Friday, March 2, 2012

Amazon or eBay - Who Gives the Seller the Best Deal?

Over recent years there has been a great deal of dissatisfaction expressed by eBay sellers. Forums and blogs are full of complaints about poor customer service and preferential treatment being given to "the big guys". As a result an increasing number of sellers have moved over to Amazon as an alternative but are they in fact any better off for making this move?

The first big question must be which offers the best value for money? Although Amazon unlike eBay does not charge a listing fee its commission rate on sales is that much higher. If you sell the majority of items you list eBay is still your best option but if you have a low sales to listings ratio Amazon will cost you less overall.

Some items are best suited to being sold by auction which is an option that Amazon does not offer. If you deal in antiques and collectibles you are likely to get better prices selling through an auction on eBay. However, eBay are slowly moving away from the auction model and now the majority of listings are Buy It Now which is similar to Amazons approach. Generally Amazon does appear to be able to sell at higher fixed prices than eBay. One reason for this may be that visitors to eBay are looking for bargains whilst those going to Amazon know they will find what they want to buy on the site and are prepared to pay the asking price.

For sellers on Amazon there is far less interaction with customers than on eBay, a point which some sellers consider a good thing. However, this does make it difficult to build up any rapport between buyer and seller. Another factor against eBay is that there seems to be a constant changing of rules and procedures which sellers can find restrictive and annoying.

When it comes to payments, Amazon offers no choice; sellers have to use their payment method. They take in the money and distribute it to you once every two weeks. The only deductions are for the sales commission. With eBay you currently have the option of accepting payment via credit card or PayPal. It has to be remembered that there is an additional percentage charge on all PayPal transactions.

There is no clear answer to which is best for a seller eBay or Amazon. It depends very much on the type of goods you are selling and your own personal preference. The obvious answer at the moment is to use both and see which is the most profitable for you.

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