Selling On Amazon vs eBay: Which Platform Will Maximize Your Earning Potential?
Amazon hosts over 2 million active U.S. sellers versus eBay's ~1.7 million. A $30 toy incurs $7 (≈23%) fees on Amazon (15% referral + $2.50 FBA) but only $3.30 (≈11%) on eBay. A seller who shifted 60% of inventory to Amazon FBA between 2018 and 2023 saw AOV rise from $25 to $38 and margin improve from 12% to 15%.
Overview
Amazon and eBay have been the two dominant online marketplaces for more than two decades. Amazon entered the market in 1994, a year before eBay’s 1995 launch, and both now host millions of active sellers. Choosing the right platform can dramatically affect a seller’s profit margin, operational workload, and growth trajectory.
Key Points
- Marketplace size — Amazon reports over 2 million active U.S. sellers, while eBay supports roughly 1.7 million, giving Amazon a larger buyer pool but also fiercer competition.
- Fee structure — Amazon’s referral fees range from 6 % to 45 % plus optional FBA charges; eBay’s final‑value fees average 10 %–12 % with modest insertion fees, making eBay cheaper for thin‑margin items.
- Fulfillment options — Amazon offers Fulfillment by Amazon (FBA) that stores, packs, and ships on the seller’s behalf; eBay relies on seller‑managed shipping, though third‑party logistics can be integrated.
- Buyer intent — Amazon shoppers typically search for specific products and expect rapid delivery, whereas eBay buyers are more price‑sensitive and comfortable with auctions or used goods.
- Advertising tools — Amazon provides Sponsored Products and Sponsored Brands that appear directly in search results; eBay’s Promoted Listings boost visibility but usually generate lower click‑through rates.
- Brand control — Amazon’s strict product‑detail page rules limit custom branding, while eBay lets sellers craft unique listings with greater descriptive freedom.
How the Platforms Differ
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Listing creation —
- Amazon: Sellers must fit into Amazon’s existing catalog, using standardized titles, bullet points, and UPC/EAN codes. For instance, a vendor of silicone baking mats uploads the product under the pre‑existing “Silicone Baking Mat” ASIN, inheriting Amazon’s SEO structure.
- eBay: Sellers enjoy free‑form titles, up to 12 high‑resolution photos, and the choice between fixed‑price or auction formats. A handmade jewelry maker can detail each gemstone’s origin in the description, something Amazon’s template would truncate.
Analysis & Recommendations
Why This Matters
Understanding the fee gap and fulfillment benefits helps sellers choose the platform that maximizes profit. The example shows a real‑world margin boost after moving to Amazon FBA, highlighting the trade‑off between higher fees and higher volume/price. Advertising cost details (e.g., $0.30‑$0.80 CPC on Amazon) also guide budget allocation.
Key Takeaways
- Amazon reports >2 million active U.S. sellers, giving a larger buyer pool than eBay's ~1.7 million.
- Amazon referral fees range 6‑45% plus FBA charges; eBay final‑value fees average 10‑12% with modest insertion fees.
- A $30 toy costs $7 (≈23%) on Amazon (15% referral + $2.50 FBA) vs $3.30 (≈11%) on eBay (10% final‑value + $0.30 insertion).
- Shifting 60% of inventory to Amazon FBA (2018‑2023) lifted average order value from $25 to $38 and net margin from 12% to 15%.
Recommended Actions
- →In Seller Central, open Reports > Fulfillment > Fee Preview and build a spreadsheet comparing Amazon referral + FBA fees vs eBay final‑value + inse...
- →Create a $100 test campaign in Advertising > Campaign Manager for Sponsored Products; monitor ACOS and pause if it exceeds 25%.
- →On eBay, navigate Seller Hub > Marketing > Promoted Listings, set a 5% fee, run a pilot for one month, and measure conversion lift before scaling s...
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