Amazon vs eBay: Which Platforms Should You Use For Your Business

If you want to start or grow your online business in 2025, choosing the right platform to sell on will be one of your biggest decisions. Among the many options out there, Amazon and eBay remain two of the most dominant marketplaces in the world.

Although they operate very differently, both provide enormous customer bases and growth opportunities. So, which one is better for your business — Amazon or eBay?  Let’s investigate their advantages, disadvantages, and ideal applications in depth.

Understanding Amazon and eBay

Amazon, founded in 1994, is the world’s largest online retailer.  It focuses primarily on new, branded, and private-label products, offering customers fast delivery and trusted service.  Sellers can use Fulfillment by Amazon (FBA), in which Amazon handles storage, packaging, and delivery, or handle their own shipping.

Since its launch in 1995, eBay has grown from a platform for auctions to a global marketplace for new and used goods. It’s known for its flexibility, allowing sellers to list unique, second-hand, or collectible items alongside new ones. eBay thrives on variety, affordability, and seller independence, whereas Amazon places an emphasis on brand trust and speed.

The Pros of Selling on Amazon

• Vast Customer Reach: Amazon has hundreds of millions of active customers, including over 200 million Prime members, providing immense visibility and a “ready-to-buy” audience that would be difficult to reach otherwise. Customers have an inherent sense of confidence in the Amazon platform, its safe payment methods, and its return policies. Customers are more likely to make a purchase from an unknown vendor than from an independent website due to this instant credibility. 
• Fulfillment by Amazon (FBA): The FBA program simplifies logistics by handling storage, packaging, shipping, customer service, and returns.  Sellers can now concentrate on sourcing and expansion as a result.
•  Prime Eligibility: Products fulfilled via FBA are eligible for Amazon Prime’s fast shipping, a major incentive for Prime members, which can significantly boost sales and visibility.
•  Ease of Getting Started: Amazon’s e-commerce infrastructure is already in place, so you don’t have to worry about creating and maintaining your own website, handling payment processing, or creating intricate logistics systems.

The Cons of Selling on Amazon

• High Competition and Price Wars: With millions of sellers on the platform, competition for visibility and the “Buy Box” is fierce.  This often leads to price wars, which can squeeze profit margins.
•  Significant Fees: Selling on Amazon involves various costs, including monthly subscription fees, referral fees (a percentage of each sale), FBA fees, and storage fees.  These can total a substantial portion of your profits.
•  Limited Control and Branding: Amazon dictates the customer experience, policies, and algorithms.  Because Amazon considers its customers to be its own, sellers have limited control over the appearance, packaging, and direct communication with customers of their brands. 
• Risk of Dependence and Account Suspension: Your company is dependent on Amazon’s platform and its constantly shifting rules. Seller accounts can be suspended if policies are violated (even unintentionally), making it a fragile foundation for a business.
•  Limited Customer Data: Amazon provides very little customer data to sellers, making it difficult to build a direct customer relationship, create a mailing list, or market to them for repeat business outside the platform.

The Pros of Selling on eBay

• Diverse Product Categories: Used, refurbished, collectible, and one-of-a-kind items that might not sell as well on other platforms are popular on eBay. The platform’s audience actively seeks these kinds of goods.
•  Flexible Selling Formats: You can go with fixed-price “Buy It Now” listings or the traditional auction format, which can raise prices for items that are rare or in high demand. 
• Lower Barrier to Entry & Flexible Fees: Starting an eBay account is straightforward with low startup costs.  Sellers get up to 1,000 free listings per month, and the fee structure (final value fees typically around 12.9%) is generally considered lower than Amazon’s, especially for small businesses or casual sellers.
•  Greater Branding Opportunities & Control: eBay offers more flexibility for sellers to design their own store, create detailed product descriptions, and manage their own customer service interactions, allowing for a more personalized brand presence compared to Amazon’s standardized listings.
•  Global Reach: The platform makes international selling easier with programs like the Global Shipping Program, allowing you to reach customers in over 190 countries without managing all the complex logistics yourself.
•  There is no competition from eBay itself: eBay operates solely as a marketplace, unlike Amazon, which has its own private label products that compete with sellers. This means that it will not directly undermine your business.

The Cons of Selling on eBay

• High Selling Fees: eBay charges listing fees, final value fees, and optional promotional fees, among other things. These costs can add up and impact your profit margins, especially for small businesses.
•  Enormous Competition: Since eBay is an open marketplace, you’ll be competing with thousands of other sellers, including big retailers.  Price wars and undercutting can make it difficult to stand out.
•  Strict Seller Policies: Return policies, shipping times, and standards for customer service are just a few of the strict eBay seller policies that must be adhered to. Account restrictions or suspensions could occur if you don’t follow the rules. 
• Refunds and Replacements: eBay’s buyer-friendly return policies can sometimes work against sellers.  You may have to deal with high return rates, refund requests, and even fraudulent buyers.
•  Dependence on eBay’s Platform: Since eBay controls the marketplace, they can change policies, fees, and search algorithms at any time, which may impact your business performance.

The “best” platform depends entirely on what you sell, your business size, and how you prefer to operate.  There is no one best choice that applies to everyone. Here is a breakdown to help you decide which platform is best for you:

 Choose Amazon If:

•  You sell new, generic, or mass-market products: Items like electronics, home goods, or toys that fit existing Amazon listings thrive here.
•  You want easy logistics: You prefer to use Fulfillment by Amazon (FBA) so Amazon handles all the storage, shipping, and customer service for you.
•  You need a lot of customers and a wide audience: you want instant access to millions of devoted Prime members who place a high value on quick shipping and convenience. You are scaling quickly: You need a highly automated and standardized system to handle high order volumes.

Choose eBay If:

•  You sell used, unique, vintage, or collectible items: Products where uniqueness matters more than brand new condition excel in eBay’s environment.
•  You are willing to manage your own inventory, packaging, and shipping to save money and have more control over the process. You also want lower fees and more control. You prefer a personalized selling approach: You want more flexibility in your listing formats (auctions vs. fixed price) and enjoy building a relationship with customers.
•  You are a small business or just starting out: The setup is often faster, less restrictive, and more flexible for smaller operations.

Both Amazon and eBay are powerful platforms, but the right choice depends on your business model.Amazon’s ecosystem offers unparalleled scale if you want volume, automation, and global reach. But if you value flexibility, personal branding, and lower overhead costs, eBay could be your best starting point. Both platforms are utilized by numerous successful online business owners, with Amazon being used for products in high demand and eBay for niche or unique items.