One of the biggest hurdles that a merchant faces is in choosing the platform that they will sell on. eBay and Amazon are the two main options but, even just deciding between them can seem difficult.
By and large, more businesses benefit from Amazon but that is not the case for everyone. Let’s go over some of the differences between the two platforms so you can make an informed decision for yourself!
Shipping and Fulfillment
As of now, there is no fulfillment or managed delivery service available for eBay. This is despite a notice that eBay made to the contrary back in 2019 to institute the feature in 2020. Perhaps due to the pandemic, they seem to have scrapped this dream option and maintained the course as normal.
By contrast, Fulfillment By Amazon (FBA) offers robust storage, shipping, and fulfillment opportunities for merchants. The inner logistical structure of Amazon enables small businesses and solopreneurs to offer great incentives. Some examples include same-day shipping, delivery discounts, and up to unlimited storage for inventory.
Amazon also allows fulfillment from FBA to outside sales channels. That means that you can utilize their tools and logistical aptitude across other websites (including eBay, by the way!)
Fees and Required Subscriptions
Another area where the two differ is in their fee structures and the amounts they charge. Let’s take a look at the different amounts of money you can expect to spend on each platform.
eBay
eBay sellers can expect an insertion fee for posting their listing starting at $.35 per post. In addition to this, eBay charges a percentage based on the final value the items sell at. This can range from between 5 -15 percent.
Merchants without a store or that are just starting a store on eBay can expect to post up to 250 listings without this fee, however.
Amazon
Individual plans on Amazon charge a flat rate of $.99 per sale. Professional plans start at a $39.99 flat rate regardless of total sales. You can also expect a referral fee in the range of 8-15% of your sale.
Sellers who decide to utilize FBA will have an additional fee for that subscription as well.
Ultimately the right price depends on each business but, for anyone selling significant amounts of product, the Amazon program is usually at a better price.
Market Size
Perhaps the most important factor in deciding between these platforms is the size of the market. After all, what good is spending money on a platform to sell your goods on if there’s nobody actually using it?
In the case of these two giants, both offer a substantial audience. According to stats from 2021, these are the two most popular online marketplaces. They are far from equal, however.
While eBay is second behind Amazon, it’s by a factor of a little more than ⅓ of the audience. So, while eBay may consider itself a top contender, the two are still not quite in the same league.
What this looks like in terms of numbers is around 2b visits from US IP addresses each month. eBay sits at nearly 689m and the nearest competitor (Walmart) is at 389m.
Advertising
Amazon and eBay both offer advertising options but they handle them very differently. Let’s take a look at how Amazon and eBay both go about this feature.
Amazon
With Amazon’s advertising options, users can operate on a “pay-per-click” (PPC) basis. These types of campaigns charge you a fee for each person that clicks on your ad. With this option, the benefit is that you will always only pay for the people who actually click on your ad.
These ads show up as banners, promoted products, and in a few other places on Amazon.
eBay
With eBay, advertising happens as a promoted listing. That means that sellers are only sold for sales that convert on their page.
“Wait a minute, why wouldn’t I want to just pay for sales and not for simple clicks?” Well, eBay determines when a sale is the result of an ad by checking if the user interacted with the ad in the last month.
Pricing for eBay’s promoted products is usually a percentage of the sale price. While vendors can bid as low as 1 percent on their offers, at least 10% is the norm. The higher your percentage, the more likely Amazon is to serve the ad.
Anata is Here to Help!
With all the factors, Amazon certainly seems to take the lead as a better platform for most. That’ isn’t the case for everyone though! What do you think? Drop us a note in the comments on what platform you enjoy and what you think of Amazon!
Want help managing your Amazon account? Reach out through our website and start a conversation!
