In our previous 2 articles, we discussed 10 pros and cons of selling on eBay and selling on Amazon. The 10 advantages and disadvantages were:
Average Sales Price
Auctions And Fixed Pricing
Here are the 2 final pros and cons that we are going to discuss in regards to these two platforms:
11. Return Policy
Some eBay sellers don’t want to do business on Amazon due to its A-Z Guarantee return policy. It promises the buyer a full refund for as long as 3 months if there is a material difference between the product and its description. Amazon tends to side with the buyer instead of the seller. At times, it can be a very tough policy for sellers to take.
On the other hand, eBay sellers are able to dispute the buyers. The problem with that, however, is disputes tend to end up in sellers getting more negative feedback. Sellers are required to offer refunds to buyers. However, your funds can be held by eBay for a period of time until the dispute between you and the buyer gets resolved. So actually it’s the same problem as with Amazon. And with Paypal and eBay, there tends to be more time spent on red tape. Most of the time, if a buyer is very determined, they end up getting a refund.
This is mainly due to the costs as well as mess and time that the dispute process and its resolution takes. In conclusion:
Advantage: goes to Amazon
It is common for eBay sellers to make a couple extra dollars on items through the shipping charges. They increase the costs slightly in order to skim some profits off of the top. This is often used to help reduce their eBay expenses and fees.
However, a seller can be penalized by eBay now if they are caught doing this. Also, they are giving a break to sellers who offer free shipping.
Amazon offers a shipping credit to sellers, depending on what category the item belongs to. The shipping credit doesn’t always cover the shipping cost on an item, but usually it does. It is a fixed amount that is set by Amazon. You cannot ask for more money from your customer, even if the shipping costs are not covered by the credit. You still will need to ship out your item. However, since this credit is fixed, you can factor in whatever extra cost you need when you are setting the prices on your items.
So in this case, which is the better of the two? Having full control over your own shipping is always a good thing. However, if you are careful about things, it is pretty easy to just add in the extra shipping expenses to the selling price of your product on Amazon. That way you won’t lose any money, or if you do if will be only a small amount.
On eBay, I have run into low priced items that I was thinking about buying, but had to reconsider due to the outrageous shipping charges. For example a $2 cell phone cover with an $11 shipping charge. There are fixed shipping rates on Amazon, so you don’t feel like it’s a rip off. Many other buyers feel the same way. So the winner on this one is:
Advantage: Amazon For Some Ebay For Others
For sellers, eBay is great for some things and Amazon for others. However, there is a lot of overlap between the two platforms. A majority of items selling on Amazon also sell on eBay and vice versa.
Shoppers are all different. It’s important that you keep this in mind. Many Amazon customers are very loyal and don’t do any buying on eBay. On the other hand, many eBay buyers don’t shop on Amazon. So getting set up as a seller on eBay as well as Amazon might be the best option in terms of maximizing your profits. In many ways, eBay is working towards being more like Amazon all the time. That is something you also might want to keep in mind when thinking about the future.