Venturing into eCommerce is a fantastic way for small business owners to simplify the selling process. Instead of setting up a physical shop or regularly attending pop-up events, a digital presence enables sellers to reach a wider audience. With the vast potential of online sales, the question isn’t whether to sell online—but where to sell online.
Let us help you decide which is the better marketplace for your products. Explore the primary differences between Amazon and eBay, their business models, processes, seller-centric services, and other important factors.
Selling on Amazon vs. eBay: 6 Key Differences You Need to Know
Amazon and eBay are two of the leading eCommerce marketplaces in 2024. What exactly sets them apart from the rest—and each other? Here are some key differences between these two eCommerce giants to help you decide which platform best fits your selling needs.
1. Business Model
Amazon operates on a fixed-price listing model, offering a streamlined buying experience for customers. eBay, on the other hand, provides options between fixed-price and auction-style listings. In auctions, buyers compete with each other by placing bids, with the highest bidder winning the item.
2. Customer Base
Amazon boasts a significantly larger user base compared to eBay. As of 2023, Amazon has over 310 million users, while eBay has 135 million. This means sellers on Amazon have greater exposure and potential sales volume.
So you may be wondering, “Is selling on eBay worth it?” While this may pose a disadvantage for sellers looking to reach a broad audience, eBay actually has a very loyal and engaged user base, particularly for niche product categories like collectibles, handmade crafts, and vintage items.
3. Fulfillment Methods
Sellers on Amazon have two options when fulfilling orders. First, they can utilize Fulfillment by Amazon (FBA), where the platform handles storage, picking, packing, shipping, and customer service for the sellers at an additional cost. Another option Amazon sellers have is Fulfillment by Merchant (FBM), where they manage the entire fulfillment process themselves.
With eBay, sellers typically fulfill orders themselves or use third-party services. eBay does offer a fulfillment service called eBay Managed Delivery in some regions, but it is not as widely utilized or integrated as Amazon’s FBA.
4. Seller Fees
Is it cheaper to sell on Amazon or eBay? To give you an idea, let’s look into the standard seller fees for each platform.
For Amazon sellers, these fees are divided into two basic types: selling plan fees and referral fees.
- Sellers have two selling plans they can consider: Individual at $0.99 per item sold or Professional with a monthly rate of $39.99.
- Referral fee percentages vary depending on the product category, with a constant minimum amount of $0.30.
On top of this, sellers need to settle other fees like closing fees, high-volume listing fees, and additional costs for services like Amazon Ads. So, is it worth selling on Amazon? Learn more about other costs of setting up an Amazon shop and decide for yourself.
As for eBay sellers, there are two main types of fees on the platform:
- An insertion fee is when a user creates a listing after using up a monthly allowance of 250 fee-free listings.
- Sellers are also charged a final value fee when their item sells, which is calculated by adding a percentage of the total amount of the sale and a per-order fee. Orders priced $10.00 or less have a per-order fee of $0.30, while orders over $10.00 are at $0.40. Percentages depend on the product category of the sold items.
5. Seller Support
Amazon provides a hands-on customer support system via Amazon Seller Central with access to 24/7 representatives. Meanwhile, eBay is more focused on self-service solutions with community forums and tutorials.
6. Inventory Funding Options
Both Amazon and eBay allow businesses to borrow funds based on the value of their inventory.
eBay Seller Capital
eBay Seller Capital, provided by Funding Circle, offers eBay sellers term loans of $25,000 to $500,000 with fixed interest rates starting at 5.99% and repayment terms of up to 84 months. While this option offers fast approval and funding, with no hidden fees or early payback fees, there’s a minimum $50,000 annual sales requirement and fixed monthly payments.
Inventory Financing
Inventory financing is another funding option for those selling on Amazon or eBay. Specifically tailored for e-commerce sellers, inventory financing allows sellers to borrow up to 80% of the value of their inventory. This financing option can provide essential capital to keep up with demand and expand inventory, driving sales and growth for online sellers.
Amazon sellers can take advantage of inventory financing to manage the costs associated with storing, packaging, and shipping products. Similarly, eBay sellers can leverage inventory financing to invest in new products, expand their offerings, and attract a wider customer base.
But if you want to access higher amounts of capital on more flexible terms, consider Kickfurther. It’s the ideal solution for Amazon and eBay sellers looking to maintain inventory levels and scale their businesses without the burden of additional debt or equity dilution.
Selling on Amazon vs. eBay: Which Should You Choose?
Ultimately, the best platform depends on the needs and priorities of your business. If you want to reach a large audience and benefit from fulfillment services like FBA that allow you to focus on your products, Amazon is the better option. Keep in mind, however, that the platform requires higher fees and is limited to a fixed-price listing model.
If you prefer more flexibility in pricing or cater to specific niches like handcrafted or vintage items, eBay might be a better fit for you, so long as you are agreeable with managing fulfillment yourself and accessing a smaller customer base.
Whichever platform you choose, be sure to maximize its potential with Kickfurther as your inventory financing partner—because every great venture needs a steadfast ally.
Go Further with Kickfurther
With Kickfurther, you can enjoy a flexible and seller-friendly solution to fund your inventory. Here’s how we can empower your online business:
- Flexible payments: Kickfurther doesn’t lock you into rigid repayment schedules. Instead, you make payments based on your actual sales, allowing your cash flow to breathe.
- Non-dilutive: We also don’t take equity in exchange for funding, so you maintain complete ownership of your business.
- No debt: Kickfurther isn’t a loan, so you avoid the burden of debt and its impact on your credit score.
- Quick access: Get the capital you need when your supplier payments are due. Kickfurther can also provide additional funding each time you need more inventory.
Don’t let your own inventory stifle your business growth. Free up your cash flow for other crucial business areas like product development and marketing by letting Kickfurther finance your entire order upfront.
Remain in full control of your business. Contact a Kickfurther expert today to find out how it works.
