In our previous article, 4 pros and cons to using eBay and Amazon as a seller were discussed. They were:
Auctions And Fixed Pricing
The following are 6 more pros and cons of selling on these two platforms:
eBay and Amazon both have a system that allows buyers and sellers to leave feedback on a transaction. Negative comments can be left on sellers on both of the sites. On the other hand, sellers can only leave neutral or positive feedback on buyers.
Far more weight is given to feedback on eBay than it is on Amazon. Customers purchasing products on Amazon can see the seller’s feedback score, however they have a tendency to ignore it a lot more than individuals buying on eBay. There is an A-Z Guarantee offered by Amazon that provides the buyer with protection when purchasing from a seller on the retailer’s website.
Sellers are at a disadvantage at eBay because they get pushed down in the results as shoppers are performing a search. A seller’s feedback is considered by eBay, and if they have lower feedback they will be less visible in the search results. Amazons lets consumers make the choice on their own.
Advantage- Amazon, especially in regards to sellers.
Amazon places restrictions on sellers attempting to reach out and contact their customers and try to market to them. In the past, this was one of the big advantages to selling on eBay since they allowed sellers to link to their offsite website from their seller’s About Me page.
However, there have been some changes to eBay’s policies, and you can’t do this anymore. It is forbidden now, so that advantage has disappeared. This change has neutralized utilizing eBay as a branding tool.
Advantage: This one is a tie
Using images is something that eBay sellers have had to struggle with over the years. There are several aspects of photos where this has been the case, including being able to take good photographs, getting photos to display on eBay as well as how many to use. Using someone else’s photographs on eBay is against their rules. You must use your own photographs. Of course people still do it. However, it definitely is discouraged.
On Amazon, things are different. You only get one description page and one photo, and all sellers use the same exact page.
The first photo that is posted of a specific product is usually the image that everybody sees. Some people don’t like it when their photo is used by others. However, if one of those photos fits for a specific product, usually it’s a commodity product and other sellers don’t any any rights to the photos anyway. However, for most items, you don’t need to have a lot of photos.
On Amazon, it is very nice to list 100 items or more and not even need to take one single photo. It can save you lots of time.
Some Amazon buyers will buy an item even when there aren’t any images. Many consumers realize that a photography is just a representation of the item and that the same photo is used by everyone.
Advantage: Amazon has this one.
The seller is responsible for paying the sales tax on anything they sell on Amazon. This cost is usually added to the sales price of the item. It can be a real pain for sellers sometimes who are trying to run their businesses.
On the other hand, eBay offers a feature where they collect the taxes for you in addition to the sales price. That helps to prevent the taxes from eating into the seller’s profits.
It is pretty surprising that this hasn’t been added yet by Amazon. However, they could end up adding it soon. However, until that happens:
Advantage: eBay has the upper hand here
9. Average Sales Price
Those who shop on Amazon have been proven to be more affluent consumers. They will spend more money on similar items. People who shop on eBay are looking for deals. They are willing to wade through lists of auctions just to save a couple of dollars.
If you sell products, it is better to select items that consumers are willing to pay higher prices for. Another idea is to look for really low prices on eBay, buy the items, and then turn around and sell them on Amazon for high profits. Many people who buy products on Amazon won’t look at eBay, so they end up paying a higher price for the same items.
Advantage: Amazon is the winner here.
10. Payment Methods
If you sell on Amazon, you are required to use Amazon Payments. Amazon collects payments from customers and then deposits the money into your bank account twice a month at least, and more often if you’d like. There is no cost for them to collect funds or deposit them into your bank account. eBay only accepts PayPal.
In the past they accepted money orders and cashier’s checks. However, that is no longer the case.
eBay wants there to be PayPal payments on all transactions. Due to the fees that are involved, it can affect many sellers. For example, if you sell an item for $500, there is a 2.9 percent fee charged by PayPal. That comes to almost $15!
Amazon sellers don’t need to send any invoices, payment reminders or keep track of items that haven’t been paid for. If Amazon doesn’t collect a payment, then there isn’t a sale. The items still shows in the listings. Things are different with eBay- it involves more time, work and ultimately more costs for the seller.
So these have been more of the pros and cons of Amazon and eBay. Stay tuned for our last article on the subject!