Is Selling on Amazon or Selling on eBay More Profitable?10 min read

Amazon and eBay Selling Platform

Should it sell on Amazon or eBay? This is one of the questions that almost everyone engaged in online commerce is dying to know. So we wondered about the answer to this question and decided to take a closer look at these two online commerce channels to understand which one is better.

Product prices and availability

Let’s first look at our old friend eBay. This e-commerce site has been in our lives for quite some time. To be specific, since 1995.

The first plus of selling on eBay is that it is a super convenient place to buy and sell almost anything you can think of. Here it is possible to buy and sell everything from old to new. (Except, of course, illegal things)

Ebay stands out at this point. Although both have the option to buy second-hand items, People like shopping on eBay to buy second-hand items compared to Amazon. In this regard, eBay is definitely the preferred option because it offers very affordable and very affordable prices for the sale of auction models.

The price of the auction model

Speaking of the auction, what you should keep in mind when selling on eBay is that you don’t have too much control over the price (and therefore your profit rate). On the other hand, the price on Amazon is determined by you and you have full control over your price policy. You can also sell fixed price products on eBay, but remember that the eBay customer is on this site for bargaining.

Product quality

If we think of it as a customer, it is a fact that we will prefer Amazon for the new product and eBay for the second hand product.

Depending on what kind of work you are going to do, they may both be for your benefit. Will you sell your second item by building your business on the items in your warehouse, on the roof of your friends’ relatives? Or do you want to sell new products?

This is a choice you make and it is useful to choose which one suits your business model. Looking from here, both markets look best for their customer base.

Amazon is a place designed to sell quality products that will save you money year-round. If you make your product research and supplier selection right, you can profit from the same high quality product for years.

Merchant fees

Another reason that people tend to sell on eBay is that wages are generally cheaper than Amazon’s FBA (preparation by Amazon) service.

eBay fees

The fees you need to pay:

Insertion fee – Sellers have the right to add 50 free items each month. Sometimes the number of additions to this product is higher when you open the shop.

Final value fees – 8% of the final sale price for products that cost $ 50 or less. Extra 5% if the product is more than 50%.

PayPal fees – A flat fee of $ 0.45 and 2.9% of the transfer.

Listing improvement fees – These are not mandatory fees, but if you want to highlight your list on eBay then you might consider paying those fees.

Let’s use the eBay fee calculator to take the example of the hooded baby towel product from the Baby & Toddler Clothing category. For a product that sells fixed prices for $ 20.95, the fees increase to $ 5.02 along with the list improvement fees. If we want to offer free shipping to our customers, we need to add the shipping fee above these costs.

Putting the fees aside, if you are new to the sales business, eBay is a great place to enter the industry. These fees are ultimately cheaper than Amazon’s fees.

Note that you will not receive a package offer on eBay, including things like discount shipping, as on Amazon FBA.

Amazon fees

The fees you will pay on Amazon depend on the product you sell. Again, let’s use hooded baby towels as an example. This towel is a really good product, because it is cheap to store and transport, and the product is light and volume is not large. One of these products is sold for $ 20.95. When we add this price to the FBA calculator of Amazon for the US market, we will see some interesting profit rates:

Subtract sales fees (in this case $ 3.14 – this price also includes referral fee and closing fee) on Amazon. Then subtract the FBA fees, holding $ 4.78 per product. These fees include everything from storing the product to packaging and sending it to the customer. If we take the product to the Amazon warehouse and take into account the cost of the product … we see that a product earns $ 6.94.

As you can see, if you try to sell the same product on Amazon, you will have to pay more per product, $ 7.92 in total.

Don’t forget the shipping costs

All of this may sound like a little drama, where a lot of money is spent on selling the tiny thing, let it not. Remember that if you decide to start selling on eBay, you must pay the Premium shipping fee, you must pack and store the products yourself. All this can cost you a lot more.

Amazon charges may be high, but if you do your product research correctly, selling on Amazon may be a more profitable, favorable option, giving you more freedom in product price.

There’s a lot of fees

Yes, the salary items are a bit too much, but at this point you need to answer a question: Is your time valuable or do you sell because you have spare time?

This is a question that only you can answer. If you want to use your time effectively to grow your business and take time for yourself, choose Amazon, indisputably because of the wisdom of FBA. But if you don’t worry about time, if you want to get your hands dirty and rush to errands, maybe eBay is for you.

In this regard, we have to write the score on eBay because the fees are technically less. But if we consider that Amazon’s FBA fees are not a barrier and you have chosen the right product, it is possible to make a considerable profit without putting your hand on the duct tape.

Confidence

Another reason Ebay is loved by the sellers is that product and money returns are very difficult here. If you want to make your life easier, you can also just tick the “no returns” box. Unfortunately, the A-Z Warranty issue on Amazon prevents many people from selling here.

From the perspective of the customer, A-Z Garanti is a perfect situation, giving customers the feeling that their rights are protected and safe. And there are no one or two people thinking that way, there are 304 million people, and this number is almost twice the number of customers on eBay.

Let’s say you are going to buy a product, do you shop from a reliable shop or a shop that doesn’t support you after the product sale?

This is a very easy question to answer for some. That’s why Amazon has a high number of customers and people trust this site. It is an undeniable fact that people feel relief when they see that orange logo.

You have to think deeply about this issue, if we look at it from the perspective of the seller, it is perfect not to get a refund, but this issue greatly reduces your potential customers. It’s up to you to decide if it’s worth it.

If your products are listed very well, if the description describes all the features of the product, if your product photos are of high quality and reflect your product in the best way, then what is your rate of encountering the product / refund problem?

In addition, you should always discuss your product return with your supplier and agree that the fee will be deducted from your payment if the return rate exceeds a certain level.

It seems that we will write the score to Amazon on this.

Amazon Prime

Amazon has a source of pride that eBay can’t even go through, let alone race, and that is Amazon Prime.

You may not have noticed yet, but there are people in the U.S. who cannot live without using Amazon Prime, and this community has behavioral features like absolutely refusing to shop elsewhere. We are talking about people who buy what they can buy even at the corner store. You may be wondering what these people aim for. These people are fascinated by the products and services that reach their doorstep on the same day and that are probably cheaper than other places. Thinking like this, it is not something to be disliked, I guess not to be condemned too much.

From the perspective of the seller, Amazon Prime looks too good to be true again. Amazon Prime offers sellers a chance to reach 90 million in the US and 45 million worldwide. This is a crazy number. And if you think that most of these people shop weekly or even daily from Amazon, yes, I think Amazon Prime is too good to be true.

Why would you want to sell elsewhere while there is a customer of this volume and these people (instead of dealing with PayPal) click on a button to complete the sale process and officially wait for you to pay for your product?

FBA

Another thing that separates these two trading sites is the FBA program offered by Amazon. Thanks to this program, you are protected from stress caused by ridiculous things and you prevent time loss. You store, pack and ship your product to the customer without moving your finger. You can even do this while sunbathing on the beach and sipping your lemonade.

Yes, you have to pay a fee for this service, but as we mentioned before, you should first ask yourself whether your time is important or not. Do you really want to spend your hours labeling, packing and then going to the shipping office to deliver it to the customer? For some, this may be a super idea, but for others it may not sound so good. Yes, you have to pay a fee for the FBA program, but in our opinion it is worth the service you will receive and offer to your customers.

These are roughly the main points. Now let’s look at our list and see who won.

Yes, eBay is cheaper. Yes, you have more choice because there are less strict rules and regulations on eBay, but these are exactly the points that distinguish these two websites. As a seller, you should always consider your customer. What do they want, what are their expectations from their sales experience… It is important for Amazon to offer an excellent customer experience.

You can earn big earnings by accessing 304 million active users on Amazon compared to 170 million users of eBay. I’m not even talking about Prime customers’ commitment to buying.

If I have to answer these questions for you… Do I want to package all my products? No. Do I want to deal with the cargo of all my products? No. Do I want to store all my products by myself? No.

My time is very precious for me and I prefer to use it with my loved ones and to develop and grow my business.

You must decide for yourself who is the winner, taking into account your business and business strategy. Take some time to ask yourself these questions and find the best one for you. Both e-commerce sites have their own excellent features, pros and cons.

The winner for me is Amazon. So who is the winner for you?

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