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Amazon vs eBay (Who Wins The Battle)

Amazon and eBay both sites are great options to start an E-commerce business but for the growth of your own business you need to choose one of them. Here competition between Amazon and eBay takes place.

Amazon and eBay both sites are great options to start an E-commerce business but for the growth of your own business you need to choose one of them. Here competition between Amazon and eBay takes place.

There are several things you must need to know before choosing the correct marketplace for your business growth. We are comparing these big E-commerce giants in following prospects.

  1. How are Amazon and eBay different?
  2. Amazon and eBay Marketplaces
  3. Which marketplace has more customers?
  4. Seller fee/charges for Amazon and eBay.
  5. Which pays you quickly?
  6. Shares of E-Commerce Sales for Amazon and eBay? 
  7. Easier to Ship and Manage

1- How are Amazon and eBay different?

This is the very first question that comes to mind before starting an E-commerce business. The main difference between Amazon and eBay are

Amazon is a retail website

People visit Amazon to do shopping directly from third party sellers usually (Private label products or wholesaler products). You are actually competing with other sellers when you are selling your products on Amazon.

eBay is (mostly) an auction website

eBay is a platform to facilitate the sale of product (new or used) between third party sellers and buyers. eBay listing prices are affected by the number of bids on a product. Like how aggressively buyers are bidding on a particular product.

2- Amazon and eBay marketplaces

Amazon and eBay have following marketplaces and

AmazoneBay
Amazon US (Traffic: 2.26 billion)eBay US (Traffic: 820.15 million)
Amazon UK (Traffic: 411.59 million)eBay US (Traffic: 290.67 million)
Amazon Germany (Traffic: 447.16 million)eBay Germany (Traffic: 208.44 million)
Amazon France(Traffic: 175.20 million)eBay France(Traffic: 43.13 million)
Amazon Italy(Traffic: 163.27 million)eBay Italy(Traffic: 64.91 million)
Amazon Spain(Traffic: 143.62 million)eBay Spain(Traffic: 22.92 million)
Amazon Netherlands(Traffic: 447.16 million)eBay Netherlands(Traffic: 208.44 million)
Amazon Sweden(Traffic: 10.79 million)eBay Sweden___
Amazon Poland(Traffic: 125.95 k)eBay Poland(Traffic: 2.04 million)
Amazon Japan(Traffic: 554.21 million)eBay Japan(Traffic: 176.41 k)
Amazon Singapore(Traffic: 5.60 million)eBay Singapore____
Amazon United Arab Emirates(Traffic: 17.70 million)eBay United Arab Emirates____
Amazon Brazil(Traffic: 81.77 million)eBay Brazil____
Amazon Australia(Traffic: 30.60 million)eBay Australia(Traffic: 66.58 million)
Amazon India(Traffic: 252.39 million)eBay India(Traffic:694.02 k)
Amazon Saudi Arabia(Traffic: 5.76 million)eBay Saudi Arabia____

3- Which marketplace has more customers?

As compared to Amazon, eBay marketplace is much smaller than amazon. According to the 2018 report Amazon holds revenue of $282 billion and eBay is at $10.75 billion of revenue.

Amazon revenue is almost tripling every year on the other hand eBay’s revenue is almost flat

YearAmazon(sales in Billion)eBay(sales in Billion)eBay % Amazon
2014$88.99$8.799.9%
2015$107.01$8.598.0%
2016$135.99$8.986.6%
2017$177.87$9.965.6%
2018$232.89$10.754.6%
2019$280.522$8.63
2020$386.064$10.271

Monthly Visitors

According to the report Amazon has 636 million of monthly organic traffic and on the other hand eBay has 129 million of monthly organic visitors.

4- Seller fee/charges for Amazon and eBay.

As compared to the fee chart Amazon charges 15% commission including payment and processing fee charges and eBay charges 10% in commission but the payment and processing charges are not included in it. Here is a detailed chart for fee comparison.

We are taking example of product having price $49.99

Fee DetailAmazoneBay
Selling Price$49.99$49.99
Selling Fee$7.50$4.99
Payment Processing___$1.45
Shipping Fee (For Amazon FBA Fee)$5.85$9.52
Total Fee Charges$13.35$15.96
Other Charges
Advertisement Charges0.25% of Item Sold___
Monthly Fee$39.99 for Professional Account$0 to $24.95 Basic eBay Store

5- Which pays you Quickly

In case of pay back eBay takes advantage at this stage as eBay is much more better than Amazon at this point. On eBay you will get the payment as the buyer purchases the item but for Amazon you will not get payment until Amazon shipped the item from its warehouse to the ordered customer and even after that amazon holds payment for next two weeks.

6- Shares of E-Commerce Sales for Amazon and eBay?

Following figure shows the shares of E-commerce sales in united states

7- Easier To Ship and Managing Account

As compared to managing accounts Amazon has a huge advantage due to its FBA business model. Amazon FBA saves a lot of work and effort. Sellers are only responsible for inbound shipping and outbound shipping. But Amazon FBA is not free of cost. It will charge you storage fee for it and sometimes this fee will become expensive for you.  Learn how to create listing on Amazon

On the other side eBay has a confusing decentralized product management system. There can be multiple listings for the same exact product on eBay. In designing prospects eBay allows you to write html and css while creating listings which will be helpful for perfect and attractive design. Learn how to create listing on eBay

Who Wins

According to the previous discussion “Amazon vs eBay” Amazon looks good due to is

  1. Much more customers
  2. Huge Revenue
  3. FBA Business Model
  4. Account Managing 
  5. Reliable Fee Structure

For more discussion on Amazon and eBay please visit our forum or leave a comment below.


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