Amazon vs. ebay auction

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Every day, buyers and sellers log on to the world wide web in the hopes of finding a treasure or earning some big bucks. With the internet being as large as it is, there are plenty of auction sites to consider. In that spirit, this article attempts to compare two of the largest, most well-known auction sites in existence. They are both popular, offer excellent features for both buyers and sellers and are in constant competition with one another. Amazon and eBay are the auction sites of topic and while, in many ways they are alike, there are an equal number of ways in which they differ.

Beginning with similarities, both eBay and Amazon charge their sellers a listing and final value fee. The listing fee, from both auction sites, is non-refundable even if the item does not sell. However, an unsold item may be relisted for free at both Amazon and eBay auction sites. Amazon Auctions charge their sellers a $.10 listing fee with the possibility of having all listing fees waived if the seller signed up for a Pro Merchant Subscription. Where listing fees are concerned with eBay, the minimum fee is $0.25 for a starting bid of $.01 to $0.99. If an eBay seller opens an eBay Store, listing fees may be as low as $.05 each.

An unfortunate aspect of internet auction commerce, but a presence nonetheless, is an uncompleted transaction. This usually occurs when a buyer fails to send payment. In this instance, both eBay and Amazon auctions will refund the final value fee for that particular auction, which is based on the final bid amount. Both auction sites also provide seller tips and a bulk loader program, which allows the seller to upload a number of auctions all at once.

One of the greatest differences that stand out amongst these internet auction powerhouses is their policy on poor seller performance. According to Amazon's website, the company reserves the right to charge sellers a fee for poor seller performance. The amount of this fee is not mentioned and, therefore, sellers have no way to know how much this fee may be. According to Amazon Auctions, reasons for this fee may include excessive refunds, high rates of A-Z Guaranteed claims filed against the seller and/or credit card chargebacks related to Amazon Auction payments. According to Amazon Auctions, they will communicate any charges to the seller prior to assessing them. On the other hand, eBay auctions has an entirely different approach to seller performance. Their 'Item Not Received' complaint process was recently changed to a 'Fraud Alert' system, which allows buyers to file a complaint with eBay if they do not receive their merchandise or if it is not as advertised. Much like the non paying bidder complaint process, the seller has an opportunity to respond to any complaint and communicate with the buyer in order to resolve the dispute. If an amicable resolution cannot be reached, the buyer may close the complaint and request a refund under eBay's Buyer Protection plan. In order for an item to qualify, it must be priced at a minimum of $25.00 (excluding shipping & handling).

In recognition of it's most well-performing sellers, eBay offers it's PowerSeller program. This membership is restricted to sellers who earn a minimum of $1,000.00 in sales each month and maintain a 98% or greater feedback rating. The PowerSeller program is exclusive to eBay and it's members. Few other auction sites can come close to the number of buyers, sellers and merchandise that is offered on eBay every day. Regardless, entrepreneurs are grateful for the competition of other auction sites. It is this competition that inspires greatness, which promotes more customer incentives and lower listing fees for sellers.