What to Consider When Choosing to Sell on Amazon or eBay

Starting a business seemed pretty impossible back in the day. Now, with multiple online platforms and marketplaces, beginning an e-commerce business can be rather exciting. Attaining all the potential advantages that it can offer in terms of flexibility and revenue can seem like quite a dream come true.

However, there are still some things that have to be considered. For one, sellers have to consider where they’ll be selling their products. Creating your website can be quite fruitful, but engaging on bigger platforms like Amazon on eBay is a different story.

With time and effort on the line, though, where should your priorities lie? What may provide a more fruitful outcome? Where should you be posting and selling your products? Here’s what you should consider:

Audience

In terms of numbers, Amazon has twice the number of site visitors than eBay gets in the same timeframe. If you’re hoping to reach a bigger audience, Amazon may be the place to go. However, you shouldn’t just base the platform you’re going to on size alone. 

Consider who your product is geared towards. If it seems like you’re pandering more towards the international market rather than local customers, you may want to reconsider. It’s estimated that Amazon’s sales are more centered around local spending. eBay has the upper hand in terms of the audience overseas.

Competition

Both Amazon and eBay are hosting many other sellers on their platform. They’re pretty equal in terms of that aspect of competition, but Amazon sellers do have other rivals as well. There are many listings that can come straight from factories in China, and Amazon has some of its own products as well. 

This contrasts with eBay, which acts as a pure middleman between a seller and a buyer rather than advertising their own products. If you don’t want to worry about extra competition, eBay may just be a little better.

Purposes

If you want something with a little more simplicity for sellers as you’re just starting out in online selling, eBay may be the better place. It works under an auction format where sellers will personally send their offer to you. Plus, you can even sell secondhand items and the like.

However, if you do have experience with selling online, going the retail route with Amazon might be a little better for the reputation boost it comes with. It can also better establish your business’s products into the marketplace, more so than eBay because of the audience reach.

Shipping

It’s safe to say that Amazon takes the cake on this one by far. Amazon Prime and shipping are just more organized and easy to navigate. If you do intend to tap into customers internationally, eBay’s Global Shipping Program may be a bit more forgiving as they handle customs and import fees for you.

Platform Fees

There are various programs on both Amazon and eBay that can dictate the platform fees a seller has to pay. When it comes to the overall commission cost, posting on eBay may just be more affordable than Amazon by 5%. Amazon does handle payment processing and shipping for a seller, while eBay does not.

Conclusion

Each platform has its own pros and cons, and it’s up to a business to decide which are the defining factors and non-negotiables. Just keep in mind your business’s health and finances as you decide whether to sell on Amazon or eBay.

Totally Booked provides bookkeeping services in New York to help you streamline and track your finances, no matter which online marketplace you end up choosing. Get in touch with us today!