If you are an e-commerce entrepreneur, selling on Amazon vs eBay is a crucial decision you have to make, to allocate your resources much better. 

Both of these marketplaces have a vast audience and choosing the one most suited for you depends upon different factors.

In this guide, we have compared both Amazon and eBay and have highlighted various features.

Read on to find out which one is ideal for you. 

Read More: How to Sell on eBay and Amazon in 2024

Selling on Amazon 

When it comes to e-commerce, Amazon is a powerful force to be reckoned with. It has a net worth of $2.01 trillion with over 300 million active users globally, so this platform can provide huge opportunities for growth. 

Advantages of Amazon

1. Businesses operating on Amazon can vouch that this platform provides them with a reach that is wide and diverse.
2. Amazon Prime members end up spending more than non-members. This is a great opportunity that sellers can avail of. By adding “Buy with Prime” to their e-commerce site businesses can boost sales because customers get the Amazon Prime shopping experience.
3. Amazon takes care of storage, shipping and customer service for their sellers through the FBA program (Fulfilment by Amazon). This allows businesses of all sizes to focus on their growth helping reach the 6 figure mark.
4. The Amazon Service Provider Network can connect e-commerce entrepreneurs to third-party service providers. This is a great resource as it can help businesses with tasks that include list creation, account management, advertising and returns.
5. Monitoring prices manually can become quite a challenging task. Amazon offers automated pricing that can keep an eye on the market and competitors and change prices based on these factors.
6. The design of Amazon’s website is straightforward and makes it a user-friendly platform guaranteeing a great experience for both sellers and buyers. The result is greater traffic and sales. 

Drawbacks of Amazon

1. Amazon is a crowded marketplace with intense competition. To top that there are many major retailers that only add to the challenge for smaller sellers.
2. It is not free. There are selling fees and referral fees that can take out a chunk of the profits.
3. The rules and policies are pretty stringent on the platform. If a seller does not comply, there is a chance of their account being suspended. 

Selling on eBay

Although smaller in volumes when compared to Amazon, eBay boasted 132 million active buyers across the world only in the second quarter of 2024. It is an excellent platform for medium to small businesses especially those that deal in specific niches. So if a business offers vintage collectables, for example, eBay is the place to be. 

Read More: 27 Best (Most Profitable) Things to Sell on eBay This Year!

Advantages of eBay

1. eBay will allow businesses to deal in used or refurbished items on its platform, especially those products that will not do so well on Amazon. This flexibility can prove to be a great attraction for many businesses. 
2. The fees charged by eBay are mostly lower than on Amazon (with their FBA service) and this results in greater profits for the business.
3. Unlike Amazon, eBay does not have any products of its own. This means businesses do not have to compete with the marketplace itself.
4. Sellers have the power to manage their listings and pricing etc themselves. This allows them complete freedom in how they run their businesses. 

Drawbacks of eBay

1. It may be a popular platform but it can not match the sheer size of Amazon’s platform and its customer base. 
2. Customers clearly have a hard time trusting new sellers on eBay. However, these new businesses manage to build credibility with ease on Amazon. 
3. The level of automation available on Amazon’s FBA is not possible on eBay. 

Amazon vs. eBay: What Can Help You Hit The Magic Six-Figure Mark Faster?

Speaking generally, it is safe to say that Amazon has the edge when it comes to rapid business growth. There are many reasons for this.

• Amazon‘s customer base is massive and this means more opportunities for sales. The high traffic on the platform makes for a great chance to grow fast.
• With the FBA feature, Amazon provides immeasurable support to its sellers. Products that are fulfilled by Amazon appear higher on such results, helping the seller scale quickly.
• Amazon’s buyers have a greater trust in the marketplace. They are more likely to spend larger amounts on this platform because of its credibility. Amazon also boasts prime members who spend more and will help sellers reach six figures faster.

This, however, does not mean that eBay is out of the race. 

• It can give Amazon a pretty good competition if the seller is offering niche products.
• It has set up the third-party fulfilment model with success. 
• The lower fee on eBay is a major attraction for many.
• eBay also provides the Seller Dashboard and has seller protection policies in place.