Amazon and Ebay are the two most important marketplaces on a global scale. Their volume of sales constitutes a growth opportunity for e-commerce. This is because they count on a very ample data base of inscribed users in their portals, susceptible to buying products of new selling brands. Given that both marketplaces have a series of rates and sales quotas, it will not always be possible or adequate to have a presence in both. To help you choose one or the other, from Minderest we recommend you to first carry out a monitorization of your competition and its presence in the different distribution channels. Afterwards, inform yourself about the different principles among the different platforms. In continuation we will point out the most relevant ones.
Level of competition on Ebay and Amazon
Even though in both marketplaces you will find numerous sellers within your same category or that sell the same products, the Ebay search algorithm is simpler and more organic, as it shows products according to price. On the other hand, on Amazon the organization of the articles depends, beyond the price, on the quality of the ad and the rating given by users.
At the same time, Amazon itself can be a competitor, as it has direct sales to the public thanks to the Amazon Vendor system in which brands work as their suppliers. Based on this, you should value the cost effectiveness of paying the fees of every service together with the sales commissions of marketplace in this very competitive market. As a starting point, keep in mind the sales commissions of Ebay are usually 10% while Amazon’s is 15%.
Brand Image Growth
On the other hand, brand image exposure is different in both marketplaces. Amazon gives greater prominence to its own image both in the web and in the parcel, leaving the selling company in second place. The positive side is that Amazon’s image reinforces client trust at the time of final shopping decision making, since they know they have your support in the event of a problem with the products.
On Ebay e-commerce have complete freedom to send their articles in the form their consider most appropriate for the brand. In turn, the web environment of any seller has design tools for personalizing their product page and being able to distinguish themselves from competition, a service that Amazon has an extra charge for.
Logistics and shipping times
In this respect, the services offered by both marketplaces are also different. Ebay does not provide transfers and distributions of products, but it yields the complete management of this part of the sales process to sellers. On the bright side, this allows you to adapt the times and costs of shipment to your necessities and objectives of your business.
On the contrary, Amazon offers brands the possibility of contracting their logistic services, known as FBA or Fufillment by Amazon. The businesses that opt for this option cede the management of shipments completely to Amazon. In this way, the marketplace guarantees that deliveries will be completed in strict compliance with their deadlines, which reinforces user trust in the sales channel and in the brand.
A second motive for trust is that Amazon is also responsible for returns. The users that know that, according to their current policy, the marketplace assures that unsatisfied buyers will receive a full refund.
In general, both Amazon and Ebay share the speed at which the prices of advertised products change with the goal of being the most competitive possible. An even more demanding reality is that on Amazon, given its own marketplace can change the prices of their direct sales products an average of 4x a day. In this scenario, independent of the sales channel that you choose, we recommend you have tools to automatically set competitive prices that align with the supply and demand in these gigantic e-commerce.