H aving a professional store is certainly a great plan. For any form of business, mainly if you are just launching it, selling online are definitely an easier and a quicker approach to increase profits. Therefore it becomes essential to understand the merits and demerits of each sales channel on the Internet like Amazon and eBay. By knowing the advantage and disadvantage of each marketplace, it becomes less challenging to determine either to sell on Amazon or eBay.
Advantage: 1. Supreme traffic. Amazon is the one of the most surfed sites on the web. Therefore, it has enormous selling abilities. However, the plenty of sellers here are more in number, so you have to make sure that you stand out in the crowd.
2. Dependable platform. Amazon helps prevent deception and assures customers of their orders safety. It gives the customer two ways security gets added expectation.
3. Uncomplicated cost system. While you are selling on your own online web store will definitely improve advertising cost, which in move, will influence profits. Though Amazon saves a fee for each item sold, which I usually a profit on the price which will positively not be too high.
1. Major competition. Amazon has various retailers with whom you will be able to fight. Even if, you manage to beat this struggle, there may be shoppers who may determine that your items are profitable and offer them to the customers at a better cost and better situation.
2. Withholding your money. You may normally get your amount after 14 to 90 days after selling a product. This however, will cause difficulties to small business concerns.
3. Rarely a second chance. The only technique to beat this problem is by completely satisfying every customer, which basically may not be probable.
Unlike Amazon, eBay has a similar choice on the internet; however, the business model is a little different. Nowadays, eBay has become the biggest marketplace to consumer sales channel on the internet, which offers a possibility to sell everything by setting up an auction or by a fixed price.
1. Customers Base. It has also become one of the most essential platforms in order to buying and selling goods, and plenty of these shoppers can become your customers if you smartly reach them.
2. The auction system. If you want to sell unique or unusual products, eBay will help you in order to get benefit of it. You will be able to blow up the cost to next levels.
3. Improved Trust. You can increase the awareness of shoppers. This leads to making better sales as confidence is one of the most essential problems when purchasing online.
1. The dominance of PayPal. This surely raises the security of both parties. Though, in case a trouble happens, your amount will be held for a longer period of time or may even result in overall closure of your account.
2. The auction system. The biggest demerit of eBay is the auction system; by doing so, you may lose some profits which you may gain in other sales channel.
Hence both eBay and Amazon have their or advantages and challenges. You can select the one of them according on your product and business need.