E-commerce for Beginners – Selling on eBay, Shopify, and Amazon
- April 27, 2023
- 12:00 pm
Starting a company and selling goods online via e-commerce has grown in popularity. It’s simpler than ever to launch an e-commerce business because of the proliferation of services like Shopify, Amazon, and eBay. This post will compare and contrast the three most widely used e-commerce platforms and highlight their strengths and weaknesses.
The three largest online e-commerce platforms are Amazon and eBay, and Shopify. eBay and Amazon are both marketplaces, where 95% of people are allowed to list items for sale. Shopify is a platform that facilitates launching one’s e-commerce website, where goods may be sold directly to end consumers.
Around 180 million unique customers visit eBay monthly, giving merchants access to a big market. Setting up an eBay account and beginning to post stuff for sale is a simple process. eBay is unique in allowing vendors to offer everything from brand-new things to one-of-a-kind treasures.
Shopify gives its owners total control over their e-commerce business, letting them make it exactly as they envisioned. It also has many different features that can help you expand your online company and boost your sales. The ability to scale with Shopify can be quite easy and the fact that most of the features allows companies of any size to use the platform effortlessly.
With more than 300 million monthly users, Amazon provides access to a vast consumer base for its businesses. It takes little time and effort to create a seller account on Amazon. Vendors may send their wares straight to Amazon’s warehouses using Amazon’s fulfillment services, where they will be kept and delivered to consumers.
The listing, sale, and processing of payments on eBay all incur costs. The site has a lot of competition, so it might not be easy to stand out and attract buyers. Sellers on eBay need more agency over key consumer touchpoints like shipping and refunds since eBay dictates these policies.
Shopify charges monthly fees, which may be a considerable outlay for startups and small enterprises. Unlike their counterparts on marketplaces like eBay and Amazon, Sellers on Shopify are responsible for attracting customers to their online storefront. Shopify’s smaller client base than marketplaces like eBay and Amazon means fewer potential buyers and fewer sales.
There are costs associated with using Amazon to buy, sell, or make a payment. Since there are so many other merchants on the site, it might not be easy to get attention from buyers. Sellers on Amazon have little say over key customer-facing processes like shipping and refunds since Amazon dictates these policies.
You Can Start Selling, Here’s How:
- Starting an online store: It is a common approach to making money now that more and more people want to shop online. Online marketplaces such as eBay, Shopify, and Amazon are standard. Here, we’ll walk you through the process of setting up shop on each site, address some frequently asked questions, and provide suggestions.
- Choose a market niche: Select some things to offer before you get into selling on any site. Consider what you’re good at, what you’ve already done, and what others are willing to buy before making this decision.
- Make a strategy for your company: Defining your organization’s objectives, demographics, and marketing approach is more straightforward with a solid business plan. If money is required, this will assist you in getting it.
- Get your company registered: Your company may need to be registered with the government in your area. Incorporating your company is essential in separating your business from your finances.
- Choose your preferred medium: Consider the pros and cons, costs, and capabilities of each platform you’re considering. Each e-commerce platform, such as eBay, Shopify, or Amazon, has advantages and disadvantages.
- Set up an account: This necessitates divulging sensitive data, including your name, address, and payment details. Create product listings with images and textual descriptions, and send them to the marketplace. Use appropriate keywords and engaging ideas to boost the visibility of your listings.
- Promote your goods: Doing so will bring in new clients and increase sales. You should use paid ads, email marketing, and social media to get more eyes on your items. After-sales have begun, inventory levels must be maintained, and orders be fulfilled. To save time and effort, you can use the help of a fulfilment service or piece of software.
Do I need a storefront to sell on online marketplaces like eBay, Shopify, or Amazon?
A physical storefront is not required to sell on these marketplaces. If you have a computer and access to the internet, you can run your business.
What are the fees associated with selling on sites like Shopify, Amazon, and eBay?
The answer is that every service has its unique pricing model. eBay has costs associated with posting things for sale, completing sales, and processing payments. Both Shopify and Amazon have expenses related to displaying products, selling products, and processing payments.
Do I need a business license to sell on websites like Amazon, Shopify, and eBay?
When you initially start you do not necessarily need a licence to sell on these platforms but once you start making sales it will be worth it if you find out whether you need a business license to conduct online sales from your local authorities.
- It’s best to begin on a modest scale: Before devoting many resources to an e-commerce startup, putting a toe in the water with some investment is essential.
- Use high-calibre images: Products that are easy to view will sell better to consumers. Spend money on professional photos and videos to make your items shine.
- Provide first-rate service to your clients: Loyal customers result from excellent customer service. Always respond quickly to consumer inquiries and go out of your way to make them feel heard and understood.
Regarding selling goods online, three of the most well-known options are eBay, Shopify, and Amazon. Establishing an online store on one of these marketplaces is a terrific way to make money, but it takes preparation, strategy, and discipline to succeed.
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Shopify lets you build your online store and website, making it a good fit for entrepreneurs selling exclusive products or building their brands. On the other hand, Amazon has a lower barrier to entry. Just create an account and you can start selling anything from brand-new to used products.Does Shopify work with eBay and Amazon? ›
Connect your Shopify Store to all the leading marketplaces
Manage your Shopify Store as well as Amazon and eBay and a range of other marketplaces all from the one place. Manage orders, stock levels, suppliers and prices with our Shopify Integration.
Yes. Listing the same products on two or more sales channels like eBay and Amazon is a good sales strategy to implement, as this enables you to widen your reach and improve your sales potential.Can I sell the same product on Amazon and Shopify? ›
Another way to sell on Amazon is by selling your own products. Many Shopify store owners will use a free Shopify app to sync inventory and sell products from their own stores to Amazon. That way you don't have to create separate selling plans and can control inventory management in one place.How do beginners buy and sell on eBay? ›
- Step 1 – Create an account. This is pretty straightforward. ...
- Step 2 – Learn the basics. ...
- Step 3 – Fill out your profile. ...
- Step 4 – Set up your store policies. ...
- Step 5 – Choose profitable products to sell on eBay. ...
- Step 6 – Create and optimise your listings.
You can be one of the over 1.75 million merchants selling on Shopify and selling at Amazon simultaneously. Shopify's sales channel offers many benefits to businesses looking to expand to Amazon. For example: From Shopify, you can create Amazon listings in several categories.Is Shopify worth it for a small business? ›
Is Shopify worth it? This depends on your ambitions and vision for your online shop, but essentially yes. While it might be pricier than a non-ecommerce specific builder, its rich sales features are all but essential for businesses that want to build large scaling online stores.Is Shopify worth it for beginners? ›
Is Shopify a Good Platform for Beginners in Ecommerce? Yes. Shopify is one of the most user-friendly ecommerce builders to help beginners and small business owners set up and run their online store for the first time.Does Shopify charge for eBay? ›
There are no additional Shopify fees for selling on eBay, but you do need to pay for a Stores account.Does Shopify take a percentage of eBay sales? ›
While Shopify does not charge additional fees for eBay integration, Shopify gets a cut from net revenue for sales made through eBay. The rate may vary according to product categories, but Shopify store owners can expect Shopify's cut to be roughly 2%.
The eBay Shopify app helps sellers manage their business through one cloud-based interface. You can sync your products, manage your eBay orders, and increase sales, effortlessly.How much does eBay take from a sale 2023? ›
Final value fees
If your item sells, eBay keeps a portion of the sale. This final value fee for most categories is 13.25% of the sale price or lower, plus $0.30 per order.
Generally, eBay charges a flat 10% selling fee (this varies per category), but this does not include payment processing fees via PayPal. These are typically an additional 2.9% + 20p. Amazon charges a typical 15% commission which includes payment processing fees as well.Can you buy stuff and then sell it on Amazon? ›
Is it Legal to Resell Products on Amazon? Yes, it's completely legal to buy a product at a store and resell it on Amazon. You don't need a permit or to be an authorized reseller. Once you buy an item it's yours and you're free to resell it if you wish.Is it free to sell stuff on Amazon? ›
Choose a selling plan
With the Individual plan, you'll pay $0.99 every time you sell an item. The Professional plan costs $39.99 per month, no matter how many items you sell. For both plans, Amazon also collects a referral fee on each sale, which is a percentage of the total transaction and varies by product category.
|Plan||Monthly fee||Online transaction fee|
|Basic||$29 per month.||2.9% plus 30 cents.|
|Shopify||$79 per month.||2.6% plus 30 cents.|
|Advanced||$299 per month.||2.4% plus 30 cents.|
|Shopify Plus||Quote-based.||Based on your credit card sales volume.|
The most obvious option for selling on Amazon without storing your own inventory is using the fulfillment by Amazon (FBA) service. FBA lets you outsource the work of storing and shipping products to Amazon fulfillment centers. Of course, using FBA does mean paying Amazon more in fees.How to sell on eBay for more than $1,000? ›
- Go to My eBay Selling Overview.
- Scroll down and find the Monthly selling limits.
- Click the link Request a limit increase.
Most states only require a seller's license if your online sales reach a specific dollar amount or number of transactions annually. For example, if you sell over $200,000 or have over 200 transactions. The good news is that eBay will collect and remit the sales tax for you.Can you make a living buying and selling on eBay? ›
If you know what you're looking for, buying and reselling on eBay can be a profitable business. You might be able to pick up something at a good price outside its peak selling season, or buy items in bulk and sell them on individually.
As long as you have an idea and be ready to start something new, you can always make profit on Shopify. So how Shopify help you make money with POD business: Hassle-free Integration with the best Print on Demand companies, including Printful, Printify, Custom Cat and 24+ other Print on Demand app.Why would people buy from Shopify and not Amazon? ›
Overall, Shopify has a much more sophisticated range of ecommerce features than Amazon. Its dropshipping integration also makes it a better platform for those looking to reduce costs related to inventory storage. Amazon offers a decent range of sales tools, but they aren't quite as powerful as Shopify's.Do people still make money on Shopify? ›
Crafty business owners can use Shopify to sell handmade products, both on their own websites and on other online platforms. Shopify offers social media sales, so you can market your products on Facebook, Instagram and TikTok. You can even use a third-party app to integrate Shopify with Etsy and reach a crafty audience.How much does the average person make with Shopify? ›
Research has shown that an average Shopify merchant in the United States makes about $72 of profit from each customer–high-earning merchants on Shopify earn about $149 on a per-client basis, while low-earning merchants make a profit of about $44 per-client.What is a realistic income for Shopify? ›
Conclusion About how much money can you make on Shopify
For example, many Shopify businesses make at least $50,000 per year. And some businesses make much more than that. So if you're willing to put in the work, starting a Shopify business can be a great way to earn a good income.
- Pricing. Hosting your online business on Shopify may cost more than you bargained for. ...
- Difficulty With Content Marketing. promoting your business is as important as starting the business. ...
- Limited Customization. We stated earlier that Shopify is customizable. ...
- No Email Hosting. ...
- Difficult Exit.
Shopify Starter is $5 per month for limited sales tools. Shopify Basic is $29 per month, Shopify is $79 per month, Advanced Shopify is $299 per month and Shopify Plus starts at $2,000 per month. All plans include an online store and all sales channels.Can I make money with Shopify with no money? ›
Dropshipping is one of the easiest ways to start a business without money, since you only pay for inventory when a customer buys it. There are no warehousing fees or excessive product manufacturing costs. Get started with a free 3-day trial and then, from $5 per month with the Shopify Starter.Do I need money to start selling on Shopify? ›
You don't need tons of cash to get started. Start selling online with Shopify's Starter plan. For just $5 per month, you'll get all the tools you need to sell via social media.How do I sell successfully on eBay? ›
- Offer competitive pricing and shipping.
- Answer buyer questions quickly and politely.
- Keep track of inventory to avoid canceling sales.
- Track shipped items and provide customers with delivery dates.
- Promptly report any issues you have with a buyer to eBay.
When you're just starting out on eBay, you have access to a free seller account—meaning there are no monthly fees to run your business. As you grow your eBay business, you will have the option to create your own eBay Store, a paid monthly subscription offers traffic- and sales-boosting benefits.Is it better to sell on Mercari or eBay? ›
With features like Smart Pricing and Smart Offers, Mercari gives sellers the tools they need to be successful. However, eBay is still the top dog when it comes to list of features and expansive audience.How do I ship on Shopify? ›
- Select the order(s) you want to fulfill.
- Add package details and select carrier.
- Review and print labels.
- Affix labels to packages.
- Drop them off at the carrier or dropbox or schedule a pickup in the admin (UPS,DHL Express, and Sendle only)
Shopify charges 2.6% + $0.30 per transaction for the Shopify account. These are the charges for online credit card transactions. A 2.5% transaction fee applies to in-person card transactions. If you use any payment gateway other than Shopify Payments, there's an additional 1% fee per transaction.What is the success rate of Shopify sellers? ›
The Shopify Success Rate of eCommerce stores is around 5% to 10%. This means that out of every 100 businesses that use Shopify, only about 5 to 10 businesses of them are successful.What do I need to legally sell on Shopify? ›
Seller's permit. This type of license, commonly known as a seller's permit, is typically required where your business sells a product or service that ordinarily would be subject to retail sales tax. Even many ecommerce businesses must obtain a seller's permits for sales tax registration. Occupational license.What can't you sell with Shopify payments? ›
Money and legal services:
- Financial institutions, money transmitters and money services businesses, check cashing, wire transfers, money orders.
- Currency exchanges or dealers, bill-pay services, crowdfunding, insurance, bail bonds, collections agencies.
You can run your Shopify store as a sole proprietor and use your SSN (social security number) or SIN (social insurance number) for tax purposes. The federal government does not require business licenses for all types of businesses. Instead, it only requires them for businesses operating in certain industries.What percentage does Amazon take? ›
Remember, Amazon takes a cut of every item sold. This ranges from as low as 6% (personal computers) to as high as 45% (Amazon device accessories), although referral fees for media products are 15% of the total sales price of a product, rather than the item price alone.
When the item sells, the seller collects a shipping fee from the buyer. The seller selects the appropriate shipping method, prints the appropriate shipping label, and pays the appropriate postage from his/her PayPal account. PayPal is a service available through the PayPal website (www.paypal.com).
The item sells immediately for the Buy It Now price of $400. Since you aren't charging the buyer for shipping or any other costs, $424 is the total amount of the sale (includes 6% sales tax). You make $343.17, or approximately 86% of the sale price, not including shipping costs.Is it cheaper to sell on Etsy or Amazon? ›
Listing and selling fees
Additionally, Etsy and Amazon Handmade both deduct selling fees at a flat rate across categories and price points—for Etsy, this comes in at 6.5% of the total sale price plus a 3.5% plus 25¢ payment processing fee, and for Amazon Handmade, the selling fee is 15% of the total sale price.
Half of people who sell real products on amazon make between $1,000 and $25,000 per month in sales. The top 6% of sellers make even more, up to $250,000 per month in sales. It takes a lot of work, but you can make a lot of money from selling on amazon.Who is eBay's biggest competitor? ›
eBay's alternatives and competitors
- Customer References and more.
Currency, Coins, Cash Equivalents, and Gift Cards
Selling collectible coins, precious metals, stones, or jewels is an Amazon restricted category. To sell on Amazon with these products, you must be ungated or approved by Amazon.
No. You can use Amazon FBA to sell packaged items you already own, items you find while antiquing, or even items you received for free. It is possible to use FBA in many ways, as long as you are willing to get creative in building your inventory.Is it illegal to buy from Amazon and sell on eBay? ›
Consumer law doesn't prevent you from doing Amazon to eBay arbitrage. However, as the seller of the item, it is your responsibility to deal with any problems, including complaints and returns.How much money do you need to start selling on Amazon? ›
The Individual plan costs $0.99 per unit sold, and the Professional plan costs $39.99 per month no matter how many units you sell.
In addition to reporting earnings to the Internal Revenue Service at year-end, most retailers, including Amazon sellers, must collect and submit sales taxes. Sales taxes on FBA sales vary for each transaction.How much will I make if I sell on Amazon? ›
What are the average monthly sales for Amazon sellers? Most Amazon sellers make at least $1,000 per month in sales, and some super-sellers make more than $100,000 each month in sales. 45% of Amazon sellers make $1,000 to $25,000/month, which could mean $12,000 to $300,000 in annual sales.
Shopify Basic – $29 per month
The Shopify Basic plan includes solutions for businesses interested in offering in-store transactions, such as card readers. With Basic, online purchases have a per-transaction fee of 2.9% plus $0.30, while in-person purchases have a 2.7% fee.
If you're new to selling and don't have a list of customers already, use Etsy if you sell handmade goods or artisan services. Shopify is great for retail sellers with an established customer base.How do people make money on Amazon without selling physical products? ›
- Affiliate Marketing. One of the most straightforward ways to make significant money on Amazon without selling anything yourself is as an Amazon affiliate. ...
- Amazon Handmade. ...
- Amazon Merch. ...
- Kindle Direct Publishing. ...
- Fulfillment by Amazon. ...
- Amazon Mechanical Turk. ...
- Retail Arbitrage. ...
- Sell a Service.
You can sell multiple brands under one Amazon account, brand registered or not. You don't need to be Brand Registered to sell on Amazon.Do you have to have a warehouse to sell on Amazon? ›
Now, you don't need to own a warehouse to do business on the platform; Amazon has a program called FBA or Fulfillment by Amazon where it picks, packs, stores, ships orders, and handles customer support on behalf of third-party sellers.How much does eBay take from a $200 sale? ›
Final value fees
If your item sells, eBay keeps a portion of the sale. This final value fee for most categories is 13.25% of the sale price or lower, plus $0.30 per order.
The total amount of the sale is the amount the buyer pays, including any shipping and handling charges, sales tax, and other applicable fees. Per order fees will remain $0.30 per order, leading to a total maximum per-item final value fee of $1 per qualifying sale.How much can I sell on eBay without reporting to IRS? ›
Why do I need a Form 1099-K? For 2022, the IRS requires eBay and other online marketplaces to report total sales exceeding $20,000 and 200 transactions on Form 1099-K.How much can you sell on eBay without getting a tax form? ›
Why do I need a 1099-K? Your sales on online marketplaces like eBay are considered reportable income once they are over a certain amount. Because eBay processes payments for these sales, IRS regulations require us to issue a 1099-K for US sellers who sell $20,000 or more in 2021 and $600 or more in 2022.What is the average monthly income of an eBay seller? ›
As of Mar 9, 2023, the average annual pay for an EBAY Seller in the United States is $39,555 a year. Just in case you need a simple salary calculator, that works out to be approximately $19.02 an hour. This is the equivalent of $760/week or $3,296/month.
- Get Organized. Organizing your time is essential for successfully selling on eBay. ...
- Research. The very first step to selling on eBay is finding the potential value of an item. ...
- Start with Items Around Your House. ...
- Buy Low; Sell High. ...
- Market Your Listings. ...
Does Shopify report to the IRS? Yes, Shopify reports most account owners' business transactions to the IRS every year, in a form called the 1099-K.Is Shopify good for beginners? ›
Yes. Shopify is one of the most user-friendly ecommerce builders to help beginners and small business owners set up and run their online store for the first time. Shopify is user-friendly, and even those with no prior ecommerce experience or coding knowledge can create an online store fairly quickly.Why would people buy on Shopify instead of Amazon? ›
Pros and cons of Shopify vs Amazon
It's considerably more customizable, and lets you create a much more 'on-brand' presence than Amazon. It's much a better solution for dropshipping. It's a better option for small businesses in need of local selling and point-of-sale applications.
Dropshipping on Shopify can be a great way for entrepreneurs to keep costs low, since products are only paid for and shipped after they're purchased.Is it hard to succeed with Shopify? ›
With Shopify, it's hardly difficult to make a great site, even if you've never done it before. Using Shopify's great apps and theme templates will help you give your customers a great first impression.Is Shopify really profitable? ›
Shopify is still profitable for E-commerce startups whether you're looking to sell your wares online as a side gig or intend to turn it into a full-fledged enterprise. In 2022, the results reported by Shopify were better than predicted, with more substantial revenues and a lesser loss than anticipated.