Tuesday, July 22, 2008

Amazon vs. eBay

Over at Free Money Finance, he has the $10k Challenge. Basically, he tasks his readers to create other streams of income outside their normal 9 to 5 jobs. Lately, I've been thinking alot about what I can do to create some extra income. Hence, the new blog.

The one I hear most is "Sell stuff on eBay". The thing that bothers me is that eBay is not the end-all be-all of online merchants. Frankly, I find eBay is more pain than prosperity. I prefer Amazon's Marketplace. I was turned on to Amazon in 2004 and I've been addicted ever since. My wife says that I would sell anything not nailed down. Over the past 4 years I've netted about $2,500 selling the following stuff:
  • Books
  • Textbooks
  • CDs
  • DVDs
  • Old VHS tapes
  • Video Games
  • A Palm Pilot
  • A PS2
  • A PSP
  • Some computer network hardware
  • A digital voice recorder
  • Pretty much anything with an ISBN number

That's the thing! With eBay, you've got to take pictures, come up with a description, decide what categories it will be listed in, how will shipping be handle, etc. etc. etc. Frankly, it's more work than its really worth . Plus, if you item doesn't sell, you still owe eBay just for listing the item.

Amazon is so much easier. Type in the ISBN number and there's all the information about the item you're selling. A picture, a description, everything. You set your price and confirm what shipping options you'd like to offer. Amazon subsidizes the shipping costs for you so if you can ship it for cheaper you make even more. Amazon takes a small commission only if you sell an item. Items listed on Amazon are active for 60 days so you can set it and forget. All you have to do is package and ship the item when Amazon tells you its sold.

To me, Amazon is so much better. I have sold a few things on eBay but nowhere near the amount of business I've done on Amazon. I wouldn't mind doing a bigger volume of business on Amazon but for right now I think I'll continue to sell odds and ends from around the house.

What are your thoughts? Have you had similar experiences? Which do you prefer?

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