Amazon and EBay have both been very successful online platforms for online sellers. Both websites have a comprehensive range of products on sale. Both started out with very distinctive qualities and both have progressed and have incorporated favorable features from the other. While many online sellers use both EBay and Amazon, there are those that either use Amazon alone, or use EBay alone. There are other people who have never ventured in online selling and would like to start selling either on EBay or on Amazon. Both retailers have some major differences that you need to take note of if you want to venture into online retailing.
Amazon Sells and EBay Facilitates
Amazon was established in a garage and had its own products which were stored on the garage and packaged. Amazon has huge inventories in their warehouses today and has continued to sell directly to online customers. Today, they also have a wide network of sellers shipping from their facility. A bigger percentage of their products are still maintained in-house. EBay never sells anything directly and never has any inventory. What EBay does is to connect buyers with sellers and everything else including inventory and logistics is left to both parties.
EBay Auctions While Amazon Retails
While EBay has many offers that sellers can take advantage of, its business model is generally based on the auctioning of items. Buyers view products and bid for them over a period of time and the highest bidder receiving the item. Amazon has continued to stick with the traditional retailing model. Their products are always offered at specified prices and when buyers make purchases, they pay for the products digitally through a checkout process.
Differences in Payment Options
Initially, EBay did was not involved in the payment process for items purchased from their website. Today EBay has gained ownership of PayPal, an online payment service. EBay is still not involved in the payment process although through this online payment service, the business makes it easy for buyers and sellers to make an exchange. Amazon continues to take care of all payments through its checkout system.
The Provision of Ancillary Services
The progress of the two businesses has been remarkable and they have made efforts to acquire new services and enter into new areas of business. Today, EBay has acquired ownership of Half.com, a website that’s popular with people looking for books and others looking to sell books. For payment, Half.com and EBay.com uses an integrated approach through the PayPal online payment system. Amazon has a number of services such as Amazon Prime for streaming videos. They also have a cloud computing services and an App store.