When deciding where to sell your products online, choosing between Amazon, eBay, and Walmart can be challenging. Each platform has its own strengths, fee structures, and target audiences.
In this blog, we’ll break down the key differences and help you determine which platform is best for your business.
1. The Basics: An Overview of Each Platform
- Amazon
Amazon is a giant in the online retail space. As the go-to marketplace for millions of shoppers, it’s an attractive option for sellers aiming to reach a broad audience. Amazon offers services like Fulfillment by Amazon (FBA), which handles logistics, packaging, and customer service for sellers. - eBay
eBay is a versatile platform that caters to both individual and business sellers. Known for its auction-style listings, it’s great for those looking to sell unique or used items. While it’s not as large as Amazon, it still boasts a loyal customer base. - Walmart Marketplace
Walmart’s online marketplace is growing rapidly, with an emphasis on expanding its product catalog through third-party sellers. Walmart is a strong option for those who want to tap into its massive physical and online retail presence.
2. Comparing the Fee Structures
One of the most important aspects to consider is how much each platform takes from a sale.
- Amazon
Amazon charges referral fees, which vary by product category, and fulfillment fees if you use FBA. While the fees can be higher compared to eBay, sellers benefit from Amazon’s extensive logistics network and customer service support. - eBay
eBay’s fees are generally lower. The platform charges insertion fees (for listing an item) and final value fees (a percentage of the sale price). Understanding these costs is crucial for sellers. The answer to “how much does eBay take from a sale?” varies by product category but typically ranges from 10% to 15%. - Walmart
Walmart charges a referral fee similar to Amazon’s structure, based on the product category. However, Walmart doesn’t offer a fulfillment service as extensive as Amazon’s, so sellers must manage their own shipping or use third-party logistics.
3. Pros and Cons of Selling on Each Platform
Selling on Amazon
- Pros:
- Huge customer base, leading to higher sales potential.
- Fulfillment centers handle shipping and customer service.
- Excellent brand exposure for party sellers and small businesses.
- Cons:
- Higher fees compared to other platforms.
- Strict policies and guidelines that can be challenging for sellers.
Selling on eBay
- Pros:
- Lower fees make it attractive for individual sellers and small businesses.
- Flexibility with listing types, including auctions and fixed-price listings.
- eBay offers international shipping options.
- Cons:
- Smaller customer base compared to Amazon.
- Less robust fulfillment support; sellers must manage their own shipping and customer service.
Selling on Walmart
- Pros:
- Access to Walmart’s massive customer base and integration with its stores.
- Competitive fees that are similar to Amazon’s structure.
- Sellers can benefit from Walmart’s credibility and trust as an established retailer.
- Cons:
- Strict criteria for becoming a seller, favoring more established businesses over individual sellers.
- Lack of a comprehensive fulfillment service, requiring sellers to manage logistics.
4. Types of Products and Product Categories
Each platform has its own strengths based on product types and categories:
- Amazon: Great for a wide variety of products, from electronics to apparel and home goods. Its extensive product categories make it a versatile option for sellers.
- eBay: Known for second-hand items, collectibles, and unique products. eBay sellers often excel with products that aren’t typically found in large retail stores.
- Walmart: Strong in categories like electronics, home goods, and grocery items. Walmart’s platform suits sellers with products that fit into its existing retail categories.
5. Customer Service and Seller Support
- Amazon: Amazon’s FBA program offers sellers comprehensive customer service, handling everything from shipping to returns. This is beneficial for sellers who want to automate these aspects of their business.
- eBay: eBay allows sellers to handle their own customer service, which can be both an advantage (more control) and a disadvantage (more responsibility). The platform does provide resources and support for managing disputes.
- Walmart: Walmart offers seller support but is not as extensive as Amazon’s services. Sellers must manage their own fulfillment or work with approved partners.
6. Business Models and Fulfillment Centers
- Amazon: With its advanced fulfillment centers, Amazon supports both small and large sellers, making it easy for them to scale their businesses. Sellers using FBA benefit from fast shipping and storage solutions, enhancing the customer experience.
- eBay: eBay’s business model gives sellers more freedom to choose how they handle shipping and fulfillment. This can be a benefit for those who prefer a hands-on approach, but it also means more work for sellers compared to Amazon.
- Walmart: Walmart’s business model is more focused on established brands and businesses rather than individual sellers. Without a fulfillment center like Amazon’s FBA, sellers have to manage their own logistics, which may require third-party solutions.
7. Online Shopping and Retailer Considerations
When considering where to sell, it’s essential to understand the online shopping trends and retailer dynamics:
- Amazon vs eBay vs Walmart
Amazon remains the top choice for online shopping, offering a one-stop shop for almost any product category. eBay’s strength lies in its niche and auction markets, while Walmart benefits from its strong retail brand and growing online marketplace. - Which is Better for You: eBay or Amazon?
If you are an individual seller with niche or second-hand products, eBay might be the better option. However, if you want to reach a larger audience and are prepared for higher fees, Amazon’s marketplace is a powerful platform. - Walmart vs Amazon
Walmart is an excellent option for established businesses that want to integrate with a large retailer’s online and physical infrastructure. Amazon, on the other hand, offers more flexibility for a range of sellers, from individuals to large businesses.
8. Making the Right Choice: Factors to Consider
When deciding where to sell, think about your product type, business model, and willingness to manage logistics:
- Are you selling new, mass-produced items? Amazon may be your best bet.
- Do you have unique, second-hand, or collectible products? eBay could be a better fit.
- Are you a larger business looking to integrate with a massive retail chain? Consider Walmart.
The Bottom Line
Choosing between selling on Amazon, eBay, or Walmart depends on your business goals, product categories, and willingness to manage logistics. Each platform offers distinct advantages and challenges. By understanding the pros and cons, fee structures, and customer service support, you can make an informed decision that aligns with your business strategy.
