Amazon and eBay are the world's busiest marketplaces. Recent data shows that Amazon receives over 5 billion site visits each month while eBay attracts around 1.7 billion.
New platforms are entering the market all the time. But Amazon and eBay are still the powerhouses of eCommerce owning 13% and 2% of the global eCommerce market respectively.
Although Amazon is ahead of eBay by quite a margin this doesn't necessarily mean it's the best marketplace for your brand. When it comes to selling on Amazon vs My eBay both sites come with pros and cons.
But one thing's for sure with around 44% of product searches starting on these marketplaces you'll want to have a presence on at least one of them. Read below to discover whether selling on Amazon or eBay is better for your brand.
38% of consumers worldwide start their product searches on Amazon. Its streamlined customer service efficient fulfilment and other industry innovations have all contributed to its popularity. But access to these services won't come cheap.
When it comes to fulfillment brands selling on Amazon have a few options to choose from - which is something to consider when it comes to selling on Amazon vs eBay.
First of all they can take advantage of Fulfillment By Amazon (FBA). You simply send your products to Amazon's fulfillment canter and its staff will pick pack and ship your products whenever an order comes in. They handle returns refunds and customer service too.
The cost of FBA services will depend on the size and weight of your products. But brands will lose control over their packaging returns policy and customer service. This may be an issue for well-established businesses. However FBA users benefit from greater visibility in search results and an Amazon Prime badge - both of which increase Amazon sales.
Sellers who want to arrange their own fulfillment and customer support can do this through Amazon's Fulfilled by Merchant option. But if you're envious of the boosted visibility and Prime status that FBA sellers receive Seller-Fulfilled Prime offers a middle ground. This allows high-performing brands to gain access to the Amazon Prime badge if they meet certain criteria.
To take part you have to ship 99% of orders on time and have a cancellation rate under 0.5%. You'll also need to fulfill Amazon Prime's one and two-day delivery promises adhere to Amazon's returns policy use Amazon Buy Shipping Services and let Amazon handle your customer service.
The cost of selling on Amazon depends on the type of products your brand sells and whether or not you use Amazon's FBA services.
But all sellers however they fulfill their orders need to pay:
Brands using Fulfillment by Amazon have additional fees to consider:
The biggest benefit of selling on Amazon is that your brand will gain access to a huge audience. With billions of visitors heading to the site each month the sales opportunities are massive. So when it comes to selling on Amazon vs eBay this is definitely something to consider.
FBA is a big pro for fledgling brands and startups looking to expand. But if you decide to handle your own fulfillment and customer service it's annoying that this will negatively affect your visibility on the platform.
However in recent years Amazon has become a much better place for brands to do business. If you're eligible for Amazon's Brand Registry you'll gain access to lots of extra tools that can boost sales visibility and brand awareness. These include Amazon Analytics A+ Content Amazon Storefronts and Amazon Attribution - to name just a few.
If you have an advertising budget Amazon's ad platform is continually improving too. But if you don't your brand may struggle to gain visibility because Amazon's organic search results are becoming less and less prominent.
Although eBay is the world's second busiest marketplace it is further down the rankings in terms of revenue. This means it is an ideal platform for brands who want to boost discoverability and visibility as well as boosting omnichannel sales.
eBay sellers generally have no choice but to arrange their own order fulfillment. Although brands based in the UK Germany and China can take advantage of eBay fulfillment by Orange Connex.
On a more positive note eBay's free Global Shipping Program facilitates international shipments and handles all customs admin. This is a great way for brands to expand globally because setting up one eBay account will provide access to customers in over 100 countries.
The Global Shipping Program also ensures customers aren't hit with extra fees at checkout or delivery. So this is a great way to increase your eBay sales. Some brands saw a 15% boost after signing up.
When it comes to selling on eBay here is a breakdown of the fees you can expect to pay.
If you're based in the UK Germany or China and want to use eBay's end-to-end fulfillment service these are the additional fees you need to know about:
eBay's lack of fulfilment services can be a big barrier for startups. But it also means established brands aren't punished for making use of their own logistics.
eBay's Global Shipping Program and integrated international platforms also make it a great option for brands who want to expand internationally or test out new markets. It is also the better choice if your brand sells any second-hand vintage or antique products.
However despite all these perks eBay has a much smaller audience than Amazon. So it simply doesn't offer the same opportunities for brand exposure and sales.
There is no clear answer when it comes to selling on eBay vs Amazon. Both sites have their pros and cons. Before making a decision make sure you understand your brand's needs as well as each platform's fees. Otherwise you might end up selling products at a loss.
Setting up listings on both sites could be an option too - especially if you want to maximise your reach.
