Etsy vs eBay: Which Online Marketplace is Best For Sellers?
Introducing Two Major Marketplaces
Etsy and eBay are among the largest and most influential online sales channels for entrepreneurs and small businesses. As of 2022, [1] key statistics for each marketplace include:
| Etsy | eBay | |
|---|---|---|
| Monthly Active Users | 90.4 million | 147 million |
| Active Sellers | 5.3 million | 20 million |
| Annual Revenue (2021) | $2.3 billion | $10.4 billion |
This data illustrates eBay’s larger buyer base and seller pool. However, on a per seller basis, Etsy’s 90.4 million monthly users breaking down to 17.1 million potential shoppers per merchant.[2] This indicates an engaged audience primed for handmade and specialty items.
In this comprehensive guide, we’ll analyze key dimensions including fees, target demographics, product regulations, and performance metrics to compare Etsy vs eBay for sellers.
Etsy Overview
Founded in 2005, Etsy is a global ecommerce platform focused on handmade, vintage, and craft supplies retailing. As of 2022, Etsy facilitated $2.3 billion in gross merchandise sales (GMS) in Q1 alone, up 15.2% year-over-year.[3]
At its core, Etsy connects creative entrepreneurs selling handcrafted items with enthusiastic buyers looking for unique goods. Sellers’ virtual storefronts drive personal engagement between artists and fans.
What Can You Sell on Etsy?
As a specialized handmade product site, Etsy requires all merchandise to comply with its strict Allowed Items Policy, summarized below:[4]
| Handmade | Items designed or conceptualized by seller or their production partners |
| Vintage | At least 20 years old with signs of wear |
| Craft Supplies | Materials and tools for DIY creative projects |
| Print-on-Demand | Seller creates original designs for printing |
In summary, all products must be:
- Designed/made by seller or production partners
- At least 20 years old in the case of vintage goods
- Crafting supplies with creative reuse potential
- Original print-on-demand artwork uploading to fulfillment services
These requirements exclude dropshipping and commercially available finished goods like mugs or apparel.
eBay Overview
Launched during the early internet boom in 1995, eBay connects everyday buyers and sellers across multiple listing formats. Today it sees over 1.5 billion live product listings at any given time and 147 million global active buyers as of June 2022.[5]
Originally an auction site matching sellers and bidders, fixed-price “Buy It Now” listings now comprise over 60% of eBay merchandise volume[6]. This positions it as a mainstay for all types of new and used goods retailing.
What Can You Sell on eBay?
As a mass-market platform, eBay allows most products for sale unless explicitly banned. Currently, over 34,000 seller-defined product categories exist on the site.[7] Top types include:
- New and used consumer electronics – phones, computers, cameras, etc.
- Home goods – furniture, appliances, kitchenware
- Apparel and accessories for men, women, and children
- Toys and games, including collectibles
- Motors parts, accessories and vehicles
Essentially, eBay sellers can list any physical product other than banned items like illegal drugs, weapons, services, duplicate luxury goods, and items violating copyrights or safety regulations.[8] With allowed merchandise spanning over three dozen diverse categories, prohibition focuses mainly on unlawful or dangerous products.
Comparing Key Seller Metrics
Now that we’ve covered the basics of Etsy and eBay, let’s analyze both marketplaces across crucial factors for sellers:
1. Business Models and Allowed Merchandise
Etsy and eBay diverge greatly regarding target business models and permitted products:
| Marketplace | Business Model | Allowed Products |
|---|---|---|
| Etsy | Handmade & vintage goods | Handmade, vintage, craft supplies |
| eBay | Mass-market new & used | Almost anything except banned items |
This directly influences sellers regarding allowable inventory:
- Etsy – Strictly handmade, vintage, or crafting supplies
- eBay – Nearly any items barring explicit prohibitions
2. Fee Structures Compared
The fees charged by each platform also differ considerably for sellers:
Etsy Seller Fees
| Fee Type | Amount |
|---|---|
| Listing Fee | $0.20 per item |
| Transaction Fee | 5% of order total |
| Payment Processing | + 4% if using Etsy Payments |
On Etsy, low listing costs but higher final value charges apply. Additional features like promoted listings or Offsite Ads come at no mandatory extra fees.
eBay Seller Fees
| Fee Type | Amount |
|---|---|
| Insertion Fee | Free up to allotment then $0.35 per listing |
| Final Value Fee | 10-20% of total sale price |
| Optional Promotions | Additional fees per promotion |
eBay offers free listings up to seller account thresholds, then charges per listing and lower final value charges. But optional features like promoted listings or auctions add fees.
3. Buyer Audience and Product Demand
Etsy and eBay also appeal to very different buyer demographics seeking divergent product categories, summarized below:
| Metric | Etsy | eBay |
|---|---|---|
| Gender | 85% female buyers | Roughly equal across genders |
| Age | Majority under 40 years old | All ages equally |
| Income | Trend towards higher household incomes | All income levels |
| Buyer Values | Creative and handmade uniqueness | Price, availability, catalog size |
| Top Categories [9], [10] | Jewelry, clothing, paper/party, home goods | Electronics, motors, clothing, collectibles |
This data shows clear audience and demand divergences—Etsy for creative female shoppers and handmade products vs. eBay for price-driven convenience across demographics.
4. Ease of Adoption and Use
Regarding onboarding and seller tool proficiency, Etsy and eBay compare as:
| Etsy | eBay | |
|---|---|---|
| Learning Curve | Easier onboarding for new sellers | Steeper learning curve |
| Tool Focus | Creative merchandising | Pricing analytics |
| Best For | Smaller handmade sellers | High-volume merchandise sellers |
The above indicates Etsy offers simpler listing tools, product photography guidance, and community forums ideal for small start-ups. eBay has more advanced analytics for complex reseller product catalogs and order volumes.
5. Tracking Seller Achievements
Finally, Etsy and eBay take markedly different approaches to benchmarking merchant achievements:
| Etsy | eBay | |
|---|---|---|
| Seller Ratings | Optional and private by default | Public seller score required |
| Sales Drivers | Creative photos, stellar reviews | Competitive pricing, shipping speed |
| Metric Impact | Minimal account restrictions | High achievement required to maintain account |
Etsy’s ratings remain private unless a seller opts into publicizing reviews. eBay applies strict public benchmarking around defects, shipping time, pricing, and service feedback directly tied to account standing.
Evaluating the Ideal Sales Channel
Deciding between Etsy vs eBay depends mainly on 3 seller factors:
- Merchandise types – Vintage or handmade goods belong on Etsy
- Desired sales volume – Higher volumes favor lower eBay fees
- Ecommerce experience – Etsy better for first-time sellers
Some key questions sellers should consider when choosing include:
| Question | Favors Etsy | Favors eBay |
|---|---|---|
| Do you sell handmade or vintage goods? | Yes | No |
| Are you an ecommerce beginner? | Yes | No |
| Is creating trendy product listings your strength? | Yes | No |
| Do you plan to sell over 250 items per month? | No | Yes |
If assessing these criteria still leaves the ideal platform choice unclear, sellers can also elect to list on both marketplaces to leverage the unique advantages of each. However, this requires substantially more time, effort, and process coordination across separate inventory pools, orders, and fulfillment flows.
The Data Suggests…
In conclusion, aggregating and analyzing key datapoints indicates:
For specialized sellers of handcrafted goods, Etsy presents:
- Targeted exposure to craft-loving, predominantly female shoppers
- Lower entry barriers ideal for first-time merchants
- Opportunity to build engaged creative brand followings
For high-volume sellers of common consumer goods, eBay offers:
- Massive existing base of diverse value-driven buyers
- Mature analytics and promotional tools for reseller pros
- Lower final value charges at higher monthly volumes
Analyzing key metrics indicates optimizing channel selection based on product types, volumes, and merchant experience best aligns sellers to supportive communities and platform capabilities.
We hope this data-centric Etsy vs eBay comparison assists merchants in determining the best marketplace for their online selling needs.
The Takeaway
Etsy and eBay constitute very different online channels for merchants and makers:
- Etsy spotlights unique handcrafted goods for craft-centric shoppers
- eBay offers mass-market exposure to deal-seeking buyers
Optimizing channel selection based on target products, desired sales volumes, platform fees, and seller workstyles promotes the greatest likelihood of commercial success on these mega-marketplaces.
We encourage small businesses to carefully assess their product catalogs, capabilities, and growth plans to determine which platform(s) best support their objectives for scalable revenues and brand-building.
