In today’s world, the market for online stores and e-commerce is on the rise. The competition is fierce, and the dominators of this market are Amazon and eBay. Both platforms offer new businesses the opportunity to set up their online stores and help scale a multi-channel retail business. These two platforms offer their sellers access to their target audience globally, but both of them have different business models, fee structures, and customer expectations. Now, people always have a dispute between Amazon vs eBay, which one is better? In this blog, we will draw a comparison between the two, so you know which one is best suited for you.
Overview of eBay and Amazon Marketplace
Amazon is the world’s largest online marketplace, which allows third-party sellers to showcase their products to a global audience. This is like an online departmental store that sells everything.
Amazon is a retailer itself; it sells its own products alongside yours. It allows sellers to make and sell their products under different categories. They have their own Fulfillment by Amazon (FBA) service that handles storage, shipping, and customer service. This allows sellers to simplify the management of large inventories and logistics.
eBay, on the other hand, provides a platform for sellers who want to list their unique products for sale to buyers from all around the globe. It doesn’t sell itself; instead, it connects buyers and sellers. It’s ideal for individual sellers, collectors, and small businesses. Here, people place bids or buy items directly.
Everything You Need to Know about Amazon vs. eBay
Amazon vs. eBay: Usage & Seller Tools
Amazon Seller
- Amazon Seller is designed for professional sellers. Selling on Amazon vs eBay is quite easier because it offers a structured and powerful dashboard suitable for managing large inventory and complex sales operations.
- It provides sophisticated tools, such as automated pricing, inventory alerts, and detailed sales analytics, enabling data-driven decision-making and efficiency at scale.
- With its built-in advertising tools, Amazon enables sellers to market their products, making it easier to increase their visibility on the site.
eBay Seller
- EBay offers the most straightforward and accessible listing process, making it very easy for beginners to start selling with minimal knowledge.
- It allows sellers to choose between an auction-style or fixed-price listing while also allowing them to customize their product pages more freely than Amazon.
- Its dashboard is not quite as advanced as Amazon’s, but it still provides its sellers with useful tools. These include customer insights, sales summaries, and promotional options to enhance visibility.
- This platform is more suited for vintage items, second-hand or niche items, with fewer restrictions and more personalized buyer-seller interaction.
Fee Structure and Profit Margin
In a comparison of eBay vs Amazon, the differences in their operations and logistics hold significant importance.
Amazon’s fee structure is quite complicated and comparatively more expensive, especially when using their fulfillment services.
- Referral Fee: Depending on the category, Amazon charges a referral fee ranging from 8% to 15%.
- Monthly Fee: There are two plans provided by the platform, one is that 0.99$ will be deducted per item, and the other is 39.9$ per month.
- FBA Fees: Sellers who use FBA must pay storage and shipping fees separately; these fees depend on the product’s size, weight, and storage requirements.
- Extra Fees: Additional costs may be incurred, including closing fees, refund processing fees, and long-term storage penalties.
The cost structure of eBay, however, is easier to understand and simpler. Its fee is also quite low, especially in comparison with Amazon.
- Insertion Fee: eBay provides 250 free listings per month; after that, the fee is $0.35 per listing.
- Final Fee: The final fee is around 10%-12%, which also includes shipping. Prices get raised if the seller upgrades their options.
- Payment Processing Fee: This is just a small amount of fee that automatically gets deducted when the buyer pays for the product.
Fulfillment and Logistics
When deciding between platforms, we also compare Amazon FBA vs eBay to make a decision.
Amazon FBA offers the most convenient solution, where sellers can ship their products to Amazon warehouses, and the company handles the rest, including picking, packing, shipping, customer support, and returns.
It’s best for:
- Scalability
- Prime delivery
- Improved sales
eBay lacks an in-house fulfillment system equal to its competitors. Although eBay collaborates with third-party logistics companies and provides a few fulfillment services, it is not as extensive as Amazon FBA.
On eBay, sellers are forced to either handle logistics themselves or hire an external service, which is less efficient and more unpredictable in terms of quality and cost.
Competition and Market Saturation
In 2025, the Amazon marketplace will be highly competitive, with millions of sellers vying for visibility on the first pages of search results. Products are closely standardized, and several sellers compete primarily on price. Amazon offers the opportunity for branded or private label sellers to be profitable; however, price undercutting and the prevalence of imitation products are concerns. Furthermore, Amazon itself sells numerous items, directly competing with third-party sellers.
eBay has a lower saturation level, especially in the niche, as it has;
- It has an auction and fixed pricing listing style.
- Great for sellers of used, rare, or collectible goods.
- Provides room for diversity and creativity
- More profitable and offers a wide range of prices
However, if you are deciding whether to sell on eBay or Amazon, you must be quite clear about what you want, your product niche, and whether it will thrive on either marketplace.
Risk & Seller Protection
Amazon operates on a strict seller policy level, in which any slight violation, such as late delivery or low customer reviews, may result in a suspended account or unpaid payment.
Although this has a great degree of buyer trust, it is at great risk when it comes to the sellers competing with the products of Amazon. The process of settling disputes is slow and inclined to buyers. In comparison, selling on eBay vs. Amazon is quite complicated and has a lot of rules that need to be followed.
EBay is more flexible and lenient. There is more time to work out problems on the seller’s side without any penalties, and there is more personalization of branding. Nonetheless, seller protection on eBay may be inconsistent, leaving sellers to face the risk of fraudulent returns or buyer disputes, where dispute resolutions may not always be reliable or even biased in favor of the buyer.
- Are mobile apps available for handling these stores?
Yes, both platforms now have mobile apps to ensure smooth and convenient handling of online stores.
- Can I run ads outside the platform?
Sellers are allowed to run Google Ads or social media marketing to drive traffic to their Amazon store or eBay listing.
- Do I need a business license to open an online store on these platforms?
No, not necessarily, but if you scale it and run a full-time business, then maybe you would require one.
Which One is Better: Comparison of Amazon vs eBay
| Categories | Amazon | eBay |
| Business Model | Sells its product alongside third-party sellers | Just like a regular marketplace, connecting buyers and sellers directly |
| Ease of Selling | Powerful tools with an advanced setup provide a steeper learning curve | Beginner-friendly, simple listing and more customization |
| Fees & overall cost | The seller pays a higher fee of around $39.99 monthly. | Provides free 250 listings each month. After that, charges 0.35% per sold item. |
| Fulfillment | Amazon FBA handles storage, delivery, and customer service. | No in-house fulfilments connect with a third party to outsource logistics |
| Seller Experience | Strict policies and buyer-focused. | More flexible policies but inconsistent in seller protection |
To conclude, Amazon is the ideal option for those with a serious e-commerce business looking to scale and automate their operations to drive growth. However, if you are looking for a relaxed and affordable environment to sell individual or niche items, then eBay is the right choice. Choosing between these two platforms entirely depends on your goals, experience, and product.