Torn between Amazon and eBay and wondering which eCommerce business to choose for your online store? The E-commerce movement is more significant than before and is indicating only signs of vast advancement. Within e-commerce businesses, eBay (EBAY) and Amazon (AMZN) stand out as essential and long-standing leading players in the market. In this article we shall help you understand the contrast between selling on Amazon vs eBay.
These two influential online shopping sites give new users the ability to browse products available for auction or sale through the company’s online store. While both Ebay and Amazon have significantly evolved with time to meet the requirements of consumers, today, there are apparent distinctive features between these two giant companies. eBay and Amazon significantly differ in terms of pricing, ancillary services for buyers, business models, and services for sellers.
Pricing Strategies and Business models
The business model under which these two e-commerce companies operate is one of their most significant differences. eBay is explicitly a marketplace that makes it easier to sell goods between third-party sellers and buyers. Buyers go to the site to find the products they would like to purchase from a wide range of individual sellers, and finally, they bid on products via individual auctions.
In contrast, Amazon is a direct supplier of goods, and customers who visit its site see the products that Amazon maintains in stock in its extensive warehouse network. Amazon’s products come from its brand or third-party sellers, the latter making up much of what it offers. In 2015, third-party sellers began to account for over 50% of Amazon’s sales; a number is continually growing.
The Auction Model
With the auction model, eBay uses a wholesale pricing approach. Mainly, interested buyers are required to bid on the items for sale on the items auctioned by eBay sellers for a given period, and the buyer who is willing to bid or pay the highest value earns that product at the end. Some of the items listed on eBay have a “buy it now” option, where a buyer can purchase that product immediately.
Amazon runs as a retail outlet, offering clients fixed prices for all their products. Although multiple sellers can list the same item, a client doesn’t need to win or bid on a product.
Amazon and eBay are totally different in the way each business operates to facilitate sales. eBay is much more seller-focus than Amazon since its primary goal is to generate more revenue. In particular, eBay always invites sellers to take part in its auction market, and it also provides platforms where sellers showcase their products.
Amazon is more focused on buyers, always inviting buyers to go to their site to see what is listed and then buy, just as you would in any traditional retail store. Amazon focuses more on getting buyers to visit their site more than attracting the sellers.
Although eBay and Amazon are among the most prominent players in E-commerce, they both have very different business models. Amazon runs the same way a traditional retail store does, drawing buyers to its website to buy its listed inventory. At the same time, eBay captivates traders to list merchandise, functioning as a garage sale or an auction house.
Based on what you want to buy, either of these two companies will better suit your needs. Likewise, as a salesperson, depending on your sales needs and business model, a business will perform best for your business goals.