Vendoo's Blog: A Seller's Corner

Etsy vs. eBay: A Comprehensive Comparison Guide for Sellers

Written by Erynn A. Hamel | Jun 22, 2022 6:30:00 PM

Thinking about reselling or expanding to new marketplaces? You have come to the right place. Let’s explore two popular worldwide selling platforms: eBay vs. Etsy 

 

Main Takeaways

  • Audience and Products: eBay has a larger global audience and broader product categories, while Etsy targets a niche market for handmade, vintage, and craft items.
  • Setup and Costs: Etsy charges a $0.20 listing fee per item, whereas eBay offers 250 free listings per month but has higher selling fees.
  • Seller Tools: eBay offers advanced seller tools and analytics, while Etsy provides a user-friendly experience for artisans.
  • Payments and Returns: Both platforms offer diverse payment options, but eBay's managed payments system centralizes transactions. Both platforms have buyer-friendly return policies.
  • Crosslisting: Crosslisting on both platforms maximizes visibility and sales. Vendoo simplifies this process, allowing easy management of listings.
  • Vendoo Optimization: Vendoo streamlines inventory management and listings on eBay and Etsy, helping sellers expand their reach and boost sales. Try Vendoo for free!

 

Etsy vs. eBay Introduction

In the dynamic world of online selling, eBay and Etsy stand out as two of the most popular marketplaces for online resellers. Whether you're a professional or a beginner, choosing the right marketplace is crucial for your selling success. 

 

This article explores the unique features, benefits, and potential drawbacks of selling on eBay versus Etsy. 

 

By the end, you'll have a clearer understanding of which platform best suits your needs, helping you make an informed decision to optimize your e-commerce efforts.

 

In this comprehensive guide, we will explore:

  • The target audiences of eBay and Etsy
  • Fee structures and cost implications
  • Listing processes and ease of use
  • Traffic and visibility potential
  • Seller tools and support systems

 

Let's dive in and discover which platform is the right fit for you!


What is Etsy?

Etsy is a vibrant, global online marketplace primarily catering to artisans and creators. It’s the go-to platform for buying and selling handmade, vintage, and craft supplies. Etsy offers a diverse range of products that appeal to niche markets and epitomize the wholesome “shop small” phenomenon.

 

 Sellers on Etsy often enjoy a more personalized selling experience, where they can showcase their creativity and connect with buyers who appreciate unique and handcrafted goods.

 

To learn more about Etsy, check out A Reseller’s Guide to Etsy: How to Start Selling on Etsy

 

What is eBay?

eBay is a global online e-commerce platform for the purchase and sale of a wide variety of goods. Known for its auction-style listings, eBay offers fixed-price sales for everything from electronics and fashion to collectibles and home goods. 

 

eBay is the largest and most lucrative peer-to-peer marketplace in the history of the world. The platform's vast reach and diverse product categories make it a popular choice for sellers looking to tap into a broad, international customer base. eBay's robust selling tools and extensive support resources further enhance the selling experience, making it a versatile platform for both casual sellers and established businesses.

 

For more information about eBay, see How to Sell on eBay: A Guide to Creating and Managing Listings

 

Etsy vs. eBay: Complete 2024 Comparison

When it comes to online selling, choosing the right marketplace can be a game-changer for your business. Etsy and eBay, two of the most popular platforms, each offer distinct advantages and cater to different types of sellers. In this section, we'll provide a comprehensive comparison of Etsy and eBay in 2024, examining key factors such as target audiences, fee structures, listing processes, traffic potential, and seller tools. By understanding the unique features and benefits of each platform, you'll be better equipped to decide which one aligns with your business goals and product offerings.

 

Audience

eBay is the largest and most lucrative online reselling marketplace, with 159 million users worldwide. Of those, 61% of eBay users are 35-64, a more mature audience than many other popular marketplaces. eBay is likely the “best” place to sell, with the largest audience and broadest range of what you can sell.

 

Interestingly, Etsy does not publish statistics or demographical information about users. According to a recent report, Etsy had approximately 96.1 million active users at the end of the first quarter of 2024. Like eBay, Etsy is a global platform with a wide audience reach. 

 

Product Categories

eBay and Etsy offer very different selling categories.

 

On eBay, you can sell almost anything. eBay offers a very broad range of categories, from vehicles to real estate. Top-selling categories on eBay include jewelry and watches, electronics (computers, tablets, phones, cameras, video game consoles, games, and accessories), clothing and apparel, and health and beauty products.

 

On Etsy, the categories are fairly limited. You can only sell handmade items, vintage fashion, and craft supplies. Handmade goods are those made by the seller and range from clothing to décor and everything in between (including digital downloads). Vintage items are at least twenty years old, for which you can provide age authentication. Craft supplies include tools, ingredients, and materials whose primary purpose is for use in the creation of an item or special occasion (including party supplies).

 

Remember, you can quickly cross-list your items to both with Vendoo

 

Account Setup

Setting up a seller account is a crucial first step in your e-commerce journey. Both Etsy and eBay have streamlined processes.

 

On Etsy, you create a basic account using your email address. Next, you open your shop by providing essential details such as the shop name, currency, and preferences. After setting up your shop, you must enter your billing information to handle fees and payments. The final step is to stock your shop by listing your first item, which involves adding photos, descriptions, pricing, and shipping details.

 

For eBay, you start by signing up for an account using your email address. You then convert your account to a seller account by providing additional details, including a verified payment method. Depending on your sales volume and business needs, you will need to choose between a personal account and a business account. The last step is to list your items by creating detailed listings with photos, descriptions, pricing, and shipping options.

 

While both platforms offer user-friendly setup processes, Etsy’s approach is more tailored to individual sellers and crafters, whereas eBay accommodates a broader range of sellers, including businesses.

 

Initial Costs

Understanding the initial selling costs on each platform is essential for budgeting and planning your business strategy.

 

On Etsy, there is a listing fee of $0.20 per item. Additionally, a transaction fee of 6.5% of the total sale price, including shipping, and a payment processing fee that varies by country is typically around 3% plus $0.25 per transaction. Etsy also offers an optional subscription called Etsy Plus for $10 per month, which provides additional tools and customization options.

 

On eBay, sellers generally enjoy free insertion for the first 250 listings per month, with a fee of $0.35 per listing thereafter. The final value fee varies by category but is typically around 12.35% of the total sale amount, including shipping. There is also a payment processing fee of 2.9% plus $0.30 per transaction. eBay offers various store subscriptions ranging from $4.95 per month for a Starter store to $299.95 per month for an Anchor store, each providing different benefits like additional free listings and marketing tools.

 

eBay has lower upfront costs via free listings, whereas Etsy charges for every listing. However, Etsy does not require a monthly subscription fee, whereas eBay does for sellers who wish to sell over 150 items. The actual selling commission fees vary a bit, too; see below.



Listing Process 

Listing an item for sale on Etsy is much simpler, but remember that eBay’s audience is much larger, so it is worth your time to list everything on eBay.

 

How to List an Item on Etsy

 Listing items on Etsy is very straightforward: You can upload 10 photos (and a listing video), type a description, and select a few drop-down boxes based on the category of your item (which may or may not include specifics such as size, material, colors, occasion, etc.)

 

On each Etsy form, you will enter the handling time and shipping information for the item and also select whether to have it auto-renew or to do so yourself manually. You can also enter tags (basically hashtags) for the item based on style for exposure and searchability. 

 

How to List an Item on eBay

 The eBay listing process is the most tedious, with so many drop-downs and options. On eBay, you can include up to 12 images and a listing video. eBay allows up to 80 characters in the title. 

 

In addition to the required brand, condition, and size item details, eBay listings have a ton of optional item specifics. They’re not really optional, though, as they are required if you really want to maximize exposure and make sales. 

 

eBay’s description box is not searchable via the search field on eBay, meaning that anything you type in your description will not yield in buyer searches. Instead, the item specifics are the best way to maximize searchability. 

 

eBay also has selections in the listing field for payment preferences, shipping preferences, and return preferences, collectively; eBay business policies. You can establish your business policies in your eBay Seller Hub for faster listing. 

 

There are other drop-downs related to promotions (recommended) to advertise and promote your eBay listings, as well as volume pricing (the equivalent of a “bundle discount”). You can also choose your pricing style, buy it now or auction, and set a reserve price. While the tedious listing process and many options can be intimidating, they are all opportunities to enhance your listing and searchability to eBay’s astronomical audience: they are valuable seller tools that far exceed those provided on other marketplaces. 

 

 

 

Seller Tools

Having access to the right seller tools can significantly enhance your efficiency and effectiveness as an online seller. Both Etsy and eBay offer a variety of tools designed to help you manage your listings, track sales, and optimize your business operations. In this section, we will compare the seller tools available on each platform to help you understand which might better meet your needs.

 

eBay Seller Tools

 eBay is a beast, with so many tools and features; among them, (paid) promoting listings, coupons, bulk price adjustment, offers to likers, store sales, and so many more. Many of these require an eBay store, which I highly recommend for the best seller experience. Your eBay listings also renew monthly, refreshing them in the search feed.

 

Learn more about how to manage your eBay store and make more sales in this article

 

Etsy Seller Tools

Etsy similarly provides many seller tools including Etsy Ads campaigns, offsite ads, and coupons and sales. Etsy Ads promote your listings in Etsy search results. In your Etsy Shop Manager, you can set your ad budget and select the advertising listings. 

 

For a wider reach, you might consider offsite ads, which promote Etsy listings throughout the web, including major search engines and social media platforms. Etsy offers off-site ad services with no upfront cost: you only pay the advertising fee when you make a sale.

 

Etsy also allows you to offer coupons and sales to encourage purchases! Learn more about Etsy coupons and sales here

 

Overall, none of the reselling marketplaces are “list it and leave it” marketplaces, they all require a bit of work and maintenance to see consistent daily sales. But Etsy and eBay specifically have auto-renewal options, which will keep your listings fresh with less work required on your part as a seller!

 

Shipping Options

Both eBay and Etsy offer many shipping options for sellers, including global shipping to broaden your audience across the world. 

 

Shipping on eBay 

eBay has so many shipping options with so many ways to send items to your buyers. Plus, you can offer multiple delivery options (on the same item), to attract and accommodate different types of buyers. 

 

To protect yourself against "Item not received" claims, you need to use a shipping carrier that is integrated with eBay including USPS, FedEx, and UPS (but also eBay shipping services, DHL, OnTrac, Lasership, Spee-Dee Delivery, and Lonestar.            

                                     

On eBay, you can also offer free shipping or charge shipping, and this applies to shipping as well as returns. Most commonly, sellers elect to provide calculated shipping, where the buyer pays calculated shipping based upon their shipping location, their choice of carrier, and the weight and dimensions of the order (that you provide at the time of listing). Under this model, you will be paid for the item and shipping collectively at the time of the transaction, and then you will be prompted to purchase an eBay label to download and affix to your package.  

 

You might also be interested in the article A Guide to Shipping on eBay 

 

Shipping on Etsy

 Etsy puts the seller in control of all things shipping, including handling time, cost, geographical limitations, taxes, and shipping carriers, including FedEx, USPS, and UPS. For users in the United States, you can pay for and print automatically generated USPS labels right from Etsy if you opt to ship with Etsy. 

 

On Etsy, you can create shipping profiles with your shipping preferences. In these, you can determine whether you will charge shipping (at a flat rate or calculated based upon size and destination), or offer free shipping (and pay for it yourself). You will also determine whether to use labels provided by Etsy, or ship on your own with a service such as Pirate Ship. 

 

Etsy provides a great rate for shipping, and shipping with Etsy is certainly easier than shipping on your own and providing the tracking information. 


Seller Fees

Both Etsy and eBay offer low and competitive seller fees. However, both have a complicated fee structure.

 

eBay Fees

eBay offers competitive selling fees. Here is an overview of fees, credits, and invoices on eBay. eBay’s selling fees are dependent upon your membership, your store status (subscription), the item, and the payment method, but they might include an insertion fee, a final value fee, and any elective promotional fees

 

Insertion fees are synonymous with “listing fees”. When you sign up for eBay, you will receive an allocation of “zero insertion fee listings” per month; for basic users (without a store subscription), you can list up to 250 free items each month.

 

Final Value Fees are simply the fees that you pay at the time of sale, and are dependent on the item, the sale price, the shipping service, and the sales tax. Final value fees are approximately 12.9 percent (for most categories), but do vary. Here is a chart that illustrates the final value fees associated with different categories of items. 

 

Promotional fees apply if you promote your eBay listings. If you choose to pay for extra exposure, eBay provides sellers with promotional opportunities, such as adding a subtitle to your listing and listing an item in multiple categories. You can promote all of your listings and will only actually have to pay the extra promoted listing fee if the item sells as a direct result of the promotion. 

 

Etsy Fees

Etsy has low seller fees (especially considering the seller’s freedom in shop policies), but many resellers are deterred by the listing fee (It’s not too bad at twenty cents…). 

 

A safe estimate is approximately eight percent. However, Etsy has a bit of a complicated fee structure:

  1. Etsy’s Listing Cost is $0.20 per listing (which automatically renews and charges every four months by default, but you can disable that).
  2. Etsy’s Transaction Fee is the basic seller’s fee in the amount of 5% of the sale price.
  3. Etsy’s Payment Processing Fee is 3% + $0.25 per order.

 

Remember, that there might be other fees incurred for optional advertising including Etsy ad campaigns and offsite ad campaigns. 


Payment Methods

Having flexible and secure payment options is crucial for sellers and buyers on any e-commerce platform. eBay and Etsy each offer different payment solutions to facilitate smooth transactions.

 

eBay Payment Methods:

eBay utilizes its managed payments system, which also supports various payment methods, including credit and debit cards, PayPal, Apple Pay, Google Pay, and Afterpay (for eligible listings). eBay’s managed payments ensure that all transactions are handled within the platform, providing sellers a single place to manage their sales and payments. Funds are generally available within two business days of order confirmation, making the process efficient and straightforward.

 

Both platforms offer robust payment solutions that cater to diverse buyer preferences and provide secure, reliable options for sellers to receive their earnings. The choice between Etsy and eBay may ultimately depend on which system aligns better with your business needs and customer base.

 

Etsy Payment Methods:

Etsy primarily uses Etsy Payments, which allows sellers to accept a variety of payment methods. These include major credit and debit cards, PayPal, Apple Pay, Google Pay, and Etsy Gift Cards. Etsy Payments ensures that funds are securely processed and deposited directly into the seller's bank account, typically within a few business days. This unified system simplifies the payment process for both parties and provides a streamlined experience.

 

Return Policy

Both eBay and Etsy are known as being “buyer-friendly” and most commonly resolve disputes in favor of the buyer, even when the buyer is “wrong.”

 

eBay Return Policy

The buyer is always right on eBay. On eBay, you can choose your own return policy, and even the return period and who pays for the return shipping. However, your personal return policy does not hold up to eBay’s buyer protection, and you’re likely to be forced to accept returns regardless of your policy.

 

Resellers hate “return,” but it's part of the business. Truly,  if your buyers want to return an item, they will. They will open an “INAD” (item not as described return claim), and eBay will likely side with the buyer. Yes- even if your item is exactly as described, the eBay buyer is always right. You are highly unlikely to “win” a case on eBay. When a buyer successfully opens an INAD case, you must pay the return shipping. So, if you don’t offer free returns, buyers will use the mechanism to go around your policies. 

 

Further, having an INAD case resolved unfavorably can jeopardize your eBay account, decrease your promotion, and even increase your fees. 

 

When a buyer successfully opens an INAD claim, you will have to accept the return, pay the return shipping, and have an infraction on your account. So, you might as well offer free returns because either way, a determined buyer will force one upon you. This is an inevitable part of selling on eBay. On the plus side, most buyers want what they’re buying, and returns aren’t as common as you might fear

 

Etsy Return Policy

On Etsy, you establish your shop policies regarding returns and refunds, including if you accept them, the return period, and who is responsible for the return shipping cost. 

 

An Etsy buyer cannot open a case on Etsy until they have first reached out to the seller directly and allowed 48 hours for the seller to respond. Thus, you must stay on top of your inbox. If you cannot resolve the issue favorably with the buyer, the case will be escalated to Etsy support. 

 

Etsy support generally does not allow for returns unless there is non-delivery or the item is not as described. Be sure to retain proof of shipment and photographs of the item to protect yourself as a seller. 

 

Also, remember that when buyers pay with PayPal, they also receive PayPal protection, which often extends beyond what is offered by the marketplaces. 

 

Returns are a part of the business. That said, they are fairly uncommon- most buyers want the item they purchase. 

 

Do you need to know how to contact Etsy? Click the link to go to Etsy's support center if you need assistance with a return, a fake buyer, or your Etsy shop. 

 

Analytics

Access to detailed analytics can be a game-changer for online sellers, helping them understand their customers, track sales performance, and optimize their strategies.

 

Did you know that Vendoo offers powerful analytics and insights to help you scale and grow your business? Try it for free! 

 

eBay Analytics

eBay offers robust analytics tools through its Seller Hub. Sellers can track their sales performance, including sales, conversion rates, and average prices. eBay provides insights into listing impressions, clicks, and detailed traffic reports. Additionally, sellers can access buyer behavior data and performance comparisons with similar listings. These analytics help sellers refine their strategies and optimize their listings to increase visibility and sales.

 

Did you know that Vendoo has integrated the eBay Product Research tool to provide comps and sale data!

 

Both platforms provide valuable analytics tools, but eBay’s Seller Hub offers more advanced options for tracking and comparing performance metrics.

 

Etsy Analytics

Etsy provides a comprehensive range of analytics tools through its Shop Manager. Sellers can access detailed statistics about their shop's performance, including views, visits, orders, and revenue. Etsy also offers insights into traffic sources, popular search terms, and customer demographics. These tools help sellers identify trends, understand customer behavior, and make data-driven decisions to improve their shop’s performance.

 

Community & Resources

A strong support system and access to educational resources are essential for seller success on any platform.

 

eBay Community

eBay’s Seller Center provides a wealth of resources, including guides, tutorials, and best practices. The eBay Community features forums where sellers can connect, ask questions, and share knowledge. eBay also offers eBay for Business on Facebook, which provides regular updates and tips. Additionally, eBay’s educational resources include webinars and in-depth training programs designed to help sellers at all levels.

Both marketplaces offer strong community support and resources, but eBay’s broader range of educational programs and active social media presence provide more opportunities for seller engagement and learning.

 

Etsy Community

Etsy offers various support systems, including an extensive help center, seller handbooks, and tutorials. The Etsy Community provides forums where sellers can engage with one another, share experiences, and seek advice. Etsy also offers webinars and online workshops to help sellers improve their skills and grow their businesses.

 

Customer Support & Scalability 

Effective customer support and the ability to scale are crucial for growing a successful online business.

 

eBay Customer Support

eBay provides customer support via phone, email, and chat, offering a more extensive range of contact options. The platform's Help Center and community forums are also valuable resources for resolving issues. eBay’s infrastructure is designed to support businesses of all sizes, making it easier for sellers to scale their operations. With various subscription plans and advanced selling tools, eBay caters to both small sellers and large enterprises.

 

While both platforms offer reliable customer support, eBay’s broader range of support options and scalability features make it a more versatile choice for sellers looking to grow their business significantly.

 

Etsy Customer Support

Etsy offers customer support through email and chat, focusing on helping sellers resolve issues quickly. The platform also provides a comprehensive Help Center with answers to common questions. Etsy’s scalability is well-suited for individual artisans and small businesses, but it may have limitations for larger operations seeking advanced selling tools and support.

 

eBay vs. Etsy: Pros and Cons

Choosing between eBay and Etsy can be challenging, as both marketplaces offer unique advantages and potential drawbacks. In this section, we'll break down the pros and cons of each platform to help you make an informed decision.

 

eBay Pros 👍🏼

  • Larger Global Audience: eBay's extensive reach attracts millions of buyers worldwide, providing sellers access to a vast and diverse customer base.
  • Flexibility of Auction and Fixed-Price Listings: eBay offers the flexibility to choose between auction-style and fixed-price listings, allowing sellers to tailor their sales strategies to their specific needs.
  • Robust Seller Tools: eBay provides advanced tools and features, such as detailed analytics and marketing options, to help sellers optimize their listings and increase sales.
  • Scalability: eBay supports sellers of all sizes, from casual sellers to large enterprises, offering various subscription plans and resources to accommodate growing businesses.

 

eBay Cons 👎🏼

  • Higher Competition: The large number of sellers on eBay can lead to increased competition, particularly in popular categories, making it challenging for new sellers to stand out.
  • Potentially Higher Fees: eBay's fee structure, including insertion fees, final value fees, and optional store subscriptions, can add up, potentially reducing profit margins.
  • Complexity: The variety of listing options and advanced features can be overwhelming for new sellers, requiring time to learn and effectively utilize the platform.

 

Etsy Pros 👍🏼

  • Targeted Market: Etsy attracts a specific audience interested in handmade, vintage items, and craft supplies, making it an ideal platform for artisans and creators.
  • Sense of Community: Etsy's community-driven approach fosters a strong connection among sellers and buyers, creating a supportive and collaborative environment.
  • Simplified Listing Process: Etsy's straightforward listing process is user-friendly, allowing sellers to easily create and manage their listings.
  • Lower Selling Costs: Etsy's lower selling fees and transaction fees can be more cost-effective for sellers.

 

Etsy Cons 👎🏼

  • Niche Market Focus: Etsy's emphasis on handmade and unique items may not appeal to all sellers, limiting the types of products that can be successfully sold on the platform. Etsy is limited to selling handmade, vintage, and craft supplies.
  • Listing Fees: Etsy charges $0.20 cents per listing, which periodically auto-renews, incurring further charges. This might be discouraging to sellers. 
  • Limited Scalability: While Etsy is well-suited for individual artisans and small businesses, it may not offer the same level of scalability and advanced tools as eBay for larger operations.

 

Is Etsy or eBay Better for Your Online Business?

The choice between Etsy and eBay largely depends on the type of products you sell and your target market. If you create handmade or unique items and seek a community-focused platform, Etsy may be the better choice. On the other hand, if you sell a wide variety of goods and aim to reach a global audience, eBay's extensive reach and advanced tools might be more suitable.

 

Crosslisting Between Etsy and eBay

Why choose just one? Crosslisting your items on both Etsy and eBay can maximize your visibility and sales potential. By leveraging both platforms, you can tap into different audiences and take advantage of each platform's unique features.

 

Sign up for Vendoo to crosslist to eBay, Etsy, and more marketplaces with just a few clicks! 

 

 

 

Optimize Your eBay or Etsy Store with Vendoo

Both Etsy and eBay offer distinct advantages for online resellers. Etsy excels in providing a targeted market for handmade and unique items, while eBay offers a larger global audience and advanced selling tools.

 

Vendoo simplifies the process of managing listings across both Etsy and eBay, making it easier for sellers to maximize their reach and manage their inventories effectively. Leverage Vendoo for your online selling needs to optimize your eBay and Etsy stores and boost your sales.

 

 

Do you sell on eBay or Etsy? Share your experience below! 👇🏽