Amazon and eBay have been hitting the marketplace for many years now. These two marketplaces have been popular to the USA as well as worldwide. The question is which one is better? Which one has more advantage? Here’s the 3Ps that can guide you which one to choose for the best online store?
People (Customers and Sellers)
Amazon is a customer-friendly marketplace since you are given a chance to check out different items you like to buy in various categories. It focuses on being a client-centric company. It satisfies the customer needs by letting them find and discover an item that they might use. It also offers speed of delivery that can only take 48 hours, since they already launched the Amazon Air. Other than that, they also use drones for some deliveries that can reach you in just 30 minutes.
eBay has a way of reaching out to smaller businesses. As compared to Amazon, it is a seller oriented. It gives smaller companies a chance to sell their products worldwide. Sellers have more freedom when creating and designing their page. This is an excellent platform for newbies in e-commerce. eBay generates its revenue by needing the seller to list products on its site. eBay also hosts live auctions and fixed price for their products.
If you are a seller and wanted to focus on the US customer base, Amazon is the best place. On the other hand, if you’re going to expand internationally with diverse customers, eBay is the right choice.
When it comes to products, these two offers a wide variety of choices. However, there are still differences that made them unique. Amazon showcases new products. They are a direct provider of goods. They are more of a larger brand and retailers. They are known for “house brand” of “in-house” products.
Amazon has even a list of restricted brands that sellers must pay a fee for them to sell. There are many rules to follow when listing under Amazon, but these surely ensure that customers receive what they accurately pay for. Amazon also uses small retailers to know the trending products then pushes them out by undercutting them. Their private label items and their stiff competition ensure customer with the best quality and service for their items.
Ebay’s products are mostly brand new, some collectibles, and used items. Their items do not have their brand. It gives the smaller sellers a chance to build their brand. Ebayfacilitates the sale of goods between third party buyers and sellers. One of the advantages of eBay is that they have auctions. A customer could choose some products that they like from sellers and bid on it through individual auctions.
Each marketplace has different ways of gaining profit. According to researches and studies, there are fees that the seller should take into consideration that can greatly affect his/her profit. eBay charges 10% of the final value fee, while Amazon charges 15%. eBay does not charge a closing fee while Amazon charges their closing fee depending on the type of item you sold.
The only price that eBay charges are the Paypal fee. To cut it short, eBay sellers can gain more profit when it comes to selling their item as compared to Amazon. Also, eBay sellers can get a higher profit when they have an auction. If buyers bid, the seller can get a higher price for his/her products’ real worth.
I do believe that each marketplace has its advantages and disadvantages to offer to their seller as well as to the consumers. If you are a seller, better yet try these two marketplaces and decide which suits you and your business well.