eBay or Amazon?

Making the best choice when taking your retail business online

Skip McGrath

www.skipmcgrath.com

eBay

 Annual Sales (GMV) $60 BILLION ($2000 per second)  eBay Sites in 30 Countries  Approx 600,000 Active Sellers  90 Million Registered Members  37 Merchandise Categories  Owns PayPal – largest online merchant processor  Community Based membership focus

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eBay for Retailers

 Three selling formats: − Auction − Fixed Price − Store  Listing Fees  Final Value (selling) Fee  Optional promo Fees

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eBay for Retailers

Fee Overview $50 Crockpot Listing fee Final Value Fee PayPal Fee Total Selling Fees $0.35

4.50

1.28

$6.13 (12.25%)

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eBay for Retailers

Fee Overview $10 DVD Listing fee Final Value Fee PayPal Fee Total Selling Fees $0.20

1.20

.50

$1.90 (19%)

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Amazon

 The Amazon is the largest and densest rainforest on earth  The Amazon covers 2.5 million miles, about the size of the USA west of the Mississippi  If the Amazon were a country, it would be the 9th largest on earth  Each minute the Amazon River discharges 3.4 million gallons of water into the Atlantic, 14 times the discharge of the Mississippi

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

The Other Amazon

Annual Sales (GMV) $24.5 BILLION  Largest Media Seller in the World  Operates in US, UK, Germany, France, Japan & China (Has shipped goods to over 200 countries)  Approx 1.4 Million Active Sellers  45 Million Registered Members (estimate)  12 Major Product Categories  Processes payments for merchants  STRATEGIC FOCUS: Low Price ~ Superior Service

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 One Selling Format

Amazon

 New and Used Goods  Two Types of Accounts − Basic Free Account − Paid Professional Account  No Listing Fee  Listings last 60-days  Amazon processes payments  A-Z Guarantee means sellers must offer no questions asked refunds

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Amazon for Retailers

Fee Overview $50 Crockpot Listing fee Final Value Fee $0.00

7.50

Payment Processing Fee Total Selling Fees 0.00

$8.10 (15%)

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Amazon for Retailers

Fee Overview $10 Music CD Listing fee Final Value Fee $0.00

Payment Processing Fee Total Selling Fees 2.30

0.00

$2.30 (23%)

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eBay vs. Amazon Fees

Item

10 lb Crockpot $50 $10 Music CD

eBay

$6.13

$1.90

Amazon

$8.10

$2.30

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eBay vs. Amazon ~ Seller’s Comparison

eBay  High touch customer service  Seller collects payment and has payment risk  Sellers have to “earn” their selling position  Sellers determine shipping & handling cost  Flexibility through auctions, FP, Second Chance Offer and Make Offer  Seller Determines Return Policy  Lower Fees

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eBay vs. Amazon ~ Seller’s Comparison

Amazon  Higher fees  Fixed price format only  Amazon collects payment and takes payment risk  Lowest price gets search visibility  Amazon does most of the customer service  Amazon sets the shipping cost  Seller must honor A to Z Guarantee

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eBay vs. Amazon ~ Product Fulfillment

Amazon  Fulfillment By Amazon (FBA)  Product qualifies for Amazon Prime  With FBA you can ship to eBay, Amazon or any customer from any venue – but shipped in Amazon box  Seller supplies labels and bar codes  Ad message inserts prohibited

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eBay vs. Amazon ~ Product Fulfillment

eBay  Shipwire  Independent company but integrates with eBay checkout  More flexible and slightly less expensive  Products shipped in plain box or your custom box  Advertising messaging inserts allowed

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www.SkipMcGrath.com

 Books and training courses for eBay, Amazon and small website sellers  Free twice-monthly Newsletter  Tons of free material  Blog.skipmcgrath.com

 Available for Workshops and Seminars

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Thank You !

Questions ??????????????

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