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There are many cross-border e-commerce platforms, with Amazon ranking first and eBay ranking 20th. So what are the differences between eBay and Amazon? Let's take a look at it with the editor!
The difference between eBay and Amazon: 1. The threshold for opening a store
The threshold of eBay is not high, and most people can succeed
The threshold for Amazon is relatively high. To open a business account on Amazon in the United States, you need to register a US company and provide a tax number (the risk is to choose a good agent. There are cases where Shenzhen foreign trade e-commerce companies were defrauded of huge sums of money).
Newegg's threshold is that foreign trade e-commerce or manufacturers and enterprises can become international sellers (International Seller) through the First From Asia project. It is a B2C platform.
Note: Amazon officially stipulates that annual sales of 20,000 USD and 200 transactions require tax. In fact, many sellers receive emails from Amazon when they reach 50 transactions, asking them to provide the account number within one month, otherwise their account will be closed.
There are two types of US tax numbers: personal tax number and corporate tax number
Personal tax number: American citizens all have a Social Security Number (SSN, equivalent to China’s ID number). SSN can be used to directly apply for tax returns. Chinese people generally do not have an SSN.
Company tax number: Currently, most Chinese people who work on Amazon in the United States solve the tax number problem by registering a US company. Registering a US company is not as complicated as in China, and no registered capital is required.
The difference between eBay and Amazon 2. Materials needed to open a store
Although eBay has a low threshold, you will need a lot of things when registering, such as invoices for the items you are about to sell (to prove that you have enough capacity to ship), bank statements or utility bills, etc.
Amazon is relatively simpler, a VISA or Mastcard is enough.
Newegg requires the following application attachments:
• Legal business license in China (including Mainland China, Taiwan and Hong Kong), relevant company background information, and agreement to provide company financial statements for Newegg review when necessary.
• W8 Form (This form is based on U.S. banking regulations. All international merchants must fill out this form before they can receive remittances from the United States).
• Bank account number for payment (must match the company registration name)
The difference between eBay and Amazon 3. The cost of opening a store
eBay registration is free, but if you open a store to sell, you will be charged 7%-22% listing fee and transaction fee, and PayPal will charge up to 4.4% + 45USD/order. Amazon will charge 15% to 25% handling fee for each sales order, plus settlement fee, depending on the type of goods sold. Generally speaking, [individual sellers] are charged a limit of 40 sales per month, and each transaction will be charged an additional fee of $0.99 USD; [professional sellers] have no limit on the number of sales, and charge $39.99 USD per month. If you use Amazon's FBA warehouse, there are also storage and warehousing fees charged according to "weight". In addition, the registration fee for a US company registration and account opening is more than 20,000 RMB.
Newegg Fees
• No listing fees, annual fees, platform fees, monthly fees…
• Commissions are only paid after your product is sold (called CPO transaction model), so your business does not have high cost burdens
The difference between eBay and Amazon 4. Store review cycle
eBay's review cycle is very long. You can only list five products at the beginning, and they can only be auctioned. Once you have more credit points, you can sell products at a fixed price. It takes a long time to increase your credit points, which is very annoying.
Amazon is relatively easy, and the review usually takes three days to a week. During this period, you can still sell your products.
Newegg will review and find an account manager. It will take 1-3 working days to review the qualifications. After successful registration, the account manager will activate the account and you can start selling online after uploading the product and necessary information. Differences between eBay and Amazon 5. Product restrictions
I don't know much about eBay, but from what I know the threshold should be relatively loose.
Amazon is very strict with products, and many products are restricted from sale. Amazon has instructions on this.
There are some restrictions on the review of Newegg's product catalog, and it cannot be opened to international sellers.
The difference between eBay and Amazon 6. Order cycle
In the US Amazon, as long as the product is good, the order cycle is very fast. Almost if the product is put on the shelves today, there will be orders the next day.
One has to accumulate credibility on eBay before one can officially sell products. What a painful process it is.
If the product on Newegg is right, for example, some 3C products, they will be ordered almost on the same day they are put on the shelves.
Differences between eBay and Amazon 7. Competition
I personally think that eBay is like Taobao, and most countries in the world have eBay. The threshold is low, so there are countless domestic water armies who open stores on this platform. When there are too many people, there is naturally no price advantage. Many people sell domestic products abroad.
Amazon blocks most Chinese people. In the United States, Amazon has a high reputation and people are more willing to choose the platform to shop rather than the website. That is why the prices on Amazon are much higher than those on Ebay.
If the product on Newegg is right, for example, some 3C products can be ordered almost on the same day they are put on the shelves, with sales of several thousand dollars in the first month and tens of thousands of dollars in the next month.
The above is the editor’s summary of the differences between eBay and Amazon. If you want to know more about the differences between eBay and Amazon, please continue to follow us!
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