When it comes to e-commerce, Amazon and eBay are undoubtedly two of the most well-known brands in the world. Despite their similarities, the two businesses are ardent rivals that always push to outperform one another. So, which of the two is the better shopping platform? Let’s find out.
The e-commerce industry in the United States is growing more than ever. According to a report by the US Department of Commerce Retail Indicator Division, e-commerce sales were $870 billion in 2021—a growth of 14.1% from 2020 and 50% from 2019. Retailers, particularly market leaders Amazon and eBay, have benefited from the boom. Amazon has chosen to focus more on its logistics empire, drastically reducing shipping time. On the other hand, eBay’s revenue is forecast to rise rapidly after news that it would be rolling out new categories.
If you're a die-hard user of one of these services and you're debating whether or not to switch to the other, this piece is for you; it has all the information you need to make an informed decision about which is the superior retail platform.
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Amazon Vs. eBay
When talking about e-commerce, Amazon always comes to mind. It's hard to imagine a time when Amazon was not the behemoth it is currently. The company was founded by Jeff Bezes in July 1994, just when the internet was becoming a household thing. Given that it is now one of the most successful businesses in the country, it's hard to believe that the company started selling books.
Amazon has also made dozens of acquisitions and begun selling its own branded goods. Just to get a grasp of how large Amazon is, its reported annual revenue for 2021 was $469.82 billion, and it is still expected to grow. While other Amazon offerings like Amazon Web Services (AWS) and advertising services did contribute, brick-and-mortar retail was the primary driver.
eBay, even though it's not as popular as it was back in the day, has also fought to maintain its place in the e-commerce industry. eBay was and still is the go-to place for small businesses that want to launch quickly without having a large budget. With eBay, the sellers get a ready-made and devoted customer base.
eBay also sells second-hand products—something that Amazon does not—this has attracted more customers to the platform as they can get products for a lower price than buying them new on Amazon. Additionally, if you are into bidding and auctions, eBay is the marketplace for you. You will get hidden gems being sold at throwaway prices.
For buyers, choosing between the two retailers is easy. If you are looking forward to buying a new item, maybe kitchen accessories from a renowned brand, your best option would be Amazon. eBay would be a great place to look if you want a lower-priced vendor. However, if you are a seller, you must make an informed decision when choosing between the two platforms. Yes, Amazon is more competitive and has a broader user base, but eBay offers more simplicity when setting up your business.
Is Amazon Better Than eBay?
It's no secret that Amazon is unstoppable. The company has been making big moves lately in diversifying into various industries. Currently, Amazon is the second-largest employer in the U.S. Over one-third of all retail goods bought or sold online in the United States pass via its marketplace.
In addition, it vindicated Whole Foods, elevating it to the top ranks of grocery store chains. Amazon also facilitates the delivery of items bought on other websites, including eBay and Etsy. If you are still on the fence about whether or not Amazon is the better option, perhaps the following arguments will sway you.
Amazon’s Shipping Is Unmatched
Amazon customers love Amazon Prime. With a prime subscription, you get free one-day delivery, two-day guaranteed shipping for certain products, and ultrafast 2-hour delivery for grocery items. This means you dont have to wait long hours for your product to arrive. The 2-hour free shipping for groceries also means you don't have to leave the comfort of your house to get your groceries. Just log in to your Amazon app and shop from a wide selection of groceries, including fresh foods and produce.
When comparing Amazon and eBay, it is essential to note that Amazon primarily depends on its own logistics infrastructure to deliver products to you. eBay, on the other hand, depends on third-party courier services. This may lead to delays when ordering products in peak seasons such as holidays since many people and organizations rely on the same couriers to send packages.
Amazon Has A Wider Selection Of Items
Amazon’s inventory is also unmatched. The company sells over 12 million products, most of which are from third-party vendors on the marketplace. Additionally, there are about 6 million marketplace sellers. As a result, you can browse through different sellers to get the product you want at a bargain—some sellers may lower their prices to entice customers to buy the product.
Amazon Has A Broader Userbase
Amazon dominates in both the vendor and buyer categories. In 2021 alone, Amazon Globally saw more than 1 million new vendors join the program—that works out to almost 2,975 brand-new Amazon vendors every single day. Of the seller on the platform, more than 130,000 of them reported net sales surpassing $100,000. This speaks volumes of how great of a platform Amazon is—both for customers and vendors.
Can Amazon Maintain Its Present Role as Market Leader?
Amazon is expected to grow tremendously in the foreseeable future. A primary driver for its success will be its diversification into other sectors. People have speculated that online pharmacy will be Amazon's next significant business venture. Amazon paid $750 million to acquire the online drugstore PillPack in 2018. Amazon has also entered other sectors, such as home automation and robotics. Any way you look at it, the future is bright for Amazon.
Amazon is the indisputable market leader when it comes to online shopping. However, this does not mean you have to ditch eBay and switch entirely to Amazon. At eBay, you can get items that are out of stock and no longer available on Amazon. eBay also sells second-hand items meaning you can get products at a lower price compared to Amazon. You don't have to choose between the two platforms; you can use both at your convenience.