If you’re looking to create a small online retail business, chances are that you’re considering one of two options: Amazon or eBay. At the start of the e-commerce revolution, eBay was the clear and obvious choice. However, the extreme growth experienced by Amazon in recent years has now made Jeff Bezos’ creation the go-to e-commerce choice for many. So, how do these two online retail giants compare, and which one is the best option for those looking to get an online retail business started?
In an effort to give you a better idea of which site presents the best option for e-commerce today, we’re going to compare these two internet behemoths on a couple of key points. Without further ado, let’s jump into our first comparison…
Question #1: How Many Customers Are On Each Site?
While it is unrealistic (and let’s face it, likely impossible) for your products to reach the hands of the hundreds of millions of customers on both Amazon and eBay, knowing the number of active customers on each site can give us a good idea of which option presents the most selling opportunities.
.As of today, eBay has about 175 million active customers on its site. While this might seem like a ton of customers, it pales in comparison to the traffic that Amazon regularly receives. Back in 2016, it was reported that Amazon had 310 million active customers worldwide, representing an almost unbelievably large group of potential customers for your products. While up-to-date stats on Amazon’s customers are a little harder to come by, it is certainly higher than 310 million. Clearly, Amazon allows sellers to reach a far larger group of possible customers when compared to eBay.
Question #2: Are Fees Cheaper At One Of These Sites?
Yes! Hands down, the fees associated with selling items online are much cheaper on Amazon. While eBay’s fee system can quickly cut into a seller’s profit margin, the fees charged by Amazon are typically not as intrusive. Currently, Amazon offers two seller tiers: the Professional and the Individual Seller.
The Professional tier costs $39.99 per a month, and allows sellers to sell as many items as they would like on the site without incurring additional fees. On the other hand, the Individual Seller package doesn’t charge a monthly fee, but does charge $0.99 per item sold, plus some additional processing fees depending on the sale itself. Whether you’re planning on selling hundreds of items a month or only a few, if you pick the appropriate selling tier you are sure to save a ton of money compared to selling on eBay.
Question #3: Which Site Makes It Easiest To Sell Products?
In short, the answers is once again Amazon. Not only is the process of signing up for the site a breeze, but if you decided to do so, you can let Amazon take care of all of the logistics associated with selling. The Fulfillment By Amazon program makes selling through the site almost effortless.
With the Fulfillment By Amazon program, you’re products are housed in an Amazon Fulfillment warehouse, where they are automatically shipped to customers as soon as their purchase request is received. While Fulfilment By Amazon is a super convenient option, there are some minor fees associated with the service. On the other hand, selling through eBay typically means that you have to package and ship each individual product yourself. While this isn’t a big deal for small sellers, if you intend on selling hundreds or thousands of products a month, shipping each order can be a near impossible task.
If You Want To Start An E-Commerce Business, Choose Amazon
For those wanting to get involved in the world of online retail, Amazon is the clear choice. Sellers on Amazon not only have access to one of the largest collections of possible customers on the planet, but they have the ability to opt-in for multiple different services, such as Fulfillment By Amazon, that help to make the process of running an online retail business as smooth as possible.
With this being said, eBay still presents a good option for those who are looking to dabble in online retail, or who don’t anticipate selling a lot of items each month. It is important to point out that the auction-style sales facilitated by eBay can help to entice more customers, which is an option that is not available on Amazon. Overall, you can’t really go wrong with either site for small e-commerce operations, but if you want to ensure that your online retail business has the chance to grow and thrive, you’ve got to choose Amazon.