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The main differences between selling on Amazon and eBay lie in the selling fees, the audience each platform reaches, marketing strategies, logistics, and customer service, among other factors. Online selling has completely transformed the way we buy and sell products, with Amazon and eBay being two of the most popular platforms today. Both offer excellent opportunities for sellers, but their approaches and business models are quite distinct.
At Jordi Ordoñez, we are e-commerce experts, so we’ll explain the key differences between selling on Amazon and eBay, allowing you to choose the one that best suits your needs at any given time.
History and evolution of Amazon and eBay
Amazon started as an online bookstore but quickly diversified to offer a wide range of products, from electronics to clothing and home goods. Its focus on customer experience, fast delivery, and technological innovation has been pivotal to its growth. With the introduction of Amazon Prime, a subscription service offering free shipping and access to streaming content, Amazon has managed to retain millions of customers.
In contrast, eBay began as an auction site where users could sell items through bids. Over the years, eBay has evolved to include buy-it-now listings and has diversified its offerings, allowing sellers to list both new and used products. However, eBay still maintains its auction essence, distinguishing it from Amazon.
Business models
Amazon primarily operates as a third-party retailer, enabling sellers to list their products on the platform and sell directly to consumers. Amazon handles payment processing, logistics, and, in some cases, shipping through its Fulfillment by Amazon (FBA) service. Sellers have the option to manage their shipping or utilise FBA, benefiting from Amazon’s extensive distribution network.
On the other hand, eBay relies on an auction and direct purchase model. Sellers can choose to list their products in an auction format, where buyers bid for the item, or opt for a “buy it now” format, where they can set a fixed price. eBay acts as an intermediary, facilitating transactions and offering protection for both buyers and sellers.
Fee structure
Amazon charges referral fees for each sale, which vary by product category. Additionally, if a seller uses FBA to sell on Amazon, they will incur extra fees for storage and fulfilment. These costs can add up quickly, especially for sellers offering a wide variety of products.
eBay also charges fees for selling products, but its structure is somewhat different. Sellers typically pay a listing fee to list an item, followed by a final value fee based on the sale price. Unlike Amazon, eBay tends to have lower fees for sellers using the auction model.
Target audience and demographics
Amazon shoppers generally seek a fast and convenient shopping experience. Many are consumers who value speedy delivery and a wide product selection. Amazon has become the go-to choice for those looking for new products, with a strong inclination towards retail.
eBay attracts a different audience, including those looking for unique, collectible, or second-hand items. eBay buyers are often willing to invest time in finding good deals and participating in auctions. This platform is ideal for sellers offering unique or hard-to-find products.
Listing process and inventory management
The listing process on Amazon is relatively straightforward, especially when using FBA. Sellers can create listings via Seller Central, providing details about the product, pricing, and shipping options. Amazon also offers tools to help sellers optimise their listings.
In contrast, the listing process on eBay can be more flexible. Sellers can choose from various listing formats, including auctions and fixed prices. However, creating effective listings requires careful attention to detail and appealing photographs to stand out from the competition.
Marketing and promotion strategies
Amazon has an integrated advertising system that allows sellers to promote their products through sponsored ads. This can significantly boost product visibility and help sellers compete in a crowded marketplace.
eBay also offers advertising options, although its approach is less aggressive than Amazon's. Sellers can use promotions and discounts to attract buyers but may need to be more creative in their marketing strategies.
Shipping and logistics
Amazon provides several shipping options, including the FBA service, where Amazon manages logistics and fulfilment. This allows sellers to benefit from Amazon’s efficient distribution network but also means they must be prepared to pay additional fees.
On eBay, sellers are responsible for setting their own shipping options. They can choose from various methods and rates, providing flexibility. However, this can complicate the selling process, especially for those unfamiliar with shipping.
Customer service and return policies
Amazon has strict customer service and return policies, which can be beneficial for buyers. However, this can pose challenges for sellers, who must comply with these policies to avoid penalties.
eBay also has buyer and seller protection policies, but its approach is more flexible. Sellers can establish their own return and customer service policies, giving them more control over their transactions.
Both Amazon and eBay offer unique opportunities for sellers, but it's crucial to understand their differences before deciding which platform to sell on. At Jordi Ordoñez, we can advise you on your online business, helping you start selling as effectively as possible. Contact us so we can assist you.
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About the author
Jordi Ordonez
I work as an independent eCommerce and Amazon consultant.
Clients
Estrella Damm, Intersport, Bella Aurora, Lladró, Textura Interiors, Nice Things Palomas, Castañer, Due-Home and many other clients.
Lecturer & Teacher
I teach and have been a speaker at: Meet Magento, Prestashop, Prestashop Day, SEMRush, Cambra de Comerç Barcelona, ClinicSEO, Ecommbeers, Ecommbrunch, Ecommercetour.com, Ecommfest, EOI, ESIC-ICEMD, Foxize, Generalitat de Catalunya, Inesdi, Quondos and The Valley. In addition, I have done in-company trainings for brands such as Orange and Adidas.
Writer
I collaborate writing articles for Helium 10 blog, Shopify, SEMRush, La Vanguardia, eCommerce-news.es, Marketing4ecommerce...
Partner
Helium 10, Jungle Scout, Avask, Sellzone, Helium 10 Seller Solutions Hub Partner, SaaS4Marketing, H10-wp.com and FBASuite.com
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