Amazon vs Ebay

eBay and Amazon are household names for a reason: nearly 200 million people use the two marketplaces to shop online. Consequently, when you’re choosing which of these marketplaces to host your online store on, here are 7 attributes to keep in mind:

1. Fees

On eBay, you’re free to list and relist until your item sells. Once you do sell, eBay takes a straightforward 10% cut, detailed in a monthly invoice.

On Amazon, there are referral and variable closing fees.

Referral fees are based on on the type of product being sold. For example, Amazon takes a 10% cut for ‘Tires & Wheels’, while ‘Video Games’ render a 15% cut.

Variable Closing fees are also contingent on the category of the item you are selling. Media products are a flat $1.35, unless they are ‘Fulfilled By Amazon’, and the fees for non-media products are based on the weight of the item.

In addition, there is a fee of $.99 cents per item, regardless of its category. However, this cost is waived for sellers who pay a subscription fee. And only after all of these fees are deducted does a seller receive the final amount.

2. Payment

eBay is a PayPal partner, and accordingly, PayPal is the preferred method of payment on that site. After a sale is completed and the item arrives at the buyer’s house, the money is made available in the seller’s Paypal account. As an eBay seller, you can use that Paypal balance on eBay and other sites that accept that form of payment, but if you want to deposit your PayPal balance into your bank account, you are limited by how much you can transfer to your bank account each month. This limit can be lifted, but it can be a hassle.

On Amazon, all sellers have to use Amazon Payment, which is a service that deposits the money you earned directly into your bank account every two weeks.

3. Convenience

Online shopping is popular because it’s more convenient going to a brick-and-mortar store, where selection may be more limited.

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