7 out of 10 sellers said that they made more money on eBay than Facebook or Gumtree according to eBay research from 2018. From a representative sample of people, eBay is where you’ll realise the highest prices for your unwanted items – good to know at this time of year when thousands will be ungratefully listing the Christmas gifts they didn’t really want or disposing of old tech which has been replaced by a newer shinier model.
eBay have recruited Canadian comedian Katherine Ryan who has appeared on countless UK TV panel shows including Dave’s The Task Master to front the campaign.
Although the make more money on eBay message is clearly aimed at consumers, it’s also relevant to business sellers. While we’re constantly hearing that Amazon shifts more merchandise and is the consumer marketplace of choice to buy, we also hear from professional sellers that margins are better on eBay and greater margins mean more profit.
For those sellers in the 2nd hand market or selling distressed goods eBay is the default marketplace – Amazon has moved so far away from used goods that even a peeling label on a box can lead to poor feedback impacting future sales.
There is of course the sales velocity angle to consider – it’s better to sell 100 products for £5 profit per item than it is to sell 50 at £6 profit. The lure of Amazon is too great for many sellers to ignore simply based on the sell through rates that can be achieved.
However Amazon fees are often higher than eBay and products are often more expensive on Amazon – if consumers were only to price check between the two marketplaces then eBay would often be the winner.
As the new year starts, it’s time to run your metrics and check exactly where your profits are coming from – do you make more margin after fees on eBay or Amazon? If you make more margin on eBay is it worth increasing your use of eBay Promoted Listings to boost sales velocity or are you better off with higher fees on Amazon and accepting less margin in favour of higher sales?