![]() ![]() Incorporating your business can limit your personal liability, but is not an ideal solution for everyone. If you sell under a different name than your legal name, it will need to be registered.Įven though many sellers sell products sourced from a supplier, harms arising from products can still lead to liability for the seller. Their fees are generally lower than Amazon’s, and sellers receive 50 free listings per month.Īn online business is still a business, meaning local laws still apply. Sellers who fulfill their own orders pay a referral fee, which is a flat rate per transaction that varies based on category, and a closing fee, which is a percentage of the sales price.įBA sellers pay all of the above fees, but also pay an FBA fee determined by the dimensions and weight of their listed products.ĮBay charges a listing fee, called an insertion fee, and takes a percentage of the sales amount. Sellers choose between a per transaction or a flat monthly fee. ![]() This may be less of an issue for established businesses with existing logistics infrastructure than for new sellers with limited capital.Īmazon’s pricing structure is complex, but is generally more expensive than eBay’s. After a transaction is made, the rest of the fulfilment process rests with the seller. Plus, the convenience can’t be beat.ĮBay has no similar offering. While this service comes at a cost, the cost is competitive to that of handling logistics independently. This optional service handles all the storage, packing, and shipping logistics on Sellers’ behalfs. Where Amazon perhaps shines the most is in its fulfilment program Fulfilment by Amazon (FBA). This makes the platform less competitive overall, though sellers compete for a larger slice of a much smaller market. And, due to its being an auction platform, users are often more inclined to compare several listings. ![]() In contrast, eBay does little to prioritize any given listings. Amazon usually features the one or two most established listings in any given category, resulting in a winner-takes-most sales distribution. You might compete with hundreds of other similar listings for recognition by Amazon’s algorithms. While Amazon is many times larger than eBay, it is also increasingly saturated. Second, it functions primarily as an auction platform, though sellers can choose a fixed-price option instead. First, eBay lists no products of its own, making it purely a 3 rd-party market. Though it also hails from early internet days, eBay boasts only a fraction of Amazon’s users and market share. ![]()
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