Who would win: eBay vs Amazon? Both are global eCommerce giants, generating billions annually and attracting countless sellers.
Highlights
- Amazon has a significantly larger market size than eBay, with more U.S.members and a bigger seller base
- In 2024, Amazon Prime will have over 180 million U.S. members, while eBay will have 142 million active users in 2022
- Amazon offers Fulfillment by Amazon (FBA) for convenience and Fulfillment by Merchant (FBM) for cost control
- eBay generally has lower upfront fees but additional shipping and processing costs
- Amazon is ideal for high-volume sales with broad reach; eBay is better for niche or collectible items with more control over selling processes
Why We Wrote This?
We wrote this content to help sellers decide whether to use Amazon or eBay for their online business. This comparison informs sellers about where to find a larger audience, the competitive landscape, cost structures, logistics options, and effective marketing tools. Moreover, it helps sellers to optimize their operations, align their strategies with business goals, and adapt to market trends effectively.
So, let’s explore the differences between selling on Amazon and eBay, including their market sizes, key selling factors, and how to choose the right platform.
Amazon vs eBay: What Is the Market Size?
Amazon is much bigger than eBay when we look at market size. But what about the number of users?
In 2024, Amazon Prime will have more than 180 million U.S. members, according to Statista.
However, eBay had 142 million active users in 2022, fewer than the year before (152 million). The number of users on eBay seems to be going down.
Does fewer users on eBay mean less competition for sellers? Unfortunately, no.
Selling on Amazon is easier and less competitive than selling on eBay. This is because Amazon has a larger marketplace and a smaller seller base. In 2023, Amazon had over 9.7 million sellers, with 100,000 new ones joining monthly. On the other hand, eBay had over 18 million sellers with more than 1.7 billion live listings.
eBay vs Amazon Selling Factors
As a business owner, you know that every dollar counts. Choosing the right sales platform is crucial for making a profit. Let’s compare the costs and logistics of selling on eBay vs Amazon.
#1 Listing and Fulfillment
Amazon:
- Fulfillment by Amazon (FBA): Amazon FBA handles storage, packing, and shipping for you. This is convenient and reaches more customers, but it costs more.
- Fulfillment by Merchant (FBM): You handle everything yourself. This can be cheaper but requires more effort.
eBay:
- You handle all the fulfillment yourself, including packing, shipping, and returns.
- You can also use third-party services for fulfillment, which requires more management but gives you control over costs and branding.
Consideration:
- FBA is great for high-volume sellers wanting convenience.
- FBM is better for low-volume or niche products or if you have your own fulfillment system.
#2 Fees and Costs
Amazon:
- Fees depend on your fulfillment method, product category, and seller plan.
- Expect referral fees (about 15%), closing fees (for individual sellers), and Amazon FBA fees based on product size and weight.
- Other costs include storage fees, advertising fees, and listing upgrades.
eBay:
- Usually, it has lower upfront fees.
- Insertion fees for most listings and final value fees based on the selling price.
- Optional listing upgrades and processing fees for managed payments.
- Shipping costs must also be considered.
Example:
- Selling a $30 jewelry item on Amazon FBA might cost ~$4.50 in referral fees, $0.99 in closing fees, ~$2.50 in FBA fees, plus potential storage fees.
- On eBay, listing fees could be $0.50, the final value fee $2, a $0.30 processing fee, and shipping costs.
#3 Returns and Customer Service
Amazon:
- Known for a customer-friendly Amazon return policy, often 30 days or more.
- Amazon handles returns and customer inquiries, which builds buyer trust but adds costs and complexities.
eBay:
- Return policies vary by seller, offering more flexibility.
- Sellers manage returns directly, which can affect customer satisfaction and brand perception.
- Clear return policies and good communication are key to building trust.
Consider:
- Amazon’s great customer service can boost sales but requires strict policy adherence.
- eBay offers more control over returns but requires proactive customer service.
#4 Marketing and Promotions
Amazon:
- Offers tools like Amazon sponsored brand ads, product promotions, and brand stores.
- Leverages its large customer base and targeted ads but needs strategic Amazon PPC campaign management.
eBay:
- Provides basic listing enhancements and promotional tools.
- Sellers can use social media and external marketing to drive external traffic.
- Tools for cross-promotion and AI-generated descriptions help attract buyers.
Consider:
- Amazon has a strong reach and target but high competition.
- eBay needs more effort to drive traffic but allows creative social media marketing.
- Combining tools from both platforms often works best.
eBay vs Amazon: Which Platform is Best for Selling?
Choosing between Amazon and eBay involves weighing several key factors:
Product Type
- Amazon FBA: Ideal for standard, lightweight items that benefit from Amazon's fulfillment services.
- eBay FBM: Better for niche or bulky items, allowing more control over shipping and handling.
Target Audience
- Amazon: Attracts a broad, diverse audience, making it suitable for general consumer products.
- eBay: Known for specialized, niche markets. Ideal for unique or collectible items.
Budget
- Amazon: Expect higher fees for FBA, including referral, storage, and fulfillment fees. However, it offers efficiency and a large customer base.
- eBay: Generally lower upfront fees with insertion and final value fees. Shipping costs managed by the seller can lead to potential savings.
Business Goals
- Amazon: Choose this if your goal is to reach a broad audience with convenience. Amazon’s customer service and logistics support are robust.
- eBay: Opt for this if you prefer flexibility and control over your selling process, including return policies and customer interactions.
Summary
Choosing between eBay vs Amazon is a critical decision for sellers aiming to maximize their success in the online marketplace. Each platform offers unique advantages and challenges, from market size and competition to fulfillment options and cost structures. By carefully evaluating these factors, sellers can select the platform that best aligns with their business needs and goals.
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FAQ
How Many Sellers are on eBay vs Amazon?
Amazon's large customer base has attracted over 9.7 million sellers, with more than 2 million actively selling in 2024. While eBay has over 18.3 million seller accounts and 1.7 billion active listings.