If you’re looking to start an online store, selling on a marketplace like eBay or Amazon can be a great way to reach millions of customers. Both platforms have massive audiences, strong brand recognition, and built-in trust, but they cater to different types of sellers and business models.
So, which one is right for you? Should you sell on eBay, Amazon, or both? Here we compare eBay and Amazon across key factors like seller fees, audience reach, competition, fulfillment options, and more to help you decide the best platform for your online business.
Contents
Overview of eBay and Amazon
eBay
Best for: Small businesses, unique or used items, auctions, and sellers looking for lower fees.
eBay is an online marketplace that allows individuals and businesses to sell products through auctions or fixed-price listings. Unlike Amazon, eBay does not store or ship items for sellers (unless using a third-party fulfillment service).
Amazon
Best for: High-volume sellers, brand-new products, and businesses that want access to Amazon’s fulfillment network.
Amazon is the world’s largest online retailer, offering a vast selection of products. With programs like Fulfillment by Amazon (FBA), sellers can store their inventory in Amazon’s warehouses and let Amazon handle packing and shipping.
Seller Fees Comparison
Both platforms charge fees, but they structure them differently.
| Fee Type | eBay | Amazon |
|---|---|---|
| Listing Fees | 50 free listings per month, then $0.30 per listing | None for Professional sellers; $0.99 per item for Individual sellers |
| Final Value Fees | 12-15% of the sale price | Referral fee (8-15%), plus FBA fees if using fulfillment services |
| Subscription Plans | Optional eBay Store plans ($4.95 to $299.95/month) | Professional Plan: $39.99/month |
Verdict: eBay has lower fees for small sellers, while Amazon’s fees are higher but include fulfillment benefits.
Audience and Competition
Both eBay and Amazon have large customer bases, but they attract different types of buyers.
- eBay: More popular for second-hand, vintage, and unique products. Customers are often looking for deals and auctions.
- Amazon: Attracts shoppers looking for brand-new items with fast shipping. Amazon’s audience is less price-sensitive and more brand-focused.
Verdict: If you sell unique, used, or collectible items, eBay is a better fit. If you sell brand-new products and want access to a larger audience, Amazon is the winner.
Fulfillment and Shipping
One major difference between the two platforms is how fulfillment works.
eBay
- Sellers are responsible for shipping their own products.
- eBay’s Global Shipping Program helps with international shipping.
- Third-party fulfillment services like ShipBob can be used for logistics.
Amazon
- Sellers can fulfill orders themselves (Fulfilled by Merchant, or FBM).
- Fulfillment by Amazon (FBA) allows sellers to store inventory in Amazon’s warehouses, with Amazon handling shipping, returns, and customer service.
- FBA provides fast shipping (Prime eligibility) but comes with additional fees.
Verdict: Amazon FBA is a great option for hands-off fulfillment. If you want more control over shipping, eBay is the better choice.
Selling Rules and Restrictions
Both platforms have strict policies that sellers must follow.
- eBay: More lenient seller policies but still enforces rules against counterfeit goods and poor seller performance.
- Amazon: Has stricter rules regarding product authenticity, customer service, and account suspensions.
Verdict: eBay is more flexible for new sellers, while Amazon has stricter rules but higher trust with buyers.
Branding and Customer Loyalty
Building a strong brand is crucial for long-term success.
- eBay: Allows more branding flexibility. You can create an eBay Store, customize listings, and develop a direct relationship with customers.
- Amazon: Limits branding options. Customers tend to trust Amazon more than individual sellers, making brand loyalty harder to build.
Verdict: If brand-building is a priority, eBay provides more control over your brand identity.
Pros and Cons of Selling on eBay vs. Amazon
eBay Pros:
- Lower fees for small sellers.
- Allows auctions and unique product listings.
- More control over branding and customer interactions.
eBay Cons:
- Less traffic than Amazon.
- Requires handling fulfillment yourself.
- Buyers often expect discounts and negotiate prices.
Amazon Pros:
- Massive customer base with higher conversion rates.
- FBA makes fulfillment easy and allows Prime eligibility.
- Trust and credibility help increase sales.
Amazon Cons:
- Higher fees, especially with FBA.
- Strict selling policies and risk of account suspension.
- Limited branding opportunities.
Final Verdict: Which Platform Is Right for You?
Choosing between eBay and Amazon depends on your business model:
- Choose eBay if: You sell used, vintage, or unique products, want more control over branding, and prefer lower fees.
- Choose Amazon if: You sell new products, want access to a larger audience, and prefer a fulfillment service like FBA.
Both platforms have their advantages, and many successful sellers use both to maximize their reach. Consider starting with one and expanding to the other as your business grows.
