{"id":9261,"date":"2019-07-29T14:29:41","date_gmt":"2019-07-29T06:29:41","guid":{"rendered":"https:\/\/www.zhenhub.com\/?p=9261"},"modified":"2022-10-07T18:24:58","modified_gmt":"2022-10-07T10:24:58","slug":"amazon-fba-and-ebay-limitations-2020","status":"publish","type":"post","link":"https:\/\/zhenhub.com\/blog\/amazon-fba-and-ebay-limitations-2020\/","title":{"rendered":"Amazon FBA and eBay Limitations (Updated 2020)"},"content":{"rendered":"

Reading time:  2 min 45 sec
\nThis article was updated on Sept 2020.<\/em><\/p>\n

Amazon FBA<\/b> and <\/strong>eBay Limitations<\/b><\/h1>\n

As online merchants, choosing a fulfillment company can make or break your business. Whether you are an established seller or a first-time entrepreneur, you are probably familiar with eCommerce giants Amazon FBA and eBay. In this article, we are going to get down to the details of these two <\/span>eCommerce shipping<\/span><\/a> powerhouses, focusing on both Amazon FBA and eBay limitations. <\/span><\/p>\n

What is Amazon FBA?<\/span><\/h2>\n

FBA stands for <\/span>Fulfillment by Amazon<\/span><\/a>, a service wherein online merchants can sell their products and Amazon FBA will handle storing, picking, packing, and shipping the orders. This also means that you get to enjoy Amazon FBA\u2019s reliable customer service to help you manage inquiries, refund and return requests; all with no extra charge.<\/span><\/p>\n

What is eBay?<\/span><\/h2>\n

Similar to Amazon FBA, <\/span>eBay<\/span><\/a> also offers fulfillment services. Signing up this will allow online marketplace merchants to get eBay\u2019s assistance when it comes to receiving, product inspection, inventory storage, order fulfillment, shipping, returns, kitting or assembly.<\/span><\/p>\n

Amazon FBA and eBay Limitations: A Comparison<\/strong><\/h2>\n

Since both shipping giants practically offer the same service to online sellers, here is a quick comparison between Amazon FBA and eBay limitations that you need to consider before choosing one over the other.<\/span><\/p>\n

Seller Fees<\/strong><\/h3>\n

Amazon FBA Fees<\/span><\/h4>\n

Amazon FBA fees vary based on the product you are selling. As an online merchant, you will be responsible for what is called \u201cSelling on Amazon Fees\u201d which include referral fee, variable closing fee, and a fulfillment by Amazon fee which is calculated based on your product\u2019s weight and dimensions. In addition to that, you will also have to take into account the monthly storage and fulfillment fees. <\/span><\/p>\n

Lastly, as an Amazon FBA seller, you can choose between two seller accounts- individual, which will incur $0.99 fee per unit sold; and professional, which will inquire a monthly subscription fee of $39.99. Refund administration fees, which are charged at either $5.00 or 20% of the refunded charge (whichever is less) will also come into play in the event a customer of yours requests a refund. <\/span><\/p>\n

eBay Fees<\/span><\/h4>\n

For eBay, sellers will have to consider insertion fees, which are charged when you create a listing on their site; however, you are entitled 50 listings free of insertion charges every month. Now, every time a product of yours gets sold, eBay will take a percentage depending on the item\u2019s final sale price, including shipping and handling, but minus the sales tax.<\/span><\/p>\n

eBay also charges sellers for Payment processing, but the amount will vary based on whether or not you signed up for their \u201cManaged Payments” service. If you did, then this will be included in the Final Value fee, but if you choose to use PayPal to process customer payments, then you just have to prepare for a $0.30 fee in addition to the 2.9% of the item\u2019s total selling price, including sales tax. <\/span><\/p>\n

You can also pay upgrade fees if you want to customize a particular listing. This is best for limited offers or featured products because it will allow you to add bold fonts, subtitles, and set a minimum or reserve price for the item listed.<\/span><\/p>\n

Seller Restrictions<\/strong><\/h3>\n

Amazon FBA Inventory Limit<\/span><\/h4>\n

Amazon FBA recently implemented a 200-unit limit for seller inventory. This means that online merchants can only send 200 units of a new product into Amazon\u2019s fulfillment centers. The restriction, which officially took effect on August 16, 2020, will last until December 31, 2020. Amazon FBA decided to introduce the limitation in light of the COVID-19 pandemic that resulted in an increase in demand at the eCommerce platform. <\/span><\/p>\n

Implementing the 200-unit limit is the company\u2019s way of making sure fulfillment centers are still managed at optimum efficiency. To know how you can deal with this new inventory limit, just click on this <\/span>link<\/span><\/a>.<\/span> <\/span><\/a><\/p>\n

Amazon FBA Product Categories<\/span><\/h4>\n

When it comes to product categories, Amazon FBA splits types into three: Ungated, or product categories that are open to all sellers right off the bat; and Gated, which are product categories that require approval from Amazon; and Restricted. Here\u2019s an updated list of products that fall under each category: <\/span><\/p>\n\n\n\n\n
Ungated Categories<\/b><\/td>\nGated Categories<\/b><\/td>\nRestricted Categories<\/b><\/td>\n<\/tr>\n
\n
    \n
  • Baby *<\/span><\/li>\n
  • Beauty **<\/span><\/li>\n
  • Books<\/span><\/li>\n
  • Camera & Photo<\/span><\/li>\n
  • Clothing & Accessories<\/span><\/li>\n
  • Consumer Electronics<\/span><\/li>\n
  • Grocery & Gourmet Foods<\/span><\/li>\n
  • Health & Personal Care **<\/span><\/li>\n
  • Home & Garden<\/span><\/li>\n
  • Industrial & Scientific (BISS)<\/span><\/li>\n
  • Kindle Accessories<\/span><\/li>\n
  • Luggage & Travel Accessories<\/span><\/li>\n
  • Musical Instruments<\/span><\/li>\n
  • Office Products<\/span><\/li>\n
  • Outdoors<\/span><\/li>\n
  • Personal Computers<\/span><\/li>\n
  • Pet Supplies<\/span><\/li>\n
  • Shoes, Handbags, & Sunglasses<\/span><\/li>\n
  • Software<\/span><\/li>\n
  • Sports<\/span><\/li>\n
  • Tools & Home Improvement<\/span><\/li>\n
  • Toys * **<\/span><\/li>\n
  • Video Games<\/span><\/li>\n<\/ul>\n<\/td>\n
\n
    \n
  • Collectible Coins<\/span><\/li>\n
  • Personal Safety and Household products<\/span><\/li>\n
  • Fine Art<\/span><\/li>\n
  • Holiday Selling Requirements in Toys & Games<\/span><\/li>\n
  • Jewelry<\/span><\/li>\n
  • Join Amazon Subscription Boxes<\/span><\/li>\n
  • Made in Italy<\/span><\/li>\n
  • Music & DVD<\/span><\/li>\n
  • Requirements for selling Automotive & Powersports products<\/span><\/li>\n
  • Services<\/span><\/li>\n
  • Sports Collectibles<\/span><\/li>\n
  • Streaming Media Players<\/span><\/li>\n
  • Video, DVD, & Blu-ray<\/span><\/li>\n
  • Watches<\/span><\/li>\n<\/ul>\n<\/td>\n
\n