Last Updated on February 7, 2025 by Himanshu Rawat

In the rapidly growing world of online marketplaces, Etsy and eBay stand out as two of the most recognized platforms for buying and selling products. Although both platforms provide opportunities to purchase and sell unique items, they serve different audiences and operate under distinct business models. 

In this blog post, we will directly compare Etsy and eBay from a seller’s perspective, helping you determine which platform is the best fit for your business.

Overview of Etsy and eBay

Etsy:

Etsy is a marketplace primarily dedicated to handmade goods, vintage items (20 years or older), and craft supplies. Etsy has positioned itself as the go-to platform for buyers and Sellers looking for unique, one-of-a-kind items. The platform prides itself on fostering a creative and artisanal community.

Etsy is a well-known platform for crafters, artisans, and vintage sellers, and it’s easy to understand why. The site was designed with these communities in mind.

As of February 5, 2025, Etsy’s market value is estimated at $6.18 billion. This figure highlights the platform’s continued growth and prominence in the e-commerce space.

With more than 96 million active buyers, Etsy attracts a large audience eager to purchase one-of-a-kind products.

eBay:

On the other hand, It started as an auction site where individuals could buy and sell a wide range of items, from collectibles to electronics and even cars. While eBay still retains its auction-based roots, it has expanded into a full-fledged online retail platform, offering everything from new products to secondhand goods.

As of February 5, 2025, eBay’s market value stands at $32.32 billion, reflecting its strong position in the e-commerce industry. With the number of active buyers 133M. eBay is known for auction-style sales, offering a wide range of used, refurbished, and collectible items. It’s a go-to platform for secondhand goods, rare collectibles, and global transactions, connecting buyers and sellers worldwide.

Etsy Marketplace: Pros and Cons

Pros:

1. To open an Etsy shop, there’s a one-time fee of $15. Each item you list costs $0.20, and there’s a 6.5% fee on transactions. Listings stay active for four months and will automatically renew.
2. Etsy provides free analytics, and with Etsy Plus, you get extra customization options such as banners and the ability to feature specific listings.
3. Etsy provides on-site ads with automatic bidding, as well as off-site ads that only charge you for clicks that result in a purchase within 30 days.
4. Etsy’s advertising system works like an auction, where sellers choose a daily budget, and ads are displayed according to the budget and the product category.

Cons:

1. Etsy charges listing fees every four months, which can add up for sellers with numerous listings, particularly if their items don’t sell.
2. Etsy only allows the sale of handmade, vintage, and collectible items; products that don’t fall into these categories could be flagged or removed.
3. Etsy doesn’t handle shipping, so sellers are responsible for managing logistics or using external fulfillment services.
4. If sales don’t generate enough to cover listing fees, sellers could end up losing money by running an Etsy shop.

Pros and Cons of eBay to consider

Pros:

1. Easy to Set Up and Use: eBay offers a simple setup process and user-friendly interface, making it accessible for new sellers.
2. Zero Listing Fees: eBay provides free listings each month, reducing upfront costs for sellers.
3. Large Global Marketplace & High Earning Potential: With millions of buyers worldwide, eBay offers vast reach and strong earning opportunities.
4. Seller Tools & Payoneer Integration: eBay provides helpful seller tools for managing listings, and Payoneer integration simplifies payment, especially for international sales.

Cons: 

1. High Competition from Other Sellers: With millions of sellers on eBay, competition can be fierce. Standing out in crowded categories or against larger sellers can be challenging, especially for new or small businesses.
2. Lack of Search Visibility: eBay’s search algorithm may not always favor new or less-established sellers, which can make it difficult to get noticed. Listings can get buried under more popular or well-established competitors’ products.
3. eBay Favors Buyers Over Sellers in Disputes: In cases of disputes or claims, eBay tends to prioritize buyers, which can sometimes leave sellers at a disadvantage. This can lead to potential losses if items are returned or claims are filed, even if the seller feels they followed all the rules.
4. High International Shipping Costs: Shipping internationally can be expensive, and eBay’s global marketplace often requires sellers to manage these costs. High shipping fees can impact pricing competitiveness and may discourage buyers from purchasing from overseas sellers.

Comparing Fees and Pricing Structures: Etsy vs eBay

Below is a detailed comparison of the subscription and fee structures for both platforms to help you understand the costs involved in selling on Etsy and eBay.

Key Distinctions Between Etsy and eBay for Sellers

Deciding between Etsy and eBay depends on the products you’re selling, your target audience, your budget, and the tools you need as a seller. To help you determine which platform is a better fit for your business, here are the key differences between Etsy and eBay.

1. Products Focus: 

Etsy specializes in handmade, vintage products, and craft materials, typically offering unique, artistic items that you won’t find in mainstream stores.

eBay, on the other hand, offers a wide range of new and pre-owned goods, including electronics, clothing, home goods, vehicles, and collectibles.

2. Seller community:

Etsy appeals to independent creators, artists, and small business owners who carefully select and craft their products.

eBay caters to a wide range of sellers, from individuals and hobbyists to small businesses and large-scale retailers.

3. Sales strategy:

Etsy primarily features fixed-price listings, with little to no use of auction formats.

eBay provides a mix of auction-style listings alongside fixed-price “Buy It Now” options, giving sellers more flexibility in how they price their products.

4. Listing Fees and Costs

Etsy charges a $0.20 listing fee per item and a 6.5% transaction fee based on the sale price, along with extra costs for advertising and promotional tools.

eBay applies insertion fees for listings (free for a certain number each month), final value fees, and optional fees for advanced listings and promotional features.

5. Customer Experience: 

Etsy creates a sense of community, highlighting the stories behind the products and the artisans who make them.

eBay is more focused on the transaction itself, prioritizing the buying and selling process with an emphasis on efficiency.

Etsy vs eBay: Which platform will you prefer?

Both eBay and Etsy are fantastic online marketplaces, each offering unique benefits for your business. The choice depends on the types of products you plan to sell and your target audience.

Etsy is a niche marketplace, perfect for smaller businesses focused on handmade, creative, artistic, unique, and vintage items. On the other hand, eBay has a broad reach and is suitable for almost any seller due to its extensive variety of products. We hope this comparison helps you choose the best marketplace for your business.

Conclusion

In conclusion, choosing between Etsy and eBay depends on your business goals, the type of products you sell, and the audience you aim to reach. Etsy is ideal for handmade, vintage, and unique items, while eBay offers a broader range of new, used, and auction-style goods, making it better suited for those looking to target a larger, more diverse customer base.

Frequently Asked Questions

1. Which platform is better for selling handmade items, Etsy or eBay?

Etsy is the go-to platform for handmade, vintage, and unique items, while eBay caters to a broader range of products, including secondhand and mass-produced goods.

2. Is it easier to start selling on Etsy or eBay?

Etsy is known for being user-friendly for creators and small businesses, especially those focused on crafts or vintage products. eBay provides more flexibility but may require more experience with auctions and pricing strategies.

3. Which platform attracts more customers, Etsy or eBay?

Etsy attracts a niche audience looking for handmade or vintage items, while eBay has a broader customer base interested in a variety of products, including collectibles, electronics, and more.

4. Can I sell both handmade and mass-produced products on eBay or Etsy?

Etsy is best for handmade and vintage items, while eBay allows the sale of both handmade and mass-produced goods, making it more versatile in terms of product types.

5. Which platform has lower competition, Etsy or eBay?

Etsy tends to have less competition for handmade, vintage, and unique items, as it caters to a specific niche. eBay, on the other hand, has a much broader range of products and more sellers, resulting in higher competition, especially for popular or common items.