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Comparing eBay VS Amazon: The Retail Giant Face-Off

By November 25, 2022Retail

Retail Review - eBay VS Amazon - AIO BotToday, we’ve got two giants of the retail industry going head-to-head in a retail face-off: eBay VS Amazon! You can consider both platforms to be the powerhouses of the retail industry with longstanding reputations. They both rank in the list of top online shopping eCommerce websites. And, they both make TONS of money every year, and have been for a long time! But, which one is better?

If you ask a thousand U.S. citizens, where they do their online shopping… More often than not, the top answers are going to be either eBay or Amazon! However, since they ARE two separate marketplaces, they have different features. This means they have different product categories, audiences, fees, shipping rates, and more. So, to properly make a decision, you have to compare them all!

And that’s exactly what we’re going to do! So, keep reading to find out who’s going to win the eBay VS Amazon face-off. Also, if you’re interested in retail, make sure you join our FREE hub for retail knowledge. Click on the button below to find out more!

eBay VS Amazon

So, to fully go into the eBay VS Amazon comparison, we’re going to go over literally everything. This way you can a decision on which eCommerce platform you like the most! We’re going to first start with the tiniest introduction to the platforms themselves:

eBay is a marketplace where people can list items for sale or hold auctions for their products. Click here to learn more details on eBay. On the other hand, Amazon is a global corporation specializing in online retail and services. Click here to learn more details on Amazon.

Therefore, just by looking at them, finding a verdict for the eBay VS Amazon debate might be a little challenging. So, we have to do into more detail in this comparison! Here are the points we’ll be going over:

#1 eBay VS Amazon Key Differences
#2 eBay VS Amazon Pros & Cons
#3 Market Size
#4 eBay VS Amazon Fees
#5 Shipping & Fulfillment
#6 Refunds & Returns
#7 Safety & Security

#1 eBay VS Amazon Key Differences

 

eBay VS Amazon: KEY DIFFERENCES
eBay
  • Is the original auction site
  • Facilitates only third-party sellers
  • Fees rely on a multi-tiered schedule
  • Does not have its own products
  • Offers auction format or fixed-price format
Amazon
  • Specializes in online retail and services
  • Does include third-party merchants
  • Owns their own private label products
  • Does not offer an auction facility
  • Fees rely on a multi-tiered schedule

WINNER: A tie. Both platforms have a lot to offer in regard to their key features!

#2 eBay VS Amazon Pros & Cons

 

eBay VS Amazon: PROS & CONS
eBay Amazon
PROS
  • Makes it easy to list products
  • Has fewer restrictions on categories
  • Has less competition for sellers
  • Has a bigger audience than eBay
  • Offers paid advertising for sellers
  • Has a friendly management
CONS
  • Has higher fees
  • Doesn’t offer fulfillment service
  • Is sometimes a hit or miss
  • Has higher return rates
  • Has more competition between sellers
  • Sellers HAVE to use paid advertising to drive sales

WINNER: Although both platforms have their pros and cons, one thing about Amazon is that it has harsher penalties. This leads to a lot of account suspensions. So, eBay wins!

#3 Market Size

 

eBay VS Amazon: MARKET SIZE
eBay
  • As of June 2022, eBay accounted for 3.5% of the U.S. eCommerce market
  • As of September 2022, eBay’s revenue for the past 12 months is $9.898B
  • eBay’s net income for the past 12 months is $28M
Amazon
  • As of June 2022, Amazon accounted for 37.8% of the U.S. eCommerce market
  • As of September 2022, Amazon’s revenue for the past 12 months is $502.191B
  • Amazon’s net income for the past 12 months is $11.323B

WINNER: Amazon is at least 10x bigger than eBay!

#4 eBay VS Amazon Fees

 

eBay VS Amazon: SELLER FEES
eBay
  • 250 free listings per month with $0.35 per additional listing
  • Offers packages ranging from $28 per month to $350 per month for Anchor Store
  • Includes PayPal processing fees 
  • Requires final value fee of around 10%
  • Does not offer fulfillment services
Amazon
  • Professional Seller subscription $39.99 per month
  • Individual Seller subscription $.099 per unit sold
  • Referral fees are between 8% – 15%
  • Fulfillment by Amazon (FBA) depending on size and weight of item

WINNER: Amazon is, on average, around 20% cheaper than eBay when it comes to seller fees

#5 Shipping & Fulfillment

 

eBay VS Amazon: SHIPPING & FULFILLMENT
eBay
  • Doesn’t currently offer any shipping or fulfillment services
  • Sellers have to pick, pack, and ship orders themselves
  • Or, find an independent provider
  • Sellers have complete freedom to ship their own way
Amazon
  • Has the Amazon FBA program
  • They store your products in their warehouses and ship on-demand as your products are sold
  • Also, Amazon deals with customer support messages relating to shipping
  • Can also be used to fulfill orders from other channels – like eBay
  • You have to pay Amazon FBA fees

WINNER: A tie! Although having someone else handle the shipping and fulfillment FOR YOU, it can get expensive. For people starting out small, handling your own shipping might be better.

#6 Refunds & Returns

Another important factor to consider in the eBay VS Amazon debate is Refunds & Returns. eBay, it allows you to completely opt out of allowing returns as a seller. On the other hand, Amazon has a return policy in place for third-party sellers.

WINNER: A tie! Since both have their own way of dealing with shipping, it makes sense to have different return policies!

#7 Safety & Security

And, finally, we’ve got Safety & Security which is a great concern for the eBay VS Amazon argument. The retail industry can be risky at times – even for sellers! But thankfully, both of these platforms do not have the shady factor of Craigslist. Both platforms do have many safety and security measures for both parties. However, Amazon has more safeguards in place than eBay does – mostly because of the FBA program. 

WINNER: Amazon wins this one!

Verdict

So, if we فally up our total for the eBay VS Amazon debate, once and for all… The winner is: AMAZON.

However, at a score of 6 to 4, it’s not a total and complete loss for eBay. We think that, at the end of it, it all comes down to the product you want to sell. Some people just feel more comfortable on eBay – especially when you’re selling secondhand, used items. But, with everything that we’ve provided you, you can definitely make your own choice! Or, you can click here for other options similar to eBay and Amazon!