{"id":6731,"date":"2021-08-02T21:22:31","date_gmt":"2021-08-02T21:22:31","guid":{"rendered":"https:\/\/tacticalarbitrage.spacecolts.com\/ebay-vs-amazon\/"},"modified":"2024-03-26T19:59:11","modified_gmt":"2024-03-26T19:59:11","slug":"ebay-vs-amazon","status":"publish","type":"post","link":"https:\/\/tacticalarbitrage.com\/blog\/ebay-vs-amazon\/","title":{"rendered":"eBay vs Amazon | E-Commerce Marketplace Comparison Guide"},"content":{"rendered":"

Let me guess\u2026<\/span><\/p>\n

You\u2019ve been selling on Amazon for a while now, maybe doing a combination of retail arbitrage, book flipping, and wholesale, and you\u2019re wondering if it\u2019s time to explore more online marketplaces.\u00a0<\/span><\/p>\n

Perhaps you\u2019ve branched out into FBM on occasion to sell some highly-profitable items that you aren\u2019t allowed to sell on Amazon FBA. You have realized that if you set up a weekly shipping day, FBM can be profitable without taking too much additional time.\u00a0<\/span><\/p>\n

Then the thought crosses your mind: If you\u2019re selling through Amazon FBM, why not sell on eBay, too?\u00a0<\/span><\/p>\n

I\u2019ve been exactly where you are. I\u2019ve found that Amazon FBA is by far the most powerful and easiest way to make money through retail arbitrage or wholesale.<\/span><\/p>\n

Sometimes there comes a point when you run up against some of the limitations of the platform, like the recent restock limits, the time it takes to ship boxes into FBA during the Q4 selling frenzy, and profitable products that you can\u2019t send to Amazon\u2019s warehouses.<\/span><\/p>\n

That\u2019s why I\u2019ve put together this guide to help resellers like you determine if selling on eBay is the right move for your business.\u00a0\u00a0<\/span><\/p>\n

eBay vs. Amazon: Main Differences<\/span><\/h2>\n

While there are lots of differences between the two platforms, they are similar enough to make eBay a popular<\/span> additional platform for resellers<\/span><\/a> who are already experienced in selling through Amazon FBA.\u00a0<\/span><\/p>\n

In general, the main differences fall into five categories:<\/span><\/p>\n

    \n
  1. Fee Structure<\/span><\/li>\n
  2. Fulfillment Methods<\/span><\/li>\n
  3. Active Buyers & Sellers<\/span><\/li>\n
  4. Customer Return Policy<\/span><\/li>\n
  5. Product Restrictions<\/span><\/li>\n<\/ol>\n

    Fee Structure<\/span><\/h3>\n

    Amazon FBA Seller Fees<\/span><\/h4>\n

    The thing to keep in mind is that <\/span>Amazon FBA charges a \u201cPick & Pack\u201d fee<\/span><\/a> and storage fees for any items you send into their warehouses.<\/span><\/p>\n

    This is on top of the referral fees and the variable closing cost, which is based on final sale value.\u00a0<\/span><\/p>\n

    The additional fees may be more than worth it to you to avoid renting storage or warehouse space yourself and to automate fulfillment, but they do tend to add up.<\/span><\/p>\n

    They can also limit the number of products that are profitable after FBA fees.\u00a0<\/span><\/p>\n

    \"ebay<\/p>\n

    eBay Seller Fees<\/span><\/h4>\n

    Here are the selling fees that you’ll have to pay on eBay:\u00a0<\/span><\/p>\n

    Insertion Fees. These are the fees you pay to list your products on eBay, and they are generally low, usually $1.00 per insertion fee or listing.\u00a0<\/span><\/p>\n

    In addition, starter eBay accounts automatically receive 200 free insertions per month, and there\u2019s the possibility for more if you open an eBay store.<\/span><\/p>\n

    This compares nicely to Amazon, which has no listing fee but has an individual seller per item fee of $0.99 per unit sold unless you upgrade to a professional seller account.\u00a0<\/span><\/p>\n

    Final Value Fees. This fee is taken as a percentage of the final sale price of your item, which includes any shipping and handling you add to your purchase price but not the sales tax.<\/span><\/p>\n

    The final value fee can range from 2-percent to 12-percent, but most general merchandise is a flat 10-percent fee.<\/span><\/p>\n

    Again, this fee has an Amazon analog in the referral fee. Amazon\u2019s referral fees range from 8-percent to 45-percent (for Amazon branded device accessories) with most products landing at 15-percent.\u00a0<\/span><\/p>\n

    Payment Processing Fees. Another fee eBay sellers may incur is the payment processing fee. If you are a managed payments seller through eBay, then this fee will already be included in your final value fee.<\/span><\/p>\n

    Optional Listing Upgrades. Finally, eBay has a range of listing upgrades available, from subtitles and bold text to highlighted sale boxes. Each of these upgrades range from $0.10 to $1.00. They may be worth it if your item gets noticed, but most sellers use them only for high dollar or popular items as they tend to add up quickly.<\/span><\/p>\n

    They are completely optional, and you can use eBay\u2019s free fee calculator to make sure you\u2019re still hitting your ROI targets.<\/span><\/p>\n

    The Verdict: eBay has Lower Fees<\/b><\/h4>\n

    Overall, Amazon FBA is the most expensive in terms of fees, but it also provides the most service and, usually, a bit of a price bump.\u00a0<\/span><\/p>\n

    Still, eBay has fewer fees than Amazon FBM as well, especially now that they\u2019ve started giving every seller 200 free insertions a month. It\u2019s not going to hurt you in the fee world to <\/span>add eBay on as a selling platform<\/span><\/a>.\u00a0\u00a0<\/span><\/p>\n

    There will be a little more effort required in listing and shipping items.\u00a0<\/span><\/p>\n

    Fulfillment Methods<\/span><\/h3>\n

    With Amazon, you have two fulfillment methods to choose from: Amazon FBA or Amazon FBM. Most sellers choose to list through both fulfillment methods, since some profitable products can\u2019t be sent into FBA and some products sell quickly and are profitable on FBM but not on FBA.\u00a0<\/span><\/p>\n

    Additional Benefits to Amazon FBA:\u00a0<\/span><\/h4>\n