Amazon vs eBay: Pros and Cons of Selling on Each Platform

Looking to sell online? Amazon's larger audience (300M+ users) offers greater reach but higher fees (15%) than eBay's more flexible marketplace (13% fees). Amazon's FBA simplifies fulfillment, while eBay excels for unique and collectible items with fewer restrictions.

• Amazon offers larger reach with 300+ million users, but charges higher fees (15% average referral fee) compared to eBay's 13% final value fee

• Amazon provides two fulfillment options (FBA and FBM), while eBay only offers self-fulfillment, affecting your operational approach

• FBA Lead List helps sellers identify profitable inventory opportunities across the Amazon marketplaces with actionable data

• Amazon's A-Z Guarantee and stronger buyer trust creates a more secure shopping environment but comes with stricter product restrictions

• eBay excels for unique, used, and collectible items with its auction-style format and lower barrier to entry

Why Choosing Between Amazon and eBay Is Critical for Online Sellers

Picking the right e-commerce platform for your business can determine whether you thrive or merely survive in the competitive online marketplace. With Amazon and eBay standing as the #1 and #3 platforms respectively, understanding what makes each one unique is essential for strategic positioning.

The decision extends beyond simply listing products—it's about finding the platform that best supports your business model, inventory type, and growth goals.

Platform Fundamentals That Drive Sales Success

1. Launch Histories and Market Positions

Both platforms have shaped e-commerce since the mid-1990s. Amazon launched in 1994 (initially as Cadabra before rebranding in 1995), while eBay followed in September 1995. Despite starting around the same time, they've grown differently, with Amazon becoming a complete retail ecosystem and eBay maintaining its marketplace roots.

Amazon's growth from online bookstore to "everything store" has made it the dominant e-commerce platform globally. eBay, while still significant, has kept its identity as a peer-to-peer marketplace where individual sellers can succeed without competing directly with the platform itself.

2. Customer Trust Factors

Consumer confidence directly affects purchasing decisions, and Amazon has built exceptional buyer trust. The platform's A-Z Guarantee offers thorough purchase protection, giving buyers security when making purchases. This strong buyer protection creates a cycle that attracts more customers and drives higher conversion rates for sellers.

eBay's return policies vary by seller, with some offering no returns. While this gives sellers flexibility, it can create hesitation among buyers worried about product quality or accuracy. The difference in trust systems significantly affects how consumers approach purchases on each platform.

3. Selling Experience Differences

Selling on Amazon tends to be more structured and standardized, with strict requirements for product listings, images, and seller performance. This standardization creates a consistent shopping experience but requires sellers to follow specific guidelines.

eBay offers more flexibility in listing creation and presentation, allowing sellers to create more personalized storefronts and listings. This benefits unique products that need detailed descriptions and customized presentation approaches.

Fulfillment Models That Impact Your Operations

1. Amazon FBA: Hands-Off Advantage

Amazon's Fulfillment by Amazon (FBA) program offers a major operational advantage that eBay doesn't provide. With FBA, Amazon manages storage, packaging, shipping, customer service, and returns processing. This complete fulfillment solution helps sellers grow their businesses without increasing their workload proportionally.

The hands-off nature of FBA allows sellers to concentrate on product sourcing, marketing, and business growth instead of daily order fulfillment. For businesses wanting to scale quickly or operate with minimal staff, this presents a significant advantage over eBay.

2. Amazon FBM vs. eBay Self-Fulfillment

Both Amazon's Fulfillment by Merchant (FBM) option and eBay's standard fulfillment model require sellers to handle their own shipping and customer service. This approach gives greater control over the customer experience and potentially higher profit margins by removing fulfillment fees.

eBay has less structure in its shipping requirements, giving sellers more flexibility in carrier selection and shipping timelines. This benefits sellers of specialty items that need custom handling or sellers in areas with limited standard shipping options.

3. How Fulfillment Affects Customer Experience

Fulfillment methods directly impact customer experience, from delivery speed to return ease. Amazon FBA provides consistent, Prime-eligible shipping that many consumers expect, along with simple returns processing that builds buyer confidence.

Self-fulfillment models on both platforms place more responsibility on sellers to maintain service standards. While this can create varied customer experiences on eBay, Amazon maintains stricter performance requirements even for FBM sellers, helping maintain their reputation for reliable service.

Fee Structures That Determine Your Profits

1. Amazon's Referral and Subscription Fees

Amazon's fee structure includes several elements that affect seller profitability. The platform charges an average referral fee of 15% on each sale, varying by category. Sellers must also choose between an Individual plan ($0.99 per item sold) or a Professional plan ($39.99 monthly subscription).

FBA sellers pay additional fees for storage, fulfillment, and optional services. While these fees exceed eBay's, they should be weighed against the time savings and operational benefits that Amazon's infrastructure provides.

2. eBay's Listing and Final Value Fees

eBay's fee structure is typically simpler and often cheaper. Sellers get 250 free listings per month, with additional listings costing $0.35 each. For sold items, eBay charges a final value fee averaging around 13% of the total sale amount, usually lower than Amazon's referral fees.

Without fulfillment and storage fees (since all eBay sellers manage their own fulfillment), sellers can achieve higher profit margins, especially for items with low turnover rates that would accumulate ongoing storage fees on Amazon.

3. True Cost Comparison for Typical Products

When comparing actual costs of selling on each platform, look beyond basic fee percentages. For high-volume sellers of standardized products, Amazon's Professional plan and FBA can create economies of scale that offset higher per-item costs. For sellers of unique or low-volume items, eBay's lower fees and lack of subscription requirements may produce better profit margins.

For a $50 product on Amazon with FBA, fees might total 30-40% of the sale price including referral, fulfillment, and storage fees. The same item on eBay might incur only 13-15% in fees, but the seller must handle all fulfillment operations and customer service themselves.

Buyer Traffic and Audience Differences

1. Amazon Prime's 200M+ Customer Advantage

Amazon Prime presents one of the biggest advantages for Amazon sellers. With over 200 million Prime members worldwide (including more than 168 million in the U.S. alone), Amazon offers access to a huge base of loyal, high-spending customers.

Prime members shop more often and spend much more annually than non-Prime customers. They're also more likely to purchase due to the free shipping benefit and trusted Amazon ecosystem. For sellers, this means a ready-made audience of motivated buyers.

2. How 63% of Shoppers Start on Amazon

A remarkable 63% of consumers start their product searches on Amazon instead of general search engines. This makes Amazon not just a marketplace but essentially the default product search engine for many shoppers.

This search behavior gives Amazon sellers significant visibility advantages. When customers are already on the platform searching for products like yours, you're positioned at the crucial first stage of the buying journey. eBay, while popular, doesn't have this same status as a first-stop shopping destination.

3. When eBay's 180M Users Are More Valuable

Despite having fewer active users (approximately 180 million compared to Amazon's 300+ million), eBay's audience can be more valuable for specific product categories. Collectors, hobbyists, and buyers seeking unique or vintage items often prefer eBay's marketplace format.

eBay's auction-style listings also attract bargain hunters and customers willing to compete for items they truly want. For sellers of rare, collectible, or unique items, eBay's smaller but more focused audience can generate higher engagement and potentially better prices than Amazon's larger but more general customer base.

Product Restrictions and Category Requirements

1. Amazon's Stricter Approval Process

Amazon uses significant product restrictions and category gatekeeping to maintain quality standards across its marketplace. Many categories need pre-approval before listing, including Automotive, Jewelry, Watches, Beauty, and Grocery. These restrictions protect both consumers and Amazon's brand reputation.

The approval process often requires thorough documentation, including invoices from authorized distributors, images of product packaging, and sometimes specialized certifications. While this creates higher barriers to entry, it also reduces competition for sellers who successfully complete the approval process.

2. eBay's More Flexible Selling Environment

eBay takes a more relaxed approach to product restrictions. While certain categories like firearms and alcohol have regulatory limitations, most product categories are open to all sellers without pre-approval requirements. This lower barrier to entry makes eBay an attractive starting point for new sellers testing out e-commerce.

The platform's flexibility extends to product condition too. Unlike Amazon's focus on new or like-new items, eBay accepts products across the condition spectrum, from factory-sealed to parts-only. This creates opportunities for sellers with inventory that wouldn't meet Amazon's stricter standards.

Ideal Products for Each Marketplace

1. What Sells Best on Amazon

Amazon's ecosystem favors new, branded, and standardized products with established demand. Top-selling categories typically include consumer electronics, home and kitchen items, books, beauty products, and toys. Products with objective specifications rather than subjective qualities tend to perform better.

Items with consistent, year-round demand typically outperform seasonal or trend-driven products. Amazon's customer base expects competitive pricing, reliable quality, and efficient fulfillment—all factors that favor professional sellers with streamlined operations.

2. What Performs Better on eBay

eBay works best as a marketplace for unique, rare, vintage, and collectible items that benefit from detailed descriptions and photographs. Categories like antiques, collectibles, vintage clothing, discontinued products, and specialized hobby items find especially receptive audiences.

The platform's auction format adds value for items with uncertain market values or those with passionate collector bases willing to bid up prices. Used items across all categories also do well, as eBay's audience accepts pre-owned goods more readily than Amazon shoppers.

3. Cross-Platform Product Strategies

Many successful sellers use both platforms strategically, placing different inventory types where they'll perform best. New, in-demand products can be listed on Amazon with FBA for maximum visibility and operational efficiency, while unique, rare, or used items can go to eBay to reach their ideal audience.

Some sellers also use a sequential strategy, selling new inventory through Amazon initially, then moving any returns or older inventory to eBay as used or open-box items. This maximizes recovery value and extends the sellable lifecycle of inventory.

Payment Processing and Cash Flow Timeline

The payment timeline difference between platforms significantly affects seller cash flow. Amazon typically holds payments for about 14 days after a sale before transferring funds to seller accounts. This holding period allows potential returns or disputes to be resolved before releasing payment.

eBay payments historically processed through PayPal were available almost immediately, though their managed payments system has introduced some delays. Still, eBay's payment timeline remains noticeably faster than Amazon's, benefiting sellers with tight cash flow requirements or those funding inventory purchases from sales proceeds.

Which Platform Matches Your Business Goals and Resources

Choosing between Amazon and eBay depends on matching platform strengths with your specific business goals, inventory types, and operational capabilities. Amazon offers unmatched reach and sales potential for sellers of new, mainstream products who can meet its higher standards and fee structure. The platform especially benefits sellers who can use FBA to deliver consistent customer experiences at scale.

eBay provides an easier entry point with lower fees and fewer restrictions, making it ideal for part-time sellers, those with limited starting capital, or businesses specializing in unique or pre-owned items. The platform gives more control over selling processes but requires more hands-on management.

Many successful e-commerce businesses find value in maintaining presence on both platforms, strategically directing inventory to maximize returns. By understanding the distinct advantages each marketplace offers, sellers can make informed decisions that optimize their specific product mix and business model.

For sellers wanting to optimize their inventory sourcing across both marketplaces, FBA Lead List provides valuable data-driven insights that help identify profitable opportunities based on platform-specific performance metrics.

FBA Lead List helps e-commerce entrepreneurs make data-driven decisions about marketplace selection and product sourcing to maximize profitability across Amazon.