Amazon vs. eBay
  • By SellerBites
  • February 29, 2024
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Amazon vs. eBay

Ecommerce is king. But which platform exactly takes the crown? We’re taking a leap (get it?) today by deviating from our usual Thursday spotlight issues. Today, we’ll put Amazon’s competitors to the test to see how it compare with the other ecommerce sites:

EBAY

Before Amazon became the retail giant it is today, there was eBay—the go-to marketplace long before the former sold more than books.

 🥊 While eBay is still recognized for its online sales, the question of who would win between Amazon and eBay—once a sure bet for eBay—is now up for debate, RepricerExpress says.

Here’s a rundown of eBay’s current status in the ecommerce battle:

Latest moves to stay ahead

  • Enhanced seller tools: eBay has introduced new listing management tools. With bulk editing and streamlined listing processes, sellers can now sell more efficiently.
  • Improved buyer experience: eBay prioritizes enhanced search, personalized recommendations, and smoother checkouts.
  • Global expansion: eBay has now reached 23 global markets, compared to Amazon's 21.

Edge over Amazon

  • Lower fees: A seller makes about 5.13% more profit on eBay compared to Amazon. 🔻
  • Auction format: eBay's auction format allows dynamic pricing and delivers the thrill of bidding wars. This is a win-win situation if you’re selling rare or unique items.
  • Exclusive competition: eBay does not sell its own branded products.The competition on the platform involves only third-party sellers.

Current weak points

  • Brand trust: While eBay has made strides in improving buyer trust, Amazon still holds a strong reputation for reliability and customer service. 💪
  • Fulfillment services: Amazon's FBA service is a game changer for many sellers. eBay has yet to offer a comparable service.
  • Seller protection: Amazon's policies are less forgiving, particularly on disputes and suspensions. This strict approach makes buyers feel more secure.

🏆 Who comes out on top?

It's not a clear-cut race to the finish line. While Amazon may excel in some aspects, eBay is working to narrow the gap. However, if you’re seeking easy and efficient fulfillment, Amazon FBA and Supply Chain by Amazon are still the way to go.

TOGETHER WITH SELLER ALLIANCE

Increase your sales by joining a seller community

Are you a new Amazon seller who's yet to find the ropes to selling on Amazon? Or are you still planning to start your journey?

Beginnings are one of the hardest parts but who says you have to do it alone? Be a part of a community exclusively for Amazon sellers!

Seller Alliance is a community for FBA entrepreneurs and marketers who want to build 7-figure brands on Amazon. They say you become who your friends are. And in this community, we'd like to think of everyone as friends who share the same goal–to succeed in the ecommerce jungle.

With Seller Alliance, you will:

  • Network with Amazon and D2C sellers. Easily connect with a community of like-minded sellers and operators who can provide support and advice.
  • Learn from others. There's no better way to learn than from people who've had experience.
  • Take masterclasses. Selling on Amazon is a big learning journey. But Seller Alliance will be there to guide you through it and make things less overwhelming.
  • Access to an SOP database. With an updated SOP database complete with checklists, templates, and examples, it's a lot easier to correspond with clients, Amazon, and suppliers.
  • Get personalized 1-on-1 coaching. Some tips not working out for you? Get personalized quarterly coaching from a team of Amazon experts and know how to improve your business.

It's your business, yes–but it doesn't mean you should be doing this alone. 

Join the Seller Alliance community and enjoy these perks:

  • FREE 14-day trial
  • $47/monthly subscription, commitment-free OR
  • Enjoy $397/year (a whooping $367/year worth of savings) exclusive for our SellerBites subscribers!

BITES OF THE WEEK

WALMART

Amazon vs. Walmart

For round 2, let’s talk about someone who’s carving out its place as a formidable competitor—Walmart.

According to ChannelSight, Walmart was growing 5x faster than Amazon. And the brick-and-mortar retail powerhouse has been making waves in the digital marketplace. 

🍵 What else has this rival been brewing?

Latest moves to stay ahead

  • New selling tools: Walmart Fulfillment Services, Walmart Advertising, and Walmart Connect aim to match Amazon in areas like fulfillment and ads.
  • Exclusive partnerships: Walmart is teaming up with top brands for exclusive products and services, offering shoppers something unique beyond Amazon's usual selection. 🤝

Edge over Amazon

  • Lower fees: With lower referral and storage fees, it's a more cost-effective platform for businesses.
  • Customer base: Amazon boasts a massive online customer base. However, Walmart has millions of loyal brick-and-mortar shoppers. Plus, they've been steadily growing their online presence.
  • Walmart+ benefits: Walmart+ subscription offers perks like same-day delivery and fuel discounts. This provides added value to customers, keeping them coming back for more.

Current weak points

  • Marketplace sophistication: Amazon's marketplace is renowned for its advanced seller tools and analytics. While Walmart is still working on enhancing its seller tools.
  • International reach: Amazon's global reach spans multiple countries, whereas Walmart's online presence is still focused on the U.S. market. 🗺️

Who comes out on top?

Amazon's sheer size and market dominance still make it the king of ecommerce. With its Prime benefits, vast product selection, and global reach, it's gonna be hard to beat. 

🛒 But if you're looking to showcase your online products in physical stores with high foot traffic, Walmart is a great option.

TARGET

Amazon vs. Target

Dubbed “The Everything Store” by Startup Talky, Amazon is now one of the most influential economic and cultural forces in the world. But that doesn’t stop Target, a retail store with a century-long legacy, from challenging its dominance.

💯 Here’s what the retail store with a century-long legacy is doing to snatch Amazon’s crown:

Latest moves to stay ahead

  • Sortation centers: Target has been ramping up its shipping network, investing $100 million to build 15 sortation centers by 2026. These centers will streamline operations, offering faster shipping and reduced environmental impact.

Edge over Amazon

  • Physical stores: While Amazon leads online, Target's click-and-collect sales are steadily rising. With almost 1,900 stores acting as fulfillment centers, Target offers convenience and speed—a killer combo in retail.
  • Curated product selection: Unlike Amazon, Target only offers unique in-house brands and selected national brands. This makes counterfeiting impossible.
  • Target Circle: This free loyalty program allows members to earn rewards, access exclusive deals, and participate in community support.Plus, its charitable initiatives resonate with customers, creating a loyal following.

Current weak points

  • Market share: As of 2023, Target held 1.8% of the ecommerce market share—much lower than Amazon's 37.6%.
  • Customer reviews: One of Amazon's strengths is its richness in customer reviews. With 93% of shoppers checking reviews before purchasing, this gives Amazon an edge in trust and credibility.

Who comes out on top?

Target's innovative strategies and emphasis on customer experience make it a strong contender. However, these aren’t enough to bring Amazon down from the top spot. 

👑 All in all, Amazon still reigns supreme in the e-retail arena. So, if you want to wear the same crown, you better snatch a page from the retailer’s playbook on how to carry out business and offer top-notch customer service in the fierce ecommerce world.

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
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