eBay vs. Amazon: Which platform is best for sellers?

Selling online has become a go-to strategy for businesses of all sizes, and when it comes to the top marketplaces, eBay and Amazon often steal the spotlight. 

While both platforms offer big opportunities, they also come with their own sets of challenges. So, how do you determine which is the right match for your business? That’s exactly what we will explore in this post. 

In this insightful guide, we break down the key differences between eBay vs. Amazon, covering everything from their business models and fees to customer reach so that you can make the best choice based on your business goals. We will also show you how Gelato’s print on demand services can simplify your fulfillment process, regardless of the platform you choose for your brand.

• eBay's auction-based model and fixed-price listings cater to a versatile selling approach, while Amazon combines a marketplace for third-party sellers with its retail products.

• Amazon tends to offer a broader audience reach due to its massive consumer base, while eBay's appeal lies in niche markets.

• Fees differ significantly between both platforms, with Amazon known for higher selling fees, but offering more comprehensive services.

• Gelato's print on demand service can streamline product creation and fulfillment, meeting most sellers' needs on eBay and Amazon.

Both platforms are popular online marketplaces, but they differ in their business models, target audiences, and fees. 

eBay operates as a platform where sellers can list items for auction or at a fixed price. This attracts value-conscious shoppers seeking deals and unique items. Amazon sells its own products and also hosts third-party sellers. This broader approach appeals to a wider audience seeking convenience and a vast selection of products. 

In terms of fees, eBay generally has lower fees than Amazon, though they can vary depending on the category. Amazon's fees include a referral fee, a closing fee, and a per-item fee.

Now that we have a general overview of each platform, let's explore their differences to understand what sets each platform apart.

Business model

eBay's business model

Unlike Amazon, eBay allows sellers to list items for auction or at a fixed price. This model is appealing if your products are collectibles or items that may draw competitive prices and bidding, potentially driving up the final sale price.

eBay typically grants more leverage to sellers concerning shipping and listing customization. You can tailor your listings to match your business's branding, which helps create a personalized shopping journey for eBay buyers. 

eBay charges an insertion fee for listing an item and a final value fee, which is a percentage of the total sale price, including shipping. The final value fee typically ranges from 10% to 12.9%, depending on the product category. Additional fees for promotional tools like bold titles, subtitles, or featured listings may apply.

Amazon's marketplace structure

Amazon allows third-party sellers to offer their products on the same platform that sells branded and unbranded merchandise. This can lead to high competition and expose your products to Amazon's vast customer base.

For Amazon sellers using Fulfillment by Amazon (FBA), much of the fulfillment process is directly handled by Amazon, allowing you to focus more on scaling your business. 

Amazon charges a referral fee, which ranges from 6% to 45% of the product's sale price, depending on the category, with most categories around 15%. For FBA sellers, additional fees include fulfillment fees, which cover picking, packing, shipping, and storage fees based on the size and duration of storage in Amazon's warehouses. 

Target audience

eBay attracts buyers who are looking for unique, rare, or second-hand items, including collectibles, vintage products, and niche items that may not be available elsewhere. eBay is also popular among bargain hunters who are willing to engage in auctions to secure lower prices. 

Many buyers on eBay appreciate the personalized shopping experience and the opportunity to buy from small, independent sellers, who may offer more flexibility in pricing and shipping options.

Amazon caters to a broad, diverse audience seeking convenience, fast shipping, and a wide selection of products. Its customer base ranges from individuals seeking everyday household items to professionals looking for electronics, tools, or office supplies. Amazon's Prime membership appeals to customers prioritizing quick delivery and premium services such as streaming and exclusive deals.

Now that you've got an idea of each platform, let's look into the pros and cons of each platform to help streamline this decision-making process.

Audience reach

eBay boasts a substantially global presence, opening storefronts to international buyers. However, Amazon often holds the edge with greater brand recognition and is trusted by millions, especially among its Prime members. Both platforms provide extensive access, but Amazon’s strong customer base and the possibility of tapping into Prime’s vast network is beneficial. Consider where your target market lies to leverage audience size for maximum reach and sales.

Seller fees

eBay offers a more straightforward fee structure, often more appealing for new sellers with a lower final value fee. Amazon's fees can be a bit more complex, including referral fees, monthly storage fees, and variable closing fees. Amazon Professional sellers often pay a subscription fee, while Individual sellers incur a per-item fee, which may affect profitability depending on sales volume.

Ease of use

Amazon boasts a highly streamlined interface, intuitive navigation, and convenient features like one-click buying. For newcomers, its simplicity can be a dealmaker. eBay provides more customization in listings, allowing sellers to differentiate themselves. However, this flexibility may present a steeper learning curve. 

Product types

eBay excels in unique, vintage, and collectible items, making it ideal for any eBay seller with one-of-a-kind or rare inventories. Amazon is renowned for its vast array of new and popular items, appealing to a broad audience looking for mainstream products. Understanding these distinctions is crucial for sellers in making informed decisions about where their offerings will achieve visibility.

Fulfillment methods

When it comes to fulfillment, Amazon has an edge with its Fulfillment by Amazon (FBA) service. FBA offers a hassle-free experience by managing storage, packing, shipping, and even handling returns for you. Conversely, eBay requires sellers to manage their own logistics, offering more control but also more responsibility.

Seller support

Amazon provides extensive 24/7 support, ensuring sellers can resolve issues swiftly. eBay offers support via its Seller Hub, delivering comprehensive tools and tutorials. Both platforms have seller protection services, which helps build trust with your customer base. The level of support you can expect from each can greatly influence your experience, helping you make informed decisions. 

Payment processing

eBay partners with PayPal, providing a secure and familiar option for sellers. eBay enables various payment methods, including credit cards and Google Pay. Amazon streamlines transactions by using stored payment information, offering smooth transactions for buyers. Understanding each platform's nuances is important to ensure smooth payment processing fees.

With the pros and cons in place, let's consider a few crucial factors when choosing between the two platforms.

Understand your target audience

eBay appeals to collectors and deal-seekers looking for unique, potentially lower-priced items, whereas Amazon attracts those prioritizing convenience and fast shipping, particularly through its Prime offering. When researching your target audience, consider key demographics such as age, location, and income level.

For instance, eBay often caters to a broad age range, while Amazon generally attracts younger, tech-savvy buyers. Additionally, evaluate shopping preferences—whether your audience prefers auction-style listings or fixed-price models. These insights will help you choose the right platform and optimize your listings.

Analyze product type and inventory needs

eBay is the ideal marketplace for unique, vintage, or collectible items, offering auction-style listings that attract buyers seeking rare finds. eBay selling offers more flexible selling options for those with varied or limited inventory, allowing for both auction-style and fixed-price listings.

Amazon is better suited for mass-produced goods and widely available products, thanks to its focus on convenience and fast shipping. eBay also allows more flexibility for sellers with varied or limited inventory, as it supports both auction-style and fixed-price listings, giving sellers more control.

Compare audience size and reach for online shoppers

Both eBay and Amazon attract millions of shoppers from around the world, but their audience dynamics vary. Amazon boasts an enormous global customer base, supported by millions of loyal Prime members who value fast shipping and convenience. This makes Amazon ideal for sellers seeking a broad, international market. 

eBay’s strength lies in its niche markets. Though it has a smaller audience, eBay is perfect for sellers offering rare or collectible items and attracting value-seeking customers. Amazon provides international reach, whereas eBay is more commonly used for domestically focused sales.

Review seller tools and resources

Both eBay and Amazon provide powerful tools and resources to support sellers, but they differ in their approach. Amazon’s Seller Central offers a comprehensive, intuitive platform to manage inventory, order processing, and customer interaction tools, making it ideal for high-volume sellers. 

In contrast, eBay’s Seller Hub provides an organized dashboard that simplifies the listing and sales tracking process, making it easy to manage multiple products. Additionally, Amazon offers storefront design tools for professional sellers, while eBay allows for more customization in individual product listings.

Consider fulfillment and shipping options

How you approach fulfillment and shipping can greatly influence your experience on these platforms. Amazon’s Fulfillment by Amazon (FBA) service automates storage, packaging, and shipping needs, making it a convenient choice for sellers who prefer a hands-off approach. However, it comes with added costs that can affect your pricing strategy. 

eBay provides more flexibility, allowing sellers to handle their own shipping methods. This gives sellers greater control over logistics but requires more manual effort. Additionally, shipping costs on eBay can be closely managed according to your choice of shipping provider.

Compare fixed-price listings vs. seller or subscription fees

Understanding the fee structures of each platform is essential for profitability. eBay offers both free and paid listings depending on your store subscription level. Sellers receive a set number of free listings monthly before applying insertion fees. eBay store subscription can also reduce selling fees, making it a cost-effective option for sellers who regularly list large volumes of items.

Amazon’s fee structure includes referral fees and subscription plans that better suit sellers with high inventory turnover. Weighing the costs of both platforms against your sales strategy will help determine which is most profitable.

Consider business profitability

Several factors influence profitability when choosing between eBay and Amazon selling. eBay generally charges insertion fees for listings and final value fees when an item sells, which is ideal for sellers with fewer listings. Amazon charges a referral fee percentage per sale and offers different subscription plans, which work better for high-volume sellers.

Both platforms offer paid advertising to boost product visibility—Amazon’s algorithm-driven showcasing may require a higher budget, while eBay's auction format can lead to more spontaneous sales. Evaluating your costs, listing visibility, and return policies will help you choose the right platform.

We've explored the unique dynamics of selling on eBay versus Amazon, providing insights into audience reach, seller fees, and fulfillment strategies. Whether you're drawn to eBay's auction charm or Amazon's vast marketplace, the key to success lies in enhancing your selling strategy. 

Gelato is a powerful partner in this venture, offering smooth print on demand services to elevate your business. You can effortlessly create products and fulfill orders without the usual logistical hassles. Gelato's solutions are designed to simplify the process, enabling you to focus on growing your business and expanding your reach. 

Don't let the complexities of ecommerce hold you back! Sign up for Gelato today and choose a subscription plan that fits your needs.

Do consumers trust Amazon or eBay?

Consumers generally trust Amazon more than eBay because of its robust customer service, return policies, and consistent buying experience. Amazon is perceived as ensuring higher accountability, making it a preferred choice for buyers confident in their purchases.

Can you make more money selling on eBay or Amazon?

Both platforms offer unique advantages. Amazon boasts a wider customer base, leading to potentially higher sales for high-volume products. However, eBay’s lower fees can lead to higher profit margins per item. Choosing the right platform depends on your product type, pricing strategy, and business goals.

What products should eBay sellers focus on?

eBay sellers should focus on unique and collectible items, vintage products, clothing, automotive parts, and accessories. This marketplace attracts price-sensitive customers, making it ideal for distinct, niche items that are less common on other platforms.

Who is Amazon best for?

Amazon is ideal for sellers of a wide range of products who can meet the demands of fast-paced, high-volume sales. Businesses aiming for broad exposure and leveraging tools like Amazon Prime for rapid delivery will thrive on Amazon’s platform, reaching a global audience efficiently.