ebay-vs-amazon

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 WWW.SKIPMCGRATH.COM

Amazon  One Selling Format  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 WWW.SKIPMCGRATH.COM

Amazon for Retailers Fee Overview $50 Crockpot Listing fee $0.00 Final Value Fee 7.50 Payment Processing Fee 0.00 Total Selling Fees $8.10 (15%)

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Amazon for Retailers Fee Overview $10 Music CD Listing fee $0.00 Final Value Fee 2.30 Payment Processing Fee 0.00 Total Selling Fees $2.30 (23%)

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eBay vs. Amazon Fees Item

eBay

Amazon

10 lb Crockpot $50

$6.13

$8.10

$10 Music CD

$1.90

$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 WWW.SKIPMCGRATH.COM

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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