While discussing eCommerce platforms, a lifelong question comes up on every eCommerce merchant’s mind: dropshipping on Amazon vs. eBay in 2020? To answer this, we need to compare and review both platforms. In the long run, you’ll gain more knowledge on the topic, and then decide whether you’d like to start your business with either eBay or Amazon.
Before we begin, know this one thing – even if you decide to go with neither of these two marketplaces, there are still plenty more out there. Most of these marketplaces aren’t free and do require subscription and other fees, but the profit margins may be greater than you can imagine. Now, let’s have a look at two of the most famous e-commerce retailers and at the same time, rivals, and their specifics.
1. Amazon vs. eBay: Which Has More Customers?
Est. monthly visitors (2018):
eBay – 26.6 million
Amazon – 58.7 million
Est. sales (2018)
eBay – $11 billion
Amazon – $233 billion
Stats show that Amazon has a much larger audience and more than 20 times larger marketplace sales. Accordingly, dropshippers should expect to make at least ten times more sales on Amazon, compared to eBay.
Here’s another fun fact. Amazon announced that in 2019, they had around 50.000 sellers with revenue of over $500.000, while nearly 200.000 small and medium-sized businesses made over $100.000 throughout 2018. The good news is, more than 50% of all units sold in Amazon’s e-stores were made by these small and medium businesses. It means every seller has an opportunity to make cash by investing time and money.
2. Amazon vs. eBay: Which Has Better Product Categories?
It’s good to know which platform has what product categories. If you decide to sell products from multiple industries, then Amazon offers a variety of products to be sold on their marketplace. And if you’re into more specific categories, you could see what eBay has to offer. Basically, the categories for these two eCommerce platforms look like this:
– Women’s fashion
– Product sampling
– Pet supplies
– Men’s fashion
– Sports and outdoors
– Baby products
– Tools & Home improvements
– Health & Household
– Toys & Games
– Smart home
– Arts & Crafts
– Home & Kitchen
– Video games
– Industrial & Scientific
– Beauty & Personal care
– Books, Movies & Music
– Collectibles & Art
– Home & Garden
– Sporting Goods
– Toys & Hobbies
– Business & Industrial
– Health & Beauty
By the looks of it, Amazon has its product categories divided without having to add too many subcategories. On the other hand, eBay has fewer categories, each one with several subcategories, to make it appear more organized.
According to users, Amazon is better with most product categories due to following the trends in global market demand. Vice versa, eBay is much more popular with its ‘eBay Motors’ category, mainly because of electronics parts and accessories for cars.
Overall, they are both good. Amazon leads the list because they focus on current market trends instead of total sales per category, while eBay’s marketing team probably checks statistics for each category before they place new products for sale.
In any case, you can notice the differences. This can help shape your opinion by the end of this article, so pay attention to anything you think would help you choose between Amazon and eBay for dropshipping.
3. Amazon vs. eBay: Which Provides Users With Better Shipping
When you compare the pros and cons of both eBay and Amazon, the latter is complete in terms of shipping. Their Fulfillment By Amazon program completes the whole process for you – including storing, packaging, shipping, and distribution. They have one of the most advanced fulfillment networks on a global scale.
Amazon has customers mostly based in the U.S., making it a perfect place for high-end clothing like the one we have at BrandsGateway.
On the other hand, they might charge a few more bucks for it, but at least you won’t have to worry about any orders, which will save some time to focus more on marketing and sales.
As for eBay, it’s one of the cheapest marketplaces in terms of fees and focuses on the global market.
4. How to sell internationally
You can now learn how to expand your business abroad. If your store is already established locally, why not try your luck in other markets? Learn which marketplace is available in what region and what product categories are and aren’t allowed in these countries.
Apart from the U.S. version, Amazon consists of 12 global sites, covering some of the biggest markets around the world. It’s great if you’re looking to expand internationally.
You’ll need to know which countries you can sell to, but more importantly, you must know how these countries react to international sellers.
This is a great opportunity for every reseller to test out new markets and reach new customers. However, you’ll need to create a unified Amazon account first. We’ll explain how it works later.
Let’s talk about how big the market is. You can officially sell via Amazon to Australia, Brazil, Canada, France, China, India, Germany, Japan, Italy, Spain, Mexico, the U.K., and the U.S.
Each country has a unique Amazon domain and the total population counts over 3.8 billion, which is more than half of the world’s population.
What about unifying accounts? Amazon offers two types – one meant for North America, and another one for Europe. This allows you to sell on the other markets. However, to sell in the Asia-Pacific region, you’ll need to register a separate account for in order to sell on these territories.
Still, keep in mind the following fact – Amazon is “responsible” for almost half of all U.S. online retail sales. So, it’s wise to first set up shop there, then conquer the rest of the world.
Another important thing worth mentioning is the language barrier and requirements when it comes to taxes, customs, etc. This is best explained by Amazon experts or an attorney, so make sure you know someone good.
Unlike Amazon, eBay has a more strict policy concerning international markets. What do you need to do to see if you’re eligible or not?
First, check if your account is in good standing. Then, you need to have a verified PayPal account and offer it as a payment option.
Furthermore, your seller account needs a minimum of 10 feedback points and the first sale must not have happened in less than three months.
There is a limit on which categories you can sell on eBay’s international markets. They’ve excluded specific ones, including car parts, vehicles, DVDs, and video games.
To enable international sales, you can do so by offering to ship to either Europe, the U.K., or worldwide. Also, it’s highly important to specify which shipping service will deliver to any of these regions so that you can rank better in the search results.
You can choose whether you want to sell your products worldwide, or in selected countries only. The products must match the eligibility requirements in each country/region where you plan on selling. You can check out eBay’s International trading policy here.
eBay has several unique websites meant for different parts of the world. You can sell in Australia, Austria, Belgium, Canada, China, France, Germany, Ireland, Italy, Hong Kong, Malaysia, Netherlands, Philippines, Poland, Singapore, Spain, Switzerland, Taiwan, Thailand, the U.K., the U.S., and Vietnam. You can try selling in any of these countries, as long as you follow the cross-border rules and regulations provided on-site.
4. Amazon vs. eBay: Summary
Each marketplace has its own pros and cons. Amazon is quite strict in terms of branding, fees, competition, etc. At the same time, there are more product categories available compared to eBay. As for eBay, they give sellers more freedom to develop, pick their customer base, and offer lower expenses in general.
So, let’s summarize things real quick, before making your decision. If you choose to sell on Amazon, you will:
– Focus more on U.S. market
– Expect higher seller fees
– Expect more competition, especially from Amazon
– Let Amazon completely take care of shipping and handling with their ‘Fulfillment by Amazon‘ network
And if you turn to eBay, these are the perks:
– Cheaper shipping and sales fees overall
– No need to have a company for shipping and storage
– Focus on the global market, not only the U.S. market
– Develop and sell your own brand, free of direct competition
Any way you choose, you won’t be wrong. With all the positive and negative traits explained, it’s up to you to choose whether you want the more liberal, but financially riskier eBay, or the more strict, yet highly competitive and more profitable Amazon?
If you want to check out the complete list of marketplaces to dropship, we’ve compiled a huge list of every major marketplace on the Internet. You may choose between regions, market size, and other characteristics to your liking.
If you have any comments or suggestions to future sellers, feel free to share them below, we’d appreciate it!