This is the fifth installment in my series about the differences between the eBay and Amazon selling platforms. For each of the next five weeks I will continue to discuss these areas and try to dispel some of the myths that surround selling on Amazon.com
I asked veteran Amazon sellers via Facebook what differences they found between selling on eBay and Amazon FBA. There were ten areas identified as noticeably different between the two platforms:
- What You Can Sell
- The Rules
- Listing
- Fees
- Customer Service
- Getting Paid
- Vacation
- Control
- Sales Tax
- Profit Potential
Customer service is another aspect of your business that Amazon takes control of when you sell via Amazon FBA.
Return Policy
First, you don't get to choose a return policy or shipping charges, but it also means no arguing with buyers about the return policy or shipping fees. Once an item sells via FBA, Amazon deals with all customer service including returns, refunds, customer questions, etc. Amazon's return policy is also very lenient. They are very customer focused and while there are always a few bad apples for the most part my return rate is less that 5% and many of those items get returned to inventory to be resold without having to be returned to me.
More information about Amazon's return policies can be found here.
Terms of Sale
Who likes to chase eBay customers to get paid? I know that I don't.
”Amazon sellers do not have to send invoices, payment reminders, or track unpaid items. If Amazon cannot collect the payment, you don’t have a sale, and your item is still listed on their site. eBay’s system is simply more work, more time, and ultimately costs more to manage as a seller." Skip McGrath, SkipMcGrath.com
So there will be less buyer management on your plate. Think of all the things you can do with that time each day/week/month!
Feedback
Feedback is a different beast on Amazon than eBay. That is mainly because most buyers don't leave feedback, ever, if they are satisfied with a purchase. When is the last time you left feedback on an Amazon purchase? I've been selling on Amazon for 3 years and I have 130 feedback ratings (compared to more that 1400 on eBay over 4 years). However, this doesn't mean that feedback isn't important. Amazon prominently displays your Feedback Rating on a 1-5 star scale and what percentage were positive. I'm currently hovering at 97% due to some 3 star ratings. I don't actively request feedback from buyers as it doesn't rank as high on a buyers radar on Amazon because they know they are backed by the Amazon A-Z guarantee.
"We want you to buy with confidence anytime you make a purchase on the Amazon.com website or use Amazon Payments; that's why we guarantee purchases from third-party sellers when payment is made via the Amazon.com website or when you use Amazon Payments for qualified purchases on third-party websites. The condition of the item you buy and its timely delivery are guaranteed under the Amazon A-to-z Guarantee." Amazon
If a buyer doesn't like an item, has a problem with it, or doesn't want it anymore Amazon is most likely going to let them send it back.
It is important to review your feedback on a regular basis because a neutral (3) or negative feedback (1 or 2) can send your feedback score in a downward direction quickly. To check your feedback, log into Seller Central and on the left side of the dashboard you will find a Performance section. Click on Feedback.. This will bring up a page with all of the orders where customers have left feedback.
More information about Amazon Seller feedback can be found here.
What are you doing TODAY to move your business forward?
Interested in selling on Amazon with Fulfillment by Amazon (FBA) or know someone who is? Not sure where to start?
Amazon FBA Launch Pad is the most current and comprehensive step-by-step guide to LAUNCH and GROW your Amazon FBA business from novice to startup success without spending a fortune. To find out more information click HERE.
If you are looking for more specialized one-on-one direction to grow your business and or manage your life balance, I highly recommend heading over here and checking out the individualized coaching available from the amazing Kristin Ostrander.