Sell Through Amazon or eBay: Cost, Fees & Profit Comparison

Alright, before we dive into dollars and cents, you need to understand something crucial. When people ask Is it Better to Sell on Ebay or Amazon, they are basically asking whether they want to be a cog in a massive machine or the captain of their own ship. And neither answer is wrong—it just depends on your personality.

Amazon Compared to Ebay is like comparing working at a fancy corporate job versus running your own food truck. At Amazon, everything is standardized. You follow their rules, use their format, and basically disappear into the background.

Customers are not buying from “Your Awesome Store”—they are buying from Amazon, and you are just the invisible suppliers keeping the warehouse stocked. The upside? You get to piggyback on the most trusted brand in e-commerce.

eBay though? eBay is the wild west in the best possible way. You set up your own little shop. You write your own descriptions. You can talk directly to your customers. Sure, there is more work involved, but you actually get to BE a business instead of just a supplier. When I made my first sale on eBay, the buyer messaged me to say thanks and left this glowing review about how carefully I had packed their item. That never happens on Amazon. Ever.

Okay, let us get to the part you really care about—the fees. Because honestly, this is where most new sellers get burned. They look at the percentages and think “oh, 15% is not that bad,” but then they forget about all the other stuff that nickel-and-dimes you to death.

Amazon’s Fee Circus

Man, Amazon’s fee structure is something else. Let me break down what you are really looking at, because it is more than just that headline “referral fee” they advertise.

So first, you have got your referral fee—this is the big one. They take a percentage of every sale, and it varies by category. Most stuff falls around 15%, but here is where it gets sneaky. Electronics might only be 8%, which sounds great, right? 

But jewelry and certain accessories can hit 20% or more. And they calculate this on your TOTAL sale price, including shipping. So sell something for $100 plus $10 shipping? You are paying fees on $110.

Then there is the subscription situation. If you are selling more than 40 items a month—and hopefully you are if you are taking this seriously—you are looking at $39.99 per month for the Professional listing plan. Individual sellers can skip this and pay $0.99 per item instead, but trust me, once you are moving real volume, that $39.99 is actually the cheaper option.

But here is where things get spicy—the FBA fees. If you decide to use Fulfillment by Amazon (and most serious sellers do, because Prime shipping is basically a cheat code for sales), you are paying for storage, picking, packing, and shipping. 

These fees start around $2.92 for tiny items but can easily hit $10+ for bigger stuff. And do not even get me started on storage fees during Q4—they practically double from October to December.

Oh, and returns? Amazon charges you a processing fee for those too. Plus long-term storage fees if your inventory sits too long. Plus removal fees if you want your stuff back. The fee structure has more layers than an onion, and I have seen new sellers cry when they see their first detailed statement.

eBay’s Friendlier Approach

Now, when you Sell on Ebay or Amazon, eBay is way more chill about taking your money. And I mean that in a good way.

First off, insertion fees—eBay gives you 250 free listings every single month. That is huge when you are starting out and testing products. I remember my first month I listed like 80 items without paying a dime. On Amazon, I would have been paying $0.99 per item. Once you blow past those 250 listings, it is only $0.35 per listing after that.

Final value fees—their version of referral fees—typically run 12.9% to 13.25% depending on your category. That is already lower than Amazon’s 15%, and it includes payment processing since eBay moved to managed payments. No more separate PayPal fees to worry about.

The optional stuff? Subtitles, bold text, reserve prices—these cost extra, but you control whether to use them. I never do. My listings do just fine without the bells and whistles.

Let me give you a real example. I sold a vintage camera lens on eBay for $150. My final value fee was about $19. If I had sold that same lens on Amazon, I would have paid around $22.50 in referral fees, plus FBA fees if I used them, plus storage. The difference adds up fast when you are doing real volume.

Here is the thing nobody talks about when they debate Ebay or Amazon: fulfillment is where your lifestyle gets determined. Do you want to be packing boxes at midnight, or do you want someone else handling that headache?

The FBA Dream (and Its Price Tag)

The Amazon fulfillment center is honestly revolutionary. You ship your inventory to their warehouses, and suddenly, you are not touching boxes anymore. They store it, they pack it, they ship it, they handle returns and customer service. You wake up to “You have made a Sale” email,s and money just appears in your account.

The Prime badge alone is worth its weight in gold. I have seen conversion rates double just from having that little blue checkmark. Customers trust it. They expect two-day shipping, and Amazon delivers (literally).

But—and this is a big but—you are paying dearly for this convenience. FBA fees can eat 20-30% of your product price easily. And if your stuff does not move quickly, Amazon starts charging you long-term storage fees. 

Wait too long, and they might actually dispose of your inventory instead of returning it. I have had friends lose thousands in inventory because they did not track their sell-through rates.

The eBay Reality

When you Sell Through Amazon or Ebay, eBay does not hold your hand with fulfillment. There is no magical eBay warehouse waiting for your stuff. Your options are basically:

Do it yourself—which means your garage becomes a warehouse, your dining room becomes a packing station, and your car becomes a daily USPS delivery vehicle. This is fine when you are small, but it gets old fast when you are doing 20 orders a day.

Use a third-party logistics company—which means finding a warehouse, negotiating rates, and managing another relationship. It is more work upfront but often cheaper than FBA.

Or, if you are feeling spicy, you can actually use Amazon’s multi-channel fulfillment to ship your eBay orders. Yeah, you read that right. Amazon will ship your eBay sales—for a higher fee, of course. It is kind of hilarious using Amazon to fulfill eBay orders, but it works.

The upside of handling your own fulfillment? You control everything. You can include thank-you notes, branded packaging, little freebies. 

I used to include stickers in every eBay package, and people loved it. On Amazon, that is impossible—everything goes out in boring Amazon packaging with no personality whatsoever.

Not every product works on every platform. This is where I see new sellers make their biggest mistakes—they try to sell the wrong thing on the wrong platform and then blame the platform when it does not work.

Amazon Loves This Stuff

When deciding Is it Better to Sell on Ebay or Amazon, think about what you are actually selling. Amazon dominates:

• New consumer electronics. The latest gadgets, headphones, phone accessories—Amazon shoppers expect these. Amazon’s catalog system is perfect for standardized products where every unit is identical.
• Household essentials. Paper towels, vitamins, baby products—anything people reorder on the regular. The Subscribe & Save feature is a goldmine here.
• Books and media. Amazon started as a bookstore, and they still own this space completely.
• Health and beauty. The replenishment nature of these products drives insane repeat purchase rates.

But here is the catch—getting approved to sell in many of these categories is a nightmare. Amazon treats categories like beauty and health like exclusive clubs. You need supplier invoices, certificates, sometimes even sample testing. I have heard of sellers waiting weeks for approval, gathering documents, only to get rejected with no explanation.

eBay’s Sweet Spots

When comparing Ebay or Amazon, eBay shines in completely different areas:

• Vintage anything. Old toys, comic books, vinyl records, trading cards—these are eBay’s bread and butter. The auction format drives competitive bidding on rare items.
• Used electronics. Refurbished phones, pre-owned laptops, vintage cameras. People pay premiums for these on eBay.
• Auto parts. Hard-to-find car components, accessories, modifications. eBay has absolutely cornered this market.
• Fashion. Designer clothes, vintage garments, shoes—Websites Like Amazon or Ebay often cannot match eBay’s fashion community.
• One-of-a-kind items. Handmade goods, personalized gifts, custom creations. Stuff that does not fit in Amazon’s rigid catalog system.

The beauty of eBay is the immediacy. You do not need approval to sell vintage sneakers or your grandma’s jewelry. List it today, sell it this week. I once listed a vintage concert t-shirt on eBay at 2 PM and had it sold by 6 PM. Try that on Amazon with all their approval requirements.

The psychology of buyers on these platforms is totally different, and you need to understand this or you will fail.

Amazon Buyers: Speed Demons

Amazon customers are on a mission. They know exactly what they want, they want it tomorrow, and they do not care who sells it. Brand loyalty to individual sellers? Practically does not exist. They are loyal to Prime, not to you.

These people:

• Search for exact products, never browse.
• Trust the Prime badge more than any seller rating you will ever get.
• Expect hassle-free returns, and do not think twice about sending stuff back.
• Rarely read product descriptions beyond the bullet points.
• Want answers to questions immediately, or they will buy from someone else.

Building a relationship with Amazon customers is basically impossible. I have been selling on Amazon for years and I could not tell you a single customer’s name. You do not build a brand community—you build a product business. The platform controls everything.

eBay Buyers: The Treasure Hunters

eBay buyers are a completely different breed. They are browsers, researchers, connection-seekers. They:

• Read seller feedback like it is a novel before purchasing.
• Message you with questions about condition, authenticity, shipping.
• Look for unique items they can not get anywhere else.
• Actually read your descriptions and look at every photo.
• Appreciate personal touches.
• Become repeat customers when they find sellers they trust.

I have got eBay customers who have been buying from me for years. They message me when they are looking for something specific. They recommend me to friends. One guy sends me Christmas cards, I am not even kidding. That kind of loyalty is priceless—and basically impossible on Amazon.

Here is something that frustrates new sellers to no end: you cannot just list whatever you want on Amazon.

Amazon’s Gated Categories

Amazon treats many product categories like exclusive VIP sections. Try to sell beauty products? You will need supplier invoices and might face category restrictions. Health supplements? Mountains of documentation. Grocery items? Hope you have proper licensing and commercial kitchen access.

This gated approach exists to protect customers from counterfeit goods, but it creates a massive barrier for new sellers. You might spend weeks gathering documents only to get rejected. I have seen people give up entirely because they could not get approved for their product category.

eBay’s Open Door

When you Sell Through Amazon or Ebay, eBay is refreshingly open. Beyond general prohibited items—like weapons, dangerous stuff, illegal things—you can list almost immediately. Vintage wine? Go for it. Used designer bags? List away. Your childhood toy collection? Someone absolutely wants that.

This accessibility makes eBay the perfect testing ground. You can validate product demand without jumping through bureaucratic hoops. If something does not sell, you lose $0. If it does, you know you have got a winner worth pursuing on Amazon later.

Alright, let us cut through the noise. You should lean toward Amazon when:

• You are selling standardized, new products with steady supply. If you can reliably restock, Amazon’s catalog system rewards you with the Buy Box (that “Add to Cart” button everyone wants).
• Your products are basically commodities. Phone chargers, kitchen gadgets, basic electronics—stuff where the only difference between sellers is price and shipping speed.
• You have capital to invest in inventory. Amazon rewards sellers who can ship large quantities to FBA and maintain stock levels. Running out of stock kills your rankings.
• You want to scale to serious revenue. The volume potential is unmatched. You can do seven figures on Amazon way easier than on eBay.
• You are okay with lower margins but higher volume. Amazon is a game of pennies times millions. You will not make as much per sale, but you will make more sales.

eBay becomes your best friend when:

• Your inventory management is unique, used, or vintage. The auction format and treasure-hunter mentality make eBay unbeatable for collectibles.
• You are testing products with limited cash. Free listings and lower fees mean you can experiment without risking thousands upfront.
• You want a business with personality. Direct customer communication and seller feedback let you actually build something meaningful.
• You have one-of-a-kind items. Custom creations, personalized gifts—stuff that does not fit Amazon’s rigid catalog.
• You prefer higher margins over massive volume. eBay sellers often keep 10-15% more per sale. You might sell fewer units, but you profit more on each one.

Here is the thing the gurus do not always share: you do not have to pick just one. The smartest sellers I know use both platforms strategically.

Start with eBay. Test your products there. The barriers are lower, you can list immediately, and you will get direct customer feedback that helps you improve your offering. Once you have proven something sells—like, really sells, not just one-off flukes—then scale it on Amazon.

Or segment your approach. Keep your new, standardized, high-volume products on Amazon. Keep your used, vintage, test products, or anything unique on eBay. This lets you maximize reach while minimizing risk.

I know sellers who use Amazon’s multi-channel fulfillment to actually ship their eBay orders. It sounds crazy using Amazon to fulfill eBay sales, but it works. You get the FBA convenience while building your eBay brand.

Here is my honest advice to anyone asking Is it Better to Sell on Ebay or Amazon: stop trying to find the “perfect” answer and just start. The most dangerous thing you can do is spend months researching, comparing, overthinking—while doing absolutely nothing.

If you crave massive scale, you are selling new standardized products on Amazon, and you do not mind paying premium fees for outsourced logistics, Amazon is your game. The FBA program genuinely changes the game for fulfillment, and the Prime customer base is unmatched anywhere in e-commerce.

If you value higher margins, seller independence, and want to build genuine relationships with customers who actually remember your name, eBay is calling your name. The freedom to sell what you want, how you want, without begging for approval is liberating.

But honestly? Start with eBay. Even if you plan to end up on Amazon eventually, use eBay as your testing ground. It is cheaper, faster, and more forgiving. Learn the ropes there, figure out what actually sells, then expand to Amazon once you have got your sea legs.

The perfect platform is the one that gets you started today. Not tomorrow. Today.