What’s up everybody in today’s article I will explain some of the differences between eBay and Amazon drop shipping, so I have been selling on eBay for a while doing drop shipping, I just started doing it on Amazon as well and immediately I saw some big differences between the two platforms in terms of drop shipping, I want to share those with you today this is no means a comprehensive list and I would love to start a discussion about this, so if you guys know any differences between selling on eBay and selling on Amazon whether in general or specifically about drop shipping leave them in the comments so that we can all start learning from this and starting a discussion on this.
The first thing I wanted to talk about was traffic, the traffic on eBay I thought was great but it’s actually much higher on Amazon as you might expect, I saw one sales data saying that there are 310 million active users on Amazon and 167 million on eBay, I don’t know if that’s exactly correct but it does give you a general idea most websites definitely say that Amazon gets more traffic than eBay.
However I do find that competition on Amazon does tend to be higher, one of the reasons is because some manufacturers sell directly on Amazon while as many are doing that on eBay anymore, also with eBay at least for now it’s still very possible to differentiate your listing from a competitor’s listing so you can have better or different photos, maybe some colleges you could also change your listing you have your own listing on eBay so you can enter in any keywords you want for the title or for the description and that’s not the way that it works on Amazon.
On Amazon you are using listings from their catalogue, so this means that title is done for you and the whole description is done for you, you usually can’t add anything although you can suggest additions or alterations to the catalogue on eBay you have your own listing where you can pump it full of as many keywords, as you want especially in the title, the other thing in terms of competition on Amazon is the buy box, right now in order to be really doing well in Amazon you need to win that buy box, and the buy box is just mean that little box that when you go on amzon.com you search for something, pull up a listing they say you cook that, and says buy it now or add this to the cart that’s the buy box, if you actually click elsewhere on the page you can see everyone else who ‘s selling it for different prices, sometimes usually the buy box is the cheapest option but not always especially when you consider tax and shipping in there, although usually, it’s free shipping on Amazon but that’s just something you might want to keep in mind is that you have to get the buy box if you want to do really well on amazon, now you don’t have the buy box to make money but it is critical to do really well.
On eBay as of right now that’s not the case we’re selling on eBay they don’t have the buy box for most items although some items do have the buy box implementing into the eBay system, buyers don’t even have to use the buy box system if they don’t want to, so that’s just another big difference between the two platforms right now. I alluded to this before but there’s also a big difference between how you list products on eBay as opposed to Amazon, so now on eBay every time you create a listing you’re creating your own new listing, your own title, your own pictures, your own description brand-new but on Amazon you actually tapping into their catalogue system and saying “oh yeah this item, I have this item too and I’m selling the same one” so a customer isn’t seeing five different listings for the same item, they’re seeing one listing and then they usually click the buy box, or see or look at the other viewers or the other sellers and choose one from that list as well.
So that a big difference, in other words, it’s much faster to list an item into amazon then it is on eBay, for right now I haven’t really found a great listing software for Amazon, I’m not even sure if it’s really necessary because it’s so much quicker than it is on eBay, but it would be nice to do some sort of bulk upload to Amazon kind of doing the same way that you would for eBay it would actually be quicker because we don’t have to change the titles, because we’re not allowed to change the title on Amazon, so I don’t know if a software like that exists I’ve been looking for one so if anyone does know like a bulk uploader to Amazon for drop shipping please let me know because I would really like to check one out. The fees are also different on eBay and Amazon, so with eBay as many guys know or I’ve talked about on the blog before, they’re going charge you (9.15% Final value fee+2.9% from paypal+30 cents) for each of those transactions, on Amazon, on the other hand, they just take 15% right off the top so that’s different.
It’s also a little different with how you get paid by them with eBay you get the money right away and then they take out the fees later, they charge you for them later, with amazon they actually wait two weeks or so they pay you out twice a month, they hold your money for half a month and then send it to you and they take out the fee right off the top, so you don’t have to pay them back for the fee, I kind of like that system better way you don’t have to worry about or I still have to pay them later, I know right away whether I made a profit on that item, the drawback though is that they hold your money for two weeks so you really have to have some capital saved up in order to be able to successfully sell on amazon, there are some ways around that which I’ll be discussing in future posts but just know for now that you’ve got to have the capital upfront to float yourself for about two weeks before amazon pays you out going back to the listing going back to the fees rather on eBay there are listing fees after a certain point but with amazon there are no listing fees, so that’s a huge benefit of Amazon as well.
Finally I want to speak about the metrics on both platforms, so with eBay is pretty easy to keep your metrics pretty high and to make eBay happy even if you mess up a lot, they tend to let a lot of things slid and even if you don’t have the best metrics they still won’t shut down your account a lot of times it’s very easy to keep your account going with eBay on the other hand they’re really strict about things so they expect you to give great customer service, have your tracking numbers all in order to get items shipped out and deliver on time, they’re really protective of that, so if you mess that up you will get banned from using their platform and it affects your metrics and which could make it harder for you to get the buy box, so that’s just something to keep in mind.
Overall some the biggest differences I would say are the fact that Amazon is much stricter about the metrics that it costs a lot more to sell on Amazon in terms of having the money up front to float yourself for two weeks but the benefit is that there are a lot more people shopping on Amazon, so it is a great opportunity I think but I would say if you’re brand new you’re never sold online I really believe that the best place to start is with eBay drop shipping just because they are much more lenient with new sellers with their metrics so if you mess up on eBay it doesn’t matter as much as it does on Amazon. I will do making a lot posts about both Amazon and the eBay drop shipping so if you are interested in learning more make sure to subscribe to my newsletter and if you love this content please share it with your dropshippers friends.