eBay and Amazon – A Comparison of the Titans

On February 2, 2012, in Amazon Webstore, eBay Store, by admin

Both eBay and Amazon have their own bugs to fix while both present an ideal online platform to sell your products from. Amazon has too many rules for the seller to follow while eBay has buyers looking for a bargain. Amazon is totally pro-buyer whereas eBay is not totally business friendly.

Yet, the fact remains, these are two of the most beloved online marketplaces that shoppers love to visit and buy from. Certain products will sell better on Amazon whereas certain others will do best on eBay. Both have a huge user base. Should you expand with a store on both these platforms? Perhaps the following points of comparison will help you decide:

eBay and Amazon – A Comparison of the Titans

eBay and Amazon – A Comparison of the Titans

Criteria for Comparison eBay Store Amazon WebStore
1. Fees You pay for every item listed, whether it sells or not. No fees for listing and collection of payment on your behalf, but PayPal fees are substantial.
2. Format (Auction vs. Fixed price) Auction format listings in addition to fixed-price listings Only fixed-price listings
3. Community Sellers are very involved with buyers. Transactions are often very interactive. Little or no interaction, but transactions take less time.
4. Stability Changes are introduced as required and sometimes rolled back. Few changes are introduced.
5. Feedback Customer feedback affects ‘ranking’ on eBay search results. Amazon does not rank searches on the basis of feedback, but feedback is available to the buyer.
6. Branding eBay is only the marketplace that allows you to brand your store and create a unique presence Amazon is the marketplace and the second-party (the buyer is the first party). Customers could think they were buying from Amazon.
7. Photos eBay sellers have a bit of a struggle with the quality of the photo, getting it on eBay, and such things. On Amazon, you can sell 20 products without taking a single photo. One photo for a given commodity is all that’s used on Amazon.
8. Taxes eBay provides a form that allows sellers to collect taxes from the buyer so that taxes do not affect profit margins. Amazon needs to follow suit. But you can inform Amazon if you belong to a state that exempts taxes and receive a refund.
9. Average Sale Price eBay buyers look for bargains and are willing to wait for a good one to come along. Amazon buyers are willing to spend on similar items and pay more in the process.
10. Payment Methods PayPal, money orders, cashier’s checks, or cash (in person) Amazon Payments
11. Return Policy Seller can use a dispute resolution but PayPal/eBay is a messier route that exposes seller to negative feedback Obligatory return policy,
called the A-Z Guarantee, buyer receives full refund if product/s are ‘materially different’ than how they are described
12. Shipping Rates disproportionate to the price of the product Standard shipping rates

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