Here we will see about the Is Amazon Better Than eBay?
Thinking about starting a business? But not sure which marketplace to choose? Well, it’s normal to be worried about at the start. As there are now so many marketplaces where you can start your business.
Two platforms have stayed longer than other marketplaces, Amazon and eBay. But how to evaluate which one will be best for you to sell your products?
Both Amazon and eBay are well-established e-commerce platforms. Amazon was launched in July 1994 and eBay was initiated in September 1995.
Well to understand which to choose let’s compare these two with some major factors.
- Consumers trust
- Competitiveness
- Amazon fees vs eBay fees
- International exposure
- Shipment and fulfillment options
- Advertising options
Consumers trust
Amazon has won the hearts of the consumers by its consistency and transparent product experience. Those listing products that contain higher reviews are automatically high ranked and those with bad reviews are ranked down. They give the advantage of a return policy to consumers. Their A to Z guarantee verifies that consumers can get a full refund if they receive a defeated product or if they are dissatisfied with the quality.
In contrast, if we talk about eBay, their return policy is very complicated when it comes to returning the product or for a refund. The seller says no return if they want to and leave no choice for the buyer if they are unsatisfied with the product.
So amazon on this factor wins the hearts of buyers, as they can buy things with the trust that if they will not like the product they have the option to return it.
Competitiveness
Amazon itself competes with the third-party sellers on its platform. This becomes a drawback for the third-party sellers. As when they see that the product is running well, in a few months they also launch the same product and undercut the other sellers. Amazon also has a list of some products that are restricted and sellers have to pay fees to sell.
eBay on the other hand does not do any selling itself and thus does not become the competitor for the sellers or steal their business. It’s purely an eCommerce platform where small sellers can also build their business. As the majority of the items are new, but some items are also used and collectibles.
So on this factor, eBay wins fair and square as it is not giving the hard time to the sellers for building up the business.
International exposure
When one wants to launch its product he would want to launch on a platform that will have more international exposure, right?
eBay has more international scope than amazon. If you want to expand your business internationally then eBay is the one you may choose but if you want to base your US customers then you can go for Amazon.
Amazon fees vs eBay fees
If you see the overall fees which include Insertion fees, Final value fees, Payments processing fees, Optional listing upgrade fees eBay charges less compared with amazon, where amazon has additional charges like individual per item fees, refund administration fees. But eBay does charge extra if you want to make your listing truly competitive.
So in this, you can say it’s a draw between these two.
Shipment and fulfillment options
If we talk about amazon they offer you two options, fulfillment by merchant(FBM) where the seller picks, packs, and ships by himself, and fulfillment by amazon (FBA) where they do all the hustle work. This feature sets amazon apart.
eBay on the other hand does not provide any kind of fulfillment advantage to the seller. They have to pick, pack and ship by themselves or they hire someone to ship the item.
Amazon does charge high fees on FBA but, when you calculate the cost to store, package, and ship your products, the cost becomes the same.
Advertising option
Amazon offers PPC (pay per click) where you pay every time your product gets clicked.
Where eBay offers promoting lists, which gives a boost in the product search. You ‘BID’ an amount to be paid for your fee and your product gets boosted along with the top-ranked products.
So amazon here somehow gets a little more advantage than eBay on advertising option.
Final verdict
Well, amazon gets the trust factor along with the fulfillment option and you get to sell new items for which amazon is famous as well but those which are restricted require extra fees. eBay somehow lacks these. While eBay provides a less competitive marketplace where you can sell easily and make it less hassle to sell your product internationally and not to forget you can sell used items as well. But more importantly, it depends on the seller which product they are selling. Then it gets easier to understand which marketplace to choose.
If you have any other key feature or you prefer one marketplace over the other. Feel free to comment and share with us.
