When assessing the advantages and disadvantages of selling on eBay versus Amazon for individual sellers, it is essential to consider several aspects: pros, cons, fees, target audience, and the selling process. For eBay, individual sellers face a highly competitive environment, with many targeting the 25-34 age demographic in the UK, where over 55% of shoppers fall into this group. In the U.S., 61% of users are between 35-64 years old, showing a broader age distribution.
Amazon sees a quicker profit turnaround for sellers, with 22% achieving profitability within three months, a stark contrast to traditional businesses. With selling fees that vary substantially by category, accurate cost management and strategic pricing are crucial. Let's dive into the differences between eBay and Amazon, which is better for selling?
eBay vs. Amazon for Selling
| Feature | eBay | Amazon |
|---|---|---|
| Pros | - Flexible selling models (auction/fixed) | - Quick profit turnaround |
| - Extensive international reach | - Robust sales tools | |
| - Lower monthly fees | - Brand protection through Brand Registry | |
| Cons | - Higher fees | - High competition |
| - High competition | - Higher selling fees | |
| - Requires monitoring of auctions | - Complex order management | |
| Fees | - Listing fees ($0 to $0.40); Final value fees (10%-15.55%) | - Subscription ($0.99/item or $39.99/month); Referral fees 8%-45% |
| - Additional costs for promoted listings & international | - Additional fulfillment fees if using FBA | |
| Target Audience | - Ages 25-34 (UK), 35-64 (US) | - Wide demographic, including millennials and urbanites |
| Selling Process | - Auction and fixed-price listings | - Individual and Professional Selling Plans |
| - Sales tracking tools available | - Optimized listings with photos and videos | |
| Demographic Insights | - Popular among buyers interested in electronics | - Attracts high-income and budget-conscious consumers |
eBay – Pros & Cons
Pros:
- Flexibility in Selling Models: eBay offers individual sellers the option between auction-style listings and fixed-price listings.
- Global Reach: Sellers benefit from eBay’s extensive international customer base.
- Lower Monthly Fees: While eBay charges fees per listing and final value fees, there is no mandatory monthly subscription for individual sellers.
Cons:
- Higher Fees: eBay's fees range from 10% to 15.55% of the final selling price, which can significantly cut into profits.
- High Competition: The platform's competitive landscape and abundance of similar sellers can make it challenging for individual listings to stand out.
- Monitoring Requirements: Sellers using the auction model must constantly monitor their items and renew listings if auctions end without a sale.
Amazon - Pros & Cons
Pros:
- Quick Profit Turnaround: 22% of Amazon individual sellers reported turning a profit within three months.
- Robust Sales Tools: Amazon provides advanced tools and support for optimizing listings, managing sales, and advertising, especially if sellers opt for Fulfillment by Amazon (FBA).
- Brand Protection: Sellers can enroll in Amazon's Brand Registry to safeguard their intellectual property.
Cons:
- High Competition: Like eBay, Amazon's marketplace is highly competitive, with many sellers vying for the same customer base.
- Selling Fees: Amazon's referral fees typically range from 6% to 45%, depending on the product category.
- Complex Order Management: Managing orders, especially for high-volume sellers or those utilizing FBA, can be complex and demanding.
eBay vs Amazon - Costs & Fees
eBay:
- Listing Fees: Individual sellers may pay insertion fees that range from free to $0.40 per listing.
- Final Value Fees: These fees are around 10% to 15.55% of the final selling price, including shipping costs, making accurate pricing essential to ensure profitability.
- Additional Costs: Costs accumulate for using promoted listings or if selling internationally.
Amazon:
- Subscription Fees: The Individual Plan charges $0.99 per item sold, while the Professional Plan charges $39.99 per month.
- Referral Fees: These vary by category, typically ranging from 8% to 15%, with some categories like Amazon Device Accessories reaching as high as 45%.
- Fulfillment Fees: Using FBA incurs additional costs, including storage fees and fulfillment costs per order.
eBay vs Amazon - Target Audience
eBay:
- Demographics in the UK: The largest segment is users aged 25-34, making up over 55% of the mobile shopper base. Adults aged 55 and older comprise nearly 17%.
- U.S. Market: 61% of eBay users are aged 35-64, with a significant share in the electronics & accessories category.
Amazon:
- Diverse Audience: Amazon targets a wide range of consumers, including millennials, urban residents, and value-conscious shoppers.
- Income Variety: The platform serves a mix of high-income and budget-savvy consumers, appealing to a broad economic spectrum.
eBay vs Amazon - Listing Process
eBay:
- Auction and Fixed-Price Listings: Sellers can choose their preferred selling model and list items via detailed forms, specifying prices, and adding photos.
- Private Listings: Sellers have the option to keep buyer details anonymous.
- Selling Tools: eBay provides tools for tracking sales history and managing current listings through platforms like My eBay and Seller Hub.
Amazon:
- Selling Plans: Sellers begin by selecting a plan—Individual or Professional—then setting up their accounts and listing products.
- Enhanced Listings: Amazon allows for optimized listings with detailed descriptions, photos, and videos to attract buyers.
- Order Fulfillment Options: Orders can be fulfilled by the seller or via FBA, which streamlines packaging and shipping, albeit at an extra cost.
