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Selling on Amazon vs eBay: 2023 Review

ebay vs amazon

Choosing the right ecommerce platform for your business depends on your goals, product niche, and overall strategy. Both Amazon and eBay offer sellers access to millions of potential customers, but they have different fee structures, fulfillment options, customer services, and seller tools

In this guide, we’ll provide an overview of selling on Amazon vs eBay, comparing the key features, pros, and cons of each platform to help you make an informed decision on which is the best fit for your products and ecommerce business. 

What Are the Differences Between Selling on Amazon vs eBay?

Market Share

When we talk about market share, we’re referring to the portion of the market that Amazon or eBay controls. While they’re two of the biggest marketplaces in the world, Amazon is the clear leader in terms of market share. 

Amazon

amazon products

In 2020, Amazon held 38.7% of the U.S. ecommerce market. It is a larger marketplace than eBay, with a wider customer base. Today, Amazon has over 300 million active users worldwide. Their largest market is in the U.S., where they are based, but they also have local versions of the Amazon marketplace in over 20 countries. 

eBay

ebay homepage

Comparatively, in 2020, eBay held 4.7% of the US ecommerce market. Their user count is 185 million worldwide, with their biggest marketplace being the U.S., followed by Germany and the U.K. There are local versions of the eBay marketplace in over 190 countries. 

Selling Fees

There are some significant differences between the seller fees for Amazon vs eBay, so let’s take a closer look. 

Amazon

Amazon’s fee structure is complex and varies depending on the size of your business, the products you sell, and more. 

Fees For All Amazon Sellers:

  • Subscription Fee: If you’re a professional seller (i.e., you sell more than 40 items per month), expect to pay a monthly subscription fee of $39.99. This fee gives you access to additional selling tools and reports, as well as lower referral fees in some categories. If you aren’t a professional seller, their Individual Plan charges 99¢ per item sold plus additional selling fees.
  • Referral Fees: This is a percentage of the total sale price (including shipping) that Amazon charges for each item sold on their platform. Referral fees typically range from 6% to 45%, depending on the product category. 
  • Closing Fees: This fee is only applicable to media items, such as books, DVDs, and video games. It’s a flat fee of $1.80 per media item sold. 
  • Processing Fees: Variable based on the payment method used by the buyer.

Additional Fees For FBA Users:

  • Fulfillment Fees: Based on the size and weight of the item sold.
  • Returns Fees: Variable based on the product category and the reason for return.
  • Monthly Storage Fees: Charged for inventory stored in Amazon’s warehouse for more than 365 days.
  • Long-Term Storage Fees: Charged for inventory stored in Amazon’s warehouse for more than 180 days.

eBay

eBay charges different fees depending on the type of listing and the final value of the item sold. Some of the fees that eBay charges include:

  • Insertion Fees: Charged when you list an item for sale on eBay. The fee varies based on the starting price of the item and the listing format used.
  • Final value Fees: Charged as a percentage of the total amount of the sale, including shipping and handling fees, and varies depending on the item category and the final sale price. 
  • Payment Processing Fees: Charged if you choose to use eBay’s managed payments system.
  • Optional Listing Upgrade Fees: Charged if you choose to add optional features to your listing, such as a subtitle or a gallery picture.

Amazon vs Ebay: Fulfillment Methods

One of the biggest challenges of selling on any online platform is order fulfillment. Fulfillment refers to the process of receiving orders, processing them, and shipping them out to customers. 

Amazon and eBay both offer different fulfillment methods that sellers can choose from to streamline this process and provide a better customer experience. 

Amazon

Amazon offers two main fulfillment methods for sellers: Fulfilled By Amazon (FBA) and Fulfilled By Merchant (FBM).

  • FBA: With FBA, Amazon stores your products in their warehouses and handles all the shipping and customer service for you. This can save sellers a lot of time and effort, but it comes at a cost. Amazon charges fees for storage, picking, packing, and shipping your products. These fees can vary based on the size and weight of the item, as well as the time of year and the location of the warehouse. FBA calculators are software tools available to help project what your fees might be. Another important thing to note is that having FBA ranks more favorably when you’re trying to win the Buy Box. Among other criteria like consistent sales and competitive pricing sellers with great customer satisfaction (ahem, fast shipping!) have a leg up. 
  • FBM: With FBM, sellers are responsible for storing, packing, and shipping their own products. This can be more time-consuming, but it can also be less expensive than using FBA.

eBay

For a brief period, eBay tried a fulfillment program called Managed Delivery. Unfortunately, the program didn’t make it off the ground, but there are other fulfillment options for eBay sellers.

  • Self-fulfillment: This is when the seller handles the entire fulfillment process, from storing and packaging the products to shipping them to customers. 
  • Third-Party Fulfillment: eBay also allows sellers to use third-party fulfillment services, such as ShipBob, Fulfillment by Amazon (FBA), or ShipStation, to handle their order fulfillment. 
  • Click and Collect: This is a program that allows buyers to purchase items online and pick them up in person from a physical store or other designated location. Sellers can participate in this program if they have a physical storefront or a retail partner that’s eligible for the program. 

Advertising on Amazon vs Ebay

Amazon and eBay both offer sellers advertising opportunities to promote their products to potential customers. 

Amazon

amazon ads page

Amazon offers a range of advertising options, including sponsored product, brand, and display ads, along with others. By utilizing Amazon SEO and optimizing your listings in tandem with these advertising strategies, increasing product visibility and sales is inevitable.

  • Sponsored Products: This is a pay-per-click (PPC) advertising program that allows sellers and vendors to promote their products on Amazon’s search results pages and product detail pages. Ads appear as “sponsored” listings and can help increase visibility and sales for your products. 
  • Sponsored Brands: This is another PPC program that allows sellers and vendors to create ads that feature their brand logo, a custom headline, and multiple products. These ads appear at the top of Amazon’s search results pages and can help drive brand awareness and consideration. 
  • Sponsored Display: This is a self-service display advertising program that allows sellers and vendors to retarget their audiences and show ads to shoppers on and off Amazon. Ads can be targeted based on interests, product categories, and other criteria, and can help drive sales and repeat purchases. 
  • Stores: Amazon Stores allow brands to create their own multi-page storefronts on Amazon and showcase their products, videos, and brand messaging. Stores can help increase brand loyalty and provide a more immersive shopping experience for customers. 
  • Video Ads: Amazon also offers video advertising options, including in-stream video ads and OTT (over-the-top) video ads. These ads can help reach audiences across Amazon-owned properties like Amazon Prime Video and IMDb TV. 

eBay

ebay ads

The advertising options available to eBay sellers may vary depending on their location, their sales activity, and the type of products they sell.

  • Promoted Listings: This is a pay-per-sale advertising program that allows sellers to promote their listings on eBay’s search results pages and product detail pages. Ads appear as “promoted” listings and can help increase visibility and sales for your products. 
  • eBay Display Ads: This is a display advertising program that allows sellers to display ads to shoppers on eBay and on third-party websites through eBay’s advertising network. Ads display to potential customers based on interests, product categories, and other criteria, and can help drive sales and repeat purchases. 
  • eBay Promotions Manager: This is a tool that allows sellers to create customized promotions and discounts for their products. Sellers target specific audiences with their promotions through eBay newsletter subscribers or buyers who have left items in their cart. 
  • eBay Stores: eBay Stores allow sellers to create their own branded storefronts on eBay and showcase their products, videos, and brand messaging. Stores can help increase brand loyalty and provide a more immersive shopping experience for customers. 
  • Managed Payments Promotions: This is a program that allows sellers enrolled in eBay’s Managed Payments service to offer special promotions, such as discounts or free shipping, to buyers who pay using certain payment methods. 

Payment Methods

Payment methods are an essential aspect of online marketplaces. Both Amazon and eBay offer a range of payment options for buyers and sellers, including credit and debit cards, PayPal, and other payment methods.

Amazon

Amazon offers a variety of payment options for buyers and sellers, including credit and debit cards, Amazon Pay, and other payment methods. For sellers, Amazon collects payment from buyers on your behalf and deposits funds directly into your bank account.

eBay

eBay also offers a range of payment options for buyers and sellers, including PayPal, credit and debit cards, and other payment methods. eBay collects payment from buyers on your behalf, and you can either withdraw the funds directly to your bank account or use them to make purchases on eBay.

Customer Support

When it comes to customer support, Amazon and eBay differ in their approach. 

Amazon

  • Customer service phone and chat: Amazon provides customer service support over the phone and through online chat. Customers can contact Amazon’s customer service team to get help with issues like order status, returns and refunds, and technical support. 
  • Help pages and self-service tools: Amazon offers a comprehensive set of help pages and self-service tools to assist customers with common issues. These resources cover topics like orders and shipping, returns and refunds, and account settings. 
  • Community forums: Amazon hosts community forums where customers can ask questions and share advice with each other. Amazon staff moderate these forums and can be a helpful resource for customers looking for answers to specific questions. 
  • Amazon Virtual Assistant: Amazon’s virtual assistant, Alexa, can help customers with a variety of tasks, including checking the status of orders, tracking packages, and placing orders. 
  • Amazon Seller Support: Amazon also offers support for sellers through its Seller Central platform. This includes help with account setup, product listing, and order fulfillment. 

Overall, Amazon is known for providing excellent customer service, with a focus on fast response times and efficient resolution of customer issues. 

eBay

  • Customer service phone and chat: eBay provides customer service support over the phone and through online chat. Customers can contact eBay’s customer service team to get assistance for issues related to order status, returns and refunds, and technical support. 
  • Help pages and self-service tools: eBay offers a comprehensive set of help pages and self-service tools to assist customers with common issues. These resources cover topics like buying and selling on eBay, managing their account, and resolving issues with transactions.
  • Community forums: eBay hosts community forums where customers can ask questions and share advice with each other. The forum is moderated by eBay.
  • eBay Resolution Center: eBay has a Resolution Center where buyers and sellers can open and manage cases related to transactions. This can help resolve issues like items not received or items not as described. 
  • eBay for Business: eBay offers support for sellers through its eBay for Business program. This includes educational resources, community forums, and dedicated customer service support for sellers. 

Overall, eBay is known for providing good customer service, with a focus on resolving customer issues and ensuring a positive shopping experience for buyers and sellers alike. 

Customer Feedback Systems

A customer feedback system is a critical aspect of any online marketplace. It allows buyers to leave reviews and ratings, providing valuable feedback to sellers, and helping other customers make informed decisions. Both Amazon and eBay have their own unique customer feedback systems.

Amazon

Amazon’s customer feedback system is known as the Product Review System. It allows customers to leave feedback on the products they have purchased, as well as on the seller’s performance. Amazon’s system uses a five-star rating system, and customers can leave comments about their experience with the product and the seller.

Amazon encourages sellers to maintain a high rating and respond to any negative feedback promptly. High ratings can help increase sales, while low ratings can negatively impact sales and potentially result in account suspension or removal. Sellers using Sellesta’s review analysis tool, sellers can filter reviews by aspect and sentiment to see what customers are saying about any product on Amazon. The AI analyzes key tags and the emotional tone of key tags to break down what customers really think about your competitors’ products. 

eBay

eBay’s customer feedback system is called Feedback Score. Buyers can leave feedback on the seller’s performance, including the quality of the item, communication, and shipping speed. The platform encourages sellers to maintain a high rating, as negative feedback can affect their seller status.

eBay’s feedback system also uses a five-star rating system, and sellers can respond to feedback left by buyers. Additionally, eBay offers a Best Match search algorithm that takes into account a seller’s feedback score and other factors to determine the search results. This means that maintaining a high feedback score can improve visibility and increase sales.

Traffic Statistics

Traffic statistics

Web traffic measures how many people visit a website and the actions they take while there. This is a key metric for retailers as it helps them understand their customer’s behaviors, identify areas for improvement, and help measure the success of marketing campaigns.

Amazon

As the world’s largest online retailer, Amazon averages over 2.5 billion monthly visits to its website. Their bounce rate (the measure of how many visitors leave the site after only viewing one page) is 33.03%, the average number of pages per visit is 9.33, and the average visit duration is seven minutes.

eBay

eBay has 753.7 million visits monthly, with a bounce rate of 36.96%. Visitors to eBay average 6.89 pages per visit, with an average duration of 6 minutes and 46 seconds.

Pros and Cons of Selling on Amazon

When it comes to selling products online, Amazon’s stats prove it’s one of the biggest players in the game. With millions of active users and a wide range of features, Amazon can be an incredibly lucrative platform for sellers. However, like any platform, there are pros and cons to consider before diving in. In this section, we’ll take a closer look at the advantages and disadvantages of selling on Amazon.

Pros

  • High conversion rates: Amazon’s customer base is huge, which means that sellers have access to millions of potential buyers. Additionally, Amazon’s Prime program offers free two-day shipping to Prime members, which can lead to higher conversion rates for sellers who offer Prime-eligible products. 
  • Broader consumer reach: As one of the world’s largest online marketplaces, Amazon has a global reach and can connect sellers with customers all over the world. This can be especially beneficial for sellers who are looking to expand their customer base and sell to a wider audience. 
  • Lower fees: While Amazon does charge fees to sellers, many sellers find that the fees are lower than other ecommerce platforms. Additionally, the fees are typically more transparent, with Amazon providing clear breakdowns of the fees and charges for each sale. 
  • Strong customer support and trust: Amazon has built a reputation for providing excellent customer service, which can help sellers build trust with their customers. Additionally, Amazon’s A-to-Z Guarantee program offers additional protection for buyers, which can give them more confidence in their purchases. 
  • Better branding opportunities: Amazon offers several branding opportunities for sellers, including the ability to create their own branded storefronts and use Amazon’s Sponsored Products advertising platform to promote their products. 
  • Amazon FBA: the convenient and popular program helps sellers streamline their fulfillment processes and offers fast and reliable shipping to their customers. 

Cons

  • Extra FBA fees: While Amazon’s FBA (Fulfillment by Amazon) program can be a convenient way for sellers to handle their fulfillment processes, it does come with extra fees, such as storage fees, fulfillment fees, and removal fees. These fees can eat into a seller’s profits and can be difficult to manage if they’re not properly factored into the pricing strategy. 
  • Stricter listing requirements: Amazon has strict listing requirements, including product titles, descriptions, images, and more. Sellers who don’t adhere to these requirements can face penalties, including having their listings suppressed or removed from the site. This can be challenging for new sellers who are still learning the ropes of selling on Amazon. 
  • More competition: With millions of sellers on the platform, Amazon can be a highly competitive marketplace. This can make it difficult for new sellers to get their products noticed and can require significant effort to stand out in a crowded marketplace. 
  • Stricter performance metrics: Amazon has strict performance metrics that sellers must meet to maintain their selling privileges. This includes metrics related to order defect rate, cancellation rate, late shipment rate, and more. If a seller’s performance metrics fall below Amazon’s standards, they may face penalties, such as account suspension or removal. 

Pros and Cons of Selling on eBay

eBay is another popular online marketplace that attracts millions of buyers and sellers from around the world. Like Amazon, eBay has its own set of pros and cons that sellers should consider before deciding to use the platform. 

Pros

  • Less competition: eBay has a smaller pool of sellers compared to Amazon, which means there may be less competition for certain products or categories. This can make it easier for new sellers to get started and gain traction. 
  • Customer loyalty: eBay has a large and dedicated customer base, many of whom are long-time users of the platform. This can make it easier for sellers to build customer loyalty and repeat business, as buyers are often more likely to return to a platform they’re familiar with. 
  • Fewer category restrictions: eBay has fewer category restrictions compared to Amazon, which means sellers may have more flexibility in what they can sell on the platform. This can be particularly beneficial for sellers who specialize in niche or unique products.
  • Fewer listing requirements: eBay has fewer listing requirements compared to Amazon, which can make it easier for new sellers to get started. For example, eBay doesn’t require sellers to include specific product identifiers (such as UPC or EAN codes) in their listings, which can be a time-consuming process for sellers who are new to the platform. 
  • Ability to sell vintage or second-hand items: eBay is well-known for its ability to sell vintage or used items, which can be a unique selling point for sellers who specialize in these types of products. eBay has a dedicated marketplace for vintage items, as well as a large category for used products, which is particularly beneficial for sellers who deal in antiques, collectibles, or other vintage items. Amazon only allows used items in a few categories under strict conditions, or through their Amazon Renewed program, which is only available to top sellers. 

Cons

  • Smaller audience: eBay’s audience is generally smaller compared to Amazon, which means there may be fewer potential buyers for a given product or category. 
  • Less consumer trust: While eBay has a dedicated customer base, some consumers may still have concerns about the safety and legitimacy of buying from individual sellers on the platform. This can lead to lower conversion rates and sales. 
  • No managed fulfillment options: Unlike Amazon, eBay does not offer an in-house fulfillment option for sellers. This means sellers are responsible for handling their own shipping and logistics, or working on their own with third-party providers, which can be time-consuming and costly. 
  • Higher seller fees: eBay’s seller fees can be higher compared to other platforms, such as Amazon. For example, eBay charges a higher final value fee (a percentage of the sale price) for most categories, which can eat into a seller’s profits. 

Who Should Sell On Amazon vs Who Should Sell on eBay

Deciding which platform to use ultimately depends on the specific needs and goals of each individual seller. Generally, Amazon is better suited for sellers who want to focus on high-volume sales of new products, while eBay could be better suited for sellers who want to specialize in unique or collectible items.

More About Selling on Amazon vs eBay

Selling on Amazon and eBay each have their own advantages and disadvantages, as we’ve discussed in this article. However, both platforms offer significant potential for sellers to grow their businesses and reach a wider audience of customers.

Is it cheaper to sell on Amazon or eBay?

The cost of selling on Amazon and eBay can vary depending on a variety of factors, including the types of products being sold, the fulfillment method being used, and the fees associated with each platform. Generally, eBay may be cheaper for smaller-scale sellers or those who sell unique or collectible items, while Amazon may be more cost-effective for larger-scale sellers or those who sell new, high-volume products.

Is it worth selling through Amazon?

For many sellers, selling in-demand products on Amazon can be a worthwhile investment that can help them reach a wider audience of customers and grow their businesses. However, it’s important to weigh the potential benefits against the costs and fees associated with selling on the platform.

Is selling on Amazon safer than on eBay?

Both Amazon and eBay have measures in place to protect sellers and buyers from fraud and other forms of misconduct. However, it’s important for sellers to be vigilant and take steps to protect themselves and their businesses, such as carefully monitoring their accounts, following platform guidelines, and maintaining good customer relationships.

Improve Your Sales on Amazon Today

There are many factors to consider when choosing to sell ecommerce through Amazon, eBay, or both. But wherever you focus your efforts, it’s important to leverage advanced tools like Sellesta to automate and optimize your marketing and business operations if you want to see the greatest return. 

Sellesta is a powerful tool that helps sellers improve their sales and grow their business on Amazon. With features such as listing optimization, listing scoring, and review analysis, Sellesta can help you maximize the ranking and conversion of your product listings, ultimately leading to increased sales and revenue.

In addition to its core features, Sellesta also offers a range of advanced tools and services, including PPC management, competitor analysis, and inventory management. These tools can help you stay ahead of the competition, optimize your advertising spend, and streamline your operations, ultimately leading to a more profitable business.

If you’re looking to grow your Amazon sales, Sellesta is the tool for you. 
Sign up today to maximize your sales and grow your business!

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