Amazon v eBay – 10 Differences You Must Know

Amazon and eBay are the giants of the e-commerce world. Both are established brands and have millions of active buyers globally. Consumers have been inclined more towards online shopping in recent years. The trends of online selling are subsequently on the rise as well.

Both Amazon and eBay offer great e-commerce experience for sellers and buyers alike. Here are our top 10 differences that you must know about the industry leaders in e-commerce.

Amazon Vs ebay

1) Marketplace

eBay is essentially an auction site with more options for used products. Amazon offers all types of products, new and used. eBay has a reputation as a marketplace where buyers can find unique products.

Both platforms have millions of active users. Amazon offers direct online sales to their customers, as well as third-party. eBay only offers third-party sales to consumers without direct selling.

Sellers can list products in several categories on both platforms. The business model and pricing strategy for both platforms differ. Amazon offers comprehensive branding, shipping, and branding services. While eBay offers no logistics and shipping services for sellers.

2) Product Range and Quality

Amazon offers 40+ product categories with a wide range of brands. The product listings on both platforms are massive though. Big brands have started listing their products directly on Amazon recently.

Whereas, eBay offers a vintage marketplace with more appeal to the hobbyist and savers. A recent stat report by Oberlo revealed that more than 80% of items sold on eBay were new items though.

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Amazon has had problems with third-party sellers as counterfeit product complaints increased. Although consumers can easily find products with a brand warranty on both platforms.

3) Global Marketplaces

Amazon has over 150 million prime users alone. They have a global presence in 14 countries and regions. Each of these dedicated sites caters to the regional buyers. Amazon crossed $75 billion in sales figures in the year 2020.

eBay has a global presence through 23 dedicated international websites. Its active users are 182 million worldwide.

Although both platforms have an immense global presence, the large share of sales comes from US customers. Around 70% of total sales for eBay come from the US alone.

4) Listing Fees

Amazon has two types of listing fees for sellers. Professionals pay $ 39.99 monthly plus the listing fees, while individuals pay $0.99 per sale. Sellers on eBay pay the listing fees twice. The initial listing fees $0.30 plus the percentage on sales. The sales percentage is 10% for most of the items sold on eBay, which is well below the sales commission average of 15% for Amazon.

Sellers are better off selling at eBay as far as listing fees matter. However, the buyer flocks at Amazon with large sales do play a crucial role in deriving more sales.

5) Branding and Marketing Support

When it comes to facilitating their partners with dedicated branding and support, Amazon offers a clear advantage. It offers comprehensive branding and listing services to its selling partners. Amazon’s sophisticated branding and advertisement solutions mean more sales and brand recognition.

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eBay also offers promotional listings that promote seller’s products with specific page rankings. It charges sellers for promotional fees only on sales. While Amazon charges promotion fees regardless of the sales.

Amazon offers wider choice and control in listing promotions, while eBay offers cheaper solutions.

6) Product Shipping and Deliveries

Amazon is decades ahead of eBay when it comes to offering dedicated shipping services. Amazon’s FBA program offers convenient logistics solutions to its partners. Amazon Prime offers same-day delivery to its consumers.

eBay has also announced the launch of dedicated shipping service. However, it will take time to build the kind of consumer trust that Amazon already enjoys.

7) Receiving Payments

Sellers look for instant payments when they make sales. E-commerce has a disadvantage of receiving delayed revenues in real terms.

Amazon has a payment frequency for twice a month for its partners. While eBay lets its partners receive payments instantaneously with each sale.

8) Seller Advantage and Management

Amazon offers comprehensive partner programs. From branding to the shipping, it covers most of the requirements for sellers. Amazon is flooded with spammers and it takes stern measures to counter that issue. Many sellers get suspended with little to no warnings.

eBay doesn’t offer a full suite of shipping and branding services to its partners but is more seller centric than Amazon.

9) Competitive Markets

Amazon has over 2.5 million sellers with active selling accounts currently. It reports 4000 sales per minute in the US alone. For buyers, it offers a lucrative advantage of shopping at the world’s largest online shopping mall. For sellers it means stern competition to beat. Standing out of such a congested marketplace is never easy.

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eBay has over 1.3 billion listings as well. Most of the sales for eBay come through US consumers. It offers greater seller success chances provided you offer some sort of uniqueness in the products.

9) Buyer Preference

Amazon is the hands-down winner when it comes to customer preference. 82% of online shoppers suggested they would prefer Amazon over other e-commerce platforms. However, eBay has a unique advantage of pooling sophisticated buyers looking for antiques, collectibles, and vintage items.

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