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Making the best choice when taking your retail business online
Skip McGrath
www.skipmcgrath.com
eBay or Amazon?
WWW.SKIPMCGRATH.COM
eBayAnnual 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 RetailersThree selling formats:
−Auction
−Fixed Price
−Store
Listing Fees
Final Value (selling) Fee
Optional promo Fees
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Fee Overview $50 Crockpot
Listing fee $0.35
Final Value Fee 4.50
PayPal Fee 1.28
Total Selling Fees $6.13 (12.25%)
eBay for Retailers
WWW.SKIPMCGRATH.COM
Fee Overview $10 DVD
Listing fee $0.20
Final Value Fee 1.20
PayPal Fee .50
Total Selling Fees $1.90 (19%)
eBay for Retailers
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AmazonThe 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 BILLIONLargest Media Seller in the WorldOperates in US, UK, Germany, France, Japan & China
(Has shipped goods to over 200 countries)Approx 1.4 Million Active Sellers45 Million Registered Members (estimate)12 Major Product CategoriesProcesses payments for merchantsSTRATEGIC FOCUS: Low Price ~ Superior Service
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AmazonOne Selling FormatNew and Used GoodsTwo Types of Accounts
− Basic Free Account− Paid Professional Account
No Listing FeeListings last 60-daysAmazon processes paymentsA-Z Guarantee means sellers must offer no questions
asked refunds
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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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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%)
Amazon for Retailers
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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
eBayHigh 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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AmazonHigher 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
eBay vs. Amazon ~ Seller’s Comparison
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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 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
eBay vs. Amazon ~ Product Fulfillment
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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??????????????
