Selling on Amazon vs. eBay: Which is better for your brand?

Selling on Amazon vs. eBay: Which is better for your brand?

Nowadays, eCommerce sellers have many choices as to where they sell their products online. Yet there are two well-established platforms which have been around longer than the rest, Amazon and eBay. A study suggests that Amazon receives over 5 billion website visits every month and eBay attracts almost 2 billion. Even though Amazon is significantly ahead of eBay in terms of popularity, it does not mean that it is best suited for your brand and what you want to sell.

How do you know which one will be more profitable for you? We have conducted the ultimate comparison, outlining compelling arguments for both marketplaces to help you determine which is the best fit for your brand.

Selling on Amazon

According to the report by ecommerce DB, Amazon was the top Irish Store by Net Sales in 2021 and 38% of consumers start their product searches here. This is due to the marketplace’s efficient customer service, streamlined fulfilment and other industry innovations. But, all these services come at a cost, and you need to decide if these are costs you are willing to acquire.

Pros and cons of selling on Amazon

The main benefit of selling on Amazon is that your brand will gain access to a huge audience. Amazon is visited millions of times every year, not only can you capitalise on the trust the marketplace has already established with shoppers, but you can also reach new potential buyers. A seller’s report suggests a 50% average increase in sales when they join Amazon marketplace.

Nevertheless, because of the number of sellers on Amazon, competition is extremely high. Additionally, Amazon places its focus on products, rather than sellers, meaning there is limited room to showcase your brands presence as it is quite difficult to personalise your profile.

Fulfilment by Amazon (FBA) is also a big positive for brands and start-ups looking to expand. FBA is a service that allows businesses to outsource order fulfilment to Amazon. Once you send your products to Amazon fulfilment centres, they pick, pack, and ship the order. However, this comes at a cost. Although your revenue is likely to increase it might not be profitable for your company if you sell products with low profit margins as Amazon FBA fees can range between 10-15% for each sale.

Selling on eBay

Although eBay is the second busiest marketplace worldwide, it doesn’t generate as much revenue for sellers. The platform is therefore ideal for brands that want to boost visibility and have an omnichannel presence. You can read here to see how our BDO Eaton Square eCommerce team, helped Smyth’s Homevalue establish a presence on marketplaces across Ireland to attract customers across various territories. Doing so allowed them to create a successful online presence that they can use moving forward in a post-pandemic era.

Pros and cons of selling on eBay

While Amazon focuses on the shopping experience, eBay offers seller tools that make it easier for companies to feature their brand on the platform. eBay lets you put items up for auction to the highest bidder, which attracts shoppers who are looking for used, or unique items. Even so, compared to Amazon (and even though you can buy used items on both), people prefer eBay when shopping for second-hand goods. Also, its auction model lends itself perfectly to selling used items, offering buyers a chance to purchase them at competitive prices. Another advantage of selling on eBay is that the marketplace does not sell any of its own products. This means that shoppers only see items that are available from third-party sellers. However, there will be a number of other companies listing similar items are your brand, so standing out from the competition is vital.

How can our team help?

Now that you know the differences between the two platforms and, hopefully, have a better understanding of how each could benefit your business, it’s time to decide. Amazon or eBay? Or both! Many sellers list their products on multiple marketplaces, so selling your products on at least one can increase your brand awareness due to the huge audiences on both marketplaces.

But no matter what you choose — eBay or Amazon — there’s never been a better time to launch your business online!

If you are interested about how the BDO Eaton Square eCommerce team can help your brand to succeed on marketplaces, click here to learn more about our services.