Which Marketplace Is Better To Sell On, Ebay or Amazon?

Which Marketplace Is Better To Sell On, Ebay or Amazon?

There really are only (2) online marketplace giants that have built their marketplace so big, hardly anyone else can come close or touch them.  If you are selling your products online, it’s hard not to look at both of these marketplaces as a sales channel.  They both attract the most amount of targeted traffic and will save you enormous amounts of money in advertising.  You set up your store in either marketplace and the traffic will come to you.  If you open a web store or online store away from both Ebay & Amazon, potentially you will spend thousands of dollars directing traffic to your store with no guarantee in converted results.  One of the many pluses in selling on both Ebay & Amazon is the traffic comes to you.  No need to spend money advertising on search engines with no guaranteed results.  It’s like opening a store with similar stores very close by.  In addition, you’ll be showcasing your brand identity.  Provide great customer service and quick easy shipping and buyers will remember you.  This will help continue to build your brand of retailing.  If you are a big retailer, most likely, you will need to sell on one of these big giants. Which one?  I’ve broken down the Pros and Cons for each marketplace.  From there, you can decide which one may be best for you.

Ebay:

Ebay has been around since 1995.  Buyers who shop on Ebay are very loyal and may choose no other online marketplace to shop.  Listing products on Ebay is fairly easy.   There are many tools to help, most of which are free.  Sellers can offer returns or not.  If they offer returns, they can choose 14, 30, or 60 days.  You can also opt in to their automatic returns policy.  Which means, if a buyer chooses to return an item, Ebay will handle the transaction once the buyer has initiated a return request.  From there, you simply mark the return as “Accepted” when the item has been returned back to you.  Ebay is fair to their sellers when and if any problems arise between you and the seller.  Just make sure you follow their guidelines and protect yourself should any disputes come about.  Just do a good job filling orders, answer  questions promptly and you shouldn’t have any issues. Unlike Amazon, Ebay does not sell products.  They rely solely on sellers.  I believe this benefits Ebay sellers tremendously as their competition is simply other Ebay sellers. One downside, however, people shopping on Ebay are looking for bargains.  If you’re in a competitive market, you’ll need to price your products aggressively or you won’t accrue much sales.

Pros

  • Can earn 10% off final value fees
  • Paid quickly
  • Easy to list and many 3rd party listing tools available
  • Fees are less than AMZN
  • Expect higher total sales

Cons

  • Buyers could be relentless with issues
  • Margins for sales won’t be as good as you’ll need to list prices lower
  • Invoiced at the end of every month
  • Costs $$ to list each product

 

Amazon:

Probably isn’t a person on the planet that hasn’t heard of Amazon.  Amazon’s marketplace is almost impossible to ignore.  With a Pro Merchant account ($39.99/mo), you can list as many products as you want.  Amazon makes it fairly easy to list products as most products are already built into their database.  You simply match up the product’s ASIN number with the product that matches yours.  You will need to be careful, however, as the pre-built product must match yours exactly or buyers will expect a product potentially different from yours.  I’ve found that although sales were much lower than Ebay, your profit margin will be higher selling on Amazon as buyer’s trust shopping on Amazon more than Ebay.  In turn, you can command a higher asking price than selling on EB.  Keep in mind, though, that Amazon is also a seller.  If they sell the exact same item you are selling, it will be tough to beat them in many facets.  A very disappointing feature of Amazon is that it allows sellers to use third party tools that will automatically adjust their prices based on the market offering.  If you decide to lower your price by $.50, a seller using an auto-repricing tool may have his price automatically lowered below your price (set by that seller), only to have beaten you in price.  The fact that Amazon sells too (Ships from and Sold by Amazon) and allows third party tools for sellers to auto-reprice is the reason why sales will be lower as compared to Ebay.

Pros

  • Margins will be higher
  • All fees are taken out immediately, no need to pay Amazon at end of month
  • Free to list products (with Pro Merchant account)
  • Easy to list products
  • Messaging between you and buyer very easy

Cons

  • Pays out every 2 weeks
  • Favors buyers tremendously
  • Returns aren’t as easy to handle
  • Amazon is also a seller that will be competing with you
  • Allows sellers to use auto-repricing

 

If you are selling on any of these sites (Amazon, Ebay, Shopify, BigCommerce), you will need this profit reporting software.

SalesChannelReports.com

Leave a Reply

Your email address will not be published. Required fields are marked *