Using Amazon Verses eBay for Boosting Revenue, 7 Essential Facts for Today’s Market

I have used both the Amazon store platform and the eBay store platform for many years. I have noticed that there is a serious shift in the marketplace and so have a lot of other customers. The main determining factor is in your target audience and knowing exactly where they hang out and where they look for products. Some audiences are clearly budget minded, which makes the “power of a deal” concept of eBay very enticing. Others are demanding of an excellent and uneventful shopping experience, that is where Amazon shines. These seven facts can help you make or break your goals for next year in selling anything online. Here are my findings, your mileage may vary.

1. Market share. Depending on your product line niche, you need to determine whether or not more listings show up in the search results for Amazon or for eBay. In all of the market lines I am familiar with and sell through, Amazon is clearly the 900 lb gorilla. One reason is that once a product is in the Amazon marketplace, it stays. It may show out of stock, but that page stays in the system and is indexed through the search engines. If you forget to renew an auction, it is not available in the eBay system. If you fail to renew that product amazon in your store, it vanishes as well. This is a big factor in why Amazon will rank for that product even if they are out of stock Advantage: Amazon.

Amazon's Net Profit Soars 84% With Sales Hitting $386 Billion

2. Stigma There is a certain stigma building about eBay and that is that most people think it is for amateurs. The Internet is becoming more trusted and people are learning how to use it effectively. Thus they are becoming smarter and more picky about who they purchase from. Amazon has built itself as a trusted partner through their customer service, they bend over backwards to take care of their customers. Advantage: Amazon

3. Fulfillment. Amazon has a fulfillment program which allows companies or individuals to send Amazon stock and let them store that item for them. When that item sells, its shows as being stocked and sold by Amazon. This helps a lot with customers trust factor, knowing that Amazon is going to ship it in a timely manner and that they really do not have to “take a chance” on a vendor they are not familiar with. This also frees up a tremendous amount of time for the vendor since they do not have to touch the item in the sales process. Amazon picks and sends the product and notifies you of the sale. This makes managing your inventory much easier and allows you to just send Amazon products to keep your inventory supplied. This means instead of sending out orders individually, you send them by the case instead. This is a huge amount of time saved. Advantage: Amazon

4. Fees. Amazon charges 15% for their fee in processing and selling your product. Our experience with eBay has been about the same percentage by the time you add up the launch fee, the final value fee and the Paypal fee. Not to mention the time you spend touching the product and getting it to your shipper or freight company. So this 15% seems to be a wash and makes fulfilling through Amazon more desirable in the sense of time management. Advantage: Amazon

5. Time Management. Looking through the back ends of Amazon and eBay Stores for inventory can take a little time. With eBay, you have to cross check with your own inventory to make sure you have what you are advertising. If you are out of inventory when you say you have it on eBay, you will incur negative feedback through eBay. You also have to make sure your graphics are stored correctly and if you use a third party software, that those pictures are active. Advantage: Amazon

6. Credibility Having a store front with your company name is a great way to boost name recognition. Although either site does not give you any real link benefit from your name, having your name out there in many venues is excellent. A lot of people still use eBay, so it is still a great place to start and get your name out there. Amazon still does not promote your name, but will list it somewhere on the product page, again the more the merrier. Advantage: Tie( both)


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