Table of Contents
- 1 eBay vs. AMZ: Selling Potential and Market Size
- 2 Amazon Selling Fees vs. eBay
- 3 The Feedback Scoring – AMZ Feedback vs. eBay Feedback
- 4 eBay Feedback System
- 5 Amazon Feedback System
- 6 Feedback Solicitation Process – Selling on Amazon vs. eBay
- 7 Vital Facts on Feedback Process – eBay vs. Amazon
- 8 Amazon vs. eBay: Advertising Possibilities
- 9 Conclusion
Starting your own business can be challenging. You have to design and produce a product, market it, sell it, ship it, and make a profit with it. The hardest part is making sales. You can use several different websites to sell your products, but Amazon and eBay are the most popular sites.
It is a well-known fact that these are currently the top eCommerce websites in the world. But for people who want to start selling products online, it can be challenging to choose. You may wonder if there is even a difference between the two platforms. While Amazon tops the charts with revenue, eBay members get several features that can help sell products quickly. In addition, both websites are great at getting merchants to use their platforms for product sales.
But how do you choose between them?
Choosing a website to sell your products on should be taken seriously. You should look at the exposure, policies, rates, fees, and other factors. Unfortunately, finding all the necessary information in one spot can be difficult. Lucky for you, this article is filled with helpful information to compare Amazon and eBay.
In this article, you will learn about selling on Amazon vs. eBay. We’ll look at the pros and cons, and you’ll learn about each website’s different policies and features. After reading this article, you can make a well-informed decision on which platform to use.
eBay vs. AMZ: Selling Potential and Market Size
To begin with, let’s answer the big question: which marketplace provides you with the biggest potential to sell the goods? Which platform is more extensive, offering the strongest power of simply getting more eyes on your products?
The statistics of Amazon’s users are impressive. On its own, the platform accounts for nearly 15% of the world’s online shopping market. In the United States, this figure is a remarkable 53% share of the market. Regarding raw traffic and search results, Amazon.com had more than 2,5 million mobile and desktop visits in May 2020 alone. That is why the platform is so dominant in the country. Online shoppers are comfortable with routinely paying extra money for lower pricing on an individual basis and faster shipping.
EBay’s share of the US online commerce market is almost 5%. Recently, Walmart beat the platform, which accounts for around 7% of the entire market. eBay has almost 170 million users per month. They are discerning and prefer buying from sellers with the best review rates.
To sum up, when comparing the two platforms in terms of market size potential, a decisive win comes to AMZ. It is beaten only by the gigantic consumer might in China, where users tend to shop with Alibaba. However, it might be worth choosing eBay when you have a niche store and products, and your target audience profile is laser-focused.
Amazon Selling Fees vs. eBay
Comparing the two platforms won’t be complete without analyzing their fees for sellers. Of course, Jeff Bezos still needs to earn a decent living. However, who provides sellers with the best deal when talking about Amazon and eBay specifically? Where is it cheaper to sell?
Amazon charges a referral fee per each sold item and a commission for granting the Professional Seller subscription. The platform’s referral fee varies from category to category. To give you some rough figures, it’s a minimum of $0.30 for each item. Regarding media products, you also need to pay the closing fee of $1.80. As a result, the Professional Seller plan costs nearly $40 per month. Besides, if you want to participate in the FBA system, be prepared to pay some extra costs.
Compared to AMZ, there are two types of selling fees on eBay. The first one is the insertion fees that apply when listing your item. The second is the final value fee when selling the goods. Also, you need to pay the processing fee to PayPay. It’s not charged directly to eBay, but it’s still essential to selling.
eBay charges an insertion commission of nearly $0.35 per category and listing. The final value fees of the platform are taken as a share of the item’s price. The exact sum varies from one category of products to another, but you usually look at nearly 10%.
Also, some PayPal processing commissions for orders made on the platform exist. These are almost 2.9% of the product’s price and a $0.30 flat fee. However, because the platform is implementing its Managed Payments, soon, users won’t need to rely on the PayPal system and pay fees that result from using it.
When we compare eBay and Amazon’s seller fees, it is a close call. However, considering PayPal processing costs, eBay is nearly 2% cheaper than Amazon.com. Therefore, the right choice here depends on the volume and category of goods you sell.
The Feedback Scoring – AMZ Feedback vs. eBay Feedback
Both Allow Customers to Leave Feedback. When looking at eBay vs. AMZ, it is essential to note that they have a few similarities. For example, they both let customers leave feedback comments. It is good because positive feedback left by happy customers will encourage more sales. Future customers will likely buy from you if you have good feedback scores. Of course, customers can also leave negative reviews. Making sure that your products and customer service are high quality will keep you from worrying about that.
Both platforms have different feedback setups. Let’s examine their differences and how they’ll affect you.
Importance of Seller Reputation. User feedback scoring directly affects the appeal of an online product. The reputation of a seller is related to its user feedback ratings.
It should be noted that the importance of user ratings has increased in the last ten years. As a result, the platforms update their feedback systems to adjust to these changes. In addition, they try to make them as interactive and user-friendly as possible.
Importance of Seller Feedback to Amazon & eBay. Seller feedback is not only important to customers. eCommerce websites value feedback, too. Both Amazon and eBay have improved their review systems to ensure merchant transparency. Both these platforms have slightly different methods for judging seller feedback. The Amazon seller rating system focuses on Merchants. The eBay feedback system lets sellers, as well as buyers, share their feedback on trading partners.
eBay Feedback System
This system is based only on user ratings and comments. There are four main parts that make up the rating system at eBay. The systems below decide the final rating.
a) The Scoring System
This is a point-based system. A ‘positive rating’ means you get ‘one point,’ a ‘neutral rating’ doesn’t get you any points, and a ‘negative rating’ causes you to lose a point. The average of these points gives you a ‘feedback rating.’ This is a lengthy process. Unfortunately, new members have no ratings unless they have collected at least 10 points.
b) The Reporting System
The reporting system lets customers read the detailed comments posted by users for specific traders. This can help customers choose whether or not to buy from you. Because of this system, customers leaving negative comments will have an impact on your rating.
c) The Percentage System
This is calculated based on the percentage of positive ratings by users for a particular trader. The higher the percentage, the better your eBay buyer rating will be.
d) The Seller Rating System
Shipping and handling charges, shipping time, accurate product descriptions, and clear communication determine the final seller rating score on eBay.
If you want to search for a feedback profile, simply use the Member ID. eBay seller profiles are usually very accurate. Yet, buyer profiles aren’t as easy to figure out. They can be inaccurate and unreliable. eBay has a policy that lets sellers rate only buyers that have a positive score. This policy started in 2008 after buyers complained to management about the incorrect ratings from sellers. These fake ratings were used to counter the negative feedback posted by real buyers.
Make sure you read the eBay feedback policy. If you choose to become an eBay seller, you’ll want to avoid an eBay feedback violation.
Amazon Feedback System
At Amazon, a merchant’s success is directly related to his feedback ratings. The last 12-month rating for a merchant is offered on Amazon. Buyer ratings and daily ratings are also available under the ‘Current Feedback’ scoring system at Amazon. Negative seller feedback is, thus, harmful to a merchant who wants to sell on Amazon.
A Quick Peak at the Seller Feedback System (Based on a 5-Star Rating System)
- A score of 4 stars and above is a positive feedback
- A score of 3 stars is a neutral feedback
- A 1 or 2-star rating is a negative feedback
Amazon rounds them off to the nearest whole number to calculate feedback percentages. Amazon also has ‘Seller Performance Measurement.’ It is similar to eBay’s ‘Detailed Seller Ratings. Finally, high negative feedback on Amazon is recorded with the Order Defect Rate.
Also, read our topic about Amazon negative feedback removal.
It negatively affects the seller rating.
Feedback Solicitation Process – Selling on Amazon vs. eBay
- The Amazon Way – Amazon randomly sends an SMS or email reminder after estimating the delivery date. This reminder is sent 2 days before the ‘pre-calculated’ delivery date. To improve customer service, Amazon encourages sellers to fix issues and get feedback. If a buyer posts negative feedback, the seller has the right to comment on that feedback. You cannot remove feedback unless its content violates Amazon’s policies. The seller has a right to either remove or keep his/her feedback. It is wise to post a professional response to negative feedback since it can be viewed by other customers and even by the management (when the seller account is under review).
- The eBay Way – At eBay, the buyer posts his comments after buying a product. Afterward, the seller is given the option to post feedback for the buyer. The seller’s record is dependent on its feedback score. eBay encourages buyers to contact sellers to fix any issue relating to negative scoring.
The Feedback Removal Process – Difference Between eBay and Amazon
Amazon Feedback Removal. Amazon will not let you change negative feedback. You will have to completely remove it if there is a problem. eBay will allow you to edit feedback that goes against their policies.
If you want to remove feedback, it will have to meet one or more of these requirements:
- abusive in nature or containing profane language
- contains personal information including email ID, phone number, name or address
- contains a product review
Once an inaccurate review has been posted, AMZ sellers have the right to contact the buyer. It is helpful if you can reason with the buyer. Sellers may request a deletion, but forcing the buyer to delete his comment clearly violates Amazon’s Feedback Policy. You can also ask the buyer for a feedback revision.
eBay Feedback Removal. eBay sellers can request that buyers make edits to their reviews. It is entirely up to the buyer to either agree to the seller’s request or decline it altogether. In addition, buyers can get their accounts suspended for poor behaviour. If this happens within 90 days of their transaction with you, eBay will remove any negative reviews they may have left.
Vital Facts on Feedback Process – eBay vs. Amazon
Poor Performing Sellers at Amazon. At Amazon, sellers with extremely poor performance can get removed immediately. Sellers with less than desirable performance can be placed on ‘probation’. It means they have 60 days to improve their rating. If sellers at Amazon violate a Policy, they can get removed immediately.
High Performing Sellers at Amazon. If sellers at Amazon have a good customer rating, they are included in the Buy Box scheme. High-performing sellers at Amazon are also given placement advantages. The ‘Order Defect Rate’ is often used by Amazon to determine the actual rating of a seller.
Account Suspensions at eBay. An account can only get suspended if the seller does not pay the fee or violates a policy.
eBay Power Seller Program. High-performing sellers at eBay are rewarded by being included in the Power Seller Program. Members of this program are given certain promotional offers and credit against the fee for listing new products.
Amazon Vendor Central. One big advantage for Amazon sellers: Amazon offers a Vendor Central program. This program can be very profitable.
Amazon and eBay offer transparency to sellers and buyers by including user-friendly review systems. It safeguards the trust and safety of its users. While both eCommerce websites may have different feedback measurement systems, their main goal is to encourage an unbiased communication platform.
Amazon vs. eBay: Advertising Possibilities
Advertising always allows you to gain a competitive edge over other sellers, which is often worth paying for. eBay and Amazon provide additional tools to push your goods ahead of the competition. But which is the merchant’s choice?
Amazon Sponsored Products secure your goods the first-page spot for particular keywords. You can specify which keywords to target yourself or let AMZ do it for you automatically. It’s a pay-per-click (PPC) option, so you pay every time your advertisement gets clicked. Because of this, it is essential to keep tabs on your spending. Nonetheless, it is an advanced service with many tools and apps to help you handle your campaigns.
Sponsored Products are just one of AMZ’s advertising possibilities, with other services promoting affiliates and brands.
In turn, eBay provides Promoted Listings, which boosts your goods in search. You ‘bid’ a certain amount to be paid apart from your final value fee. Usually, it’s around 5-10%. Then, your item is boosted alongside other merchants’ goods, each with some bid. eBay Promoted Listings are straightforward and nice; sellers only pay when they sell a product. It is not a particularly advanced solution, but it does the task of attracting awareness and boosting sales.
In terms of comparing eBay’s and Amazon’s services to help advertise products, it is closer than it first appears. eBay delivers a relatively simple service. However, the marketplace is less competitive to begin with. Nonetheless, a little nudge at a fair price might be all you need. On the other hand, AMZ Sponsored Products are years ahead of Promote Listings but require time to get to grips with and charge a commission even if you do not make a sale. To sum up, the narrow win goes to AMZ for giving users more control and options in promoting their goods.
You should look at all the different features when considering Amazon vs. eBay. Make sure you find the website that will work best for your business and help your company grow. (Also, look into the Fulfillment by Amazon program. It could revolutionize your business!)
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This is a great article. Very insightful. Thanks for the post.
Thank you for your attention to this article.