eBay vs Amazon: Key Differences for Sellers

At Lillian Purge, we specialise in Ecommerce SEO Services and have developed comprehensive guidance on the key differences between eBay vs Amazon to guide sellers with their online stores.

Choosing the right online marketplace can make or break an ecommerce business. eBay and Amazon are two of the most established platforms in the world, each offering massive customer reach and advanced selling tools. However, they operate on very different models that affect pricing, branding, fulfilment, and long-term growth. Understanding these key differences is essential for sellers deciding where to invest their time, stock, and marketing effort.

Platform Overview

eBay started as an auction site and evolved into a global marketplace that allows both new and used products. It’s particularly strong for independent sellers, niche products, and collectables. Sellers can choose between auction-style or fixed-price listings and retain full control over pricing, shipping, and branding.

Amazon, on the other hand, is a retail-driven platform focused on new products and high-volume sales. It functions as both a direct retailer and a marketplace for third-party sellers. Amazon’s customer base expects fast delivery, consistent service, and professional presentation, all reinforced by the Amazon Prime ecosystem.

While both platforms reach millions of active users, they appeal to different types of sellers and business models.

Business Models and Selling Structure

On eBay, the seller is front and centre. You create your own listings, set prices, and build your store identity. Buyers know they are purchasing from individual sellers or small businesses. The platform acts as a facilitator rather than a retailer, which provides flexibility but also requires sellers to handle fulfilment, customer service, and returns directly.

Amazon’s model is more structured. Sellers can operate under two systems:

• FBM (Fulfilled by Merchant): You manage inventory, shipping, and customer service yourself.

• FBA (Fulfilled by Amazon): You send your products to Amazon’s warehouses, and they handle storage, delivery, and customer service on your behalf.

Amazon’s FBA option can improve visibility and eligibility for Prime delivery, but it also introduces higher fees and less control.

Fees and Costs

Both platforms charge selling fees, but their structures differ.

On eBay, sellers typically pay:

• An insertion fee for each listing (often waived for a set number each month)

• A final value fee based on the item’s sale price, shipping, and category

• Optional costs for promoted listings or premium store subscriptions

eBay’s flexibility allows sellers to control costs by adjusting their sales strategy, but fees can add up, especially in competitive categories.

On Amazon, fees vary depending on whether you sell as an individual or professional seller. The main costs include:

• Referral fees (a percentage of the sale price, usually between 8% and 15%)

• FBA storage and fulfilment fees (if using Amazon’s warehouses)

• Monthly subscription fees for professional accounts

Amazon’s costs are typically higher overall, but sellers benefit from the platform’s immense traffic and trust among consumers.

Branding and Customer Relationship

eBay allows sellers to build strong individual identities. You can customise your store layout, create branded templates, and communicate directly with buyers. This makes eBay ideal for brands that want to nurture loyalty, offer unique products, or focus on niche categories.

Amazon, in contrast, limits branding opportunities. Buyers usually engage more with the product than the seller. Unless you have a registered brand through Amazon Brand Registry, your listings appear as part of Amazon’s overall catalogue. While this consistency builds customer confidence, it can make it harder for sellers to stand out or encourage repeat purchases outside the platform.

Product Categories and Control

eBay supports almost every product category imaginable, including new, refurbished, and second-hand goods. Sellers have flexibility in listing styles, allowing for both auctions and fixed-price sales. This makes it suitable for everything from vintage collectables to new electronics.

Amazon focuses on new and high-demand items, particularly in categories like electronics, beauty, books, and household goods. Sellers must meet strict requirements regarding product condition, listing accuracy, and fulfilment standards. Some categories require pre-approval, adding an extra step for new sellers.

Search and SEO

Search visibility works differently across both platforms.

eBay’s Cassini algorithm evaluates relevance, engagement, conversion rates, and seller performance. Well-optimised titles, complete item specifics, and high-quality photos improve visibility. eBay also rewards listings that perform well over time, making continuous optimisation key.

Amazon’s A9 algorithm focuses heavily on relevance and sales performance. Conversion rates, price competitiveness, and fulfilment method directly affect ranking. Using optimised keywords in titles, bullet points, and backend search terms is crucial for visibility. Sellers using FBA often benefit from higher rankings due to faster delivery and better customer experience.

Fulfilment and Logistics

eBay sellers handle shipping themselves or use third-party couriers. While this offers control, it requires reliable logistics and clear communication to maintain customer satisfaction. Fast and free delivery is a major conversion driver, so sellers often use Royal Mail Tracked, DPD, or Evri to meet expectations.

Amazon FBA, on the other hand, automates fulfilment. Amazon stores, packs, and ships items for sellers, offering same-day and next-day delivery through Prime. This improves customer experience but comes at the cost of control and higher storage fees.

For sellers managing their own logistics (FBM), performance metrics such as on-time delivery and response time affect account health and ranking.

Customer Service and Returns

eBay expects sellers to handle customer queries and returns directly. You can create your own return policies, although offering free and easy returns often improves sales performance.

Amazon controls the customer service process for FBA sellers. For FBM sellers, you manage it yourself but must comply with Amazon’s strict response time and satisfaction metrics. Amazon’s A-to-Z Guarantee provides strong buyer protection, which builds trust but can sometimes disadvantage sellers in disputes.

Target Audience and Buyer Behaviour

eBay attracts bargain hunters, collectors, and small business buyers who value transparency and variety. Its user base includes people looking for both new and second-hand items, which supports flexible pricing and creative marketing approaches.

Amazon attracts convenience-driven shoppers who want fast delivery, reliable service, and competitive pricing. The typical buyer expects consistency and professionalism, which means sellers must meet higher fulfilment and presentation standards.

Marketing and Advertising Tools

Both platforms offer paid promotion options, but their systems differ.

eBay Promoted Listings allow you to boost visibility by paying a percentage of the sale when your promoted listing sells. You can set your own ad rate, giving you control over advertising costs.

Amazon Advertising uses a PPC model, similar to Google Ads. Sellers bid on keywords to appear in sponsored positions within search results. It’s highly competitive but effective for established sellers with strong margins.

eBay’s advertising is simpler to manage for smaller businesses, while Amazon’s system is more powerful but complex.

Seller Support and Growth Potential

eBay offers flexibility and low entry barriers, making it ideal for new or part-time sellers. However, growth potential depends on how well you manage listings, shipping, and feedback.

Amazon provides scalability and access to a vast customer base, but it demands high standards and significant investment. For brands aiming to expand globally or enter premium categories, Amazon offers unmatched infrastructure and exposure.

Choosing the Right Platform

If you want flexibility, control over your branding, and the ability to sell unique or used items, eBay is the better choice. It’s particularly strong for niche sellers, vintage traders, and small businesses looking to grow organically.

If your goal is rapid scaling, access to global fulfilment, and exposure to millions of loyal buyers, Amazon is the stronger option. However, it requires a more professional approach, consistent investment, and tight adherence to platform rules.

Many successful sellers use both, leveraging eBay for niche items and Amazon for mainstream, high-demand products. Managing both effectively can diversify income and protect against platform changes.

Expert Tips

Test and Refine Your Product Range on eBay
If you are planning to sell on multiple online marketplaces, it’s smart to begin strategically. Start on eBay to test your product range, pricing, and customer response before committing significant time or investment to Amazon. eBay’s lower entry barriers and flexible listing options make it an ideal testing ground for understanding demand, optimising your descriptions, and identifying which products deliver the best return on investment. Once you’ve refined your offering, you can confidently expand to Amazon with a clearer idea of what sells well and what needs adjustment.

Build Consistent Branding Across Platforms
Use consistent branding across both platforms to build trust and recognition. Your logos, imagery, tone of voice, and even the way you package products should all feel familiar to your customers. Consistent presentation not only reinforces your brand identity but also helps create a seamless customer experience, encouraging repeat purchases and stronger loyalty.

Analyse Data and Customer Feedback
Regularly analyse your conversion rates, customer feedback, and review patterns to refine your listings. Pay close attention to which keywords drive the most traffic and what types of images or product descriptions result in higher sales. If customers frequently ask similar questions, incorporate the answers directly into your listings. This kind of data-led optimisation ensures you stay ahead of competitors and continually improve performance.

Use Multi-Channel Management Tools
As your sales grow, consider using multi-channel management tools like Linnworks or ChannelAdvisor to streamline inventory management, pricing updates, and order fulfilment across all platforms. These tools save time, reduce errors, and prevent stockouts or overselling. They also allow you to monitor all your marketplace activity from a single dashboard, which is invaluable as your business scales.

Invest in SEO and Professional Product Photography
Finally, invest in SEO and professional product photography to maximise visibility and build trust. Optimised titles, clear descriptions, and relevant keywords help your products rank higher in search results, while high-quality images showcase your items in the best light and instil confidence in potential buyers. Treat every product page as an opportunity to demonstrate professionalism and quality.

By combining testing, branding consistency, analytical insight, automation tools, and strong optimisation, you’ll create a sustainable, scalable multi-channel strategy that positions your business for long-term success across both eBay and Amazon.

Summary

Both eBay and Amazon offer powerful opportunities for online sellers, but they serve different business models and audiences. eBay rewards flexibility and individuality, while Amazon prioritises professionalism and scale. The right choice depends on your goals, resources, and brand positioning.

For sellers ready to take their ecommerce growth further, Lillian Purge provides tailored SEO and optimisation strategies to increase visibility, conversion rates, and brand authority across every major marketplace.

We have also written in depth articles on How to Dropship on eBay and How eBay’s search algorithm (Cassini) works as within our eBay Hub to give you further guidance.