Selling on Amazon vs eBay: How Are They Different?
Technological advancement has made setting an eCommerce business more manageable than before, especially with the availability of so many dropshipping platforms.
Nonetheless, even with so many choices, there are two giant platforms that everyone seems to be eyeing, that is Amazon and eBay. The two platforms have surpassed the test of time, making them more trustworthy than the upcoming sites.
The main challenge, however, comes in determining the best option between selling on Amazon vs eBay. This guide explains how they are different to help you make a sound decision.
eBay vs Amazon
The main difference between eBay and Amazon is that the former is a retail marketplace and auction site, while the latter is purely a retail marketplace. You can include the bidding option on eBay, allowing the highest bidder to grab the specific items.
Moreover, Amazon focuses more on the U.S. audience, as opposed to eBay, which focuses on the international market.
How to Sell on eBay
Although eBay is mostly associated with the sale of old or used goods, you will be surprised to know that over 80% of items sold on the site are new.
eBay allows you to create a listing for all the items you wish to sell after successfully creating an account and getting approval. You are then required to pay a certain fee to eBay so your products can keep running on the listing.
eBay has no restrictions on the kind of goods you can list on the site, and that is a significant upside compared to Amazon.
eBay Shipping Costs
Sellers are liable for the delivery of products. This means that as a seller, it is up to you to establish the fastest and most reliable shipping method. You also get to set the cost depending on the product type, weight, and volume.
The best part is that sellers who ensure fast delivery are given incentives for motivation. Be sure to check out reliable shipping solutions such as a postage meter to facilitate convenience for you and the buyer.
How to Sell on Amazon
Amazon seems to favor large brands and those dealing with brand new products. The platform provides resellers or third party sellers a chance to sell their products on the site while earning a commission for every good.
This strategy is referred to as Fulfillment by Amazon (FBA). It creates an opportunity for individuals who wish to run businesses but lack the resources.
With FBA, anyone can create an account and start selling items on the marketplace. Other ways to make money on this platform include Amazon affiliates, handmade, and merch by Amazon. Nonetheless, Fulfillment by Amazon is the most common and life-changing option.
Besides the resellers, Amazon offers brand owners an opportunity to sell their products on the platform under a private label.
Amazon Shipping Costs
Amazon shipping is categorized into two. Those operating under FBA are required to send goods to the Amazon warehouse, and they will be shipped from there.
The shipping cost will mainly depend on the number of items, volume of all products in the cart, type of products, and weight. Amazon calculates the total shipping cost by adding the flat per shipment cost and the cost per item.
The brand owners, on the other hand, ship products directly to the consumers. The buyers can select the ideal shipping method based on cost, convenience, and distance.
Selling on Amazon vs eBay
The best choice between selling on Amazon vs eBay will depend on your specific needs. Both sites have high traffic. eBay is the best if you deal with collectibles and if you want to handle your products’ storage and shipping.
Amazon, on the other hand, is the best if you mainly deal with new products, you are not after brand identity, and you do not wish to take care of products’ storage and shipping.
Want to read more about eCommerce sites? Check out our other posts on the website.