Amazon Vs eBay: Which Would Work Best for your Business?
Making the transition to or launching a business in the online world is no longer regarded as a wise decision but rather a necessity. The latest global epidemic has hastened the growth of already-expanding e-commerce marketplaces.
This has further combined with the digitalization of practically every aspect of modern life, prompts retailers to consider converting their physical stores to digital ones.
So, besides Amazon vs eBay, what are the best venues for doing business? There are plenty of earnings to be gained with total consumer visits of roughly 7.3 billion every month.
While diversification benefits are undeniable, budget limits in the early stages of an online business force new sellers to choose between selling on Amazon and selling on eBay.
In this article, we’ll compare the two e-commerce (eBay vs Amazon) behemoths based on various characteristics so you can get started selling online right away!
What is Amazon?
Amazon is a global e-commerce company that offers online retail, computer services, consumer electronics, digital content, and other local services such as daily specials and groceries.
Amazon is the leading e-retailer in the United States, according to industry data, with overall revenue from online shops alone hitting 49.9 billion USD in Q3 2021.
E-commerce sales of gadgets and other products account for the majority of the company’s revenue, followed by third-party seller income, maintenance services, and AWS operations. Amazon is now one of the most powerful companies in the world due to its international reach and diversity.
What is eBay?
eBay is a global eCommerce firm that provides C2C online sales services. It was founded in 1995. eBay is known for its auction platform as well as its shopping website.
Moreover, it enables individuals and businesses worldwide to buy and sell a variety of goods and services. eBay’s business includes “Buy it now” shopping services, online classified ads, and online event ticket trading.
In Q3 2021, the eBay marketplace generated around 2.5 billion USD in net revenue, with transaction fees accounting for most of this.
Which should I sell on, Amazon or eBay?
The Amazon business model is effective, and a seller may begin selling items in minutes. Logistics are simplified with the Amazon FBA (Fulfilled by Amazon) option. The products are exposed to a large number of individuals in a short span, which is hard to decipher.
You can make the use of the best free amazon product research tool to explore the right products that would make your business a huge success.
Apart from that, selling Amazon merch at a premium cost and in large quantities is simple. If severe limits aren’t a major concern, Amazon is a better alternative than eBay as long as a vendor continues to make good sales.
Sellers need to obey the guidelines to prevent the Amazon account suspension warning, gain more trust, and expand with the platform’s help.
Who should consider selling on eBay?
The enhanced flexibility for sellers is one of eBay’s most prized features. The seller has entire control over the design of shipping rates, product descriptions, and easy returns.
In addition, the charge is smaller, allowing things to be sold at lower prices. eBay is the greatest alternative for sellers that want complete control over how their products are featured and the flexibility to create their product limits.
Have you considered selling on both Amazon and eBay at the same time?
If you answered yes, you’re on your way to figuring out a multi-channel selling strategy. Amazon Integration and eBay Integration are the finest options when selling on different sales channels to grow your business.
Remember that you will find the best software that helps for eBay and Amazon price comparison. Make the best use of them.
What can I sell on Amazon vs. eBay?
Due to their millions of items for sale, both Amazon and eBay can help you find numerous new and used items, but the sites have various regulations about what you may purchase and who can offer it.
There are approximately 119 million things listed on Amazon, with about 4000 sold per minute. As a result, it looks like Amazon has nearly everything these days. And, for sellers, you can explore the best things to sell on Amazon.
Third-party merchants can offer products in every field, from clothing and accessories to books and toys, without gaining clearance.
Some Amazon items, on the other hand, fall into the restricted categories, which are frequently expensive, delicate in nature, safety-related, rare, or valuable. Creative art, industrial and scientific equipment, as well as food and supplies are examples of these products.
Restricted products may need you to provide more information or confirmation to Amazon to meet specific criteria. Magazine subscriptions, lock-picking tools, and cigarettes, for example, are prohibited from being sold on Amazon.
While most items on Amazon are brand new, third-party merchants also provide used and reconditioned items. However, there are some restrictions on certain list of products.
The top-selling product categories on eBay and Amazon are very similar. Electronics and accessories account for 16.4%, while clothing and accessories account for 13.8%.
However, eBay’s third most popular product, autos, which accounts for 10.5%of total sales, stands out. Three hundred sixty automobiles and trucks are bought on eBay every day using mobile devices.
eBay’s 1.1 billion listings feature 81% brand-new things, despite its reputation as the Internet’s garage sale.
What’s the Difference Between eBay and Amazon for Selling?
The most significant distinction between the two platforms is their respective sales models. Whether the goods are brand new or old, purchasers on Amazon must conform to a fixed-price structure. On eBay, sellers can choose between an auction-style listing and a fixed-price listing comparable to Amazon.
The abundance of discount deals in every area is why anyone would choose eBay over Amazon. This dynamic encourages new sellers to use auction-style listings rather than fixed-price listings.
Buyers bid on products for three, five, seven, or ten days, after which the highest bidder claims the item. This is perfect for sellers who are unsure of their product’s value, are trying to sell one-of-a-kind or antique things, or want to make quick transactions.
Amazon’s fixed-price approach is more suited for sellers who have done their homework on a specific market or niche, know the product’s value, and want to make a certain amount of profit.
When there is a large checklist on hand and selling it over a lengthy period is not an issue, the fixed-price model makes more sense.
Amazon allows third-party merchants to sell things on its platform in some cases, but it still limits the majority of its services to in-house operations.
Is Amazon a Better Place to sell than eBay?
The answer is contingent on your definition of ‘better.’ If ‘better’ means ‘cheaper,’ then the answer is no. The more products sellers list on eBay, you can make money eBay. It favors sellers over buyers and is far more seller-centric than Amazon.
eBay invites sellers to participate in auctions through its shop or classified area. On the other hand, Amazon is buyer-centric, as the Seller Code of Conduct makes it very obvious to all of its amazon suppliers.
What Does It Cost to Sell Something on Amazon?
Sellers can choose between an Individual selling plan and a Professional selling plan when they sign up with Amazon.
In addition to a referral fee that varies by category, the individual selling deal charges sellers $0.99 per item sold. The Professional plan is $39.99 per month plus a referral fee that varies by product type.
There’s no way around Amazon charging each seller a charge, regardless of the amount or size of the things being sold. Before deciding on a selling strategy, third-party sellers must have a clear purpose in mind.
The individual plan is less expensive for people who expect to sell 40 or fewer goods per month. The lack of monthly membership costs is an advantage of joining this plan.
The downside is that you won’t be able to sign up for Amazon Sponsored Ads, which allows you to strategically place your products on different pages to increase visibility and sales. Although this feature is free, the standard referral fee still applies.
The professional plan will be most beneficial to experienced sellers. Seasonal goods sellers should factor in the $39.99 monthly fee, which can add up to $480 per year.
Breakdown of Amazon Fees
It’s crucial to first grasp how the FBA revenue calculator works to understand Amazon’s charge structure better. Fees vary based on the kind of product sold and the fulfillment method used (FBM or FBA).
We chose a random product priced at $29.94 to demonstrate how the calculator works. The Cost column is shown on the right side of the image, and it contains the following information:
- Amazon selling fees: a percentage-based fee that varies by product category and ranges from 6 to 45% of the overall price. The minimum fee limit is $1, yet it is $4.49 in our situation.
- Fulfillment cost: This cost is computed based on the weight and dimensions of the item and only applies to FBA products. It’s $7.32 in the case above.
- Storage cost: This is classified as the cost of storing a single unit in Amazon’s warehouse for a month, as the name implies. It’s $0.43 in this location.
- Landing cost: Finally, the landing cost is divided into two parts: product manufacturing and shipping costs. As you may have noticed, the product’s cost is $0.00 because that information is only available to the seller. You can, however, conduct some market research to determine the average landing cost of the product to estimate potential profits.
A closing charge also applies; however, it only applies to media and book-related items such as videos, video game consoles, computer games, and video game accessories.
Breakdown of eBay Fees
There are two types of fees that eBay charges sellers: insertion fees and final value fees.
- 1. Insertion fees: a one-time fee charged to sellers for listing a product for sale. Each month, eBay generously offers 50 ‘zero-fee’ listings. Anything above that will cost $0.35 per listing and $0.35 per product category in which the item is listed. The insertion fee is charged even if you relist an item, and it is not refundable if the item does not sell.
- 2. Final value fees: eBay charges a final value fee based on the final sale amount for each successful sale. This sum includes shipping and any additional charges added to the item’s price, but it is tax-free.
Be cautious; piling up listing upgrades without keeping track of the fees could lead to a costly mistake. Use the eBay fee calculator to precisely calculate each cost before offering your items for sale to prevent this predicament.
Despite having a more complicated charge structure than Amazon, eBay’s seller costs are still lower. 
Frequently Asked Questions about Amazon vs. eBay
Following we have listed some crucial faqs that will clear your doubts.
Q: What categories of things may I sell on eBay and Amazon?
A: To determine what you can sell on eBay and Amazon, use rational thinking. For example, you cannot deal with illegal items in the place of sale. Moreover, Amazon has a fair policy as well. You may not be able to sell certain items under this policy.
There are similar laws and regulations on eBay, but they are more lenient. It is one reason you can get a range of stuff on eBay compared to Amazon. Aside from that, you can buy used and new items on eBay and Amazon, respectively.
Customers on eBay seek many possibilities, whereas online buyers have their tastes. Furthermore, both these platforms are attempting to improve their product diversity. Amazon charges, on the other hand, are diametrically opposed to eBay fees, especially since eBay may employ both bidding and fixed price methods.
Q: Is it possible to earn more money by selling on eBay or Amazon?
A: What you’re selling determines the amount of money you can make on any online platform.
When dealing with these platforms, you must consider monthly subscription fees and payment processing fees. Your choice will undoubtedly impact your e-commerce business.
If you participate in Amazon’s FBA program, for example, you will be charged a high shipping price. On eBay, this does not happen. As an outcome, you’ll most probably be able to increase your eBay earnings. However, you will be responsible for shipping and customer service in that case.
However, both eBay and Amazon have the potential to be profitable when used properly. You only need to be aware of the subscription costs, sales strategy, shipping costs, the brand’s popularity, closure fees, sales tax, and so on.
Q: Is it easier to sell on eBay or Amazon?
A: Yes, it is easier to sell on eBay than to sell on Amazon. Compared to Amazon, eBay has a simpler set of rules and regulations. It creates an environment where the sales process is simple to manage.
Despite the simplicity, you must consider whether your item will sell on the platform.
Q: Do buyers place more trust in eBay or Amazon sellers?
A: According to data, buyers trust Amazon suppliers more. Amazon has a reputation for selecting only the top seller for each item.
eBay, on the other hand, is attempting to change this perception by developing procedures to protect purchasers from fraudsters and other problems.
However, both sites have third-party retailers. Third-party vendors are not the most trustworthy cases on Amazon and eBay in this scenario.
Explore Asinwiser, an intelligent Amazon software tool for you, to build your career as an Amazon reseller. Click here to find more information.