Sunday, May 31, 2009

Every day, thousands of people make money on Amazon and E-Bay. People with different background are selling items from different locations. E-Bay popularized the auction format listings and Amazon concentrate on fixed-price listings. These are simply among the top largest market place in the world, but they both have pros and cons. E-bay charges a listing fee, regardless of whether the item is sold or not. E-Bay also charges a final value fee based on the selling price when the item is sold. PayPal is an E-Bay partner for processing credit cards and it also charges a commission based on the selling price. Amazon allows seller to list an item for free, but Amazon charges a higher percentage of commission when an item is sold. E-Bay’s commission is much lower than Amazon’s 15% on item under $25 compared to 8%. Amazon also charges more commission fee to use their service. E-Bay also offers a fixed listing feature, it is cheaper to use fixed listing feature, only 35 cents to list an item as a fixed listing, no matter how much it costs. For auction style listings, E-Bay allows sellers to list an item that is less than $9.99 for only 35 cents. E-Bay is excellent for small home-based businesses and for those who don’t want to spend a lot of money on commissions. Amazon, however, is definitely the best way to sell expensive items.
Amazon has set shipping prices but it doesn’t cover commission fee that Amazon charges, however E-Bay allows seller to set their own shipping prices and that is a benefit for sellers.
According to Internet retail market, Amazon experiences a growth in sales last year, while E-Bay showed a decline in sales and traffic compared to the year before. E-Bay made a lot of changes last year to their listing policies, and that drove a lot of sellers away. Amazon and E-Bay alternative to other its depend on the type of thing you sell, clothing and textile won’t fit good on Amazon but if you reselling a book or electronic Amazon is better than E-Bay. Amazon is extremely user friendly, and their policies are very straight forward. E-Bay allows both buyers and sellers to leave a feedback for each other but buyers have an advantage on E-Bay, sellers can only leave a positive feedback for the buyers, but buyers can leave a positive, neutral, or negative feedback for the seller. On Amazon, only buyers can leave a feedback for sellers.
There is one thing in particular that I don’t like about e bay, and it is the auction. There are some software available that allow users to bid one second before the auction ends, a small percentage of E-Bay users use those software to always win the auction. For example, Sniperware is a program that place a last second bid on your behalf.

I like the fact that Amazon does not allow auctions, and that allows users to hunt for bargain and purchase an item right away, without the fear of losing the auction. Amazon also has a feature super shipping. If you purchase an item that is more 25$ directly from Amazon (instead of a seller on Amazon), shipping is free.
Often there is problem with E-Bay credit acceptance if the billing address does not match the shipping address. This also happened to me once when my billing address did not match the shipping address, and E-Bay did not accept my card, just because of the fact that I moved to a different location.
E-Bay also has a website E-Bay Motors that is dedicated to the sellers who sell vehicles online but Amazon does not allow listing vehicles. E bay motors local classified is designed to connect car buyer and seller within 100 miles radius of their local market. Through an initial promotion period ending 15th July 2009, seller can list up to six vehicles for seven-day period with no insertion and successful listing fee. E-Bay motor is constantly ranked number one auto selling site with 12 million monthly unique visitors.
On E-Bay, seller does not have to ship an item by a specific time period, but Amazon gives its seller a time period and seller has to ship the item within that time period. Some sellers on E-Bay offer overnight shipping, and Amazon also has a feature that allows buyers to get the item as soon as in 1 business day. E-Bay also has a site dedicated to booksellers, called is getting very popular amongst college students who want to save money on books. does not charge any listing fees, but it does charge a small commission when we sell a book. acts as a third party that accepts credit card from the buyer, and then deposits the money later into the seller’s bank account. also provides a shipping reimbursement to the seller. is gaining a lot of popularity and a lot of users prefer over Amazon.
Both E-Bay and Amazon have their pros and cons that need to be considered while making a decision. Some good bargain hunters’ use both E-Bay and Amazon to make a comparison on a certain item that they want to purchase, and they go with the site that allows a cheaper deal

No comments:

Post a Comment