Amazon's auctions were not very popular, and they realized they couldn't compete with eBay in an auction format, so they have dropped them and concentrated on their Amazon Marketplace.
The following is NOT meant to be a plug for Amazon over eBay, just a brief comparison, listing the major drawbacks I've found, and including instances in which I've found it a very useful alternative.
The one thing I like is the ease of placing ads. You
do have to find a listing for the item you want to sell (more about that later). But then you just click the "Sell yours here" button, fill in price, condition, and an optional comment, and you're done.
There is no listing fee, and you can relist indefinitely at no cost. Amazon takes a 15% fee on the final selling price, plus pays the seller what it considers a reasonable amount for shipping and handling. Granted, this is more than the lowest percentage for an eBay sale (12%), but apparently numerous sellers prefer the single fee to the possibility of multiple listing fees.
I've made a nice profit over time buying items on eBay and reselling them on Amazon, marked up 20% to as much as 100%. (I've also made a profit the other way around...pricing on Amazon is all over the map.) For all the millions who use eBay, there are just as many who are scared they'll get ripped off, so they prefer to buy at a "safe" online retailer. And, yes, believe it or not, I've talked to people who are willing to pay more rather than use eBay.
Last, I have been able to sell some items there that no one would touch on eBay.
The drawbacks? There are certain items you're not allowed to list unless you're a full-fledged storefront, or a certified seller. This includes computers, MP3 players, and so on, though computer parts are fine. You can find the complete list in the seller FAQs. You are required to accept returns for any reason (just as Amazon does), though you may set your own return fees policy, e.g., restocking fees, return postage, etc. You are not, however, required to cancel an order unless you wish to.
Amazon decides how much you'll charge for shipping and handling - usually plenty, but when they have the weight completely wrong (1 oz instead of 1 lb), you either go through the listing correction process first, mark up your price to allow for the difference, or just say to heck with it. There may be a better way, but I haven't had time to look - I just make sure on those items NEVER to offer expedited shipping, and put my price up a bit.
Biggest drawback, as noted: if Amazon doen't have a listing for the item, you're out of luck.
But here's a tip concerning that:
Amazon's own search is terrible, and often omits items not in stock. Instead, use Google to search for your item, and add site:amazon.com to the query - that will search Amazon's listings only. I've found dozens of otherwise invisible listings that way - including
in stock items that I could not get to turn up no matter how I entered them using Amazon's search. In fact, I use Google to search Amazon most of the time now.
Oh, those "invisible" out of stock items? Once I found them I sold each one I listed - after all, when you have the only one in stock of something popular, there's no competition! Plus, you'd be amazed at some of the odd little products that have accumulated on the Amazon site.
Again, NOT to tout Amazon, but FYI, since a number of posters have commented on eBay's dominance of the online market....The balance between the two has been changing steadily, primarily because of complaints about eBay and fees, fraud, counterfeits, and lousy customer service. A quote from the New York Times, January of this year:
Now the latest audience figures from Nielsen Online confirm that the e-commerce traffic crown has changed heads. For the month of December, for the first time, more Americans clicked over to Amazon.com (59,624,000) than eBay (59,374,000).
Despite the slim margin between the two companies, eBay’s visitor count is particularly alarming. According to the Nielsen data, the number of visitors to eBay.com dropped 10 percent from December 2006 to December 2007.
The Times has some other articles on the whys and wherefors - be interesting to see what happens.