Amazon vs eBay Selling: Which Platform Is Best for You?

Virginia Miller

April 3, 2025

In this article:

Frequently Asked Questions

Choosing the right online marketplace for your products can significantly impact your business's growth and profitability. Amazon and eBay stand as two of the oldest and most established e-commerce platforms, each with a unique approach to connecting sellers with potential buyers. While both platforms offer global reach and millions of active users, they operate on different business models that cater to distinct selling strategies. Understanding these differences is crucial for making an informed decision about where to invest your time, inventory, and marketing efforts.

In 2023, Amazon reported over 300 million active users worldwide, while eBay maintained approximately 138 million active buyers globally. This substantial difference in user base is just one of many factors to consider when deciding where to sell your products. Beyond mere numbers, each platform offers different fee structures, fulfillment options, customer trust dynamics, and selling experiences that can significantly impact your bottom line.

Understanding Amazon's Marketplace

Amazon has evolved from an online bookstore to a global retail giant that dominates e-commerce in many markets. With its sophisticated logistics network and customer-centric approach, Amazon provides a structured environment for sellers looking to reach a massive audience.

Amazon's Business Model and Reach

Amazon operates as a multinational e-commerce company focusing on online retail, computer services, consumer electronics, digital items, and various local services. Its global reach has made it one of the world's most valuable brands. In the United States alone, Amazon captures approximately 41% of the e-commerce market share, with over 2.7 billion global visits per month. This extensive reach provides sellers with unparalleled exposure to potential customers.

The platform's focus on customer experience has created a loyal base of over 200 million Prime members globally who enjoy benefits like free expedited shipping and exclusive deals. For sellers, this means access to a customer base that shops frequently and spends more per transaction compared to non-Prime shoppers.

Product Listing on Amazon

Amazon's marketplace features approximately 119 million products with over 4,000 items sold per minute. The platform allows third-party vendors to list products across numerous categories without requiring special approval for most. However, some categories are considered "gated" and require permission to sell within them. These typically include:

Fine art and collectibles
Industrial and scientific equipment
Certain food products and grocery items
Jewelry and precious stones
Automotive parts
Medical devices and supplies

The listing process on Amazon is more structured and standardized compared to eBay. Products are organized into existing catalog listings, meaning multiple sellers can offer the same product on a single product page. This system creates direct competition based primarily on price and seller rating.

Understanding eBay's Marketplace

Founded in 1995, eBay pioneered the online auction model and has since evolved to include fixed-price listings while maintaining its auction heritage. This unique positioning has helped eBay carve out a distinct space in the e-commerce landscape. Key differences between Amazon and eBay impact how sellers choose between the platforms.

eBay's Business Model and Reach

eBay operates as a global e-commerce corporation primarily offering consumer-to-consumer and business-to-consumer sales services. The platform is known for its auction format and retail website that enables individuals and businesses worldwide to buy and sell various goods and services. While eBay's market share in the US e-commerce space sits at around 4.3% (compared to Amazon's 41%), it still attracts approximately 1.7 billion visitors monthly.

The platform particularly excels in specialty categories like collectibles, rare items, and used goods—areas where Amazon doesn't have as strong a presence. This specialization has allowed eBay to maintain relevance despite Amazon's dominance in the overall e-commerce market. Foundr highlights how eBay's niche categories can benefit certain types of sellers.

Product Listing on eBay

Unlike Amazon's standardized catalog approach, eBay gives sellers more control over their listings. Each seller creates their unique product listing with custom descriptions, images, and terms. This flexibility allows for more personalization and branding opportunities but can make comparison shopping more challenging for buyers.

eBay has fewer restrictions on what can be sold compared to Amazon, particularly excelling in categories like:

Collectibles and antiques
Rare and vintage items
Used goods across all categories
Parts and accessories for various products
Handmade and custom items

The platform does maintain a list of prohibited items, including certain food products, alcohol, and event tickets, but generally offers more flexibility than Amazon's gated categories system.

Key Differences in Selling Fees

One of the most important considerations when choosing between Amazon and eBay is the fee structure, as this directly impacts your profit margins.

Amazon's Fee Structure

Amazon's fees typically include:

Professional seller account: $39.99/month (optional, recommended for sellers with over 40 items)
Individual seller fee: $0.99 per item sold (if not using Professional account)
Referral fees: Typically 8-15% of the sale price (varies by category)
FBA fees (if using Fulfillment by Amazon): Storage fees and fulfillment fees based on size and weight

When using Amazon's FBA service, additional fees apply, including:

Monthly storage fees (higher during Q4 holiday season)
Long-term storage fees for inventory stored over 365 days
Removal and disposal fees for unsold inventory
Return processing fees

eBay's Fee Structure

eBay's fees typically include:

Insertion fees: First 250 listings per month are free for most sellers, then $0.35 per listing
Final value fees: Recently adjusted in 2023, ranging from 10-15% of the total sale amount (including shipping)
Optional fees for listing upgrades (bold titles, featured placement, etc.)

As detailed in this comparison of eBay vs. Amazon seller fees, eBay's reputation as “feeBay” stems from stacking fees, but in many cases, total costs can be lower versus Amazon depending on your product type and pricing.

Fulfillment Options Comparison

How you get products to customers is another critical factor that affects both operational efficiency and customer satisfaction.

Amazon Fulfillment Services

Amazon offers its Fulfillment by Amazon (FBA) service, which allows sellers to store their products in Amazon's fulfillment centers. When an order is placed, Amazon handles picking, packing, shipping, customer service, and returns on the seller's behalf. According to Amazon logistics experts, "Amazon's scale allows us to offer fulfillment costs approximately 70% less per unit than other options."

eBay Fulfillment Services

Unlike Amazon, eBay doesn't have a comprehensive fulfillment program comparable to FBA. While they introduced Managed Delivery in 2020, the program's reach is limited compared to Amazon's extensive fulfillment network. eBay does offer:

Global Shipping Program: Sellers ship to eBay's Kentucky hub, and eBay handles international shipping and customs
Integration with third-party logistics providers
Shipping label printing and discounts through the platform

Customer Trust and Platform Reputation

The level of trust customers place in a platform directly affects their willingness to make purchases, especially for higher-priced items.

Amazon's Customer Trust Advantage

Amazon has built its reputation on customer satisfaction, with policies and systems designed to protect buyers. The A-to-z Guarantee program covers most purchases on the platform, giving customers confidence in their shopping experience. Amazon's focus on fast shipping, easy returns, and responsive customer service has created high expectations among online shoppers.

eBay's Trust Mechanisms

eBay relies primarily on its feedback system to establish trust between buyers and sellers. While the platform offers buyer protection policies, the process for returns and refunds is generally more complex than Amazon's streamlined approach. Sellers on eBay can set their own return policies, including "No returns," which provides flexibility but can sometimes reduce buyer confidence.

Marketing and Visibility Opportunities

Getting your products in front of potential customers is essential for success on any platform.

Amazon Advertising Options

Amazon offers sophisticated advertising tools that allow sellers to increase their visibility within the platform. Amazon Sponsored Products is the most popular option, placing products at the top of search results for specific keywords. This pay-per-click (PPC) model means sellers only pay when shoppers click on their ads.

Other advertising options on Amazon include:

Sponsored Brands: Banner ads featuring your logo and multiple products
Sponsored Display: Retargeting ads that appear on and off Amazon
Amazon Stores: Custom branded storefronts within Amazon

eBay Promotion Options

eBay's primary advertising option is Promoted Listings, which increases visibility in search results. Unlike Amazon's PPC model, eBay's Promoted Listings only charge when an item actually sells. Sellers bid a percentage (typically 5–10%) that's added to their final value fee, and their listings gain better placement in search results.

According to eBay sales-boosting strategies for 2025, platform-specific promotions and detailed listings help increase conversion and visibility on eBay.

Which Platform is Right for Your Business?

Consider Amazon If:

You sell new, branded products with UPCs/EANs
You want access to a massive customer base, including Prime members
You prefer a hands-off fulfillment approach through FBA
You're selling products with high competition where brand is less important than price
You're comfortable with a more structured selling environment with specific performance requirements

Consider eBay If:

You sell unique, rare, vintage, or collectible items
You want more control over your listings and branding
You prefer a flexible pricing model, including auctions
You sell items that may fall into Amazon's restricted categories
You're comfortable handling your own fulfillment and customer service

Multi-Channel Selling Approach

Many successful sellers take advantage of both platforms, using each for the product types it serves best. This multi-channel strategy can maximize your reach and reduce dependence on a single platform. When considering this strategy, be mindful of:

Inventory management across platforms
Different fee structures affecting pricing strategy
Varying customer expectations on each platform
The additional operational complexity of managing multiple channels

Automation tools and inventory management systems can help mitigate these challenges, making multi-channel selling more feasible even for smaller operations.

Conclusion

Both Amazon and eBay offer viable platforms for online sellers, each with distinct advantages. Amazon provides access to a massive customer base with streamlined fulfillment options but demands adherence to strict performance metrics. eBay offers more flexibility in listing and selling unique items but requires more hands-on management of the selling process.

The best choice depends on your specific business model, products, and resources. Many successful sellers eventually utilize both platforms strategically, placing products where they're most likely to sell successfully. By understanding the key differences in fees, fulfillment, customer expectations, and platform demographics, you can make an informed decision that positions your business for growth in the competitive e-commerce landscape.

As both platforms continue to evolve their services and fee structures, staying informed about changes and adapting your selling strategy accordingly will help maintain profitability and competitive advantage in the online marketplace.

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Frequently Asked Questions

Is it more profitable to sell on Amazon or eBay in 2025?

Profitability varies based on your business model and products. Amazon typically offers higher sales volume but charges higher fees (8-15% referral fees plus subscription costs and potential FBA fees). eBay generally has lower fees (around 10-12.9% final value fees) and no required subscription, making it potentially more profitable for unique items and high-volume sellers. For new products with high demand, Amazon's larger customer base may offset the higher fees, while eBay might be more profitable for collectibles, used items, or niche products.

What types of products sell better on Amazon versus eBay?

Amazon excels with new, branded products in categories like electronics (44% of U.S. shoppers), clothing (43%), and home goods (39%). The platform is ideal for mainstream items with UPCs/EANs that benefit from Prime shipping. eBay performs better for unique, collectible, vintage, or used items, with electronics (16.4% of sales), clothing (13.8%), and automotive parts (10.5%) being top categories. If you're selling rare finds, discontinued products, or items without UPCs, eBay typically offers better visibility and customer alignment.

How do fulfillment options compare between Amazon and eBay?

Amazon offers two primary fulfillment options: Fulfillment by Amazon (FBA), where Amazon handles storage, packing, shipping, customer service, and returns; and Fulfillment by Merchant (FBM), where you manage these processes yourself. eBay sellers are responsible for their own fulfillment, though they can use third-party logistics providers or eBay's Global Shipping Program for international orders. FBA provides a significant competitive advantage on Amazon through Prime eligibility, but adds additional fees that must be factored into your profit margins.

What are the key differences in seller fees between Amazon and eBay?

Amazon charges a monthly subscription fee of $39.99 for Professional sellers or $0.99 per item for Individual sellers, plus referral fees of 8-15% depending on category. FBA users also pay fulfillment and storage fees based on item size and weight. eBay offers 250 free listings monthly with insertion fees of $0.35 thereafter, and final value fees of approximately 12.9% plus $0.30 per order. For high-volume sellers making $15,000+ monthly, Amazon's fees can range from $6,000-$7,500, while eBay might only charge $2,500-$3,000.

Which platform offers better branding opportunities: Amazon or eBay?

eBay provides significantly better branding opportunities for sellers. You can create customized store designs, use your own product images and descriptions, and build direct relationships with customers through personalized communications. Amazon offers very limited branding options, as they prioritize a standardized shopping experience where products rather than sellers take center stage. If building a recognizable brand with loyal customers is important to your business strategy, eBay generally offers more flexibility and control over your brand presentation.

Should I sell on both Amazon and eBay simultaneously?

Selling on both platforms simultaneously can be a smart strategy to diversify your sales channels and reach different customer segments. Many successful sellers use Amazon for new, high-demand products while leveraging eBay for unique or collectible items. This approach requires additional management of inventory, pricing strategies, and fulfillment processes, but the benefits often outweigh the challenges. Consider starting with the platform that best matches your primary product types, then expanding to the other once you've established efficient operations.

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