eBay vs. Amazon: An Overview
Whether you’re listing problems at home in your pajamas, receiving money or dropping off packages in the mail, using eBay or Amazon is easier than the meter sales of yesteryear. But which main e-commerce website is the best? It would be helpful to know how each of these companies makes money.
Key points to remember
- eBay has simplified promotion on its website over time by implementing a less complicated construct for calculating the price of goods offered.
- Amazon’s price building is a bit more difficult, with varying return and closing costs, the latter being mostly based on the weight of the product.
- Retailing on Amazon allows consumers to buy directly from Amazon’s website, and sellers can even have Amazon fulfill the order if they choose to store it in one of Amazon’s many warehouses.
- eBay offers additional bespoke listings, as well as the ability for eBay staff to create group listings for sellers.
- Getting paid by Amazon as a seller involves depositing money directly into your checking account, while eBay still uses PayPal for the most part. Plus, customers pay you directly.
eBay has acquired quite a few companies since its launch in 1995, including PayPal, Gumtree and StubHub, and had 138 million active users in Q3 2022.
So how does eBay make money? The first, and most important, is PayPal. PayPal was spun off from eBay in 2017. The Cash Switch/Cost website is hugely attractive to eBay and accounts for nearly half of the company’s revenue. PayPal fees can simply cut down to a vendor’s margins with a price of 2.9% + $0.30 for each sale. However, let’s pay attention to the part of eBay that is akin to Amazon: the marketplace. Again at its peak, eBay Market would cost customers an insertion price based on the item’s initial bid and a remaining price when the item is sold. At the moment, every seller on eBay will receive a certain number of free listings.
For example, you probably have an eBay retailer, according to the website you can get additional zero insertion price listings every thirty days unlike those sellers who shouldn’t have an eBay retailer subscription. Nevertheless, eBay still charges a remaining price. However, the final price calculations have been simplified and lately eBay charges a remaining fixed price of 10% of the sale value (for many items).
For energy sellers, eBay offers subscription packages that provide sellers with a number of free listings for a monthly price, a lower insertion price for sellers who exceed their allotment, and a less simplified but less high ultimate value fee. With the marketplace, sellers can improve their listings (higher placement in search results, additional images, etc.) or list their items for a firm and fast price. Secure listings are subject to the same fees as public sale listings.
Amazon has a much more complicated price construction than eBay. The company offers two choices for sellers: they will both register as individuals or as professionals. For individuals, Amazon costs $0.99 per item as advertised, with a referral price that varies from 8% to 45% depending on the retail category of the item.
On top of that, there is a variable closing price, which for BMDV items (books, media, DVDs, and video) is simply not variable in any respect, at $1.80 per item. Different commodities are charged at a varying closing price calculated based on the weight of the commodity.
Sellers can list their items in 20-30 different categories (depending on whether or not they are promoting as individuals or as professionals), and for BMDV sellers, they have set delivery charges set and collected by Amazon. These expedited shipping costs are great for consumers who know that when buying BMDV items on Amazon, the total price can be simply calculated without trying to find some sellers’ shipping costs.
Amazon allows those promotional products already listed on the site to list their product simply by entering the product’s UPC or SKU number. This process reduces the time a supplier wants to organize an inventory because the associated data has already been entered by Amazon staff. The cost is secured by periodic transfers from the financial institution to the seller’s account, and sellers are protected by Amazon’s fraud security service.
Each company provides security service providers in addition to the ability to contact a buyer directly in the event of a problem. Each company also offers tutorials and buyer help for newbie sellers.
eBay, the only public auction site, used to have difficult and expensive promotion fees. Since the rationalization of their charges, the construction seems to be easy and simple to know. Amazon, by comparison, could be complicated and irritating to navigate. Pattern calculations can be helpful in matching the 2 websites. However, with tiered pricing structures and closing fees, which vary based on merchandise category, merchandise weight and buyer’s choice of cost, any example can very well be construed as a cherry selection or biased in favor of one company or vice versa.
Amazon has only a few advantages over eBay. For starters, the positioning does a great job of making the buyer feel like they’re buying directly from Amazon. Seller items are listed next to Amazon items. Purchases can be made using “1-click shopping”, unlike eBay and PayPal, consumers can pay for their purchases without leaving Amazon’s website. With Achievement by Amazon, sellers can even have their items checked in and shipped directly from Amazon’s warehouses.
Again, a seller may wish to use eBay to personalize and personalize their listings. With the ability to submit eye-catching, full-color ads in inventory, it’s likely to be more interesting and more likely to lead to a sale than Amazon’s unbiased listings.
How can we get paid
Amazon has a multi-step process for setting up a supplier’s account. Customers are regularly signed up for a Skilled and Achievement by Amazon account. Account data is entered primarily based on a person’s current account (if any). Finally, there is a bit for tax identification data.
For eBay sellers, the method is simple: open an eBay account (or use a current account) and start promoting. Getting money directly into a checking account is a bit more difficult. Amazon customers receive commission via direct deposit to their checking account, while eBay customers (often) receive commission via PayPal.
Advantages and disadvantages of promoting on eBay
Promoting on eBay can be a simple method of making money off of things you no longer use (cherished toys or collectibles in the box, for example) or a method of promoting what you make (costumes for kids). ‘Halloween and Christmas decorations). Most consumers and sellers are familiar with eBay, and its search engine makes it easy to find what you want on its platform.
There are, however, disadvantages to using eBay compared to other online promotion platforms. First, you’ll have to pay eBay fees for using their platform, you have restricted management of how items are offered, and you may end up with cost points if customers don’t pay you.
It is important to pay charges, and building prices can change over time.
It is important to compete with related sellers.
You may run the risk of not being paid in your items, if a buyer does not pay.
Advantages and disadvantages of promoting on Amazon
Amazon is a giant, and it reaches tens of millions of potential customers, which provides online sellers with the potential for excessive site visitors. Amazon is a widely known online shopping platform, and when you learn how to label your products, they may appear in recommended lists.
Amazon can even store your merchandise in its huge warehouses if you are running a small business through Amazon. This is usually a vital advantage over using your storage or paying for storage of your merchandise. Amazon Prime consumers generally tend to make the majority of their purchases on Amazon, and if you can reach those viewers, you’ll likely generate additional sales.
Like eBay, fees are an inconvenience, you don’t get any interaction with your customers (unlike eBay), and your products and small business are wrapped inside Amazon, so you don’t have the ability to develop a model.
Amazon reaches tens of millions of potential customers.
Amazon is loved and trusted by online shoppers.
Your products (when tagged) may appear under Amazon’s recommended products.
What is Safer, Amazon or eBay?
E-commerce is generally a dangerous business, although generally, Amazon might have additional safeguards in place because you don’t have to work with your customers. Amazon manages the funds to the seller. Nevertheless, Amazon and eBay have many safeguards in place to protect their sellers and customers.
Are eBay or Amazon bigger?
Amazon has more potential customers than eBay and offers more products than eBay.
How many sellers are there on eBay compared to Amazon?
There are approximately 7 million US sellers on eBay. Amazon has around 6 million international sellers.
How many people shop on eBay compared to Amazon?
There are approximately 182 million international eBay customers. Amazon has over 300 million dynamic customers worldwide.
The back line
Whether promoting through eBay or Amazon, the secret is analysis. Given the totally different pricing systems associated with each company, an item that might be offered at a low price on Amazon could incur excessive fees from eBay. However, the greater value may very well be justified by the acquired customer support and a number of viewers reached. Each website offers pros and cons for sellers, but if you want to create a template, eBay might also be a better choice. If you need in-built storage in your merchandise, Amazon would be the way to go.