The e-commerce marketplace that we have today, is quite a diverse one. Almost all of our needs and wants can be fulfilled by a large number of firms waiting to serve us. As a result, there often exists a blurring of the lines that run between the unique selling points of e-commerce firms offering similar services.
E-commerce Platforms- Etsy And eBay
Etsy and eBay, two wildly popular e-commerce platforms, are often used interchangeably, even though there is a huge difference between the kind of services they offer.
Albeit they both provide marketplaces for users to sell their products and earn more money, there exists a range of differences between the two, some of which we will explore in this article.
- Market size –
Since eBay offers a wider variety of products, compared to Etsy, which is limited to art and craft only, the market size of eBay is a lot bigger than that of the latter. As of today, eBay has over 1.7 billion listings on its website and has a market capitalization of at least $47.8 billion. On the other hand, Etsy has witnessed the highest volume of sales at $10.3 billion, which makes it a much smaller market.
- Types of buyers –
The kinds of buyers who are wading through products on eBay are quite different from that of Etsy. Generally, the buyers of eBay, are looking for products that can be bought at a cheaper rate than what they had been sold in the market. On the other hand, people who make purchases from Etsy, are on the lookout for handcrafted, niche products which cannot be found elsewhere in the market.
- Products being offered –
eBay offers a more multi-faceted product list to its users. This is because much of the second-hand goods offered are generally of the retail type, and do not have much of a unique value to offer. On the other hand, the products being sold on Etsy, are brimming with artistic value. They are generally handcrafted by artists and lead to the creation of a niche market of art lovers who appreciate the artistic value of the products.
- Membership –
Etsy does not really follow a membership scheme. All it requires its users to do is to create an account, after which Etsy charges a 20 cent listing fee, and a subsequent 5% commission charge. On the other hand, for the users of eBay, it is generally suggested that they make use of the store plan, which charges around $16 to $200, depending on the types of products being sold.
- Tools for sellers –
eBay is much more of a dynamic e-commerce platform since it provides its users with a range of tools that Etsy has not yet managed to incorporate into its site. Sellers on eBay are presented with dashboards to keep track of their performance, reviews, et cetera, which truly provides grounds for holistic improvement.
Etsy mainly focuses on unique and handcrafted products, while eBay specializes in second-hand goods and retail products which stand out due to their low prices. Both platforms have unique value propositions, and understanding their differences is crucial for sellers who are deciding which platform to use for their products.