Did you know that over 40% of U.S. online shoppers buy from Amazon or eBay? Both platforms are giants in eCommerce — but which one is right for your business? If you’re selling online, the choice between Amazon vs eBay comes down to key factors like audience, costs, business model, and fulfillment options.
Now, let’s discover whether Amazone or Bay is the best for your business!
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Amazon vs eBay: At a glance
Amazon is a retail-style marketplace where most products are new and sold at fixed prices. It’s best for sellers aiming to reach high-volume buyers who value convenience, speed, and trust. With over 2.7 billion monthly visits and 180M+ Prime members, Amazon attracts established businesses, private label brands, and high-demand product sellers.
eBay operates as a hybrid auction + fixed-price marketplace, popular among niche sellers, collectors, and bargain hunters. It offers a more flexible environment for selling used goods, vintage items, and unique products. With 18M+ sellers and 700M+ monthly visits, eBay is ideal for those looking to target price-sensitive buyers or test small-scale selling.
| Feature | Amazon | eBay |
|---|---|---|
| Target Shoppers & Reach | Mass market, Prime-heavy, global, convenience-focused | Collectors, niche buyers, value-seekers, global |
| Business Model | Retail & 3rd-party marketplace; fixed price; Amazon sells directly | Peer-to-peer & B2C; fixed price + auction-style |
| Product Types & Restrictions | Huge range; strict on restricted/prohibited items, category gating | Most items allowed; fewer restrictions, some limits |
| Total Cost for Selling | $39.99/mo (pro) + 8–15% fee + FBA/shipping/storage | 12.9–15% final value fee, low/no listing fees |
| Fulfillment & Shipping | FBA (Amazon), FBM (seller), global logistics options | Seller manages or 3rd party; Global Shipping avail. |
| Marketing & Selling Features | Ads, coupons, analytics, A+ content, Amazon Stores, automation | Promoted ads, coupons, analytics, Seller Hub |
| How to Get Paid | Direct to bank, bi-weekly payouts, all by Amazon | Direct to bank, daily/weekly options, after sale |
| Return Policy | 30 days (typical), FBA handled by Amazon, seller sets for FBM | Seller sets terms, eBay Guarantee for “not as described” |
Amazon and eBay Comparison: Which is Better?
Choosing between Amazon and eBay depends on who you’re selling to, how you operate, and what you’re selling. Let’s compare the two platforms across key factors.
1. Customer base
Knowing who buys on eBay and Amazon is crucial for selling well on these sites.
Amazon
- Amazon dominates U.S. e‑commerce with a roughly 37.6% market share in 2025, making it the most visited e‑commerce site globally .
- The platform boasts over 180 million Prime members worldwide, generating massive consistent traffic and loyalty .
- Its typical shopper is convenience-driven, often Gen X and female, with average income around $60K, valuing fast shipping and dependable service .
eBay
- As of Q1 2025, eBay has about 132–134 million active buyers worldwide and 18–18.3 million active sellers, with around 2 billion live listings .
- It holds roughly 3–3.5% of the U.S. online retail market share—much smaller than Amazon, but sizable for niche and second‑hand products .
- Buyers skew younger and more price-sensitive, with about 39% aged 18–24; over 60% of mobile users are men, and they seek rare items and bargains .
Summary Snapshot
| Platform | Active Buyers | Sellers | Market Share (U.S.) | Key Shopper Traits |
|---|---|---|---|---|
| Amazon | ~180M Prime users | Millions | ~37.6% | Gen X / female / convenience-centered |
| eBay | ~132–134M buyers | ~18M | ~3–3.5% | Younger, deal-hunters, collectors |
2. Business model
Understanding eBay and Amazon’s business models is key to seeing their effect on online markets.
Amazon
Amazon focuses on offering low prices, fast delivery, and an unmatched selection of products.
The company generates most of its eCommerce revenue through two primary models. The first is direct online and physical store sales of its inventory. The second is commissions and fees collected from third-party sellers.
In its operation, Amazon resembles a traditional retail store, selling both its own products and those from third-party sellers. Similar to a standard retail site, it maintains fixed prices on all products, with no haggling or bidding wars. The price you see is the price you pay.
A key strategy for Amazon is selling its own private label and exclusive products on the platform. This challenges third-party sellers, as Amazon often prioritizes the placement and visibility of its products in search results, even when competitor offerings have superior ratings and reviews. This practice gives Amazon’s in-house products a significant advantage.
Additionally, many sellers report that competing with Amazon on price is extremely difficult. The marketplace often undercuts competitors by lowering prices on its own products. Some sellers even claim that Amazon will purchase their products wholesale and resell them at a lower price, making it virtually impossible to match.
As a result, many third-party sellers avoid direct competition with Amazon’s product offerings altogether. Instead, they focus on finding niche products or building their own unique brands to differentiate themselves in the marketplace.
eBay
The business model is a big difference between Amazon and eBay. Unlike Amazon, eBay’s business model is centered around facilitating transactions between buyers and sellers. Unlike Amazon, which primarily sells its own products, eBay acts as a marketplace where buyers can find and purchase items from a wide range of sellers. eBay itself does not sell anything.
The core value of eBay is its unique auction format, which allows buyers to bid on items, as well as fixed-price listings. While it provides both auction-style listings and fixed-price options, the responsibility for listing items, setting prices, and shipping to buyers lies entirely with the sellers. eBay’s role is to provide the marketplace, while sellers handle the rest.
eBay’s revenue is generated primarily through transaction fees, including insertion fees for listing an item, final value fees based on the sale price, and additional fees for services like PayPal transactions.
Some business models that work well on both platforms include:
- Private label – you create your own branded products, often by sourcing from manufacturers and putting your own label on the items.
- Wholesale – you buy products in bulk directly from the manufacturer or wholesaler at wholesale prices, then resell the products on Amazon at a markup.
- Online arbitrage – you find products sold at lower prices on other websites or in physical stores, then resell those products on Amazon for a higher price to make a profit.
- Retail arbitrage – you source products from local retail stores instead of online. often by looking for clearance items or other discounted products to resell on Amazon.
- Dropshipping – you list products on Amazon without stocking the inventory yourself as the supplier stores and ships products directly to your customer.
- Handmade – you sell your own handcrafted products directly to customers on Amazon.
Read more:
eBay vs Facebook Marketplace: Find Your Best Sales Channel [2025 Updated]
Etsy vs eBay: Where to Start Making Money (2025 Comparison)
Shopify vs eBay: Which One is Superior? [2025 Full Updates]
3. Product types & selling restriction
Here comes another difference between Amazon and eBay – products. Although these top online marketplaces have diverse product ranges, the difference is remarkable. Keep scrolling through to find out how they differ from one another and if your products might fit in.
Amazon
Amazon has a large selection of new products across a wide range of categories, with a more structured product catalog feel compared to eBay.
The platform offers millions of products across over 30 top-level categories, including:
- Electronics
- Clothing, Shoes & Jewelry
- Home & Kitchen
- Beauty & Personal Care
- Books
- Toys & Games
- Sports & Outdoors
- Automotive
- Pet Supplies
- Grocery & Gourmet Foods
Within each top-level category, there are numerous subcategories that sellers can list their products under to improve visibility.
Some categories on Amazon are “gated” or restricted, meaning sellers need special approval from Amazon to list products in those categories. Examples of Amazon restricted products include:
- Collectible Coins
- Fine Art
- Music & DVD
- Software
- Video Games
Amazon allows sellers to list products in new condition across all categories. Certain categories also allow used, certified refurbished, and collectible condition listings, including:
- Books
- Home & Garden
- Musical Instruments
- Office Products
- Personal Computers
eBay
When comparing eBay vs Amazon, eBay has a more diverse marketplace, offering a wide range of new and used items, collectibles, vintage goods, and unique finds.
The platform has more of a “garage sale” feel, with buyers often using broader search terms to discover unique or hard-to-find items rather than searching for specific products.
Selling used goods, vintage items, and one-off collectibles is particularly well-suited for the eBay platform, as there is high demand from buyers looking for these types of products.
In contrast to Amazon’s more structured product catalog, eBay’s diverse product mix appeals to a different type of buyer who may be browsing for unexpected or rare finds.
Third-party sellers often find eBay a better fit for listing used, vintage, or niche products that may not sell as well on the more new product-focused Amazon marketplace.
eBay allows sellers to list products in a variety of conditions, including:
- New
- Used
- Collectible
- Refurbished
While eBay enforces prohibited item policies and seller standards, it doesn’t gate most categories—except in cases of legal or restricted goods (e.g. pesticides) .
This flexibility in product conditions is a key differentiator from Amazon, which primarily focuses on new product sales.
Certain eBay categories, such as Books, Home & Garden, and Musical Instruments, are more conducive to used, collectible, and refurbished product listings.
4. Total cost for selling
Here comes another key factor when you decide whether to sell on Amazon or eBay. Some users have dubbed eBay “feeBay” because of its high fees. However, Amazon has its own set of seller fees depending on what you’re selling.
Amazon
Amazon did not raise referral or FBA fees in 2025, offering stability to sellers. Some inbound placement fees for bulky items were even reduced (by around US $0.58 per unit) as of January 2025.
- Individual plan: This is suitable if you are starting out and selling fewer than 40 units.
- Professional plan: If you sell more than 40 units each month and need to use Amazon selling tools, the Professional plan is ideal.
- Referral commission: This charge ranges from 8 to 20% and goes from $0.30. Apparel and gift cards are among the categories with the highest commission rates.
- FBA charges: Such fees are determined if Amazon recognizes your items as Compact or not. If your items belong to the Compact list, FBA fees likely stay low.
Additional fees on Amazon you might have to pay include advertising, variable closing fees, shipping fees, and removal fees. Check out our detailed analysis of Amazon seller fees and stay updated!
eBay
In February 2025, eBay increased final value fees by up to 0.35% across most categories. Final value fees typically range between 12.9% to 15% per sale, plus a fixed fee per order (~$0.30–$0.40), depending on membership level and category. You may also pay listing/insertion fees (some free tier for a fixed number of listings), promoted listing costs, and possible international or performance-based surcharges.
5. Fulfillment & shipping options
Obviously, shipping and order fulfillment are key players for any marketplace, and this eBay vs Amazon case is no exception. Both marketplaces offer different shipping and fulfillment options for sellers. So, here’s what you should know about shipping and fulfillment when selling on Amazon vs eBay.
Amazon
Fortunately, Amazon FBA and FBM are among the most appealing features for third-party sellers. In fact, Amazon FBA may be the answer to why Amazon is better than eBay. So what exactly is Amazon FBA?
FBA (Fulfillment by Amazon) is a service that allows you to store your products at an Amazon warehouse near you. Amazon will pick, pack, and ship on your behalf when a sale is made.
By this, sellers can allow Amazon to store and fulfill orders which is way more convenient. Furthermore, FBA also gives sellers customer service and marketing benefits, such as eligibility for Super Saver Shipping and Amazon Prime.
If you don’t want to use FBA, check out FBM (Fulfilment by Merchants). In particular, FBM requires you to handle all fulfilling and shipping tasks. This would mean more work for you but greater control over customer data and feedback. Regarding this matter, choices are up to you.
Apart from Amazon FBA, the marketplace provides “Free two-day shipping” to Amazon Prime members, which can entice shoppers to click “Buy”. Counting these features solely, selling on Amazon truly sounds tempting.
With Amazon FBA and Free two-day shipping, will eBay win this round? Let’s discover the next section on Amazon vs eBay shipping and fulfillment!
eBay
Unlike Amazon, eBay does not have its own fulfillment service like Fulfillment by Amazon (FBA). eBay sellers are responsible for handling their own order fulfillment.
The platform finally launched Managed Delivery in 2020. This fulfillment service allows sellers who sell a lot of inventory to fulfill orders more conveniently and swiftly.
Plus, eBay has an International Shipping Program, which lets sellers ship to eBay’s global shipping hub in Kentucky. Then, it will be in charge of taking care of any customs formalities and shipping to buyers worldwide. Hence, this marketplace will be accountable for any delays in delivery.
In case you don’t want to use eBay fulfillment services to reduce selling costs, you must learn how to ship on eBay properly. You’ll be responsible for choosing, packing, and shipping your own orders if you’re selling on eBay to people in your own country. Don’t worry much about it; there are plenty of service providers who will do it for you if you’re willing to accept a blow to your profit margins.
In terms of shipping and fulfillment, is it better to sell on Amazon or eBay for you? Evidently, shipping and fulfillment on eBay will be more challenging because you have to start from scratch. However, there will always be ways to ensure fast shipping and increase purchase rates. Our suggestions for eBay shipping would be:
- Combining shipping
- Choosing the right carriers
- Optimizing packaging
Amazon vs eBay shipping and fulfillment – The verdict: In a nutshell, Amazon offers more shipping options to merchants than eBay does, this is a no-brainer. It’s possible that eBay businesses should attempt to undercut FBA on pricing, opening up new markets. But until it does, Amazon is the winner.
6. Marketing & selling features
Advertising and marketing are always good ideas to get an edge over your competitors, which are worth the investment. In the Amazon vs eBay comparison, both offer additional services to help you push your product ahead. Are you ready to figure them out? Let’s roll in!
Amazon
Amazon advertising operates on a pay-per-click (PPC) program in which you pay each time your customers click through an ad link. This mechanism resembles that of Google. Due to the PPC model, keeping track of your budget for ad campaigns and avoiding any Amazon advertising mistakes is critical.
More about Amazon advertising, here are 3 major types:
- Sponsored Products: This applies to one listing you wish to promote on Amazon search result pages. What’s more, Amazon Sponsored Products ad type operates on the PPC model.
- Sponsored Brands: Like Amazon Sponsored Products, Amazon Sponsored Brands is a PPC model. However, it is a self-service ad that helps brands showcase in shopping results.
- Sponsored Display: Last but not least, Sponsored Display is a self-generated ad targeting interested shoppers on Amazon. This would be a helpful tool for your advertising.
Besides, Amazon provides you with other tools to enhance advertising results and marketing efforts, such as Amazon demand-side platform or Amazon A+ Content.
Notes: Keep in mind that advertising can immensely affect your overall charges. In accordance with that, rising advertising costs will lead to different results in Amazon selling fees vs eBay.
eBay
Continuing to answer “Which is better – eBay or Amazon?”, we’ll now delve into the world of eBay advertising and marketing. In summary, eBay offers you the following tools to promote products and provoke purchase rates:
- Promoted Listing: This is probably the most popular advertising type on eBay. You choose your listings to promote and choose your ad rate. Then, eBay will display those in search results or relevant product pages.
- eBay Sponsored Products: It is quite similar to Promoted Listings. You choose your products and then set your daily budget. eBay will display them within search results.
- Markdown Manager: Despite not being an exact advertising tool, eBay Markdown Manager allows you to schedule sales events for your products.
- eBay Terapeak: Before implementing any ad campaigns, use eBay Terapeak and get real-time insights into market trends.
Once again, when starting advertising campaigns on Amazon and eBay, pay attention to your budget. Needless to say, your cost to sell on eBay vs Amazon will be heavily impacted by this fee.
Amazon vs eBay advertising and marketing – The verdict: Overall, it’s a tie. Amazon offers more ways to control how you advertise your products, while eBay gives you more tools to make data-driven decisions.
7. How to get paid
Getting paid quickly and reliably is critical for maintaining cash flow. Here’s how Amazon and eBay handle payouts for their sellers in 2025.
Amazon
- Payout schedule: Amazon issues payouts every 14 days by default, although disbursement may take an extra 3–5 business days to reach the seller’s bank, depending on their location and bank processing times (repricer.com, printify.com).
- Deductions: Before payment is released, all Amazon fees are subtracted, including:
- Referral fees (8–20% depending on category).
- FBA fees (if enrolled in Fulfillment by Amazon).
- Advertising costs (for Sponsored Products, Brands, or Display campaigns).
- Chargebacks and refunds, if applicable.
- Rolling reserves: New or high-risk sellers may experience reserve holds, where Amazon withholds a percentage of funds for 7–21 days to protect against claims or returns.
- Currency & region settings: International sellers can choose to convert earnings into their local currency through Amazon Currency Converter for Sellers (ACCS), though a conversion fee (typically ~1–1.5%) applies.
Key point: Amazon offers predictable but slower payouts, making it necessary for sellers to manage cash flow carefully, especially when running ad campaigns or maintaining high inventory levels.
eBay
- Payout schedule: eBay’s Managed Payments system allows daily or weekly payouts. Funds are typically available once the order is marked as delivered, but as of 2025, eBay introduced a mandatory payout delay for Managed Delivery orders, holding funds until delivery confirmation.
- Fee deductions: eBay deducts final value fees, listing fees, promoted listing costs, and international surcharges automatically before disbursing funds.
- Faster access: Some sellers can qualify for instant payouts to Payoneer or debit cards (for a fee), reducing the waiting time for funds.
- Cash flow considerations: While daily payouts can improve liquidity, the new delivery-confirmation hold in 2025 can delay access to funds for sellers using Managed Delivery, potentially affecting working capital.
Key point: eBay’s payout system is faster and more flexible than Amazon’s, but the new policy changes may temporarily slow cash access for certain orders.
8. Return policy
Returns are part of selling online, but each platform handles them differently. Here’s what you need to know about return policies on Amazon and eBay.
Amazon
- Standardized returns: Amazon enforces a 30‑day return window across most categories. Certain items (e.g., hazardous materials, digital goods) may have exceptions.
- A‑to‑Z Guarantee: If customers are dissatisfied or the seller fails to deliver, Amazon can refund the buyer directly under its A‑to‑Z Guarantee, even without seller approval.
- FBA vs FBM returns:
- For FBA sellers, Amazon handles the entire returns process, deducting return processing fees and possibly charging disposal or restocking fees for unsellable items.
- For FBM sellers, you must manage returns in compliance with Amazon’s policies, which may include prepaid return labels.
- Impact on sellers: Frequent returns can significantly affect account health (via Order Defect Rate), so proactive customer communication and detailed product descriptions are critical.
eBay
- Customizable policies: Sellers can define return terms (e.g., 7-day exchange, 30-day money-back, or no returns). However, these policies must comply with local consumer protection laws.
- Money Back Guarantee: Regardless of seller policy, eBay enforces its Money Back Guarantee, covering cases where:
- Items don’t match the description.
- Orders never arrive.
- Items arrive damaged or incomplete.
- Managed Delivery: For sellers enrolled in eBay Managed Delivery, eBay may standardize returns, making the process more like Amazon’s—eBay handles the logistics, deducting any associated costs.
- Seller protections: In cases of fraudulent or abusive returns, sellers can request appeals or fee credits through eBay’s Seller Protections program.
Key point: eBay gives sellers more flexibility in setting policies, but its Money Back Guarantee overrides strict “no returns” stances, especially in cases of disputes.
Which is Better – Amazon or eBay – FAQs
- 1. Amazon vs eBay, which is safer?
From our point of view, Amazon seems safer. An eCommerce can be a risky industry, but Amazon may have more safeguards in place because you don’t have to engage with your customers. The payments to the seller are completely handled by Amazon. Having that said, Amazon and eBay have numerous measures in place to protect both their buyers and sellers.
- 2. Is eBay still popular?
Yes, eBay is still popular. In fact, eBay has the second highest ranking in the U.S. for eCommerce and Shopping. Also, according to the latest data, eBay got 722.7 million visits in September, 2023.
- 3. How many sellers are on eBay vs Amazon?
There are roughly 18 million sellers on eBay, and 9.7+ million sellers on Amazon in 2023, according to the latest data.
- 4. Which is easier to set up, Amazon vs eBay?
Both Amazon and eBay are quite easy to set up with a straightforward process. You just need to create an account, list your products, and set up your payment, shipping, and order fulfillment method.
- 5. Is eBay bigger than Amazon?
No, eBay isn’t bigger than Amazon. As a matter of fact, Amazon ranks first in eCommerce and shopping worldwide. Also, this is by far the largest eCommerce companies that has expanded to other branches with its web services and streaming services.
- 6. What are other alternatives for Amazon eBay USA?
There are plentiful alternatives for Amazon eBay USA such as Etsy, Walmart, TikTok Shop, Google Shopping, Facebook Marketplace, and many more selling platforms. Check out our Retail Blog for more information!
What’s Better – eBay or Amazon?
Is eBay better than Amazon? Should I sell on eBay or Amazon?
There is no right or wrong answer, it depends on your business size and demand. However, just because Amazon is a better fit for you or your products doesn’t mean you can’t sell on eBay as well.
Many sellers list their products on multiple marketplaces, including Amazon, eBay, and Etsy, to name a few. In fact, 80% of Amazon sellers also sell on other platforms. That’s why LitCommerce’s multichannel selling solution makes it simple to sell on various marketplaces while managing your inventory from a single central catalog.
If you need more info, leave us a message. We’re always ready to help. Also, you can follow our Retailer Blog for more exciting eCommerce news and tips.
