Furthermore, Amazon is in the fulfillment business, including packing and shipping products sold either by Amazon itself or third-party sellers. EBay, however, doesn't have such a program, instead leaving packing and shipping entirely up to eBay sellers. Aaron Charles began writing about "pragmatic art" in for an online arts journal based in Minneapolis, Minn.
After working for telecom giant Comcast and traveling to Oregon, he's written business and technology articles for both online and print publications, including Salon. Share on Facebook. Service Notwithstanding the fact that both companies are in flux as they adjust to consumer demands, the cores of both businesses remain pretty much the same; eBay is more seller-oriented and Amazon more buyer-oriented.
Scope Sellers on eBay can be broken up into these major categories: sellers who sell auction-style, sellers who sell at fixed prices or ask buyers to make offers on merchandise, sellers who sell at higher volumes in their own eBay online stores, and sellers who sell on eBay's classified ads site link in Resources.
Cost The fees that both companies charge sellers also demonstrate differences between the two. They handle customer support , remove negative feedback due to shipping, and can also ship sales made through other channels.
Yes, that includes eBay. You ship from your own facilities, but you still qualify for the Amazon Prime badge.
Right now, eBay has no shipping and fulfillment services for domestic sellers. This could be a particular barrier to new sellers. Having to set up shipping and fulfillment from scratch, without support from the platform, is obviously costly.
Even if eBay were to start offering such a service tomorrow, it would be competing with the most advanced delivery service on Earth, starting from scratch. But until it does, Amazon wins. Jeff Bezos still has to earn an honest living but, when we compare Amazon and eBay directly, who is giving sellers the better deal?
Amazon charges for Professional Seller status, as well as taking a referral fee per item sold. This gives you up to , free listings, and even more if you keep making regular sales. Amazon referral fees are very different from category to category. There are two kinds of selling fees on eBay. Setting up an eBay Store gets you an allowance of free monthly listings. PayPal processing fees for sales made on eBay are typically 2. Comparing eBay and Amazon on seller fees is a close one to call.
True, those fees are on their way out, but eBay also charges extras to make a listing truly competitive, like the subtitle upgrade. Amazon and eBay both provide additional services to push your products ahead of the competition. Amazon Sponsored Products secures your products a first-page spot for specific keywords. You can dictate which keywords to target yourself or let Amazon do it for you automatically. This is a pay-per-click PPC service, so you pay every time your ad gets clicked.
A little nudge at a fair price could be all you need. Overall, the narrow win goes to Amazon for giving sellers more options and more control in how they promote their wares. International eCommerce opens new horizons for sellers to engage fresh audiences without the need to make radical changes to their business model.
But is Amazon better than eBay at helping sellers make the jump from domestic to global sales? Or does the auction platform go the extra mile? The exceptions are Europe covering the five European marketplaces and North America covering the US, Canada, and Mexico , these are each grouped together.
This could make it more difficult to build a local brand or protect happy markets from the influence of troubled ones. Just one eBay account lets you trade across 23 sites in over countries. Here's a look at two of them:. Another vast difference between eBay and Amazon is the ancillary services available to buyers. In recent years, Amazon has rapidly expanded its additional services , most notably through Amazon Prime. The membership program requires users to pay an annual fee but grants them exclusive access to expedited two-day shipping at no additional cost, digital media such as movies, music, and Kindle e-books, and unlimited photo storage through the cloud.
Though Amazon and eBay are two of the largest players in e-commerce, both have vastly different business models. Amazon operates like a traditional retail store, attracting buyers to its site to purchase its listed inventory, while eBay attracts sellers to list their personal goods, operating as an auction house or a garage sale.
As a buyer, depending on what you are seeking to purchase, either Amazon or eBay will be a better fit for your needs. Similarly, as a seller, based on your business model and selling needs, one company will work better for your business goals. Lifestyle Advice. Company Profiles. Tech Stocks. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.
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Table of Contents Expand. Sellers Fess: eBay vs. Amazon Seller Fees. Additional Services for Buyers. The Bottom Line. Key Takeaways Both eBay and Amazon are two of the largest and longstanding major players in the e-commerce sector.
Amazon and eBay have many similarities, primarily in attracting visitors to their site, providing them the ability to browse available products and make a purchase. The differences between the two companies lie in their business models; Amazon operates like a traditional retail store whereas eBay functions more like an auction house.
Amazon relies on third-party sellers to list their products on the site so that consumers have a large inventory of goods to search through. Similarly, eBay relies on sellers to list their goods for sale to be auctioned off in a certain time period. Amazon is buyer orientated while eBay is seller orientated.
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