The Pros And Cons Of Selling On Amazon Vs Ebay

Branching into the online marketplace is an efficient way to boost product acknowledgement and develop a steady source of income. There are many customers at your disposal, and it can be easy money. As you must know, two main websites have the traffic you need, Amazon and eBay. Both sites have advantages and disadvantages that you should know about before you begin. The pros and Cons of selling on Amazon and eBay must be evaluated before you decide the platform in which to sell.

The Pros of Selling on Amazon and eBay

Both Amazon and eBay are excellent sites, and there is no doubt that you can make a lot of money on either one. Overall, it’s cheaper to sell on eBay, with the fee structure. Though, one cannot ignore the fact that Amazon has way more global traffic. Traffic is everything in the sales game. The more eyeballs you have looking at your stuff, the more money you can make. So, even if you must pay a bit higher fees on Amazon, the fact that you can sell way more makes the extra costs a moot point.

1. More Traffic Means More Money

When considering the pros and Cons of Selling on eBay and Amazon, you must consider the traffic of both sites. When it comes to American traffic, eBay gets 659 million visitors each month, 75 million of them are unique. Amazon, on the other hand, gets over 161 million visits, which 51 million are unique. It’s easy to see that both sites have a good amount of traffic that will get you the exposure you need. More people equals more opportunities to make money.

However, the other component that many don’t realize is the international traffic. Globally, eBay has a ranking of 18 and Amazon 28. Both platforms provide enough exposure to ensure that if you have an excellent product, it will sell. Did you know that numerous businesses report an increase in revenue of more than 50 percent when they join the Amazon Marketplace? It’s certainly something to keep in mind.

2. Getting New Customers Is Simple

No one is going to go on either of these sites and look for your store. Rather, they will find your products in the Google search engine or by doing a random search on the site. It’s easy to target market because the customers are coming to you wanting your goods.

Just like in the real world, the virtual world can bring you a great deal of repeat business. You can get quite a following of customers who will come back time and again to order more products.

3. Selling In A Marketplace Is Key

Many people like selling in a marketplace because it provides plenty of traffic. Think of a farmer’s market or a shopping mall. Putting a store in those locations is often easy money because the number of people in and out of those places is sufficient for good sales. The sale thing can be said of the online marketplaces. Your website will never get the kind of traffic these sites do. When considering the pros and Cons of selling on Amazon and eBay, you must consider the traffic.

The one-of-a-kind shopping these sites provide is a wonderful way to get plenty of customers. For the shopper, it’s easy. They have a single-stream checkout service, and their order is shipped to their door. They only must lift a finger to do their shopping. It’s a win-win for both buyer and seller.

Cons Of Selling On Amazon & eBay

All the traffic that these sites provide is going to come at a premium. The fee structure is quite overwhelming to those just getting started. It’s important to take time and know what it will cost. Selling on Amazon Vs eBay isn’t so black and white. There are plenty of costs for exposure you receive. eBay is the cheapest place to sell, but don’t discredit Amazon. All that traffic means something.

eBay Fee Structure

They offer numerous ways to sell on eBay. First, you can sell in auction style. For this type of sale, you start your product at a small amount and allow users to bid on the item. You can specify if you want the listing to run for 1, 3, 5 or 7 days. Selling auction style is a gamble if you have an expensive product. It’s best reserved for those that don’t need a certain amount of their goods. Many sellers like the thrill of watching people fight over an item, even if it doesn’t bring top dollar.

If you sell on the auction style, you do run the risk of having your item sell for way below the amount you need from it. Thankfully, you can set a reserve to protect yourself. Be warned, that reserve will cost you in initial fees based on the amount. When evaluating the pros and Cons of Selling on eBay, they do provide their sellers with 50 free listings per month, provided that you don’t need anything fancy like bold or promoted items. They take a final value fee based on the amount of sale.

Those who already know exactly how much they need out of their products and don’t want to mess with auction-style sales can set up an online store. The online storefront is a fantastic way to get even more exposure. Those with an online store will have their items show up in search results on Google. These stores have an “overhead” cost. There are three tiers, which are:

  1. Basic – $15.95
  2. Premium – $49.95
  3. Anchor – $299.95

Each of the levels come with a store home page, sort of like having your website on eBay. This will give you a customized web address, categories, branding options, and the ability to feature items. You will also get templates and plenty of promotional flyers.

Unless you’re going to sell a lot of items, having an online store isn’t going to be cost-effective. If you plan on selling just a few things here or there, it’s more economical to stick with standard listings that don’t require an ongoing commitment.

Amazon Fee Structure

Unlike eBay, all listings on the basic Amazon platform are free. You only pay a fee when the item sells. First, you will pay 99 cents for each item sold, in addition to a percentage fee. If you want to set up a storefront on Amazon, then you will need to pay $39.99 a month.

It’s worth mentioning that if you pay for the Pro Merchant account that you won’t have to pay 99 cents for each item sold. So, if you plan on listing and selling more than 40 items per month, it’s more cost-effective to market with this type of account.

When it comes to charges, Amazon calls it the marketplace referral fee whereas eBay calls it a final value auction fee. Unfortunately, the costs vary for each category. For example, selling a product under the cameras and photos section comes with a referral fee of eight percent, and trading under the Kindle accessories comes with a 25 percent charge. Costs can add up quickly if you are selling high ticket items.

The Feedback System

The feedback system is a necessary part of selling online. You must have effective communication, fair pricing, and excellent shipping time. Customers get to rate your purchases on both sites. On eBay, feedback can be a bit retaliatory. Both sellers and buyers rate the transaction. While sellers cannot leave a negative for the buyer, buyers can leave negative feedback for the seller.

Having excessive negative marks on your seller’s account can undoubtedly affect your sales. Sometimes, it’s hard to avoid getting negatives when dealing with the public.

After working 7+ years as a digital marketer for startups and large enterprises I quit my job to start EcommerceYogi. Here I share the exact same tactics which I have used to drive millions of users per month to e-commerce stores. Follow me on Linkedin and Twitter to stay connected.