Nowadays, eCommerce vendors have a wide range of options on where to list their goods online. Sellers have the chance to reach customers on Shopify, Walmart, and Etsy, among other platforms.
However, Amazon and eBay are the two platforms that have been around the longest compared to the others. You might want to think about selling on one or the other since they are the two oldest online marketplaces (as well as the top two performing e-commerce sites, respectively).
But how can you tell which will be more effective for you?
Both sides have valid points. Therefore we’re comparing the two marketplaces to decide which one is the greatest choice for your particular line of work.
Do customers trust eBay more than Amazon?
Both eBay and Amazon are well-known companies. But in comparison between these two Amazon often outperforms its rivals. Amazon’s commitment to earning and upholding its customers’ trust.
And it seems like the focus is paying off. The simplicity of returning goods contributes to Amazon’s reputation as the preferred online retailer. Their A-Z Guarantee guarantees that customers can get a complete refund if they’re unhappy with the product’s quality or delivery time.
In comparison, eBay’s process is significantly more convoluted when it comes to returning products and getting a full refund. Not to mention, sellers can check the “Little Returns” option on eBay, giving customers no recourse if they are dissatisfied with the purchase.
If you’re a seller, you might consider that advantageous. However, it might actually have a significant negative impact on your company.
Potential purchasers will be warned that they can’t trust what you’re selling if you set your listing to “No Returns” in the listing details. And what kinds of companies do you often buy from as a consumer? Those that help you after you buy something, or those who just take your money and run?
Therefore, by guaranteeing post-purchase support, Amazon fosters brand loyalty and provides customers with the security they require to feel safe taking a chance on a product they might not have otherwise bought.
And you profit from that trust as a seller on their platform.
Fulfillment methods on Amazon vs eBay
Comparing eBay and Amazon’s methods of fulfillment
When selling on eBay, you only have one fulfillment option: packing and shipping your own orders (or hiring a third-party fulfillment center to help you).
Contrarily, Amazon allows you to fulfill your orders on your own. or it can do it for you.
And what really distinguishes Amazon is that second choice—Amazon FBA.
Amazon offers to take care of a sizable chunk of the labor off your hands, whereas eBay demands that sellers manage every area of their business themselves.
By handling the choosing, packing, shipping, and storage of your goods on your behalf (not to mention returns and refunds, don’t forget! ),
You have time to focus on other aspects of your business because of Amazon.
Additionally, Amazon FBA can help you save money in addition to time.
The costs are greater when you use Amazon’s FBA program to fulfill your orders. Nevertheless, the pricing difference is dramatically reduced when you factor in the costs of packaging, shipping, and storage for your goods.
However, how you actually deliver your orders is totally up to you. Simply put, it’s wonderful to have options that you don’t have if you choose to sell on eBay.
For sellers, is Amazon more competitive?
No, not always! On both platforms, you will face competition; it comes with the territory of running a business. Even though Amazon has its own brand and eBay does not, eBay is slightly less competitive in this regard.
Some people set their prices cheaply. They do so in order to entice customers and generate a large volume of sales. But there are few sellers who set their prices higher. It is because they base their sales on quality rather than quantity.
It’s crucial to avoid engaging in a “race to the bottom” on either website!
Are buyers loyal to Amazon or eBay, or do they shop there and on eBay?
eBay and Amazon audiences are different from each other. There is no doubt that both eBay and Amazon have enormous audiences, but interestingly, each platform specifically targets different demographics!
They both have a global presence. Both attract a sizable amount of visitors. Every month, more than 197 million people visit Amazon from all over the world. Over the course of a year, this translates to more than 2.3 billion visitors.
Even though it has over 180 million active customers and nearly 2 billion daily transactions, eBay is different from Amazon in terms of its global reach.
But Amazon customers tend to be more affluent in terms of demographics. According to research, the typical Amazon customer is between the ages of 45 and 54, married, has kids, and has a college degree.
What goods can you sell on Amazon as opposed to eBay?
Since its founding in 1995, eBay has continued to serve as a venue for other people to do business. Aside from Amazon. Instead, it has changed from being a marketplace for independent sellers to becoming a retailer.
Additionally, unlike Amazon, eBay does not limit what can be offered on the site depending on the quality of a product. eBay sellers can sell anything, from brand-new goods to worn-out used goods. (Clearly, unlawful products are not allowed.)
This is the situation when eBay really shines. People prefer eBay when shopping for used items compared to Amazon (even if you may buy used stuff on both).
Additionally, its auction approach is ideal for selling used goods and allows customers to do so at reasonable costs. The sole notable exception is used book sales. In general, Amazon is the better online bookshop for sellers wishing to sell used books.
But most buyers turn to Amazon when seeking a product that is brand new or in excellent condition. In actuality, 66% of shoppers use Amazon as their primary search engine while browsing for new goods. It also has an “amazon first reads” program for readers.
Overall, Amazon is the best option for selling high-quality goods because it has a built-in audience of customers who are eager to make purchases.
Profits can be made that allow you to build and grow your Amazon business year after year.
You just need to choose whether you’re going to start your company by locating and selling used goods or whether you’re going to market brand-new goods. Perhaps you have both planned! But either platform might be effective, depending on your preferred business plan.
In either case, Amazon and eBay each provide a very specific purpose for these two different categories of customers.
It’s time to make a choice now that you are aware of the distinctions between the two platforms and, hopefully, have a better grasp of how each could help your business. eBay or Amazon? Or both!
However, there has never been a better time to start your business online, regardless of whether you decide to sell on eBay, Amazon, or advertise on amazon.