We had a great response to our article comparing eBay and Amazon’s selling fees and were recently contacted by multi channel retail management specialists nChannel who have done a fantastic job of distilling their extensive knowledge of Amazon and eBay into a compelling and easily understandable infographic which compares the two selling platforms in more detail and reveals a number of fascinating little known statistics (skip to the infographic at the bottom of this article).
In their first guest post for ClipItQuick.com, nChannel discuss the inherent differences of the two platforms. This is also something we touched upon in our own article, The Benefits of Selling on Amazon.
eBay vs Amazon; understanding the inherent differences
Today, merchants have a variety of marketplaces to sell on. It seems like there’s a new one every day.
Selling hand-crafted items? Try Etsy. Want to reach an international audience? Rakuten is probably best.
While these newer marketplaces are the buzz of selling, they still don’t overcome the heavy weights – eBay and Amazon.
While both eBay and Amazon are leading online marketplaces, your experience selling on them can be different. This blog post will describe the types of buyers and sellers on each platform, and the accompanying infographic on eBay vs Amazon selling will share the statistics behind each household name.
Why Sell on Amazon or eBay
Online marketplaces like Amazon and eBay provide merchants with more opportunities to sell online than an eCommerce webstore. Marketplaces give merchants access to huge markets of buyers, all across the globe. And, these audiences have an intent to buy.
Online marketplaces also make it easy to sell by allowing you to leverage their established platform. You don’t have to set up a webstore or manage a physical store. You just sign-up and start listing your products.
Amazon and eBay represent new opportunities for merchant’s to expand their business. Merchants can reach more customers and grow their business. They offer you the ability to sell more, but do so by serving different types of buyers and sellers.
Did you know that Amazon and eBay guidelines now strongly recommend that all product images be placed on a plain white background? ClipItQuick.com operate a free image background removal service for eBay and Amazon sellers. If you want to see what your product images look like when professionally clipped then take advantage of our free trial now!
Key Differences between Amazon and eBay
eBay started as a site for hobbyists to buy and trade one-of-a-kind items. Amazon began as an online bookseller. They’ve both evolved into leading online marketplaces. Their different origins however have helped shaped what they have evolved into today.
In 2014, eBay earned $17.94 billion dollars, and Amazon earned a standout $88.99 billion dollars. Why nearly 5x the revenue? eBay is solely a marketplace, while Amazon has expanded its brand to other services. Amazon sells its own products, provides its own fulfillment program, and has its own subscription service for streaming movies and TV. This broader business structure allows Amazon to build a larger active user base (244 million compared to eBay’s 157 million.)
Another important aspect is the variety of products you find on each marketplace. This affects the type of buyers and sellers that each platform attracts. It also affects your decision of which marketplace is the best platform for your products.
In general, eBay is better for used items and Amazon is better for new. As stated above, eBay started as a site for hobbyist looking for specific items, usually those that are previously owned or used. Amazon’s foundation is providing customers with an easier, more convenient way to shop than traditionally in-store.
There aren’t cold, hard statistics to support this. But, think of your own experience on each site. If you’re looking for a used, affordable price, where do you shop? Probably eBay. If you want a new iPhone case for a Christmas gift, do you get on Amazon or eBay? Probably Amazon.
You can easily see how the shopping experience is different on Amazon then it is on eBay, even though they both use similar processes.
Deciding to Sell on eBay vs Amazon
If you want to give a go at selling on a new marketplace, it could be hard to decide which marketplace is best for you. Amazon and eBay each represent different opportunities for you.
The easiest place to start is to look at your products and ask yourself, what site would you search for to find your products?
The answer could be Amazon or eBay. The answer could be both! Don’t be afraid to even try out both at the same time and see which one performs better.
Still not sure which one is the best marketplaces for you? Here’s an infographic that compares Amazon vs eBay.
nChannel provide a cloud-based multi channel retail management service that seamlessly links a company’s existing webstores, accounting and shipping systems, increasing efficiency and allowing you the time to increase sales and improve customer service. Learn more about their service at nChannel.com.