Selling on eBay vs Amazon: A Detailed Comparison for Online Sellers

eBay and Amazon are two of the biggest online sales channels, offering entrepreneurs and small businesses access to millions of customers every day. But the two marketplaces have very differences in fees, policies, tools and more. This definitive guide examines everything sellers need to know about selling on eBay versus Amazon.

Overview of eBay and Amazon

eBay, founded in 1995, operates both as an auction site where sellers list products for buyers to bid on, and as an online store, where sellers list products at a fixed price. Amazon, originally starting as an online bookstore in 1994, has evolved into one of the largest online retailers carrying a wide range of products.

Both platforms now offer sellers either the auction or fixed pricing options. But their fee structures, types of allowed products, levels of competition and target audiences can vary greatly. Understanding these key differences is important in determining which platform is the better fit.

Fee Structures Compared

Selling fees are one of the most important factors when deciding which platform to leverage. While both eBay and Amazon charge both subscription fees for store owners and fees on completed transactions, their pricing models differ significantly.

eBay Fees

eBay charges an insertion fee when you create a listing, then takes an additional commission from the final selling price if the item sells.

Here is the eBay fee structure:

• Insertion fee – ranges from $0.35 to $2.80 per listing depending on the starting or reserve price
• Final value fee – ranges from 4% to 10% of the total amount of the sale

There are volume pricing discounts available to high volume sellers.

Amazon Fees

Amazon collects fees in two parts: referral fees on each sale depending on product category and a variable closing fee.

Here are the components of Amazon seller fees:

• Referral fee – ranges from 8-15% of total sales price depending on the product category
• A $0.99/item fee for clothing, consumables and items under one pound. For all other items there is no additional fixed per item fee.
• Variable closing fee – ranges from $1.80 to $5.90 per item sold depending on product category

For example, if you sell a $10 book on Amazon, you would pay 15% referral fee ($1.50) + $1.80 closing fee = $3.30 total fees or about 33% of the selling price.

Sellers who choose to use Fulfillment by Amazon (FBA) pay additional fulfillment and storage fees. New sellers may also opt for the Professional Selling Plan at $39.99 per month which reduces referral rates by 2%.

Product Categories Compared

eBay allows sellers to list almost any type of new and used product for sale provided it is not prohibited or restricted under their policies. Amazon has more limits on which types of products are allowed to be sold on their platform. Some key differences:

• Used products – Both eBay and Amazon allow resale of used products. eBay is more heavily focused on this segment overall.
• Handmade products – eBay allows the sale of vintage and handmade products without restrictions whereas Amazon Handmade requires sellers to apply and limits products to only handmade, vintage or craft items.
• Products requiring special licensing – eBay allows products like medical equipment, jewelry with precious metals/stones, automobile parts, and other specialty products without requiring additional proof of licensing or permissions ahead of listing. Amazon restricts unlicensed sellers from listing products in categories like medical, motor vehicles, and jewelry.

Always check each platforms’ seller rules before assuming your product is allowed or restricted. But overall, eBay offers fewer limitations on product types that can be sold compared to Amazon.

Fulfillment and Shipping Compared

One major difference between selling on eBay vs Amazon is how order fulfillment and shipping is handled.

On eBay, the seller is responsible for handling the entire fulfillment process themselves – picking, packing and shipping all orders from their own location and absorbing all related costs.

Amazon offers Fulfillment By Amazon (FBA) which provides the warehousing, packing, shipping and customer service on your Amazon orders for a fee. Using FBA is optional but can save time and provide faster Prime shipping options.

Here are some key differences:

eBay

• Seller responsible for picking, packing and shipping all orders
• Manually enter tracking info and notify eBay when order is shipped
• Accept returns initiated by buyers
• Provide all customer service

Amazon + FBA

• Send inventory to Amazon ahead of sale
• Amazon stores, picks & packs orders when they are placed
• Amazon handles shipping and returns
• 24/7 Prime customer service team

FBA costs include monthly inventory storage fees and fulfillment fees on a per order basis. While FBA costs are all additional expenses, it saves substantially on staffing time and operational costs of self-fulfillment.

Tools and Services Offered

Both eBay and Amazon provide tools and services that add value for sellers using their platforms beyond simply listing. However, Amazon generally has more extensive tools, analytics and integrated services available.

Key Tools & Services Offered

A few key advantages to Amazon’s tools include robust analytics, advertising options, and features to enhance branding & content. eBay has also invested in improving their offerings with promoted listings and mobile apps to drive sales. But overall Amazon appears to be outpacing eBay when it comes to services to support sellers.

Size of Customer Base

When deciding between selling on eBay vs Amazon, looking at the potential reach of each marketplace can help estimate sales opportunity.

As of 2022, eBay claims to have 159 million global active buyers. Amazon has over 350 million worldwide users. This makes Amazon more than twice as large as eBay in terms of customer base.

Both sites drive billions in sales to sellers annually:

• eBay sellers earned $95 billion in 2021
• Amazon sellers reportedly sold more than $200 billion by end of 2020

The larger customer base gives Amazon sellers the advantage of increased visibility and sales volume. However, eBay also brings opportunity – they count over 1.5 billion live listings compared to Amazon’s 350 million. Less competition per listing and a focus on unique finds allows eBay sellers to stand apart.

Building Brand Recognition and Loyalty

Since Amazon offers a mixed pool of major brands and third-party sellers together per product category, some sellers feel this creates a more competitive space to try to build brand recognition and loyalty. eBay provides more customized storefront options for sellers which can support showcasing your branding and communicating your story at no added cost.

However, Amazon does provide advertising options and the Amazon Brand Registry program that allow sellers to officially register themselves as the brand owner and gain added brand protection against counterfeits and unauthorized resellers. This can assist with promoting brand identity and positioning on Amazon products and stores.

eBay also offers authentication programs and services to elevate seller status and recognition. But most industry experts agree Amazon currently provides more integrated tools for developing brand authority and loyalty. The increased fees from Amazon advertising and programs may still be worth it due to the high level of customer trust the platform brings.

Ease of Use for Sellers

Both eBay and Amazon aim to provide user-friendly interfaces for sellers to manage listings, inventory, orders, shipping and account settings. Amazon has earned a reputation for extremely streamlined, easy to use systems developed over decades of ecommerce experience. For new sellers, Amazon Seller Central tutorials and Getting Started guides can have you listing and selling faster.

eBay has enhanced efforts to simplify cross-channel selling allowing sellers to manage eBay, Walmart, Etsy and other marketplaces all in one place. Inventory can be tracked across channels using Hub inventory management to save time. eBay also offers some unique features like an automated Price Matching Tool that can adjust prices based on competitors. This levels the playing field versus other online sellers.

When comparing ease of use, Amazon seems to come out ahead for pure simplicity and convenience built off years of development. But eBay continues to add updates to close the gap, providing hybrid model and custom integrations that give sellers more control.

Customer Service Availability

eBay relies primarily on sellers to provide all customer support to buyers before, during and after transactions. Direct contact channels like chat or phone assistance is not offered. Self-service support content is available.

Amazon offers 24/7 customer service teams that proactively manage all buyer inquiries, returns, refunds and account issues across products including seller’s inventory. This lifts the service burden off sellers substantially, especially for high volume merchants. Smaller sellers may be able to provide better individualized service themselves however. Alongside customer teams, indepth self-help content also assists Amazon sellers.

So Amazon far surpasses eBay when it comes to customer service support overall through teams and systems dedicated specifically to fulfilling this. Of course at the tradeoff of higher fees which are likely factored into elevated Amazon commission rates.

Which is Better for Different Sellers?

With all of the above factors compared between eBay and Amazon for sellers, which marketplace is right for your small business? Here are a few recommendations based on seller type and focus areas:

eBay tends to be better suited for:

• Used goods sellers
• Vintage items dealers
• Handmade craft sellers
• Collectibles merchants
• Niche products focused around special interests
• Smaller sellers focused on custom branding

Amazon tends to be better for:

• Reselling popular name brand goods
• New condition products only
• High volume sellers moving thousands of items
• Those wanting automated service support
• Startup brands seeking to build visibility and trust

However, there are always exceptions. Some new products still perform better on eBay for lower fees and unique visibility. Many big brands also leverage eBay stores as an additional sales channel alongside Amazon.

Hybrid sellers using both marketplaces are also common to take advantage of each platform’s strengths and diversify across multiple channels. There are also tools available making it easier to integrate inventory, listings and orders across both channels.

Key Takeaways – Which Platform Should You Sell On?

When trying to determine whether to sell on eBay vs Amazon, first look objectively at the unique advantages and metrics of each marketplace:

• Product types allowed – eBay places fewer restrictions on seller products like used and handmade goods
• Fee structures – eBay comes with lower insertion fees but higher final value commission rates
• Fulfillment requirements – eBay puts all fulfillment tasks on sellers while Amazon FBA offers fully outsourced fulfillment
• Tools for sellers – Amazon generally offers more advanced analytics, automation and services
• Audience size – Amazon brings over twice the buyer traffic of eBay
• Brand building – Amazon provides more integrated advertising and content features for branding
• Ease of selling – Both aim to deliver user-friendly interfaces but Amazon tends to rate higher

Weigh your key selling priorities like product types, margins, order volumes and branding needs. Sellers focused purely on profits may get more value from eBay. Those wanting brand development may choose Amazon despite higher fees.

Testing with both marketplaces in parallel is recommended when possible. As the saying goes, “Never put all your eggs in one basket!” Having presences across multiple channels allows sellers to maximize visibility while also hedging against issues on any one platform.

Over time, closely monitor sales, traffic and return metrics across your selling channels. Double down on investments in whichever marketplace delivers the highest ROI long-term. Stay agile – as fees, policies and best practices evolve at major retailers – to take advantage of the best ecommerce opportunities.