for merchants and companies. Thanks to FBA—Amazon fulfillment—the platform allows for enormous inventory and enables third-party merchants to grow without handling logistics. However, Amazon is a more progressive and intricate platform than eBay.
Because of its focus on Prime shipping, Amazon appeals to vendors that can fulfill its fast and dependable shipping standards. Additionally, increasing visibility for prime-eligible goods increases sales for Amazon’s best sellers.
eBay vs Amazon: Key Differences!
Goods from individual vendors or companies are posted using either a fixed-price or auction structure, so the good news is that you won’t ever have to compete with eBay as they only act as a marketplace!
Along with selling goods from their line, Amazon Essentials also features third-party merchants or private label retailers with whom you would have to compete. Here are the critical differences between eBay vs Amazon:
Competition
Not always! eBay is marginally less competitive in this regard than Amazon, even though Amazon has its brand, whereas eBay does not. It is inevitable to face competition on both platforms while operating a business.
Everywhere you sell, there will always be vendors who will charge more and base their sales on quality rather than quantity, while others will offer lower prices to draw customers and sell in bulk.
Also Read: Digital Commerce: Maximizing Sales and Customer Engagement
Selling Used Products
When it comes to buying used things, customers choose eBay over Amazon, even though both sites allow you to purchase used goods. Additionally, its auction concept works well for selling secondhand goods, allowing customers to buy them for affordable costs.
The sale of secondhand books is the lone valid exception. Given that it started as an online bookshop, it is natural that Amazon is generally the superior platform for sellers of used books.
Even while eBay has a reputation for being the place to purchase and sell unusual and used goods, around 80% of its inventory is brand-new, giving you another chance to reach more customers if you offer your brand of goods on Amazon.
However, the majority of customers head to Amazon when they’re searching for anything brand-new or in perfect shape. When searching for new items, 63% of buyers turn to Amazon as their search engine. Now we will discuss the eBay and Amazon price comparison. It is the best difference in our eBay vs Amazon comparison.
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Pricing
You can choose to pay a monthly fixed charge or fees for each sale on Amazon. The Individual Plan and the Pro Plan are their two primary price options.
Individual plans have no monthly subscription costs, and sellers remain free to join. Sellers would, however, be required to pay $0.99 per product in addition to extra selling costs for each sold item. The ideal customers for this plan are those who sell fewer than 40 goods each month.
In addition to offering volume listings, customizable shipping costs, and access to sophisticated selling tools, the Professional Plan includes a monthly fixed membership charge of $39.99. The $0.99 per item charge is waived with this plan, but other selling costs apply.
eBay charges listing costs, final value fees, and any extra enhancements the seller may add, such as a subtitle to a listing, as part of its price system.
eBay takes between 10% and 15% of the final sale price as listing fees. Concerns regarding third-party processing costs are unfounded. A portion of the entire sale price is deducted as the charge.
The first 250 listings each month are free of charge; after that, each listing is subject to an insertion cost of $0.35. Nevertheless, if you own an entry-level or premium eBay store, they provide a free insertion fee choice.
Also Read: E Commerce Management: Revolutionize Your Business
Audience
The next main difference in our eBay vs Amazon comparison is its audience. As one might anticipate, the audiences on eBay and Amazon are different. While there is no doubting the enormous reach of both eBay and Amazon, it is essential to note that each site caters to a distinct demographic!
Both are well-known around the world.
eBay has 23 global websites, whereas Amazon has 21 markets globally. Both see enormous volumes of traffic. Every month, about 2 billion people visit Amazon worldwide. This is equivalent to almost 24 billion visits in a year.
eBay has approximately 138 million active buyers and nearly 2 billion daily transactions as of the second quarter of 2022. However, more than half of eBay’s yearly sales income originates from its 60 million purchasers outside of the US, distinguishing eBay from Amazon regarding worldwide reach.
Nonetheless, Amazon customers tend to be affluent in terms of demographics. According to research, the typical Amazon customer ranges from 45 to 54 years old, is married, has kids, and has completed college.
This may surprise you, but 43% of eBay users are female, and 57% of users are male. 32% of them are in the 35 to 49 age bracket, which is the biggest group. These numbers, however, are meaningless if you do not understand your consumer profile!
By figuring this out, you’ll be able to tell which marketplace your audience uses most frequently and whether or not they are currently engaged in these markets. It’s also intriguing to note that specific customers do exhibit platform loyalty!
Company Structure
Amazon is an online merchant that offers goods to customers directly. eBay is an online marketplace for auctions where vendors may either post their goods for consumer bids or sell them for a set price.
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Making Money
The next major and most important difference in our eBay vs Amazon comparison are about making money from these platforms. You will profit £3.00 from each sale if you sell a product on eBay for a price of £10, and the profit percentage is 30%. Selling in bulk will be necessary if you want to profitably from this one product.
If you decide to post on eBay and hold an auction, you will also be at the mercy of the buyers and will not receive the £10 price you had hoped for. However, you can end up paying more than £10! Not on Amazon, though!
eBay typically charges a 10% selling fee (the exact amount varies by category); however, this doesn’t include PayPal processing costs. These usually amount to an extra 2.9% + 20p.
Typically, Amazon charges a 15% commission, which also covers the cost of payment processing. However, you must pay extra costs if you use their FBA service.
The problem is that your listing price, which will dictate your earnings, needs to account for a variety of elements, such as:
The caliber of your offering. If you ensure your listings convey that your product is superior to those of your rivals and is of a higher caliber, you may be able to charge a more excellent price and meet that price. For that reason, it is important to understand which platform is best for making money in the eBay vs Amazon comparison.
Buying Experience
Amazon’s user-friendliness is one of its finest qualities, particularly in the shopping experience. Their one-click checkout feature makes it incredibly easy for customers to complete a purchase. Additionally, returns and refunds are handled.
Regrettably, eBay has a lengthy history of providing a disorganized shopping experience. In addition to waiting for the auction to end (if it’s not a permanent listing), making a payment requires going to the PayPal website. Many customers find this frustrating while making a purchase.
Product Listing
eBay is more straightforward and faster when displaying your things, selling them, and being paid. The money from eBay purchasers will automatically go into your online payment method PayPal account when your goods sell, where you may manually withdraw the funds as needed. Listings can be completed in a matter of minutes.
Amazon also admits payments on your behalf, but it retains them for 14 days before sending the money straight to your bank account. The listing procedure is still simple but takes a while. Your product will also regulate how easy it is to sell!
Sellers might post cheaper copies of things that might sell for low margins but in large numbers alongside used, rare, or unusual items on eBay. Therefore, selling on eBay vs Amazon is not as easy as it looks.
The main distinction is that Amazon has the extra benefit of their Fulfillment by Amazon (FBA) service, which relieves you of the burden of handling storage, packing, and shipping, saving you significant time and work. Of course, there are other costs.
Conclusion
Selling on eBay vs Amazon is not a piece of cake. Because of the higher competition, it is tough to choose where to sell. Both Amazon or eBay are some of the best-selling platforms in 2024.
Regretfully, there isn’t a clear winner!
eBay triumphs for competition, reduced costs, loyalty, and fewer limits, while Amazon receives high marks for trust, devoted consumers, lower fees, branding options, and fulfillment service! It’s a fierce war, and in the end, every marketplace has specific benefits and drawbacks of its own.
But you shouldn’t just stick to one or the other. Don’t let the fact that Amazon seems like a better fit for your items prevent you from selling on eBay. Comment below your queries if you are interested in selling on eBay or Amazon. Our e-commerce experts will assist you in any manner.
FAQs (Frequently Asked Questions)
Q#1 Is It Better To Buy From Amazon Or eBay?
Although e-commerce is a dangerous industry, Amazon could have more robust security measures in place since it eliminates the need for client interaction. Amazon is in charge of paying the vendor. Nonetheless, several security measures are in place on both eBay and Amazon for the sake of both its buyers and merchants.
Q#2 Who Has More Users eBay Or Amazon?
eBay retains 167 million monthly users, whereas Amazon has over 300 million monthly visitors. These two marketplace websites are beneficial for expanding a business’s reach and generating conversions for companies such as yours. Businesses have a tremendous potential to develop with the help of Amazon and eBay.
Q#3 Why Do People Prefer eBay Over Amazon?
When it comes to buying used things, customers choose eBay over Amazon despite both sites allowing you to purchase used goods. Additionally, its auction concept works well for selling secondhand goods, allowing customers to buy them for affordable costs.