Selling online starts with a choice: Build your own shop or tap into marketplaces.
Running your own shop on a standalone ecommerce platform gives you total control over how customers experience your store but also requires more effort in marketing and technical setup. Selling on a marketplace route means giving up some control and paying fees, but you benefit from built-in traffic and secure payment processing.
Sometimes, the best approach is not choosing a single path. Many successful sellers operate both their own store and have a marketplace presence. If you’re considering adding a marketplace channel, Etsy and eBay are two standout options. Let’s dig into the differences between Etsy and eBay and figure out which marketplace might work best for you—whether you’re just starting out in ecommerce or expanding your existing Shopify store into new sales channels.
What is Etsy?
Etsy is an online marketplace that connects seven million active sellers with 92 million active buyers worldwide. Etsy shops tend to be small boutique stores that sell handmade items. According to the platform, 95% of Etsy sellers run their businesses from home, 54% also sell on other channels but consider Etsy their biggest, and 79% view their Etsy shop as a business not a hobby. Plus, 80% of Etsy’s traffic is direct or organic, so sellers can leverage Etsy’s reputation instead of paying heavily for ads.
On the buyer side, approximately 83% say Etsy has items they can’t find anywhere else, making it a powerful marketplace for sellers of creative goods.
What is eBay?
eBay is a digital shopping marketplace that operates at a larger scale than Etsy, with 133 million active buyers worldwide and approximately two billion live listings across more than 190 global markets. The platform has more than 18 million sellers, with the largest share residing in the United States (31%) and the United Kingdom (29%). Unlike Etsy’s focus on handcrafted goods, eBay serves a much broader market, allowing sellers to list practically anything, from vintage collectibles to brand-new electronics.
The platform offers auctions or fixed-price formats. There are no restrictions on selling mass-produced or manufactured items, so sellers can use eBay as a side hustle or scale into a full-fledged business.
Etsy vs. eBay: Which online marketplace is best for you?
- Customer base
- Product focus
- Sales model
- Shipping and fulfillment
- Platform fees
- Advertising and promotion tools
Etsy and eBay differ in target audience, types of products, and cost structures. Here’s what you need to know:
Customer base
Etsy has a global reach. Of the approximately 92 million active buyers in 2023, 60% were in the US and 40% were international. The platform tends to attract customers who appreciate product quality and uniqueness over getting the lowest possible price.
Running an eBay store, meanwhile, gives you access to 133 million active buyers, with 51% based in the US and 49% international. eBay’s website visitor base is 59% male, with the largest age group being 25 to 34.
Product focus
According to Etsy’s seller policy, you can only sell items you’ve made, designed, handpicked, or directly sourced. Sellers must provide accurate details about how items were made, use their own photos (not stock images), and disclose any use of production partners or artificial intelligence (AI).
The platform prohibits dropshipping, reselling, and creating listings for referral codes or crowdfunding. Additionally, Etsy prohibits the sale of alcohol, tobacco, drugs, weapons, dangerous items, hate items, recalled products, and anything that promotes violence or illegal activities.
On the other hand, eBay gives its online store more flexibility. You can sell nearly anything, from homemade goods to new or used items from your home. Popular categories include electronics, health and beauty items, home and garden products, and clothing. Prohibited items include counterfeit merchandise, stolen goods, weapons, drugs, hazardous materials, and items that infringe on intellectual property rights.
Sales model
Etsy operates purely on a fixed-price model, where sellers list items at set prices for buyers to purchase directly. As an online business on Etsy, you’ll receive payments through Etsy Payments, which collects money from buyers via credit cards or PayPal and deposits it in your bank account. Sellers can also create digital downloads and custom orders, with buyers paying upfront before any work begins.
eBay allows sellers to hold auctions for items or list them with a fixed “Buy It Now” price. Sellers can also combine both formats, letting buyers bid on an item or purchase it immediately at a higher set price. eBay manages all payments directly, processing them through its own system and depositing funds to the seller’s bank account.
Shipping and fulfillment
Etsy makes shipping straightforward, offering sellers discounted postage labels through carriers like USPS, FedEx, and Canada Post. It also provides built-in shipping profiles, so sellers can save and reuse shipping settings and easily calculate shipping cost rates. While Etsy doesn’t offer its own fulfillment service, it does help with customs forms and international shipping documentation.
eBay’s shipping tools include the eBay shipping calculator to estimate costs, plus the ability to print shipping labels at home and access free co-branded shipping supplies. The eBay global shipping program allows sellers to ship items to a US hub, where eBay handles international customs and delivery. The platform also encourages sellers to offer free shipping to stay competitive, so many sellers need to factor shipping costs into their item prices.
Platform fees
Etsy charges several seller fees:
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A listing fee of 20¢ per item that renews every four months
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A 6.5% transaction fee on the total sale price (including shipping)
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A payment processing fee of 3% plus 25¢ per transaction in the US
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For sellers who want extra features, a $10 monthly fee for Etsy Plus
You don't need an eBay store subscription to sell on the platform. The platform’s basic selling structure includes:
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250 free listings per month
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A 13.25% fee on completed sales for most categories
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A per-order fee of 30¢ to 40¢)
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A 35¢ fee for each additional listing after you’ve used your 250 free listings
For sellers wanting more features (like additional free listings) and potentially lower fees, eBay offers store subscriptions ranging from $4.95 (Starter Store) to $2,999.95 (Enterprise Store) per month.
Advertising and promotion tools
Etsy offers both onsite and offsite Etsy ads to help sellers reach more customers. With onsite Etsy ads, you pay per click when your listings appear in Etsy’s search results. For offsite advertising—in which all sellers are automatically enrolled—Etsy promotes your items on Google and social media. It charges 15% of any sale made within 30 days of a user clicking an ad. Etsy sellers can also access the Seller Handbook, which provides marketing guides and optimization tips.
eBay provides several integrated eBay selling tools for promotion. The eBay Discounts Manager, for example, allows sellers to create sales events and offer discounts. eBay ads work differently from Etsy’s; sellers choose an eBay ad rate (percentage of the item’s price) and pay the rate if the item sells within 30 days of someone clicking the ad. It also allows sellers to send newsletters to customers and connect their stores to social media platforms like Facebook and Instagram.
Etsy vs. eBay FAQ
Is Etsy better than eBay?
Each online marketplace targets different audiences and product types, so it depends on what you’re selling. Etsy is a great choice if you sell handmade or unique items, while eBay is better for selling a wider range of products (including electronics and fashion) to a broader market.
How much does Etsy take from a $100 sale?
For a $100 sale on Etsy, you’ll pay $6.50 in transaction fees (6.5%), $3.25 in payment processing fees (3% + 25¢), and a 20¢ listing fee, totaling $9.95 in fees for the sale.
Do more people shop on eBay or Etsy?
eBay has 133 million active buyers compared to Etsy’s 92 million active buyers.
