Amazon vs. eBay: Which is Best for Dropship Sales?
Many home dropship sales businesses are getting pretty disenchanted with eBay between the frequent increases in fees and seller unfriendly policies, but is Amazon really any better?
When you compare rules and policies for sellers, in terms of guidelines and standards that must be met in order to keep selling, eBay used to be much easier than Amazon, but that is a thing of the past.
Now, Amazon and eBay are about neck and neck when it comes to rules and requirements for sellers, including dropshipping sellers, who play by the same rules as everybody else.
Want to learn how to build customer loyalty for a following who will go where you go? Download this FREE e-book now!
Fee-wise, Amazon does come out ahead of eBay. You pay no listing fees on Amazon---just final value fees---and with the constant fee increases on eBay, Amazon is more cost effective than eBay.
When it comes to payments, the advantage once again is with Amazon. Their payment set-up is extremely simple: The buyer pays them, and then they deposit the money into your bank account twice a month.
This is head and shoulders above eBay who has strong-armed buyers and sellers alike into Paypal payments, which eBay owns and subsequently gets to collect yet more fees from sellers, hence the mandatory Paypal.
Return policies are about the same, really. On Amazon, if you exceed X number of returns within a set period of time, yiu are penalized. Go above that percentage, and you are liable to find yourself booted off of Amazon.
EBay still allows sellers to have a No Returns policy, but it’s basically worthless since buyers will win a dispute hands down every time, regardless of who is right and who is wrong.
Shipping-wise, sellers are probably better off with Amazon, depending on the niche. Amazon sets a ceiling on shipping for various categories, and sellers are not allowed to charge more than the specified amount.
At present, eBay is only policing shipping to this extent in media and books. However, since sellers can charge whatever they want to in all other categories, you may find yourself up against a competitor selling the same product as you with a $.99 starting piece and exorbitant shipping.
Oddly, many consumers don’t stop to do the math before bidding on an auction with inflated shipping, so this is a detriment to a seller who charges a reasonable amount.
All in all, in order to get the best of all possible worlds, anyone who is or is planning to dropship amazon would probably be wise to sell on both Amazon and eBay.
After all, putting all of your eggs into one basket is never a good idea!
If you enjoyed this article, you may also like this one: Tips-on-How-to-Gain-The-Best-Wholesale-Dropship-Sales-in-The-Market