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The Pros and Cons of Using Amazon or eBay Marketplace

Amazon and eBay have dominated the e-Commerce industry for many years. With the easy to use interface, Amazon and eBay store owners have gained exposure and expanded their brand recognition.

Using Amazon and eBay has been an asset to many businesses. However, there are also people who have experienced extreme disappointment on the Marketplace. So, before you can jump into the Marketplace, you need to take the time to understand the basics of both Amazon and eBay.

While Amazon and eBay may appear similar, they are different and have pros and cons that apply.

Pros of Using the Marketplace

Builds traffic for your business

Amazon has over 184 million users every month while eBay has 164 million users. With these numbers, your products will get a significant exposure. The interesting aspect is that Amazon and eBay are available worldwide. That means you will get access to more users. The new visitors translate to sales revenue. Most of the people who use the Marketplace have reported a revenue increase of 50%.

Most people prefer to use the online stores to access different products. Amazon and eBay are one stop stores. Due to that most customers choose to use the stores to access different products. Using the online stores to market your products will immensely increase your product exposure. Most people also trust Amazon and eBay, and this will increase credibility to your store.

Build your clientele

People who access the online stores usually search for different products. When they come across your products, and they are impressed with what they see, they may become regular customers.

Cons of using the online stores

Marketplace fees

Yes, the online stores will increase your sales, but they expose you to the market fees. The stores deduct a percentage of your sales. Amazon deducts 25% of the shipping supplies sales.

It is important for you to understand the fee structure before you sign up to know if you can manage it or not. The stores also have listing fees.

No control over your exposure

Understand this; Amazon and eBay exist to serve their business interests, not yours. That means that they limit your brand exposure and you can't control that. The stores focus on the products and not you, the seller. They also limit the kind of products that you can sell.

Loss of potential customers

Amazon does not provide you with the customers' email. That means that you can't sell to them directly.

Also, keep in mind the customers are loyal to Amazon and your company.

Another disadvantage is that Amazon has a limit to the shipping supplies. They don't ship to all countries.


Final verdict

Before you can proceed with the online stores, you need to consider the monthly fee of using Amazon. Amazon charges fee referrals. The fee also changes based on the category of the product you are using.

Whether or not Amazon and eBay are suitable for you will depend on the type and the category of the product you are using.

The fact that you have an online store doesn't mean that you can't still sell the products on your site. This will give you benefits on both sides. You can also use other online stores to increase your revenue.

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