Selling on Amazon vs. eBay in 2022: Which is Better?

Are you interested in starting an online business? Our guides to the selling process online on Amazon as well as eBay will provide you with everything you have to be aware of.

These days, sellers on e-commerce have numerous options how they can market their merchandise on the internet. Shopify, Walmart Etsy all give sellers the possibility of getting their items to the attention of customers.

However, there are two platforms that have been around for longer than other platforms: Amazon and eBay. They are also the longest-running marketplaces online (as well as being the top and third best-performing online stores, respectively) you could think about selling on either of them.

But how do you decide which one is best for you?

There are arguments to be made to both, which is why we’re examining the different aspects of the two markets to decide which is all in all — the best option for your specific business.

Do consumers trust Amazon or eBay?

Amazon along with eBay are both established and have been in operation for a while, since around the middle of the 1990s. Amazon was first introduced in July 1994, operating under the brand name Cadabra (it switched its brand name in 1995 in 1995 to Amazon on the 15th of April, 1995) The company was followed by eBay soon following suit in September 1995.

But when it comes to customer confidence, Amazon tends to edge out the competition. In reality, Amazon is so focused in gaining and maintaining their customers’ trust, that they’ve incorporated in its mission, vision and core values.

This focus seems to pay off. In an earlier survey, 73 percent of U.S. consumers said they believe Amazon as a reliable business to buy from.

A further reason Amazon is frequently considered to be the most popular choice for online buyers is the ease in the return of products. The Amazon A-Z Guarantee assures that customers can get a complete refund if they’re not satisfied about the product’s performance or with the time it took to deliver.

However, eBay’s policy is more complex in terms of returning products and getting full refunds. In addition sellers are able to tick the ‘No Returns’ checkbox on eBay which leaves buyers without recourse if they’re unhappy with the item.

As an entrepreneur, you might believe that this is a positive thing. However, in reality it can be very negative for your business.

When you make your listing appear to ‘No Returns’ you’re signaling prospective buyers that they shouldn’t believe what you’re offering. If you’re a buyer what kind of companies do you prefer to buy from? Businesses that continue to help your purchase, or who steal your money and leave?

Thus, by providing the support after purchase, Amazon is building brand trust and providing customers with the assurance they need to be able to take an opportunity on a product they would not normally purchase. As an online seller you get the advantages of trust.

Fulfillment methods on Amazon vs. eBay

If you sell on eBay You have one option in terms of fulfillment: either pack and ship orders by yourself (or engage an outside fulfillment company to assist you).

Amazon however, on its part, gives you two choices: either Fulfill orders yourself (Fulfillment by Merchant FBM) or let Amazon fulfil your orders on your behalf (Fulfillment through Amazon FBA).

Explore more about Amazon Seller Central Guide Here

That second option -the Amazon FBA -is what really makes Amazon apart.

While eBay has sellers running all aspects of their business on their own, Amazon offers to take some of the burden off your shoulders.

Through storing, picking the packaging, delivering, and even shipping your items for you (and don’t forget that they manage refunds and returns! ), Amazon is giving you the time to focus in other areas in your enterprise.

Additionally, aside from making your life easier, Amazon FBA can also help you save money.

Yes, Amazon’s costs are more expensive when you utilize Amazon’s FBA program to fulfil your orders. However, when you consider the cost of storing the items, pack and ship your goods, the cost differs significantly.

However, the way you go about fulfilling your product is completely yours to decide. It’s great to have options and this is something you won’t get when selling your products on eBay.

What does it cost to sell on Amazon and eBay?

In general, eBay’s fees are cheaper than those charged by Amazon when selling.

eBay’s Fees

The following are the fees you will have to pay when selling on eBay:

1. Fees charged to sellers when they create a listing on the site are known as insertion fees. Sellers are offered “250 zero (free) insertion fee listings” per month, according to eBay. There’s also the option of extra if you run a store on the web.
2. Final value fees: When your item sells, eBay takes a percentage of the final sale price as a fee. Shipping and handling are included, but not sales tax.
3. Payments processing fees are included in the ‘Final value’ fee since eBay now forces sellers to use their managed payments system.
4. Fees for optional listing upgrades: These fees are only applicable if you want to build a unique, customized listing. Add strong font, add a subtitle, and establish a minimum/reserve price for your goods as optional upgrades.

If you use any of eBay’s listing improvements, the costs mount up rapidly. You may, however, use eBay’s fee calculator to estimate how much you’ll have to pay before listing your item.

Amazon’s fees

Fees vary depending on the product being sold and the fulfilment method (FBA or FBM) used by Amazon.

Shipping is not included in the overall cost of ‘Your Fulfillment’ (FBM). If you decide to sell FBM, you must account for delivery costs when calculating your profit margin.

Only the ‘Selling on Amazon fees,’ which include the ‘Amazon Referral Fee’ and the ‘Variable Closing Fee,’ would be charged when selling FBM. These are also the responsibility of FBA sellers.

However, in addition to the ‘Selling on Amazon costs,’ FBA sellers must pay a ‘Fulfillment by Amazon fee,’ which is computed based on the weight and dimensions of the product you intend to sell. Monthly Storage’ is included in this cost.

1. Individual per-item fees or subscription fees: When selling on Amazon, you have the option of using an individual or professional seller account. You will be charged a $0.99 fee per unit sold if you sell as an individual. Professional sellers, on the other hand, pay $39.99 each month for their subscription.
2. While refund administration fees only apply if a consumer requests a refund, it’s crucial to note that Amazon does charge you for processing that reimbursement. The price for this will be either $5.00 or 20% of the refunded payment, whichever is lower.

To know more about New FBA Fees & How Much Does It Cost To Sell On Amazon | Amazon Fees Breakdown watch the video below.

Amazon Prime subscription

Amazon Prime is an important service that eBay does not have. While this may appear to be exclusively for the benefit of customers (much like Amazon’s return policy), it is one of the key reasons behind Amazon’s vast and loyal customer base.

Customers are more likely to buy from Amazon rather than letting their Prime subscription expire because they pay a monthly charge to ensure fast delivery.

Furthermore, devoted Prime members don’t simply shop at Amazon before going to other online retailers; they also spend money there on important holidays like Black Friday and Prime Day.

And, with over 112 million Prime subscribers in the United States (and over 150 million worldwide), that means vendors on the platform are in high demand.

What types of products can you sell on Amazon vs. eBay?

eBay has remained a forum for others to conduct their enterprises since its inception in 1995. Amazon hasn’t done so. Instead of being a marketplace for third-party vendors, it has evolved into a shop.

Furthermore, unlike Amazon, eBay does not limit what can be sold based on product quality. eBay sellers can sell anything from spanking new stuff to threadbare old items. (Of course, illegal things are not permitted.)

And it’s at this point that eBay really shines.

People prefer eBay when shopping for used things over Amazon (despite though both allow you to buy used items). Furthermore, its auction approach is ideal for selling used products, as it allows purchasers to purchase them at low costs.

Only selling used books is an exception. For the most part, Amazon is the best platform for vendors selling used books (which makes sense, considering Amazon began as an online bookstore).

When looking for anything brand new or in perfect condition, however, most people turn to Amazon. In fact, a whopping 66 percent of buyers use Amazon to find new products.

Overall, Amazon is the best alternative for selling high-quality products because it already has a ready-to-buy audience.

You may make revenues that allow you to build and extend your Amazon business year after year if you do your product research, discover the correct supplier, and create a listing that attracts buyers.

However, depending on your business plan, either platform could work. All you have to do now is determine whether you want to expand your business by sourcing and selling used items or by selling brand new stuff. Perhaps you intend to do both!

In any case, Amazon and eBay serve distinct purposes for these two sorts of customers.

Amazon or eBay? Your choice

It’s time to make a decision now that you understand the differences between the two platforms and, ideally, how each could benefit your company. Which is better, Amazon or eBay? Alternatively, both!

But, regardless of whether you go with eBay or Amazon, there’s never been a better moment to start a business online.