In the world of eCommerce, two major platforms dominate when it comes to selling used items: Amazon and eBay. Both have their strengths, but which one is the better option for you? This comprehensive guide compares selling used items on Amazon vs eBay, diving into fees, selling models, customer reach, and more to help you decide which marketplace suits your needs better.
When considering which platform to sell on, understanding market share is crucial. A study by Marketplace Pulse concluded that Amazon captures a larger market share globally compared to eBay and other competitors. This market dominance gives Amazon a distinct advantage in terms of customer reach and product visibility.
Amazon’s vast customer base allows sellers to access millions of potential customers, providing opportunities for higher sales volume and profit margins. eBay, while having a smaller share, remains an attractive option due to its established reputation, especially for used, collectible, and vintage items. Selling used items on Amazon vs eBay requires weighing this market reach against the selling experience and costs of each platform.
Revenue Potential
The potential revenue from selling used items on Amazon vs eBay can vary significantly depending on your product offerings and audience. In 2022, Amazon generated a staggering $514 billion in revenue, whereas eBay earned $10.41 billion. While the difference is vast, this doesn’t necessarily mean that eBay is not a viable option for selling used items.
Amazon’s larger customer base means that professional sellers can tap into an extensive network of buyers. However, the competitive environment on Amazon means that profit potential may be limited by competition from both large brands and private-label sellers. On eBay, experienced sellers can capitalize on niche audiences and product types that might not be as viable on Amazon.
Fees and Costs
When evaluating the best platform for selling used items, understanding the fees is essential. Both Amazon and eBay charge fees for listing items, which affect your profit margins.
eBay Seller Fees
eBay’s fee structure can be attractive for new or small-scale sellers. The platform allows users to list up to 250 items per month without any insertion fee. However, if you exceed this limit, eBay charges $0.35 per listing. Additionally, eBay takes a percentage of the sale price—typically between 12.9% to 15%, depending on the product category.
eBay fees also vary by item type. For instance, musical instruments, like guitars, are subject to a final value fee of only 3.5%. Insertion fees, combined with other item fees, can make selling specific product categories more affordable on eBay than on Amazon. eBay Store subscription options also exist for professional sellers looking to scale up.
Amazon Seller Fees
Amazon’s fee structure tends to be higher compared to eBay. Sellers can opt for either an individual selling plan or a professional selling plan. The individual plan charges $0.99 per sale, while the professional plan requires a monthly subscription of $39.99. Amazon also charges referral fees, which can range from 6% to 15%, depending on the product category.
In addition to these seller fees, Amazon applies fulfillment fees if you use Fulfillment by Amazon (FBA). These fees include storage, handling, and shipping costs. While these fulfillment fees may be worthwhile due to the benefits of using Amazon’s fulfillment centers, they do add up and must be accounted for when evaluating your profit margins.
Selling Models
Fixed-Price vs Auction
One of the biggest differences between selling used items on Amazon vs eBay is the selling model.
- Amazon: Amazon primarily uses a fixed-price model, where items are sold at a set price. This model works well for competitive prices and ensuring consistency, but may limit sellers who want to experiment with pricing strategies.
- eBay: eBay allows sellers to use either fixed-price listings or an auction-style listing. The auction model allows potential customers to bid on items, making it a great option for rare or hard-to-value items, such as vintage items or collector’s products. Auction-style listings can lead to higher sale prices for items that generate a lot of interest.
Product Types and Restrictions
Amazon and eBay both offer a variety of product categories, but their approaches are different.
- Amazon: With its vast customer base and structured product listings, Amazon focuses on new, high-quality products from both small and large brands. Amazon’s official product identifiers, product database, and strict product-selling restrictions can be a double-edged sword—ensuring quality products while limiting what individual sellers can offer.
- eBay: eBay has fewer restrictions when it comes to product availability. Sellers can list a broader range of products, including used, custom products, vintage items, and even surplus products. This makes eBay an attractive option for sellers with more niche or unconventional product offerings.
Customer Experience and Support
Providing an excellent customer experience is essential for online sellers, and both platforms have their advantages.
- Amazon: Amazon provides comprehensive tools for customer service, including forms of customer contact, streamlined return policies, and fast day shipping. Its customer support resources ensure that buyers have a positive experience, and its emphasis on fast delivery times through Amazon Fulfillment means fewer barriers to entry for new sellers.
- eBay: eBay offers flexibility in return policies, allowing sellers to choose whether or not to accept returns. However, choosing not to accept returns might deter buyers and impact seller ratings. eBay also has a different caliber of seller support compared to Amazon, with more reliance on the eBay Seller Hub for managing product listings and communication with customers.
Fulfillment Options
Amazon FBA vs eBay Shipping
Amazon and eBay offer different fulfillment options that impact overall fulfillment cost and customer satisfaction.
- Amazon FBA: Amazon’s Fulfillment by Amazon (FBA) program provides third-party sellers with the option to store inventory in Amazon’s fulfillment centers. Amazon handles all shipping, packaging, and customer service issues, which is ideal for sellers who want a hands-off approach. However, this convenience comes at a cost, as fulfillment fees can eat into profit margins.
- eBay Shipping: eBay sellers are responsible for their own packaging for shipping and determining shipping carriers. While eBay offers negotiated shipping rates through its partnerships, individual shipping costs can still vary, affecting profit potential. eBay also gives sellers the option to offer free shipping, which can increase visibility but may require the seller to absorb the shipping discrepancy.
Pros and Cons
Amazon Pros and Cons
Pros:
- High Conversion Rates: Amazon’s vast user base and customer trust lead to higher conversion rates for sellers.
- Customer Service: Amazon provides excellent customer service, making it easier for sellers to provide a positive experience.
- Fulfillment Service: FBA reduces the workload for sellers and offers fast delivery options.
Cons:
- Higher Fees: Amazon charges higher referral fees and fulfillment fees, impacting profit margins.
- Competition: Competition for sellers is fierce, especially with larger brands and Chinese sellers dominating the marketplace.
- Product Restrictions: Amazon’s rigid structure and product-selling restrictions can limit product availability.
eBay Pros and Cons
Pros:
- Lower Fees: eBay’s fees are generally lower than Amazon’s, making it an attractive option for new sellers.
- Auction Model: eBay’s auction format allows sellers to get competitive bids on unique or hard-to-value items.
- Flexible Listings: The option to create custom products and list vintage items gives sellers flexibility.
Cons:
- Smaller Market Share: eBay has fewer active users compared to Amazon, which can limit potential customers.
- Shipping Responsibility: Sellers must handle their own shipping, which can lead to more work and variability in delivery times.
- Lower Conversion Rates: eBay’s user base is smaller, meaning fewer monthly visits compared to Amazon.
Conclusion
Choosing between Amazon and eBay for selling used items depends largely on your business needs, the type of products you sell, and your willingness to handle fulfillment and customer service. Selling used items on Amazon vs eBay involves evaluating fees, fulfillment methods, and target audiences.
- Amazon is ideal for sellers looking for a hands-off fulfillment process and access to a vast, international market. However, its higher fees and intense competition make it challenging for individual sellers.
- eBay remains the go-to platform for selling unique or vintage items, benefiting sellers who prefer flexibility and lower fees. The auction model also gives sellers an advantage when dealing with hard-to-value items.
Ultimately, the best platform depends on your goals, your products, and how much time you’re willing to invest in managing your listings and fulfillment.
ALSO READ: How Much Does it Cost to Sell on Amazon?
FAQs
A: Amazon charges referral fees, a professional selling plan fee, and fulfillment fees if you use FBA. eBay charges a final value fee, insertion fee for listings over 250, and other small item fees depending on the product category.
A: eBay is generally better for selling unique or vintage items because of its flexible listing options and auction model, which allow buyers to bid on unique products.
A: Amazon offers Fulfillment by Amazon (FBA), which handles all logistics, including storage, shipping, and customer service. eBay sellers, however, are responsible for their own shipping and packaging, which offers more control but can be more work.
A: Yes, both Amazon and eBay offer international selling options. Amazon’s vast network makes it easier to reach international markets, while eBay provides tools for international shipping.
A: Amazon provides comprehensive customer support through Seller Central, while eBay offers support through the eBay Seller Hub. Amazon’s support tends to be more streamlined, while eBay provides more direct communication with buyers.
