Amazon vs. eBay: Seven-Point Comparison

Written by Chris Malta and Robin Cowie of Entrepreneur.com

Recent changes by eBay (EBAY Quote - Cramer on EBAY - Stock Picks) have caused many online sellers to re-examine their single-platform sales models. One of the easiest ways a small e-tailer can minimize the impact of changes by a single e-commerce platform is by selling on multiple platforms. It's the old cliché: Don't put all your eggs in one basket. Or in this case: Don't rely on a single marketplace for your entire livelihood.

Neither eBay nor Amazon (AMZN Quote - Cramer on AMZN - Stock Picks) can claim to be the premiere online marketplace these days. But they're certainly the largest, and both have pros and cons.

To help sellers understand the specific advantages each platform offers, we've chosen seven areas of comparison to cover with e-commerce consultant Steve Lindhorst, former national eBay University instructor and author of the bestselling e-book Selling on 'The River' -- The eBay Seller's Guide to Amazon.com.

Fees

Unlike Amazon, eBay charges a listing fee whether an item sells or not, as well as any applicable PayPal fees. But its commission is also much lower than Amazon's (8% on items under $25, compared to 15%).

Explains Lindhorst: "While Amazon remains higher in hard fees, their listings last longer and require substantially less interaction between sellers and buyers."

Format

eBay popularized the auction format listing. Amazon concentrates solely on fixed-price listings. Which is best?

For antiques and collectibles, auctions are easily the best way to get top dollar. On the other hand, businesses dealing in practical, commodity items (the sort that people use in daily life) tend to do better in fixed-price format.

Through Amazon is the fixed-price king, eBay is moving in that direction by downplaying auctions and encouraging fixed-price listings. In fact, this year is the first time that the GMV of its fixed-price sales has surpassed that of their auction-style listings.

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