eBay vs Amazon: Key Differences for Sellers

For UK businesses considering selling online, two platforms dominate the conversation: eBay and Amazon. Both marketplaces attract millions of active buyers, but they operate in very different ways. Choosing the right platform, or deciding to sell on both, requires a clear understanding of their strengths, limitations, and how they treat sellers. From fees and fulfilment to visibility and branding, there are critical differences that impact profitability and growth. This article explores the key distinctions between eBay and Amazon, giving sellers the insights they need to make informed decisions.

Business Models and Buyer Expectations

At the most basic level, eBay and Amazon serve different purposes. eBay is a marketplace built around both consumer-to-consumer and business-to-consumer sales. It allows auction-style listings, fixed-price sales, and offers greater flexibility for sellers. Amazon, by contrast, is primarily business-to-consumer and positions itself as the first stop for fast, reliable retail. UK buyers tend to treat eBay as a place for variety, bargains, and unique items, while Amazon is seen as the go-to for convenience, speed, and consistency. These buyer perceptions influence how products must be marketed on each platform.

Search Algorithms and Visibility

Both platforms use sophisticated search algorithms, but they reward different factors. Amazon’s A9 algorithm focuses on sales velocity, relevance, and pricing to determine rankings. It rewards listings that convert quickly and generate revenue for Amazon. eBay’s Cassini algorithm prioritises relevance, seller performance, and buyer engagement. This means that on Amazon, products with higher conversions and competitive prices rise to the top, while on eBay, seller reputation and delivery promises can carry greater weight. For UK sellers, understanding these nuances is key to optimising for visibility.

Fees and Cost Structures

The fee structures of eBay and Amazon differ significantly. eBay charges an insertion fee, often waived within monthly limits, and a final value fee which varies by category. Additional costs come from promoted listings or store subscriptions. Amazon charges referral fees on every sale, plus variable closing fees and optional Fulfilment by Amazon (FBA) costs. While eBay often appears cheaper for casual sellers, Amazon can be more expensive but may provide higher volumes of sales. For UK businesses, calculating profitability requires careful modelling of fees against expected sales volume.

Fulfilment and Logistics

Amazon’s biggest advantage is its FBA programme, which handles storage, packing, shipping, and customer service. FBA products are Prime-eligible, making them highly attractive to UK buyers accustomed to next-day delivery. eBay does not offer the same integrated fulfilment solution, although its partnerships with couriers and fulfilment services provide discounted shipping options. On eBay, sellers are responsible for logistics, which provides flexibility but also increases operational burden. Choosing between control and convenience is one of the key considerations for sellers.

Branding and Customer Relationships

Amazon is highly restrictive when it comes to branding. Its focus is on creating a seamless customer experience under the Amazon umbrella, meaning individual sellers have limited ability to build brand identity. Buyers often do not even notice which seller they are purchasing from. eBay, by contrast, allows more flexibility in design, communication, and brand presentation. Sellers can create branded storefronts, use custom templates, and build relationships through personalised messaging. For UK businesses looking to grow long-term brand recognition, eBay offers more freedom, whereas Amazon prioritises consistency over individuality.

Product Categories and Competition

Competition levels also vary across platforms. Amazon is dominated by mass-market products, with sellers competing directly with Amazon itself in categories like electronics, books, and household goods. eBay supports a wider variety of categories, including collectibles, second-hand goods, and niche products that may struggle on Amazon. UK sellers of unique, custom, or vintage items often find more success on eBay, while those selling fast-moving consumer goods may achieve greater volume on Amazon. Understanding where your products fit best is crucial to marketplace selection.

Customer Service and Returns

Amazon sets strict standards for customer service and returns. Sellers must meet performance targets for response times, order defect rates, and on-time delivery. Returns are often automatically approved, giving customers more power but reducing seller control. eBay also enforces standards but allows greater flexibility in setting policies, particularly for returns. UK buyers expect clear and fair returns processes, and sellers must weigh Amazon’s rigid requirements against eBay’s more customisable approach. Both platforms penalise poor service with reduced visibility and potential account restrictions.

Advertising and Promotions

Both marketplaces offer advertising tools, but their systems differ. Amazon provides Sponsored Products, Sponsored Brands, and Sponsored Display campaigns, all tightly integrated into its ecosystem. These ads can be expensive but are highly effective in boosting rankings and conversions. eBay’s Promoted Listings allow sellers to pay for increased visibility within search results. While less sophisticated than Amazon Ads, they are often cheaper and easier to manage. For UK sellers, advertising spend can be a major cost, so understanding ROI on each platform is essential.

Pros and Cons for UK Sellers

For UK sellers, Amazon offers scale, reach, and trusted fulfilment but comes with higher fees, stricter rules, and less control over branding. eBay provides flexibility, lower barriers to entry, and more opportunities for niche products but requires more effort in logistics and customer management. Many successful businesses use both platforms, leveraging eBay for branding and niche categories while using Amazon for volume and exposure. The right choice depends on business goals, resources, and product type.

Future Outlook for eBay and Amazon

Both platforms will continue to evolve in response to buyer expectations and competitive pressures. Amazon is expanding its logistics network in the UK, making fast delivery even more accessible, while eBay is doubling down on trust and authenticity, particularly in categories like luxury goods and refurbished products. Sellers who can adapt to these shifts and tailor their strategies accordingly will remain competitive. Diversification across both platforms, while challenging, may prove the most resilient approach.

Conclusion

Selling on eBay and Amazon requires different strategies, mindsets, and operational models. While Amazon rewards speed, consistency, and volume, eBay values flexibility, branding, and variety. For UK sellers, success depends on aligning products and processes with the platform that best suits their business. Whether choosing one or both, understanding the differences between eBay and Amazon is the first step towards building a sustainable and profitable ecommerce presence.