eBay vs Amazon: A Seller’s Guide to Higher Profits

by | Jan 14, 2025 | Ecommerce

ebay vs amazon

Let’s cut through the noise about selling online. I’ve spent the last decade helping brands navigate the murky waters of ecommerce platforms, and if there’s one question that keeps popping up in my inbox, it’s this: “Should I sell on eBay vs Amazon?”

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Here’s the thing – it’s not the straightforward answer most people want. It’s like choosing between New York and Los Angeles for your startup. Both cities can make you successful, but they operate on entirely different frequencies.

The real question isn’t which platform is ‘better’ – it’s which one aligns with your business DNA, much like deciding between Amazon FBA vs dropshipping, where both models offer unique opportunities and challenges. And trust me, after helping hundreds of brands make this decision (and making plenty of mistakes with my own ventures), I’ve learned that success often comes down to understanding the subtle nuances that most comparison guides miss.

The Platform Landscape: eBay vs Amazon in 2025

First, let’s get some perspective. Amazon’s yearly revenue hit $514 billion in 2023, while eBay clocked in at $9.8 billion. But here’s where it gets interesting – eBay’s profit margins are actually higher. It’s like comparing a massive department store to a specialized boutique. Different games, different rules.

Amazon’s Ecosystem: The Digital Walmart

Amazon isn’t just a marketplace – it’s an ecosystem that’s essentially eaten the internet. Prime membership? That’s not just free shipping – it’s a psychological lock-in that makes customers think “Amazon first” for every purchase. The platform has masterfully created what I call the “path of least resistance” shopping experience.

Think about it: When you sell on Amazon, you’re not just listing products – you’re plugging into a machine learning powerhouse that’s been fine-tuned for conversion. Their A9 algorithm is like having a PhD in consumer behavior working for you 24/7. But this comes at a cost – literally and figuratively.

eBay’s Marketplace: The Digital Flea Market (That Grew Up)

eBay might not have Amazon’s fancy AI or same-day delivery, but it’s got something else: flexibility. While Amazon feels like a corporate machine, eBay still maintains that entrepreneurial spirit where you can actually build a brand identity.

The platform has evolved far beyond its auction-house roots. Fixed-price listings now make up about 90% of eBay sales, and their recent focus on authentication for luxury goods shows they’re serious about competing in the premium space. They’re like that scrappy indie company that refused to sell out – and it’s working for them.

Breaking Down the Costs: Where Your Money Really Goes

amazon vs ebay

Amazon’s Fee Structure: The Premium Play

Let’s talk about referral fees and processing fees because this is where most sellers get caught off guard. Amazon’s base referral fee ranges from 8% to 45%, depending on your category. Add FBA fees, storage fees, and their various “optional” services, and you’re looking at potentially 40% of your sale price going to Amazon.

I had a client selling pet supplies (those pee pads everyone needs but nobody talks about) who was shocked to discover that his “profitable” product was actually losing money once all the fees were factored in. The lesson? Always do the math twice.

eBay’s Cost Structure: More Straightforward, Usually Lower

eBay’s fee structure is generally simpler and lower. Final value fees typically range from 10-15%, and you get some free listings each month. But here’s what most guides won’t tell you: eBay’s promoted listings can eat into your margins just as quickly as Amazon’s fees if you’re not careful.

The platform also offers more control over your shipping costs, which can be both a blessing and a curse. You’re not locked into Amazon’s fulfillment network, but you’ll need to figure out your own logistics solution.

The Seller Experience: A Tale of Two Interfaces

Amazon’s Seller Central: Power with Complexity

Selling on Amazon is like flying a commercial airplane – there are a lot of buttons and switches, and you better know what they all do. The learning curve is steep, and the rules are strict. One wrong move with their terms of service, and you might find yourself grounded.

But once you master it? The systems are robust. Their bulk listing tools, inventory management, and analytics would make any data scientist smile. Plus, FBA takes care of storage, shipping, and customer service – though at a price that makes some sellers wince.

eBay’s Seller Hub: More Intuitive, Less Powerful

If Amazon is a commercial airplane, eBay is more like a private jet. It’s easier to get started, more forgiving of mistakes, and generally more intuitive. The listing process is straightforward, and you have more control over how you present your products.

However, this flexibility means you’re responsible for more moving parts. You’ll need to handle your own customer service, manage your shipping (though eBay does offer some solid shipping tools), and stay on top of your inventory without the sophisticated systems Amazon provides.

Target Audience and Market Opportunities

selling on ebay vs amazon

Amazon’s Buyer Psychology

Amazon buyers are like grocery store shoppers – they usually know what they want, and they want it now. They’re less price-sensitive but more convenience-focused. Prime members, in particular, show incredible platform loyalty. They’ll often pay more just to get that Prime shipping and the perceived security of buying through Amazon.

This creates an interesting dynamic for sellers. You’re competing less on price and more on optimization – your photos, bullets, and keywords need to be perfect because that’s how you win the Buy Box. It’s a game of millimeters, where small improvements in your listing can lead to significant sales increases.

eBay’s Bargain Hunters and Collectors

eBay attracts a different crowd. These buyers are often looking for deals, unique items, or used merchandise. They’re more willing to wait for shipping and dig through listings to find exactly what they want. The platform excels at used items and collectibles – categories that Amazon struggles with.

I’ve seen sellers build entire businesses around finding undervalued items at local sales and flipping them on eBay. Try that on Amazon, and you’ll likely run into their strict new-condition requirements and brand restrictions.

The Battle of Fees: What You’ll Actually Pay

Let’s cut through the noise and talk about what hits your wallet hardest – fees. Having run stores on both platforms, I can tell you this is where most sellers get tripped up. And honestly? The difference between profit and loss often comes down to understanding these fee structures.

Amazon’s Fee Structure: The Prime Tax

Amazon’s referral fee structure is like that friend who always has their hand out – predictable, but expensive. You’re looking at 8% to 45% depending on your category, with most products falling into the 15% range. Then there’s that monthly $39.99 Professional seller fee that feels like a subscription you can’t cancel.

If you’re using FBA (and let’s be real, you probably should be if you’re serious about Amazon), you’re also paying for storage and fulfillment, making it essential to weigh the pros and cons of FBA vs FBM for your fulfillment strategy. These processing fees can add up faster than a New York minute. I’ve seen sellers get blindsided by long-term storage fees that turn profitable products into margin-killers.

eBay’s Fee Structure: The Flexible Friend

eBay’s approach to fees feels more like your neighborhood garage sale – more flexible, generally cheaper, but with its own quirks. Their final value fees typically range from 10-12% for most categories, and you’ll get some free listings to start with. No monthly fees unless you opt for a store subscription, which honestly, is worth it if you’re moving more than a handful of items monthly.

Here’s where it gets interesting: eBay’s managed payments system (their answer to PayPal’s departure) has actually simplified things. You’re not dealing with separate payment processing fees anymore – it’s all rolled into one. For someone selling used items or unique pieces, this streamlined approach can be a breath of fresh air.

The Platform Experience: A Tale of Two Interfaces

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Amazon’s Seller Central: The Corporate Maze

Listen, I love tech as much as the next person (probably more, let’s be honest), but Amazon’s Seller Central feels like it was designed by a committee of robots trying to understand human behavior. It’s powerful, sure, but about as intuitive as teaching a cat to fetch.

The learning curve is steep. You’ll need to understand their category-specific requirements, their particular flavor of SEO, and their inventory management system. But once you get it? It’s like having a well-oiled machine working for you. The analytics are comprehensive, and the integration with FBA is seamless – when it works.

eBay’s Seller Hub: The Casual Professional

eBay’s platform feels more like that friendly local coffee shop that’s surprisingly tech-savvy. The listing process is more straightforward, especially for fixed price listings. You can have a product up for sale in minutes, not hours. And while their bulk listing tools might not be as sophisticated as Amazon’s, they get the job done without requiring a PhD in marketplace management.

Market Opportunities: Finding Your Sweet Spot

Here’s where things get really interesting. Both platforms have their golden opportunities, but they’re as different as Brooklyn and Silicon Valley.

Amazon’s Sweet Spots

Amazon excels with new products, especially if you’re building a brand. Their Brand Registry program is solid gold for protecting your intellectual property, and A+ Content lets you tell your brand story like a pro. If you’re selling something like pee pads (yes, that’s a real profitable niche), having Amazon handle fulfillment through FBA while you focus on marketing can be a game-changer.

The platform rewards consistency and volume. If you can maintain stock levels and meet their performance metrics, the algorithm will love you more than a barista loves their morning coffee.

eBay’s Winning Categories

eBay shines in areas Amazon can’t touch. Vintage items? Collectibles? Used electronics? This is eBay’s playground. The auction format, while not as popular as it once was, still creates exciting opportunities for unique items. Plus, the international reach is genuinely global, not just “global where we have fulfillment centers.”

The Customer Factor: Understanding Your Buyers

ebay vs amazon who is bigger

Amazon and eBay attract different types of shoppers, and understanding this difference is crucial for your success.

Amazon’s Prime-Driven Ecosystem

Amazon buyers are like express train passengers – they know where they’re going, and they want to get there fast. They’re Prime members who value convenience over bargaining. These customers expect new products, quick shipping, and a no-questions-asked return policy. They’re not necessarily looking for the absolute lowest price, but they want value and reliability.

eBay’s Treasure Hunters

eBay buyers are more like vintage market browsers – they enjoy the hunt. They’re willing to wait for shipping, compare prices, and even negotiate. These customers often seek specific items they can’t find elsewhere, whether it’s a discontinued product or a rare collectible. They’re generally more patient and understanding about shipping times and return policies.

Marketing Tools and Growth Potential on Amazon vs eBay

Let’s talk about something that keeps me up at night – the vastly different marketing landscapes of Amazon and eBay. Having helped hundreds of brands navigate these waters, I’ve seen firsthand how the right platform choice can make or break your growth trajectory.

Here’s the thing about Amazon’s marketing ecosystem – it’s like having access to a Ferrari, but you need to learn how to drive stick first. Their PPC platform is sophisticated (sometimes overwhelmingly so), but once you master it, you can target customers with surgical precision. Their A+ Content? It’s basically premium real estate for brand storytelling, though it’ll cost you a pretty penny.

Amazon’s Marketing Arsenal

Amazon’s advertising platform is where things get interesting. You’ve got:
– Sponsored Products (the bread and butter)
– Sponsored Brands (great for brand awareness)
– Sponsored Display (retargeting on steroids)
– Amazon DSP (if you’ve got deep pockets)

But here’s what most sellers miss – it’s not just about throwing money at ads. The real magic happens when you integrate these tools with Amazon’s data analytics. You’re not just selling products; you’re building a data-driven empire.

eBay’s Marketing Approach

eBay’s marketing tools feel more like a friendly neighborhood garage sale (but with better targeting). Their Promoted Listings are straightforward – you pay only when you sell. No complex bidding strategies needed. It’s refreshingly simple, though perhaps not as powerful as Amazon’s suite.

What eBay lacks in sophisticated advertising tools, it makes up for in organic reach potential. Their algorithm seems to favor sellers who maintain good metrics and engage with customers. It’s less pay-to-play than Amazon, which might explain why some of my clients with tighter budgets prefer starting here.

Analytics and Performance Tracking: eBay vs Amazon

amazon, but not ebay

Let’s get real about analytics – because this is where the rubber meets the road in the eBay vs Amazon debate. Amazon’s analytics are like having a Bloomberg terminal for your product line. You get:
– Detailed conversion metrics
– Search term performance
– Buy Box percentage tracking
– Customer behavior insights

eBay’s analytics feel more… accessible. They’re not as comprehensive, but they tell you what you need to know. Traffic sources, listing performance, sell-through rates – it’s all there, just packaged more simply.

Platform-Specific Features That Matter

Amazon’s Brand Registry is a game-changer if you’re serious about brand protection. It’s like having a bouncer for your intellectual property. Plus, it unlocks A+ Content, which can boost conversion rates by up to 10% (I’ve seen even higher numbers with some of my clients).

eBay shines with its auction format – still unmatched for certain categories like collectibles and used items. Their Global Shipping Program makes international sales surprisingly manageable, though the processing fees can add up.

Making the Final Choice: eBay vs Amazon Decision Framework

After years of helping brands navigate this decision, I’ve developed a framework that cuts through the noise. It comes down to three core questions:

1. Product Type and Market Fit

– New products? Amazon typically wins
– Used or unique items? eBay’s your best bet
– High-volume standardized products? Amazon FBA can scale beautifully
– Custom or handmade items? eBay offers more flexibility

2. Resource Availability

Consider your:
– Initial capital (Amazon needs more)
– Time investment (Amazon’s learning curve is steeper)
– Fulfillment capabilities (eBay gives you more control)
– Marketing budget (Amazon’s pay-to-play nature requires deeper pockets)

3. Growth Ambitions

If you’re aiming for rapid scaling and have the resources to support it, Amazon’s infrastructure is hard to beat. But if you’re looking for steady growth with lower overhead, eBay might be your sweet spot.

Future Trends Shaping the eBay vs Amazon Landscape

Let me put on my futurist hat for a moment. The e-commerce landscape is shifting under our feet, and both platforms are evolving in fascinating ways.

AI and Automation

Amazon’s pushing hard into AI-powered listing optimization and inventory management. Their referral fee structure might seem steep, but they’re reinvesting heavily in automation tools that could make selling easier. eBay’s not far behind, though their approach feels more focused on search and recommendation improvements.

For sellers wanting to enhance their images, consider using our AI Image Generator for professional results.

Sustainability and Social Commerce

Both platforms are betting big on sustainability initiatives, but eBay’s got a natural advantage with their circular economy model. They’re positioning themselves as the go-to platform for conscious consumers, while Amazon’s working to overcome perceptions about excess packaging and environmental impact.

Final Thoughts: Making Your Choice

After diving deep into the eBay vs Amazon comparison, here’s what it really comes down to: There’s no universal “better” platform – just better fits for specific situations.

If you’re selling new products at scale and can handle the higher fixed price and processing fees, Amazon’s infrastructure and customer base are unmatched. Their referral fee might sting, but the potential volume can make up for it.

eBay remains the champion for used items and unique products. Their free listings (up to a point) and more flexible policies make them ideal for testing waters or running a lean operation.

Remember, this isn’t necessarily an either/or decision. Many successful sellers I work with maintain presence on both platforms, using each for what it does best, but often wonder, do you need an LLC to sell on Amazon, especially when scaling their operations. Think of it like diversifying your investment portfolio – different platforms for different purposes.

Quick Decision Guide

Choose Amazon if:
– You’re selling new, standardized products
– You can handle higher upfront costs
– You want to leverage FBA
– You’re ready for a more competitive environment

Choose eBay if:
– You’re selling unique or used items
– You want lower entry barriers
– You prefer more control over fulfillment
– You’re targeting international markets

Exploring other platforms? Learn more about how to shop on Shopify effectively, or discover Shopify alternatives if you’re seeking variety.

Curious about product photography? Our guide on product photography backgrounds offers tips for achieving a professional look.

For those interested in service comparisons, see how Dyvo compares with ProductScope or understand the differences between Pebblely and ProductScope.

Lastly, if you need help optimizing your Amazon listings, our Amazon Listing Creation Service might be just what you need.

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Frequently Asked Questions

Is eBay better than Amazon?

Whether eBay is better than Amazon depends on what you’re looking for as a buyer or seller. eBay is often favored for its auction-style listings and the ability to find unique or second-hand items, while Amazon is known for fast shipping, a vast selection of new products, and a streamlined buying experience. Each platform has its strengths, so the choice largely depends on individual preferences and needs.

Amazon vs eBay: which is safer?

Both Amazon and eBay have measures in place to ensure safe transactions, but they offer different types of consumer protection. Amazon is generally considered safer due to its A-to-Z Guarantee, which provides a straightforward process for resolving disputes about order issues. eBay also offers buyer protection, but the resolution process can be more complex, especially when dealing with third-party sellers.

Between eBay vs Amazon, who is bigger?

Amazon is significantly larger than eBay in terms of revenue, market capitalization, and global reach. Amazon’s extensive logistics network and diverse product offerings have contributed to its dominance in the e-commerce space. While eBay remains a major player, focusing primarily on auctions and second-hand goods, Amazon’s size and influence are unparalleled.

Why sell on Amazon vs eBay?

Selling on Amazon can be advantageous due to its immense customer base, advanced logistics network, and the potential for higher sales volume, especially for new products. Amazon’s FBA (Fulfillment by Amazon) service allows sellers to leverage Amazon’s warehousing and shipping capabilities, making it easier to manage inventory. On the other hand, eBay might be preferred for selling niche items, collectibles, or used goods, where sellers have more control over listing formats and pricing.

How much does it cost to sell on Amazon vs eBay?

The cost of selling on Amazon typically includes referral fees, which range from 6% to 45% depending on the category, and a variable closing fee or a monthly subscription fee for professional sellers. eBay charges insertion fees and final value fees, which are a percentage of the sale price, generally lower than Amazon’s referral fees. Both platforms have additional optional costs for promotional tools, so sellers should consider their product types and sales volume when comparing costs.

About the Author

Vijay Jacob is the founder and chief contributing writer for ProductScope AI focused on storytelling in AI and tech. You can follow him on X and LinkedIn, and ProductScope AI on X and on LinkedIn.

We’re also building a powerful AI Studio for Brands & Creators to sell smarter and faster with AI. With PS Studio you can generate AI Images, AI Videos, Chat and Automate repeat writing with AI Agents that can produce content in your voice and tone all in one place. If you sell on Amazon you can even optimize your Amazon Product Listings or get unique customer insights with PS Optimize.

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