Newbie online sellers usually research information about selling on Amazon vs eBay before choosing which marketplace to venture into. The typical search terms used when researching for information are “eBay vs Amazon” or “Amazon vs eBay.”
Small business owners and newbie sellers often consider Amazon and eBay platforms for selling their products due to their large customer bases and widespread popularity. These marketplaces can be particularly appealing to those looking to move their traditional business to an eCommerce model.
Before deciding to sell on either Amazon or eBay, there are a few key factors that you should consider. Discussed in this article are some essential things to keep in mind.
What Is the Difference Between Amazon and eBay?
Entering the eCommerce industry as a seller can be a great way to reach a large customer base and grow your business. However, it is important to research the market thoroughly and plan your business strategy before diving in as competition can be fierce, especially on platforms like eBay and Amazon.
If you’re new to online selling or transitioning from a traditional business model, it’s crucial to understand that while Amazon and eBay are major eCommerce platforms, they operate differently. Knowing these differences will help you choose the platform that best aligns with your business needs.
Selling on Amazon vs eBay: Business Model Difference
There is a significant difference in how eBay and Amazon operate their businesses. eBay is a platform that connects buyers and sellers, acting as a marketplace and auction house. It allows third parties to list and sell their products to buyers.
Amazon, on the other hand, is more directly involved in the sale of goods. It often sells its own products in addition to hosting third-party sellers on its platforms, such as Amazon FBA and FBM sellers. This dual role positions Amazon as a marketplace and a direct eCommerce retailer.
Selling on Amazon vs eBay: Target Customer Difference
Amazon’s large and global customer base, with 25 to 34 years old as its largest age group, comprises nearly 30% of its shoppers. Amazon’s convenient shipping services attract customers from across the globe, with almost 80% of Amazon users mentioning fast and free shipping as their primary reason for purchasing.
Conversely, eBay’s target market primarily consists of collectors of rare and specific items and shoppers interested in pre-owned products. Recent data suggests that younger generations of sellers and buyers, particularly Gen Z, are driving the trend towards recommerce.
This trend is not just a result of the pandemic but a growing preference for pre-loved items. The increasing demand for secondhand goods creates economic opportunities and contributes to a more sustainable future.
The table below highlights the key differences between Amazon customers and eBay shoppers, focusing on their expectations and characteristics. Understanding these distinctions can help sellers strategically tailor their approaches to effectively meet the unique needs of each platform’s audience.
| Category | Amazon Customers | eBay Customers |
| Shopping Intent | High purchase intent, focused on convenience and efficiency as evidenced by the performance of Amazon FBA | Majority of eBay customers are price-oriented, and they are willing to spend time for the best deal |
| Shopping Behavior | Amazon customers prefer streamlined purchases, resulting in quick purchases. | eBay users often seek used and rare items and are more likely to participate in auctions. |
| Product Expectations | Customers mainly expect that listings on Amazon are new, branded products, professionally packaged. | eBay customers expect that listings are typically used, refurbished, or unique items, and they can vary widely. |
| Shipping & Service | Amazon shoppers expect Amazon’s fast shipping through Prime, easy returns, and guaranteed quality service. | eBay provides a range of shipping times, and the quality of shipping largely depends on the seller’s ratings. |
| Customer Loyalty | Amazon’s dependable customer service and the advantages of Prime membership contribute to higher levels of customer loyalty. | eBay customers tend to be loyal to specific sellers, particularly when it comes to unique or niche items. |
| Price Sensitivity | Amazon shoppers are less sensitive to price changes, willing to pay more for convenience. | eBay shoppers are very price-sensitive, leading them to prefer bidding opportunities. |
| Engagement with Sellers | Amazon customers interact minimally with Amazon sellers and depend on reviews, ratings, and FBA for trust. | eBay users frequently communicate directly, especially for auctions and used items. Buyers often ask about product details and negotiate prices. |
| Shopping Experience | Amazon provides a more efficient and automated shopping experience for its users. | eBay is more interactive, typically requiring users to bid or negotiate prices. |
Selling on Amazon vs eBay: Fulfillment Method Difference
On eBay, sellers must handle all aspects of fulfilling orders themselves or hire a third-party order fulfillment service to do it for them. On Amazon, sellers can either fulfill orders themselves (Fulfillment by Merchant) or have Amazon fulfill orders for them (Fulfillment by Amazon).
Amazon FBA allows sellers to delegate the storing, picking, packing, product shipping, and handling of returns and refunds to Amazon. Although FBA saves sellers precious time, there will be additional fees for the service.
Selling on Amazon vs eBay: Payment Method Difference
eBay generally prefers payment through PayPal, but it also accepts all major credit and debit cards, wire transfers, and, in some regions, cash payments and cash on delivery.
Personal checks, cashier’s checks, and money orders can also be used as payment methods on eBay, but many sellers prefer to wait for these types of payments to clear before sending out the purchased items.
Amazon has its own branded payment system called Amazon Pay, which is similar to PayPal. In addition to Amazon Pay, Amazon also accepts all major credit and debit cards and allows customers to use an Amazon store card with some merchants.
Selling on Amazon vs eBay: Global Standing Difference
Both eBay and Amazon are internationally recognized brands. eBay is popular globally, particularly for imported goods and vintage items. On the other hand, Amazon has a stronger presence in the US, but it is expanding to other countries through its Amazon Global marketplaces. However, there are still many regions and emerging markets that Amazon has not yet focused on.
Selling on Amazon vs eBay: Customer Feedback System Difference
Amazon has a layer of systems that makes buyers feel secure when making a purchase, including Amazon feedback, comments, and ratings. If a seller receives a lot of negative feedback, their account may be suspended. It is also easier to get feedback removed on Amazon than eBay.
On eBay, feedback is given more weight, but this can be a disadvantage for buyers as negative comments are pushed down, making it easier for potential buyers to miss them.
Selling on Amazon vs eBay: Product Restrictions Difference
eBay is more flexible with item quality, allowing sellers to list a wide range of products, including both new and used items. However, illegal items are strictly prohibited, and sellers should review restricted categories to avoid potential account bans.
On the other hand, Amazon has stricter rules and may suspend accounts if they believe a seller has violated its selling policies and listing restrictions. It is always a good idea to check whether a product falls under any restricted categories on Amazon to avoid issues with your account.
Why Choosing the Right eCommerce Platform Matters When Online Selling?
Strategic planning is essential when selling online, whether on Amazon or eBay. The platform that aligns with your business needs and goals will keep you focused and purposeful, significantly affecting your business’s growth, costs, and customer engagement and paving the way for your overall success.
Amazon and eBay, with their distinct advantages and challenges, are key platforms in shaping your business’s online presence. Your choice is crucial, as each platform influences how you generate leads, engage consumers, and streamline business operations.
Without the right eCommerce platform, achieving business scalability and efficiency is challenging. Whether you opt for Amazon’s structured retail experience or eBay’s flexible marketplace, the platform you choose must align with your business to facilitate smooth interactions between your business, customers, and team.
eBay vs Amazon: Important Deciding Factors to Consider
When choosing between eBay and Amazon, sellers should consider various factors beyond the differences mentioned above, including key details unique to each marketplace.
Market Share
When discussing eBay vs. Amazon, the respective market share of each eCommerce site will always be included. In terms of market share, Amazon is way ahead of eBay.
Amazon.com and its other global platforms are considered the most popular eCommerce sites worldwide, and second place goes to eBay.com. Amazon’s annual revenue for 2023 was $574.785 billion, reflecting an 11.83% increase from the previous year. In contrast, eBay’s annual revenue for the same year reached $10.112 billion, marking a 3.24% increase from 2022.
Regarding active users, eBay has around 135 million users worldwide, while Amazon has over 310 million customers worldwide. As one might expect, Amazon is leading at 37.8% market share, while eBay only has a 3.5% market share among retail eCommerce companies.
Fees Structure
To make the process of selling on its platform more straightforward, eBay has implemented a simpler fee structure for sellers. Some of the eBay seller fees you may incur when selling on eBay include the following:
Insertion fees: These are the fees charged to sellers if they exceed the limit for free product listings.
Final Value Fees: These are the fees that sellers must pay when their products are listed on eBay.
Payment Processing Fees: These fees apply based on the payment methods sellers accept on eBay.
Optional Listing Upgrade Fees: In addition to fixed price listings, eBay sellers can also choose for listing upgrades. These are optional fees that sellers can pay to enhance the visibility of their listings and stand out from other sellers in the market.
Selling on eBay is generally more affordable than on Amazon due to lower fees. For store subscription options, eBay offers a plan with a monthly subscription fee of $4.95, ideal for newbie sellers.
Amazon’s fee system, on the other hand, is more complex, with variable referral and closing fees. Aside from referral and fulfillment fees, sellers should review other Amazon seller fees.
The standard fee for Amazon is between 8% and 15% plus a $0.99 per item charge if you are an FBM seller. However, if you are an FBA seller, you will need to pay a monthly fee of $39.99 per month, not to mention other Amazon FBA fees.
Customer Support
Customer support is a key factor when choosing between Amazon vs eBay. Both online shopping sites offer support for buyers and sellers, but Amazon is often noted for its strong customer service. Reviews suggest that Amazon generally provides excellent user support, enhancing the overall customer experience.
On the contrary, there are mixed reviews of eBay’s customer support. Some eBay buyers would claim a negative experience with eBay’s customer support, while others shared their positive experience online.
Website Traffic
Site traffic is another key factor when choosing between eBay and Amazon. Amazon is the leading marketplace in terms of monthly visits, and in 2023, it recorded around 2.72 billion unique monthly visitors. In contrast, eBay recorded 769 million visitors to its website each month.
Promotional Opportunities
One of the advantages of eCommerce over traditional businesses is the availability of various marketing and advertising options. Both eBay and Amazon offer promotion strategies to help sellers boost their sales. Here are some on-site marketing strategies that eBay and Amazon offer.
Amazon Marketing Options
Amazon sellers can use some marketing strategies and tools to maximize their business potential.
Amazon Deals and Amazon Coupons: Amazon allows sellers to offer deals and coupons to online shoppers. These promotional offers facilitate the increase of sales and brand awareness. Some Amazon deals include but are not limited to: Percentage Discounts (e.g., 20% off), Dollar Discounts (e.g., $10 off), and Buy and Save Up To (e.g., save up to $5.00).
Amazon Product Videos: The Amazon interface allows sellers to include video marketing content on product listings. Amazon product videos quickly catch consumers’ attention and inform them about the product.
Amazon Ads Solutions: Amazon offers multiple options for Amazon ads that can help improve brand visibility and sales conversion. Some popular Amazon ads include Sponsored Products, Sponsored Brands, and Sponsored Displays.
eBay Marketing Options
Similar to Amazon, eBay also provides sellers with on-site marketing tools and strategies, including but not limited to the following:
eBay Seller Hub: Seller Hub is a platform that allows online sellers to efficiently manage their products, sales, and business operations on eBay. It offers tools for creating and publishing listings, managing an eBay store, creating promotions, and processing orders. It is designed to be user-friendly and cost-effective for sellers using eBay as a marketplace.
eBay Ads: Similar to Amazon Ads solutions, eBay likewise has eBay Ads that provide various advertising solutions to eBay sellers. eBay’s advertising solutions include self-service, direct, and programmatic advertising solutions.
eBay Store Subscription: eBay store subscribers can access a powerful suite of tools to help build, manage, promote, and track their business on eBay. The eBay promotional strategy provides sellers with a fully customizable eBay Store and special access to advanced design, marketing, and reporting features.
Promoted Listings: eBay Promoted Listings is a straightforward advertising program that allows you to promote specific items on the eBay platform. This can help increase visibility and potentially drive more sales for your items.
SEO and Product Visibility
When selling online, sellers should take into account product visibility. Enhancing product visibility is best achieved through SEO (Search Engine Optimization). Here are some key factors to know about Amazon SEO and eBay SEO.
Whether you are new to Amazon or an experienced seller, it is important to understand that Amazon functions like a search engine. Its ranking system relies heavily on the A9 algorithm. This algorithm determines which products rank higher on search result pages based on several factors, including:
Keywords: Titles, descriptions, and backend search terms should include relevant keywords for better visibility.
Sales History & Conversion Rate: The Amazon algorithm ranks products with higher sales and conversion rates.
Customer Reviews: More positive reviews boost a product’s ranking.
Listing Price: The Amazon algorithm also evaluates listing prices, so sellers utilize an automated Amazon repricer to adjust their prices to a competitive level efficiently.
Product Availability: The Amazon algorithm also checks product availability, so consistent stock levels are essential for improved product visibility.
On the other hand, eBay uses its Cassini algorithm to rank products. This ranking system emphasizes factors that enhance the platform’s unique user experience, including the following:
Item Titles & Descriptions: Keywords in titles and descriptions are essential, with flexibility to include item condition (new/used).
Seller Ratings & Feedback: Better ratings and feedback increase product visibility on eBay.
Price & Shipping: Offering competitive pricing and various shipping options is crucial for improving your listing rank on eBay.
Auction Timing: Auctions nearing their end often receive a visibility boost on eBay.
Amazon vs eBay: Advantages and Disadvantages
Both Amazon and eBay can offer benefits and challenges to sellers. Here is an overview of some pros and cons to consider when deciding which platform to use:
Pros of selling on Amazon:
- Trusted brand with a large audience
- Robust platform with various programs, solutions, and customer support for sellers
- Comprehensive seller portal for managing product catalogs, inventory, pricing, shipping, and viewing business statistics
Cons of selling on Amazon:
- Highly competitive marketplace
- Various selling fees
Pros of selling on eBay:
- Trusted brand with a large audience
- Flexibility and autonomy for sellers
- Strong focus on product auctions
Cons of selling on eBay:
- Similar to Amazon, eBay also has a competitive marketplace
- The keyword-based structure that may be challenging for less popular products
- A system that favors buyers, which may lead to unfair customer reviews for sellers
eBay vs Amazon: Who Should Sell on Amazon?
The Amazon business model is streamlined, allowing sellers to begin selling items quickly. The FBA option simplifies logistics and fulfillment costs. Amazon is also an excellent avenue for sellers, offering a large audience and rapid product visibility.
In addition, it is relatively easy to sell high quantities and prices on Amazon, as long as sellers meet the necessary requirements. Overall, Amazon may be a better choice for sellers compared to eBay, particularly if meeting stringent requirements is not a major concern.
eBay vs Amazon: Who Should Sell on eBay?
One key advantage of selling on eBay is the control it gives sellers over their sales process. Sellers have the freedom to create product listings, set shipping rates, and establish return policies as they see fit.
Additionally, eBay’s lower fees allow sellers to offer more competitive pricing. eBay may be the better choice for those who value control over product listings and set their own rules and restrictions.
Which Is the Best Platform for You, Amazon or eBay?
With a clearer understanding of the differences between Amazon and eBay and how each platform may benefit your online pursuit, You’re now better equipped to choose the marketplace that best fits your business needs.
Both platforms have strong reputations and unique advantages. Consider your business goals, target audience, and product requirements when deciding. Diversifying across multiple channels can help protect your income and drive growth, making it worth considering both platforms in your strategy.
Ultimately, the decision will depend on your specific business and goals. Consider each platform’s pros and cons, and assess where you can earn the most profit before committing to one platform, as it will likely be your home for years to come.
