What is the Difference between Amazon and eBay?

Mar 08, 15 What is the Difference between Amazon and eBay?

Posted by in Amazon, eBay

Understanding the difference between eBay and Amazon is critical to success as an online retailer or bookseller. Even if you are not selling on these sites, they are your biggest competitors, so knowing how they work can enhance your business. Both Amazon and eBay are online marketplaces and third-party sellers. A third-party seller is an entity that serves as a middle man between the customer and the seller. It makes its money by taking a cut of the final sale. The big difference between Amazon and eBay is that Amazon is a retail market and eBay is a wholesale market. A retail market sells goods directly to the largest possible customer base at a fairly steady price, while a wholesale market sales goods to a specialized customer base at the lowest price possible. Wholesale marketers usually sell to professionals, dealers, and hobbyists, while retailers sell to everybody. A good way to think of Amazon is that it is a giant retailer, such as Walmart and the grocery store operator Kroger. Like those behemoths, Amazon is in a wide variety of businesses, including third-party retail. eBay, on the other hand, is more like a thrift store or a dollar store. It sells a much smaller selection of goods to a much smaller market.   How to Use the Difference between Amazon and eBay to Drive Profits You can take advantage of the differences between Amazon and eBay to generate profits. Those differences determine which books sell best on each site. Specialized and collectible items, such as old books and comic books, sell best on eBay. Items with a strong mass market appeal, such as bestselling fiction from the last 10 or 15 years, sell best on Amazon. The reason for this is the difference between the shoppers.   Celebrity Authors’ Secrets – The World’s Greatest Living Authors Reveal How They Sell Millions of Books by Stephanie Hale. $12.99 from Smashwords.com Twelve of the world’s greatest living authors reveal their tips for writing a book that...

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What Is Fulfillment by Amazon?

Fulfillment by Amazon could be the most powerful sales tool available to online sellers today. Unfortunately, a lot of people do not understand this solution or even know about. Basically, Amazon owns and operates a network of giant warehouses it calls fulfillment centers. When you order something through Amazon and it comes to you in Amazon packaging, that item went through a fulfillment center. Merchants ship items to the fulfillment center, where it is stored. When an order is received, Amazon’s employees pull the item, pack the merchandise, and ship it to the customer. What many people do not realize is that almost anybody can ship items to Fulfillment by Amazon (FBA), including used books. Amazon makes money on the deal by charging the seller fees for labeling, sorting, shipping, storage, etc. I stumbled upon FBA by accident when researching drop shipping last year. Drop shipping is a form of online retail in which you market items through your website or eBay on behalf of a wholesaler. I found that it was a good way to lose money but that FBA was a great way to make money. Amazon’s Money Machine The business is profitable and growing; two million sellers now participate in the program, and they shipped around two billion items in 2014, Tech Crunch reported. FBA accounted for around 40% of Amazon’s business in 2014, according to The Wall Street Journal. Amazon (NASDAQ: AMZN) is making a lot of money; its revenue reached $88.99 billion in December 2014, and many observers expect its revenue to exceed $100 billion by the end of 2015. That makes Amazon the fifth largest retailer in America in terms of revenue; its revenue is now larger than those of Target (NYSE: TGT), Walgreens (NASDAQ: WBA), and Home Depot (NYSE: HD). Amazon is making a lot of money through FBA and is growing; use of FBA grew by 65% in 2014. Amazon has built a potent money machine with FBA, and it wants you to participate in that...

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