Amazon is undoubtedly the king of the e-commerce space, but it has a strong contender: eBay. Both platforms are popular options for wholesale merchandise sellers thanks to their popularity and seller tools. The debate over Amazon vs. eBay rages on, leaving many sellers to wonder which option is the best for them. The truth is that it all depends on your preferences and needs.
Selling on Amazon vs. eBay: Which is Best?
Between Amazon and eBay, which platform is best for sellers? Each platform has benefits and downsides.
While Amazon may be the most popular e-commerce site, it’s also the most competitive. And though eBay may be more accessible, it might not drive as many sales overall. When in doubt, it never hurts to consider cross-platform selling as an option – you may be able to take advantage of each platform’s perks without putting all of your eggs in one basket.
Amazon vs. eBay: Profits
There’s no question that Amazon is the world’s largest online marketplace. The site brings in billions of dollars of revenue for sellers every year. But eBay is the second largest e-commerce site; if shoppers can’t find what they want on Amazon, they will likely turn to eBay next.
Still, eBay only brought about $10 billion in revenue in the past year, which pales in comparison to Amazon’s over $208 billion in profits.
eBay vs. Amazon: Fees
In general, eBay fees tend to be lower for sellers than Amazon FBA fees. There are two types of selling fees you’ll encounter on eBay:
- Insertion Fees: These are charged when you create a listing, even if it doesn’t sell. However, sellers get up to 250 zero-insertion-fee listings each month.
- Final Value Fees: These are charged when your item sells. It’s calculated as a percentage of the total amount of the sale plus an additional $0.30 per order.
In most cases, final value fees are about 13-14% of the total sale amount up to $7,500. Sometimes, sellers may be charged an additional percentage of the portion of the sale over this upper limit.
No third-party fees are associated with selling on eBay; you’ll only pay to list and sell your products.
Meanwhile, if you choose to sell on Amazon, you’ll need to consider the cost of opening an Amazon seller account before you get started:
- Individual Seller Plan: $0.99 / item sold
- Professional Selling Plan: $39.99 / month
Amazon FBA fees also apply to each order. These fees are based on an item’s weight, category, and value.
Why Sell on Amazon?
Amazon is arguably the most well-known online shopping platform in the world. You’d be hard-pressed to find anyone who hasn’t heard of or used Amazon. That means that Amazon offers sellers a unique chance to spread their brand to new audiences, reaching customers from all walks of life.
However, the most compelling feature of Amazon for wholesale sellers is its Fulfilled by Amazon (FBA) program. All you need to do to sell your products is have them shipped to Amazon’s warehouse – the e-commerce giant takes care of packaging and shipping orders from there.
Pros and Cons of Selling on Amazon
Millions of wholesale sellers choose Amazon as their main platform, but that doesn’t mean it’s for everyone. If you’re just starting out or don’t have much money to invest, creating a space for yourself on such a popular platform can be tricky.
|Pros of Selling on Amazon||Cons of Selling on Amazon|
|Fulfillment by Amazon (FBA)||Can be expensive, especially for new sellers|
|Huge reach to international audiences||High levels of competition|
|More potential for sales and profit||Stricter rules and regulations|
|Convenience for sellers||Limited marketing opportunities or ties to customers outside of Amazon|
Why Sell on eBay?
eBay is a tried and true e-commerce platform. It was around long before Amazon took off, which means it offers some stability that Amazon may not have. Customers who shop on eBay are more likely to be loyal, and it’s often easier to interact with shoppers individually.
Pros and Cons of Selling on eBay
It might seem like Amazon outshines eBay, but this isn’t necessarily true. eBay still has plenty of unique benefits that make it a great choice for wholesale merchandise sales.
|Pros of Selling on eBay||Cons of Selling on eBay|
|Lower selling fees||Smaller base of potential customers|
|Easier to become a seller||No order fulfillment by eBay|
|More opportunities to establish a brand||Shipping orders can be costly|
|Generally has a better worldwide reach||Higher need for customer service|
Our Tips for Selling on Amazon FBA & eBay
No matter which platform you choose, set yourself up for success by only selling quality products that customers actually want to buy. Wholesale merchandise found online can be hit or miss for many shoppers. But you can help your business stand out regardless of where you establish it with products from recognizable brands, in-demand categories, and trending niches.
Look no further than Nex Deal Inc. to find wholesale deals that help you take your business to the next level. Our rotating selection of daily wholesale deals is constantly updated with exciting new products from leading brands. Download a complete list of our inventory to see even more options. We’re here to make selling online simple, whether you choose eBay, Amazon FBA, or both!