Amazon vs. eBay – Which Option Is Better For Selling Your Items Online?

Are you ready to take your online selling game to the next level? 

Whether you're a seasoned seller or just beginning, choosing between Amazon and eBay can significantly impact your success. 

Both platforms offer incredible opportunities, but which is the best for selling your items online? 

If you’re interested in making extra money, you might have thought about rummaging through your closets to find old items to sell. Unused apparel, jewelry, collectibles, and tools can all fetch a reasonable price if you can find the right buyer. The simplest way to reach a wide range of potential buyers is to sell your items online. There are numerous options, but the most prominent platforms are Amazon and eBay. The question is, which one is more suitable for your needs?

To address this query, you need to consider three key factors. Firstly, you must determine whether selling your items on each platform is feasible. You should assess the required effort level and associated costs if it is.

As the competition heats up in online marketplaces, it's crucial to understand each platform's unique benefits and drawbacks. From seller fees and audience demographics to listing options and seller support, there are many factors to consider when choosing the proper forum for your online business.

In this blog, we'll explore the key differences between Amazon and eBay, providing valuable insights to help you make the best choice for your specific selling needs. Discover effective tips, tricks, and strategies to boost online sales and grow your business.

So, buckle up and get ready for a thrilling journey through the world of online selling - because, by the end of this blog, you'll be equipped with the knowledge to conquer the e-commerce realm like a true champion!

Let’s compare how Amazon and eBay measure up in these aspects.

What You Can Offer for Sale on Amazon and eBay?

When deciding between Amazon and eBay, understanding the permissible items for sale on each platform is crucial. It's essential to align your offerings with the platform's guidelines to ensure a smooth selling experience and compliance with regulations.

Here's a breakdown of what you can sell on each platform:

Amazon Categories:

Amazon, originally an online bookstore, has expanded into a comprehensive shopping mall with over 30 categories. However, not all categories are accessible to every seller, and some require a Professional account. Amazon primarily focuses on new products, though used items are accepted in specific categories, and certified refurbished devices can be sold under the Amazon Renewed program.

Categories Available to All Sellers:

• Amazon Device Accessories: New, used, and renovated accessories for Amazon devices.

• Amazon Kindle: Used accessories for the Amazon Kindle e-reader.

• Baby Products: New baby gear, excluding clothing.

• Beauty: New fragrance, makeup, skincare, hair care, and bath products.

• Books: New and used books, magazines, journals, etc.

• Business Products: Equipment and services for business end-users.

• Camera & Photo: New, used, and refurbished cameras and accessories.

• Cell Phones: New, used, certified, and unlocked phones.

• Clothing & Accessories: New clothing and accessories.

• Electronics (Accessories): New, used, and refurbished electronic accessories.

• Health & Personal Care: New health and personal care products.

• Home & Garden: New, used, and collectible goods for the home and garden.

• Luggage & Travel Accessories: New bags, backpacks, and travel accessories.

• Musical Instruments: New, used, and refurbished instruments and recording equipment.

• Outdoors: New, used, and refurbished outdoor gear.

• Software & Computer Games: New and used software.

• Sports: New, used, refurbished, and collectible sports items.

• Tools & Home Improvement: New, used, and refurbished tools and home improvement items.

• Toys & Games: New or collectible toys and games.

• Video Games & Video Game Consoles: New, used, refurbished, and collectible gaming items.

Categories for Professional Account Sellers:

• Automotive parts and tools

• Collectible coins

• Jewelry

• Fine art

• Foodstuffs of any kind

• Hazardous items

• Human parts and burial artifacts

• Industrial and scientific equipment

• Computers

• Professional services

• Sports collectibles

• Video recordings

• Watches

Approval from Amazon may be required for listing items in these categories, and the Amazon seller page provides additional details.

Special Amazon Handmade Program:

• Amazon Handmade: A program for selling handmade crafts, requiring a separate application process for items like jewelry, home goods, art, accessories, clothing, party supplies, stationery, toys, games, sports gear, beauty supplies, and pet supplies.

eBay Categories:

eBay offers a diverse range of categories, allowing sellers to list and sell various items.

Here is an overview of some of the major categories available on eBay:

• Antiques: Antique furniture, collectibles, decorative arts, and more.

• Art: Paintings, sculptures, drawings, and other art pieces.

• Automotive: Parts and accessories, vehicles, tools, and automotive services.

• Baby: Baby gear, clothing, toys, and nursery items.

• Books: New and used books, including fiction, non-fiction, and textbooks.

• Business & Industrial: Industrial equipment, office supplies, and business-related products.

• Clothing, Shoes & Accessories: New and used clothing, shoes, accessories, and jewelry.

• Coins & Paper Money: Coins, paper currency, and related collectibles.

• Collectibles: Memorabilia, comic books, trading cards, and other collectible items.

• Computers/Tablets & Networking: Laptops, desktops, tablets, computer components, and networking equipment.

• Consumer Electronics: Cameras, audio equipment, smartphones, and other electronic devices.

• Crafts: Handmade and DIY items, craft supplies, and materials.

• Dolls & Bears: Dolls, teddy bears, and related accessories.

• DVDs & Movies: DVDs, Blu-rays, and movie memorabilia.

• eBay Motors: Vehicles, parts, accessories, and automotive tools.

• Electronics: Home audio, GPS devices, and other electronic gadgets.

• Entertainment Memorabilia: Celebrity autographs, movie props, and other entertainment-related collectibles.

• Health & Beauty: Health and beauty products, skincare, and wellness items.

• Home & Garden: Furniture, appliances, home decor, and gardening supplies.

• Jewelry & Watches: Fine jewelry, watches, and fashion jewelry.

• Music: CDs, vinyl records, musical instruments, and concert memorabilia.

• Pet Supplies: Pet food, toys, and other pet-related products.

• Pottery & Glass: Pottery, glassware, and related items.

• Sporting Goods: Items related to fitness, sports, and outdoor activities include exercise equipment, team sports gear, and outdoor recreation items.

• Sports Memorabilia, Fan Shop & Sports Cards: She autographed sports memorabilia, fan apparel, and trading cards.

• Tickets & Experiences: Event tickets, travel experiences, and gift certificates.

• Toys & Hobbies: Toys, games, model kits, and hobby-related items.

• Video Games & Consoles: Video games, consoles, and gaming accessories.

• Other Categories: Miscellaneous categories cover a wide range of items not listed above.

eBay Restrictions and Prohibitions:

eBay, initially an online auction site, is known for being more open to secondhand goods. While it allows the sale of a wide range of items, certain products are prohibited or restricted based on safety concerns, legal compliance, or specific limitations.

Here's a partial list of banned or restricted items:

• Adult Items: Explicit adult material restricted to buyers 18 years or older, with pre-approval for specific categories.

• Alcohol & Drugs: Prohibited sale of narcotics, steroids, and prescription drugs; limited sale of wine with special approval.

• Animals & Wildlife: Banned selling live animals, pets, ivory, and specific animal parts.

• Clothing: Restrictions on used underwear, socks, and specific athletic equipment.

• Cosmetics: Sales are allowed for unused items in original packaging; homemade cosmetics must meet FDA requirements.

• Coupons: Limited sale of valid, unused coupons.

• Documents: Prohibited sale of government-issued IDs; exceptions for antique documents.

• Electronic Equipment: Restrictions on items banned by the FCC.

• Food: Sale allowed with expiration date disclosure and shipping details.

• Hazardous Materials: The sale of various dangerous items was banned.

• Lock Picks: Banned sale of most locksmithing equipment.

• Weapons: Prohibited sale of guns and most ammunition; restrictions on specific knives.

For a comprehensive list, visit the eBay Customer Service site. Always adhere to platform guidelines for a successful and compliant selling experience.

How the Platforms Operate

Selling on Amazon:

Setting Up an Amazon Seller Account:

• Log In or Create Account: Utilize your Amazon.com account or set up one if you don't have one.

• Agreement Acceptance: Read and agree to the terms outlined in the Amazon Services Business Solutions Agreement.

• Business Information Input: Furnish essential legal and business details, including address, phone, and website.

• Payment Information Submission: Enter bank and credit card details required for monthly service fees and payment receipts.

• Tax Information Declaration: Specify tax details, indicating individual or business filing status. Provide relevant tax return information.

• Product Information (Optional): Optionally, provide details about the products you intend to sell on Amazon.

• Two-Step Verification Setup: Enhance account security by setting up two-step verification using a designated phone number.

Listing Items on Amazon:

• Professional Account Advantage: Professional account holders can list items in large batches for efficiency.

• Listing Existing Products: If the product is already listed, simply clicking "Sell on Amazon" streamlines the process.

• Listing New Products: For unlisted items, a Professional seller account is required. List items with detailed product information on the "Sell Your Stuff" page.

Selling on eBay:

Setting Up an eBay Seller Account:

• Registration Process: Visit the eBay Registration page to initiate the account setup.

• User Agreement Acknowledgment: Read and agree to the user agreement, acknowledging the terms and conditions.

• Account Information Entry: Input personal details, including name, email, and password.

• Account Registration: Complete the registration process by clicking "Register."

• For Business Accounts: Select "Create a business account" to set up an account using business details.

Listing Items on eBay:

• Quick Listing Tool: Click "Sell" on any eBay page to use the quick listing tool to efficiently list items.

• Listing Steps: Follow steps such as selecting a category, describing the item, adding photos, choosing sale type, setting the price, selecting shipping options, and specifying a return policy.

• Advanced Listing Form (For Regular or Bulk Sellers): Accessible from "My eBay" or "Seller Hub," the advanced form offers additional features like a visitor counter and lots (selling multiple items to one buyer). Note that certain features may involve additional fees.

Confirming Details and Payments:

• Post-Listing Verification: After creating a listing, confirm details to ensure accuracy.

• Payment Method Addition: Add an automatic payment method to cover eBay fees. Accepted methods include credit cards, PayPal, or direct debit from a bank account.

• Identity Verification: For security purposes, eBay may request identity verification. This can be achieved by delivering a telephone or credit card number.

eBay Selling Formats

Evolution of eBay Selling:

Founded in 1995, eBay initially centered around auction-style selling. Over time, the platform expanded its offerings by incorporating a second selling format – fixed-price listings.

Current Selling Options:

Presently, eBay allows sellers to choose between two primary selling formats: Fixed-price Listings and Auction-style Selling.

Fixed-price Listing:

• "Buy It Now" Convenience:

• Also referred to as fixed-price listings.

• Sellers set a predetermined, non-negotiable price for their items.

• Shoppers can immediately purchase the item at the specified price without waiting for an auction to conclude.

• Offers efficiency and convenience in transactions.

Auction-style Selling:

Bidding Dynamics:

• Auctions typically span a designated number of days.

• Sellers initiate a bid by setting a starting price for the item.

• Buyers participate by bidding upwards within the auction timeframe.

• At the auction's conclusion, the highest bidder secures the item.

Ideal for Unique Items:

• Well-suited for unique, rare, or collectible items.

• Categories like antiques thrive in auction-style sales, leveraging the enthusiasm of passionate bidders.

• Bidders often compete and are willing to pay a premium to win coveted items.

Receiving Payments on Amazon

When a consumer purchases your product on Amazon, the platform promptly notifies you via email. Subsequently, you are responsible for shipping the product to the buyer. For sellers with a significant volume of products, leveraging Fulfillment by Amazon (FBA) allows the company to handle storage and shipping logistics on your behalf.

Amazon regularly disburses payments directly into your bank account, deducting its seller fees. Notifications are sent each time a payment transfer occurs, and it may take up to five days for the funds to reflect in your bank account.

Receiving Payments on eBay

You have two options to stay informed about your eBay sales: regularly checking your listings on the "My eBay" page or setting up notifications for immediate alerts when an item is sold. While notifications are convenient, occasional delays make it advisable to log in and check your listings regularly.

Upon a sale, you are responsible for shipping the item. eBay provides tools to facilitate this process, including printing a mailing label with discounted postage from the "Sold" page on "My eBay." Additionally, eBay offers packaging tips to assist in the shipping process.

Payment Processing:

PayPal: If the buyer pays with PayPal, the funds are deposited instantly into your PayPal account, typically in real-time. An email notification is sent to notify you of the transaction.

Credit and Debit Cards:

For credit or debit card payments, the timing of fund availability depends on your payment method.

• Merchant Payment Gateway: Funds are transferred to your merchant bank as soon as the payment processed.

• PayPal System: If you don't have a merchant payment gateway, the payment goes through the PayPal system, reaching your account. Email notifications keep you informed, and you can check the payment status in the "Seller Hub" or "My eBay."

Payment on Pickup:

If the buyer opts for pickup, various payment methods, including personal checks, money orders, and cash, are accepted.

• Cash: Instantly available to you.

• Checks and Money Orders: Require time to clear after depositing them at the bank. However, due to potential resolution challenges, caution is advised with money orders and personal checks.

What It Costs

A competitive pricing strategy is essential regardless of the platform you pick to sell your items. Online price comparisons are easily accessible, making it imperative to set your prices competitively for successful sales. On both platforms, you can conveniently check what similar items are priced at by other sellers, providing valuable insights into determining the appropriate value for your products.

However, it's crucial to recognize that the overall earnings may differ between the two platforms due to the impact of seller fees. Understanding and evaluating these fees is vital before commencing your selling journey.

Amazon Seller Fees

Amazon presents two distinct pricing plans: Individual and Professional.

Individual Plan:

• Monthly Fee: None

• Per-Item Fee: $0.99 for each listed item.

Professional Plan:

• Monthly Fee: $39.99 (with active listings)

• Listing Benefit: Unlimited listing capacity for the set monthly Fee.

The choice between plans depends on your anticipated sales volume. The Individual plan proves cost-effective if you sell up to 40 items monthly, while the Professional plan becomes a better value for those expecting to exceed this threshold. It's important to note that specific item categories, selling in large quantities, or listing items unavailable on the site necessitate opting for the Professional plan.

Subscription Fees:

Amazon offers two seller account types:

• Individual: Suitable for occasional sellers with a per-item fee for each sale.

• Professional: Ideal for high-volume sellers with a monthly subscription fee.

Referral Fees:

• Charged as a percentage of the item's sale price (including shipping).

• Varies based on the product category.

Fulfillment by Amazon (FBA) Fees:

• Applicable if you opt for Amazon to handle storage, packing, and shipping.

• Includes storage fees and fulfillment fees per item.

Additional Service Fees: Incurred for optional services like advertising, premium account features, and more.

Variable Closing Fees: This applies to media products like books, music, and video games.

Refund Administration Fee: Charged for refunded orders, offsetting some refund processing costs.

eBay Seller Fees

eBay boasts a more straightforward fee structure than Amazon, encompassing two primary types of fees: Insertion and Final value fees.

1.Insertion Fees:

Zero Insertion Fee Allowance: Every month, sellers enjoy up to 250 listings with zero insertion fees, with additional allowances for eBay Store subscribers.

Additional Insertion Fees:

• It becomes applicable after exhausting the zero insertion fee allowance.

• Non-refundable for unsold items.

• Charged per listing and category.

• Applied to the original listing and each subsequent relisting.

• Charged per duplicate auction-style listing for identical items.

• Charged once per listing for listings with multiple items or variations.

Good 'Til Cancelled Listings:

• Fixed price listings that auto-renew monthly.

• Incur insertion and optional listing upgrade fees upon initial listing and each renewal.

• Count towards the monthly zero insertion fee limit.

• Fee amounts are determined by the terms in effect during listing creation and renewal.

2. Final Value Fees:

Calculation:

• Assessed when the item is successfully sold.

• Calculated as a percentage of the total sale amount plus a flat $0.30 per order.

• The total sale amount includes the item price, handling charges, applicable shipping costs, sales tax, and other relevant fees.

Order Definition: An order includes items bought by one buyer with the same shipping method at checkout.

Refunds and Cancellations: Eligible for fee credits according to eBay's fee credits policy in case of buyer refunds or sale cancellations.

Pros and Cons

Amazon Pros:

• A vast global customer base, with millions of active users, provides a broad audience for your products.

• Diverse categories allow you to list and sell various products, catering to various consumer needs.

• Potential to attract new consumers and expand your online business through exposure on Amazon's platform.

• User-friendly interfaces and tools contribute to a relatively straightforward and efficient selling experience.

Amazon Cons:

• High seller fees may impact the overall profitability of your sales on the platform.

• Intense competition, especially in popular product categories, makes it challenging to stand out.

• Strict guidelines and policies that sellers must stick to can affect your operations' flexibility.

eBay Pros

• Connect with a vast audience of 182 million active members worldwide.

• List and sell a diverse range of products, providing flexibility for sellers.

• Access an opportunity to attract new customers for your online store through eBay.

• Enjoy a relatively straightforward and user-friendly platform that simplifies the selling process.

eBay Cons

• Encounter high fees imposed on sellers, impacting overall profitability.

• Experience heightened competition within specific niches, challenging sellers to stand out.

The Bottom Line 

Amazon and eBay provide a secure and uncomplicated platform for selling extra items online and securing a favorable price. The decision between the two platforms hinges on the nature of your items for sale and your willingness to invest in convenience. For most sellers, fees are lower on eBay. However, Amazon boasts smaller referral fees for computers and electronics than eBay's final value fees. Therefore, if you have a substantial inventory of such items, Amazon may be the more cost-effective option.

Consider also how much time you can dedicate to your online sales venture. While putting up a seller account on Amazon may require more effort, listing individual items is generally easier once your account is established. This, however, applies only to items already listed on the site. If you intend to sell rare or unique items, listing them on eBay, complete with photos, will likely demand less time than sourcing UPC numbers for Amazon.

If you have only a few items to sell, eBay is likely the preferable choice. Listing your items is free, and the minimal effort required to set up a listing is inconsequential when creating just a few. Should you later decide to elevate your online sales into a full-fledged business, you can assess the value of investing in an Amazon Professional account to streamline the listing process.