Amazon vs eBay comparison, which is better?
Technological developments present a lot of e-commerce that provides a place for business people to market their products. Some good companies are Amazon and eBay. But, which one is actually better?
Amazon and eBay have a wider market. Everyone from all countries can access, sell, or buy various kinds of goods with an easy system.
Well, for those who plan to sell products targeted across countries, know the difference between Amazon vs eBay to find out the advantages and disadvantages of these two online marketplaces.
Amazon vs eBay comparison
Amazon is a marketplace or online store founded by Jeff Bezos, one of the richest people in the world. At the beginning of its emergence, Amazon only sells books. Then, in 1999 began to market other products such as accessories to electronic goods.
While eBay, this site is actually more suitable to be called a buying and selling marketplace or auction. Because, on average, what is sold is used goods. However, usually the products on eBay are rare items or used public figures.
In addition to the points above, there are still many differences between Amazon and eBay that must be known. Check out the following discussion.
1. Type of business
As previously explained, the type of business is the most striking difference between Amazon and eBay. eBay is an auction site where sellers and buyers will be facilitated by companies with a predetermined system.
Buyers are free to bid on the desired product as long as it is above the bid price from the seller. If both parties have agreed, then payment can be made via PayPal or other payment systems.
While Amazon is a marketplace with a fixed or non-negotiable price system. However, usually on certain days there are promos or discounts.
Why is Amazon the most popular e-commerce in the world? One of the reasons is the availability of very complete goods. In addition to products directly from sellers, Amazon also has its own warehousing.
2. Company focus
The next difference from Amazon vs eBay is the focus of the company. As an online store, Amazon puts buyers first. But, that doesn't mean the seller is not noticed, it's just that Amazon often does promotions so that people want to buy their products.
While eBay, the main focus is on the seller. In fact, it is not uncommon for companies to facilitate sellers to participate in auctions on a wider scale.
3. Fee for seller
Amazon offers two packages to entrepreneurs who want to sell on its website, a Professional Account for sellers with large markets and an Individual Account for small sellers.
Here's the difference:
a. Amazon Professional Account
1. Can sell more than 40 items every month
2. Costs $39.99 per month or $480 per year
3. Can advertise products
4. Referral fees apply
b. Amazon Individual Account
1. Sales are limited to 40 items per month
2. Selling fee $0.99 for each item sold
3. Can't advertise the product
4. Referral fees apply
Due to its category of auction site, eBay offers a more complicated system. But, basically the fee for the seller is only an Insertion Fee and a Final Value Fee. While the optional packages include Supplemental Service Fees and Advanced Listing Upgrade Fees.
Insertion Fee is a fee that is charged if the product is more than 50 per month. Below that there is no charge, but the fee will apply when the product is sold. This system is what makes Amazon and eBay different.
Final Value Fee is a fee that will be billed when the item is sold, the amount is according to eBay's policy. This fee includes postage and other fees.
As the name implies, Advanced Listing Upgrade Fees are fees that must be paid if the seller wants to update their products, such as prices and descriptions. Lastly, Supplemental Service Fees, this system will apply if the buyer makes a refund.
4. Item price
If you have previously discussed technical matters, this Amazon vs eBay difference can be a reference for those of you who intend to buy products from the two sites. Based on user reviews, the selling price on Amazon is relatively more expensive.
Different from eBay, most of the products are offered at low prices. Of course this is because eBay is more focused on selling used goods.
5. Product quality
For product quality, of course, Amazon is superior because most sell new goods. In addition, if there is damage, Amazon will be responsible. While the quality of eBay products depends on the condition and feasibility of the goods.
6. Transaction security
The difference between Amazon and eBay also lies in the security system. Based on user reviews, Amazon has minimal fraud because sellers have gone through a selection stage. While eBay is quite vulnerable, because anyone can freely sell.
That's a review that can be a reference in determining which is better between Amazon vs eBay. Although transactions between countries are quite complicated, you can use PayPal or Payoneer as the best payment method.