eBay vs Amazon for Sellers: Which Marketplace Is Right for You?
eBay and Amazon are the UK and US's two largest consumer marketplaces but attract very different buyers and favour different types of sellers. Here is a complete comparison.
eBay and Amazon are two of the world's largest online marketplaces but they serve different seller types, products, and buyer expectations. Understanding the differences helps you decide where to invest your time and inventory.
eBay vs Amazon: The Definitions
eBay is a consumer-to-consumer and business-to-consumer marketplace originally built on auctions. It now hosts predominantly fixed-price listings and is particularly strong for used goods, collectibles, electronics, and motors.
Formula
eBay total fees: Final Value Fee (8-13.25%) + Managed Payments (2.7% + $0.30) + optional insertion fee ($0.35 after allowance). Total: approximately 15-17% for most categories.
Example
Selling a used iPhone for £300 on eBay: FVF £39.75 (13.25%) + payment processing £8.10 (2.7% + £0.30) = £47.85 total fees. Net: £252.15.
Amazon is a retailer-focused marketplace where buyers primarily expect new goods, fast shipping, and Amazon's A-to-Z guarantee. It is dominated by FBA sellers and increasingly private label brands.
Formula
Amazon total fees: Referral fee (8-15%) + FBA fee (if applicable, $3-8+) + storage. Total effective rate: 20-30% for FBA sellers in most categories.
Example
Selling a new kitchen gadget for £25 on Amazon FBA: referral fee £3.75 (15%) + FBA fee £3.50 = £7.25 total fees. Net before COGS: £17.75.
Key Differences
- 1Product type: eBay is stronger for used, vintage, and collectibles; Amazon strongly favours new goods
- 2Competition: Amazon has intense price competition on most product lines due to Buy Box dynamics; eBay allows more pricing flexibility for unique items
- 3Fees: eBay typically charges 15-17% total; Amazon FBA runs 20-30% but includes fulfilment
- 4Brand building: Amazon makes it hard to build a brand (buyers think they're buying from Amazon); eBay stores offer slightly more brand presence
- 5International: Amazon's FBA network makes international selling easier; eBay has strong international buyer traffic particularly from the US and Europe
When to Use eBay vs Amazon
Most sellers benefit from using both: eBay for the flexibility to sell used and varied stock, and Amazon for the volume and Prime benefits for core new product lines. Start with eBay if you are testing used goods or low-volume niche items. Start with Amazon if you have a consistent supply of new products and margins that support FBA.
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Common Mistakes to Avoid
Assuming Amazon's higher traffic automatically means higher profit — FBA fees can erode margins significantly for low-price or heavy items
Not accounting for eBay's fee on shipping — many sellers forget that FVF applies to the shipping amount too
Listing on both platforms and selling the same item twice — use inventory management software if running both simultaneously
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Frequently Asked Questions
Can I sell the same products on both eBay and Amazon?↓
Yes. Many sellers list on both simultaneously. The key is having reliable inventory management to avoid overselling the same stock. Tools like Linnworks, ChannelAdvisor, or Sellbrite synchronise inventory across multiple marketplaces in real time.
Which marketplace is better for beginners?↓
eBay is generally easier to start with: lower barriers to entry, no need for FBA logistics, simpler listing process, and lower initial capital requirement. Amazon FBA requires purchasing inventory upfront, shipping to fulfilment centres, and competing against established sellers. eBay's low volume is also less risky for testing product ideas.