Amazon vs. eBay: Which Is The Best Platform when starting an online business?

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The Internet has revolutionized retail business such that with online market platforms, e-commerce entrepreneurs, and their customers can sell and buy effortlessly.

When digital business owners register in any of these online marketplaces, they get a limitless number of potential customers. Amazon and eBay are the most popular and largest e-commerce platforms in the world, with operations in almost every country. There are reasons why Amazon and eBay are the best when starting an online business and why you should choose any of them when starting an online business, instead of one of the many other market platforms on the internet. Read on to find out.

Why Amazon Is The Best Platform when starting an online business?

Though the web is saturated with e-commerce platforms, choosing Amazon is a great option supported by many reasons. Amazon is among the world’s topmost valuable companies that experience rapid growth.  So, it is a smart idea to use an ultra-successful company like Amazon to sell your products. Emulating Amazon’s customer-centric strategy is the best way to succeed as a seller on the platform. Cheap and low-quality products are detrimental for business on Amazon. Make sure your product sourcing is fixed to enable you to sell only high-quality merchandise.

Amazon Pros

Customer service oriented sellers are the best suited for Amazon because customers adore good services. Being on the platform alone attracts credibility.

Membership Tiers

Signing up on the platform is free. This involves two membership options suitable for startups and companies.

Amazon individual seller Account

Signing up is free, but there’s a charge of $.99 for every product sold and a referral fee too. The accounted is limited to 40 products per month.

Amazon Prime

Amazon prime features about two-third of Amazon customers. Its 2-day free shipping attracts customers to Amazon prime.

Typically, Amazon prime customers only buy products on prime.

Prime customers amount to 70%, and hardly buy products that are not available on prime.

Amazon FBA

Signing up for the fulfilled By Amazon program is reserved for all Amazon sellers. Imagine not participating in shipment product preparation that would have you to pick, pack, package, and ship. With the FBA program, sellers can outsource daily operations to Amazon staff.

Easy return/refund for customers

On Amazon, customer can return a faulty product, and replacement and refund are expected. That is Amazon‘s customer satisfaction culture. The platform can easily suspend sellers whose product get no reviews or too many bad reviews.

So, shoppers can email sellers and customer service if not satisfied.

As a seller, ensure that your email marketing list contains customer emails. Also, create discount coupons outside Amazon and don’t forget live chat sessions with potential customers.

Amazon cons

starting an online business to sell on Amazon comes with some negative aspects that you have to deal with before succeeding.

Seller fees

To sell on Amazon and reach millions of customers, you have to pay a referral fee. Every product category pays an average of 15% per sale.

Depending on the size and weight of the product, FBA sellers are charged a fulfillment fee for every transaction they make.

Product pirates

On Amazon, sellers use a catalog in listing products, and that’s quicker and easier.

Unfortunately, all the sellers ride on the success of that product you sourced initially by ordering the same product from China and displaying it. Only a private label can help here.

Why eBay Is The Best Platform when starting an online business?

Image credit to Micky

The eBay platform began back in 1995 as an e-commerce auction site alongside many others that did not succeed that much.

eBay Pros

Online business owners enjoy lower seller fees and more product return control

which they choose to accept.

Selling Used Items

Originally, eBay was a specialized popular auction site, but now it deals in 80% of new merchandise.

eBay is still the best site for used and affordable items. Also, the platform sells high-priced items such as a private jet it sold at $4.9 million.

Lower Seller Fees

eBay offers lower fees than Amazon. Similar to Amazon’s referral fee is eBay’s final value fee of 8% of each product’s final sale.

eBay Plus

With eBay premium membership, eBay shoppers can enjoy like Amazon prime members. For example, a guaranteed of two-days shipping for free all purchases and more

With $45 for eBay plus per year, sellers receive a discount of 15% on selling fees.

eBay Cons

Like all market places, eBay also has negative aspects.

Payment Restrictions

eBay’s only payment processing system is via PayPal. So each eBay shopper must have a PayPal account in addition to their debit or credit cards.

Chaotic Product Listings

Without a general product catalog like Amazon, eBay listing can be chaotic because counterfeit product sellers will always be there.

Time to Decide

Amazon and eBay both have pros and cons, and it’s up to you to decide which one to choose when starting an online business. Putting your products on both marketplaces is the best move to take to pick that which is better practically. External ad campaigns is a good way to experiment as you also check to see which of the two has a better ROI and reviews. The popularity of both of them in your country also counts.


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