07/26/2023
Amazon and eBay
Data has shown that there is an increase in the number of people who prefer to purchase items online. This is something that online sellers took advantage of during the COVID pandemic and this trend has only rapidly increased. Unsurprisingly, many brands are now asking which platforms make sense for them to use as they sell their products.
Amazon and eBay are the two most popular e-commerce platforms that brands use to sell their products, evidenced by their majority of market shares in the United States. Each platform -- whether you chose to be on Amazon or eBay -- has its own advantages and disadvantages in helping sellers track and market their products. This article outlines the differences and similarities between both Amazon and eBay platforms.
Types of Sellers on Each Platform
There is a clear difference in the types of sellers that you find on Amazon and eBay. Amazon allows third-party sellers, including individuals, to sell on their platform; however, the platform is geared towards selling products as a business, not as an individual. At the same time, Amazon sells its own products; therefore, when you sell your products on Amazon you should be prepared to run into some competition from Amazon itself.
On the other hand, eBay only allows third-party sellers and does not sell any of its own products. eBay is also a more conducive environment for buying used products from person to person, rather than selling new products from business to customer.
Each Platform's Selling Process
Amazon only has one selling process: they sell directly to the consumer for a fixed price directly through their platform.
eBay does things differently. While eBay has that same direct-selling capability, one of its unique selling features is "auction selling," where an item can be auctioned off and the highest bidder gets the item when the auction period ends. This feature is friendly to individuals that are selling singular-quantity items, rather than businesses looking to sell larger amounts of product.
How Many Customers are on Amazon and eBay?
As brands consider which platform to use, the most important consideration is the number of potential customers that are active on the platform. In other words, brands must ask themselves which platform has a broader customer reach?
According to the latest data on similar webs, Amazon had about 2.5 billion visits to their website in the last three months while eBay only had about 700 million visits. It goes without saying that Amazon has greater traffic.
What is the Ease of Use for Each Platform?
Selling an item on eBay is a pretty straightforward process because the quality of the inventory being sold is not considered. This is not the case for Amazon -- especially if you are in their FBA (Fulfillment by Amazon) program, which outsources the shipping of a company's products to Amazon. eBay does not have a fulfillment program.
This is not the only program offered exclusively by Amazon. In addition, Amazon provides product marketing and allows different product optimization strategies that can increase product exposure. These programs make a huge difference in the success of a product being sold online.
While Amazon has a more complicated barrier to entry than eBay, the benefits of selling business products on Amazon far outweigh the possibilities of eBay.
How do Products Appear on Each Site?
On eBay, each product is listed and sold separately. Sellers on eBay must also provide their own images and descriptions for their products. For this reason, there will likely be several listings for the exact same product you are selling sorted by price or quality.
On Amazon, each product that uses the same barcode is sold through the same listing. This means that a customer might not be aware that multiple vendors are selling the same product. While this creates pros and cons, this standardization makes the selling process easier for a company using the platform as they attempt to sell large quantities of a product.
What does Five Star Commerce Recommend?
Ultimately, eBay's ease of use is favorable to Amazon, but Amazon has greater customer reach and optimization features. Of course, we recommend placing your products in front of as many customers as possible, but generally speaking, Amazon is a better fit for businesses.
Therefore, business owners should be prepared to do more work on Amazon in their pursuit of sales. This might introduce new challenges for business owners whose time is already spread thin. Sellers must be able to focus on product improvement and customer relationships, which does not give them the opportunity to prioritize listing optimization.
Thankfully, there is an easy way to navigate the complex maze of Amazon's requirements and algorithms. By consulting with an expert Amazon Consultant who is well adept with Amazon requirements for sellers and for optimizing product listings, business owners can efficiently increase their sales on Amazon without sacrificing product quality or customer relationships. Schedule a free consultation with an Amazon Expert today at Five Star Commerce!