Nowadays, e-commerce sellers enjoy a great variety of options when it comes to where to sell their products online. There are many platforms on the market that allow you to start selling online and offer the opportunity to present your products to a wider audience, i.e. potential customers.
There are two platforms that have been around longer than others – Amazon and eBay – and it’s these two we’re going to focus on today!
Amazon and eBay have both been around for about a few decades – they are the oldest, largest and busiest online sales channels!
Recent figures show that Amazon receives over 5 billion visits each month, while eBay attracts around 1.7 billion.
Amazon was originally launched in July 1994 under the name of Cadabra, and changed its name to Amazon a year later, while eBay was launched shortly thereafter in September 1995.
eBay – what should you know?
eBay is a global e-commerce company that provides online C2C sales services. eBay mainly focuses on its auction platform and marketplace. It allows people and businesses around the world to buy and sell a wide variety of products and services.
eBay made approximately $ 2.5 billion in net revenues in Q3 2021, most of which came from transaction fees.
Amazon – what should you know?
Amazon is an online marketplace that allows third-party sellers to sell their products on the platform.
According to the latest recent industry data, Amazon is the largest online retailer in the United States, with combined online store revenues reaching $ 49.9 billion in Q3 2021.
What’s the main difference between eBay and Amazon?
Unlike Amazon, eBay only supports third-party sellers. In other words, eBay doesn’t have its own products.
Amazon includes third party sellers, often private label sellers, on top of selling products from their own branded products, which are called Amazon Essentials.
What are the selling models on eBay and Amazon?
As for eBay, when it comes to fulfillment you can either pack and ship your orders yourself, or collaborate with an external fulfillment center.
Amazon offers two options:
- Independent order fulfillment (FBM – Fulfillment by Merchant)
- Fulfillment of orders via Amazon (FBA – Fulfillment by Amazon).
The latter – Amazon FBA – is a revolutionary service that distinguishes Amazon from its competition and allows you to increase the scale of your sales on the platform and expand to new markets.
How much does it cost to sell on eBay and Amazon?
eBay – you must pay the following fees:
Listing fee – this is a fee charged to sellers when an auction is created on eBay,
Final value fee – when a product is sold, eBay charges a percentage based on the final selling price of the item. This includes shipping and handling, but not sales tax.
Amazon – for Amazon, fees vary depending on the product you are selling and the method of its fulfillment – FBA or FBM. You can choose the Individual Plan at 4 PLN (excl. VAT) per each sale, or the Professional Plan, with a cost of 165.91 PLN (excl. VAT) per month. Sales commissions range from 2 to 15% of a product’s final price.
Amazon or eBay – which one to choose?
Now that you’ve become familiar with the fundamental differences between the two platforms and have a better understanding of how they work, it’s time to make a decision. Analyze your needs carefully, and make a well-considered choice.
Amazon or eBay? How about both?
Regardless of what you choose – eBay or Amazon – marketplace is the best place to expand your online sales. The greatest benefit of such platforms is most definitely a vast number of potential customers.
Remember, the larger the website, the greater the chance of selling your goods!
Comparing Amazon and eBay in terms of market size, Amazon remains unsurpassed. In 2021, eBay had 182 million users worldwide, while Amazon had over 200 million Prime members alone!
