Ecommerce websites have seen a sudden surge in their retail sales. It is an undeniable fact that the coming era is all about e-commerce websites. Ecommerce sellers have many varied options to sell their products, causing unwanted confusion.
Perhaps, the oldest online players have managed to stay on top of the sales rank chart: Amazon and eBay. Amazon and eBay are still the most preeminent eCommerce websites offering the best services to millions of customers in the United Kingdom.
According to Statista, during the past decade (2010-2020), Amazon’s total sales increased from 4 billion to 26 billion U.S. Dollars, making the U.K second-largest market in Europe. Whereas, as per the latest annual financial report, eBay has generated 1.68 billion U.S. dollars worth of net revenue in Great Britain.
But how do you know which one you should use to sell your products? In the end, everything boils down to which platform can generate more profit with fewer investments. Don’t stress over this because we have reviewed some significant differences which will help you settle the tussle of Amazon vs. eBay Selling.
A seller must think about saving money wherever he can. One of the ways is to compare the fees of Amazon and eBay. Amazon fees vary between 15% to 28%, which also depends on the product and category. In comparison, eBay fees are not above 15% with PayPal inclusive. eBay’s final value fees on the item you sell are 10% (on the item price), plus PayPal fees at 3.4% and 20p. PayPal subtracts their fee when a seller receives the payment, whereas eBay bills you monthly for their fees. eBay has proposed its own managed payment system, which is more affordable than PayPal. Using eBay’s managed payment system involves sellers will save money on fees they pay for selling on eBay. When you examine Amazon fees to eBay fees, it is evident that the eBay fee is lesser than Amazon fees.
2. Fulfillment of Product
When customers purchase your product, the product must be sent to Amazon and a program called a Fulfillment by Amazon FBA.
This program permits you to give your products to an Amazon warehouse to ship your products to customers.
eBay does not offer this service. With eBay, you are required to send the products by post office or other courier services. Amazon FBA is the most significant reason why a lot of sellers choose Amazon over eBay. You can leverage the Amazon FBA service. You’d send the products to Amazon, and they take care of storage, delivery, customer service, and returns handling.
A registered seller account to sell on both eBay and Amazon is absolutely free. However, sellers have to avail of paid services. eBay’s essential subscription is £25 (excl. VAT) per month, and Amazon charges the same amount for their professional seller account. Amazon is considered more expensive to sell on Amazon than eBay. Amazon sets a seller fixed monthly fee plus costs per listing, while eBay charges only when customers reach a certain amount of listings.
Now that you are aware of the significant differences between the two platforms: a better understanding of how each could benefit your business, it’s time to decide and get out of the mental battle of Amazon vs. eBay?
Nonetheless, what you choose — Amazon or eBay; there’s never been a better time to launch your business online.