It seems like new e-commerce marketplaces are popping up everyday. Amazon and eBay have been giants of e-commerce for years but Walmart is hot on their heels. Each one is very different as far as their sellers, customers and policies go.
So Let’s dive in and dissect which marketplace is best for you!
Choosing Between Amazon, eBay and Walmart Marketplace
While you don’t need to choose, it can be overwhelming to sell your products on multiple platforms. So if you do have to choose one or the others it’s not really a matter of which one is better but rather which one is better for you. It’s important to take into account the whole picture before you make a decision.
eBay Overview for E-Commerce Sellers
eBay is the original online auction site and one of the very first e-commerce companies to take root in the early days of the internet. You can think of eBay like an online mall where sellers can set up their own shop and sell to their own customers while still taking advantage of the foot traffic.
eBay Sellers
Despite the fact that eBay has a reputation for selling used and vintage items more than 80% of items sold on eBay are new! And in the last few years eBay has made a major push in their marketing to position themselves as a place to find unique items. It’s also gained a reputation for being the go-to site for hobby sellers and beginners because it’s easy to get started.
Here’s what eBay’s CEO Devin Wenig had to say about his company culture, “I think there’s an idea that I need to be like Amazon. I don’t. The world doesn’t need an almost-as-good Amazon. They need a better eBay.”
eBay Customers
So what does the average eBay customer look like? Well there are literally millions of customers all around the world. In the first quarter of 2019 eBay had an impressive 180 million active buyers. There are 27 international eBay websites and even more countries to ship to, allowing eBay sellers to broaden their customer base. Overall though eBay shoppers are looking for a bargain.
eBay Policies
Two areas that eBay really shines is their fees and ability for sellers to control their store and listings.
eBay processes payments through PayPal which charges a 2.9% + $0.30 fee for each sale. On top of that eBay charges a 10% final value fee. While these fees might seem overwhelming they’re much simpler and straight forward than other marketplaces including Amazon. In fact when you compare the two eBay can be more profitable after all is said and done.
Remember that with eBay you get to sell to your own customers from your own eBay store. This means you can customize your shop and your listings to reflect your own brand. The same can’t be said for Amazon.
Amazon Overview for E-Commerce Sellers
Amazon is the largest e-commerce company in the world. It really needs no introduction as everyone knows and loves Amazon. While it has changed the e-commerce game, Amazon is not a sellers paradise but they don’t really care. While eBay is focused on supporting sellers, Amazon is all about buyers.
If eBay is more like a mall where you can set up your own shop, Amazon is more like a department store where your product is one of many on Amazon’s shelves. If there’s one thing Amazon wants to make clear it’s that the people who buy your products are Amazon’s customers, not yours.
Amazon Sellers
With all that said Amazon is not a platform for hobby sellers and requires much more from it’s sellers. Only certain sellers can sell certain brands and some categories require approval before you can list your products. On top of that, the fees are also steeper and more complicated.
While this might seem like a bummer many brands see the pros outweighing the cons. Even though their customers aren’t your customers your products are still getting out there and you’re still getting paid.
Amazon Customers
Even though it’s not totally customized Amazon provides a professional and dependable customer experience that literally hundreds of millions of customers have come to trust. In January 2019 they had more than 100 million Amazon Prime subscribers.
Amazon Policies
Amazon charges $0.99 per item to list along with a referral fee that ranges from 6-45% depending on the item’s listing category. On top of that, there is a variable closing fee which, for BMDV (books, media, DVD and video) items, is not variable at all, at a fixed $1.35 per item. Other products are charged a variable closing fee that is calculated by the item’s weight.
Another benefit Amazon offers is that listing products can be much easier. If you’re selling a product that’s already listed on Amazon you can add your listing by simply entering the UPC/SKU. Creating a listing has never been so easy!
Walmart Marketplace for E-Commerce Sellers
Walmart has been slowly trying to get a foothold in the e-commerce market for years. Despite being the largest retailer in the world they have been behind the 8-ball as far as online selling goes. For this reason they have been trying desperately to catch up to Amazon.
That’s why it’s such a big deal that in September of 2020 they finally launched Walmart Plus which is essentially their answer to Amazon Prime. Walmart is going to continue to make gains in the e-commerce market which is why sellers should start considering them when choosing where they want to sell.
Walmart Sellers
Unlike eBay all Walmart Marketplace sellers must be approved before they can even set up shop. According to Ecomdash, “Sellers must be approved before setting up shop because Walmart aims to maintain its reputation both as a trustworthy vendor, and one that sells at affordable prices.
The application process takes about 10-15 minutes to complete (according to the instructions), but you’ll need some official documents like your tax ID, W-9, and product GTINs. You’ll also be assessed on your brand and performance, in particular your previous marketplace experience, fulfillment methods, and prices.”
This retail giant is not here to mess around and in order to sell your products through them you have to meet their high standards.
Walmart Customers
Obviously Walmart has been around for many, many years and has built its brand around savings and affordability. Their customers are going to expect the lowest price when purchasing from Walmart whether that’s online or in store. The Walmart Plus subscription is even $20 cheaper than Amazon Prime to give you an idea of what their customers expect.
Walmart Policies
Walmart’s fees for selling on their marketplace vary. There are no regular fees but there are fees per sale. “Right away, the notable advantage of the Walmart Marketplace is the lack of regular fees. Sellers only pay a referral fee when they actually make a sale. Compare that to Amazon, where sellers must pay monthly dues and variable closing fees on top of referral fees.
How much are Walmart Marketplace referral fees? Well, they change based on the product category, but most land around 15%.”
Another policy that gives Walmart an advantage from a sellers point of view is that they have no minimum or maximum number of skus. That means you can list your whole catalog if you want instead of picking and choosing which products to list.
The Takeaway
Amazon and eBay are two very different e-commerce marketplaces and that’s just the way they like it. While Amazon is the bigger marketplace by far they’re also more restrictive and charge more fees. eBay on the other hand gives you more freedom and charges less fees but have a smaller customer base and require more hands on attention.
Remember though that no matter which marketplace you choose, we can help get your orders where they need to go. Order fulfillment can be stressful and both Amazon and eBay are strict about making sure customers get their products on time.
At Ship Central Fulfillment we have the software to connect to all the major marketplaces and e-commerce platforms. When an order comes in we pick, pack and ship that order for you directly to your customer, all within 24 hours!