12 Points of Comparison - eBay and Amazon
By Steve Lindhorst
Think of any situation, and there are likely pros and cons. The same is true when
deciding whether to expand your sales to Amazon. The fact is, neither eBay nor Amazon can
claim to be the best across the board nowadays.
Many eBay sellers have wondered if it's really worth selling on Amazon. Some feel there
are too many rules and it wouldn't be worth the effort. Some have asked for a point by
point comparison between the two sites. Here are a dozen points of comparison that may
help sellers make a decision.
1. Fees
2. Format (Auction vs. Fixed-price)
3. Community
4. Stability
5. Feedback
6. Branding
7. Photos
8. Taxes
9. Average Sale Price
10. Payment Methods
11. Return Policy
12. Shipping
1. Fees
Most sellers agree that fees between the two sites are almost a wash. Especially when
you consider that you pay for every item to be listed on eBay whether it sells or not.
When you consider unsold items, time spent relisting items, and time spent dealing with
unpaid items, my opinion is Amazon comes out ahead.
Amazon collects the payment for the seller, and deposits the funds into your checking
account. There are no fees for this, while PayPal fees are substantial. If eBay moves to a
PayPal only model in the U.S., they can increase fees for collecting payment at will.
Advantage: Tie
2. Format (Auction vs. Fixed-price)
eBay popularized the auction format listing. Amazon failed at auctions and only offers
fixed-price listings. Which is best?
For collectibles, auctions are the best way to get market value. eBay is better if you
are running an antique store online and want the best prices, and shoppers looking for
unique items.
But most businesses, do not deal in collectibles, they sell "practicals," commodity
items that people want to buy and get on with their day. Buyers can readily find these
items, and buy online for convenience. It's easy to set a fixed-price for these items.
While Amazon is the fixed-price king, eBay is moving in that direction by downplaying
auctions and encouraging fixed-price listings. The advantage is in the buyers. The Amazon
buyer is more affluent, and pays a higher average price for products.
Advantage: Auctions: eBay
Advantage: Fixed-price: Amazon
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