Etsy vs. eBay [2022]: Which Is the Better Place to Begin Making Money?

If you’re debating whether to sell on Etsy or eBay, you’ve come to the right place. Our Etsy vs eBay comparison will give you all the information you need to decide which one to use.

A brief overview of Etsy and eBay
Detailed analysis of some of the key essentials of Etsy vs eBay (ease of use, selling tools, delivery methods, fees, etc.)
Suggestions on choosing the best-suited marketplace for your business: Etsy or eBay

Let’s begin with a detailed Etsy vs eBay comparison!

Overview of Etsy vs. eBay

Before you decide to sell on Etsy or eBay, you should understand what they are and how they can help your business.

What exactly is Etsy?

Etsy, which was founded in 2005, is an online marketplace that connects merchants and shoppers who are passionate about creating or purchasing custom-made items, vintage or one-of-a-kind treasures.

The most intriguing aspect of Etsy is that everything is created, collected, and sold by its users. This platform creates a separate room for sellers who manufacture their products while also managing their orders and inventory.

The Benefits and Drawbacks of Selling on Etsy

Advantages:

Simple setup with no startup costs
More control over your shop’s appearance
Products are limitless, and shipping options are customizable.
Customer trust and dependability have been established.

Disadvantages:

High selling and maintenance costs
In a large marketplace, there is fierce competition.
There are few design options available.
There is no ownership for data collection.

What exactly is eBay?

Within the eCommerce industry, eBay is a well-known online marketplace. The US-based company is an excellent venue for buyers and sellers to meet and trade almost anything. What distinguishes eBay is its selling system. It allows users to sell items online in an auction format, which means buyers can compete to outbid each other.

Selling new or used products on eBay is completely legal. As a result, eBay is more about mass-produced items and good deals, which can make it extremely competitive.

The Benefits and Drawbacks of Selling on eBay

Advantages:

Buyers from all over the world have easy access to you.
Simpleness of use
Policy for Seller Protection
Transaction that is open and transparent

Disadvantages:

High selling costs
You have little control over your listings.
Under pressure to provide free shipping
Working with bargain hunters on a regular basis

Which Should I Sell On: Etsy or eBay?

Who should offer their wares on Etsy?

If you are a content creator, an artist, or just love dealing in artistic and creative things, Etsy is a great place to start. It is incredibly easy to use and does not need extensive understanding of the eCommerce sector; all you need to prepare is originality in items and correct audience targeting.

Content developers, artists, handcrafted makers, and craftsmen will find this useful.

Note: Please click here to get a detailed guide on how to sell on Etsy.

Furthermore, if you already have an online shop established on an eCommerce platform such as Shopify, WooCommerce, Magento, and so on, you may link your store with Etsy to increase your sales, as seen here:

Who should eBay sellers be?

One of eBay’s most prized benefits is the extra freedom it offers sellers. The seller has entire control over the design of product listings, shipping rates, and return policies. Furthermore, the fee is reduced, enabling items to be offered at cheaper rates.

Professional sellers, merchants, and second-hand vendors are all candidates.

Note: Please click here to get a detailed guide on how to sell on eBay.

Speaking of extending your company, handcrafted, one-of-a-kind things may also be offered on eBay. If you want to launch a multi-channel selling approach, LitCommerce is a good place to start. This program enables business owners to combine Etsy and eBay, as well as handle product inventories, orders, and customers from both sites for improved administration.

Key Differences Between Etsy and eBay

1 – Product Categories

It is critical to evaluate what to sell on your Etsy versus eBay online business in order to determine if your items fulfill the standards. Furthermore, the key difference between Etsy and eBay is in the product kinds that assist merchants identify the clientele that visits both marketplaces.

Product Types on Etsy

Etsy is an excellent platform for selling handmade, vintage, and one-of-a-kind things. This multi-vendor platform employs a creative individual who adds a creative feel. As a result, Etsy caters to a certain demographic that is more likely to acquire such unique things.

You should keep in mind, however, that there are several categories that you cannot sell on Etsy; here are some examples:

Animal-related stuff
Human skeletons
Tobacco, drugs, alcohol, prescription medications, or drug paraphernalia
Items that incite hate and violence
Items that have been recalled, weapons, and dangerous materials
Products subject to international regulation
Pornography and mature material
Products that are highly restricted or that promote criminal activity

Find out more on Prohibited Items Policy from Etsy.

Product categories on eBay

On the other hand, if you plan on selling a wide range of products, from antiques and lightly used items to brand-new items, eBay is the place to be. eBay has both set prices (for those who do not wish to bid) and auction-based pricing. As a result, customers may either purchase your stuff right away or bid on it.

For newbies, it’s a good idea to seek for the best-selling things on eBay to choose the kind of product that would generate earnings rapidly.

eBay, like Etsy, prohibits its members from selling:

Items for adults
Alcohol
Wildlife and animal goods
Items with autographs
Digitally delivered goods
narcotics and drug paraphernalia
Electronic and electrical equipment
Event admission tickets
promoting illicit activities
Stamps, money, and coins

For more detail, check out eBay’s policies on restricted items.

2 – Base of customers

The consumer base is an important consideration in this Etsy versus eBay analysis. The consumer behavior of purchasers from both marketplaces differs significantly. Let’s look at what distinguishes Etsy shoppers from eBay ones.

Customers on Etsy

Despite its growth over the years, Etsy remains a smaller marketplace than eBay. According to Statista, from 2012 to 2021, there will be approximately 39.4 million active Etsy merchants globally.

In general, Etsy’s big purchasers are looking for one-of-a-kind items that cannot be purchased on any other website. They are frequently hunting for something for themselves or to add to their collection.

Customer base on eBay

There are over 187 million shoppers and over 20 million sellers in the eBay marketplace worldwide. Customers are often seeking for generic things that may be acquired at a fair price in contrast to other marketplaces.

3 – Ease of sale

The first question that may come to mind is, “Which of them is more user-friendly?” In this section, we will assist you in determining which marketplace is the easiest to operate and sell on.

Etsy: Selling Made Simple

You may easily establish your own Etsy store on Etsy, but success is not always as simple as it seems.

To begin with, registering for an Etsy seller account is simple. To begin, submit your shop name and upload a few goods – 10 is a good starting point for selling on Etsy, but you may start with a couple.

Note: Don’t be too concerned about picking the perfect name right away; Etsy enables you to modify your shop name up to 5 times after you establish your store.

Etsy will take you through everything you need put in your listing when you register for a selling account:

You may then provide your customers invoicing and payment choices.

By participating in the forums, you may also engage with other vendors. You can get their Seller Handbook there, which is a detailed and useful guide for novices.

There are also various ways for “leveling up” in order to attract more consumers. Sellers with a solid reputation may sign up for Etsy Plus to get additional perks such as free listing credits, Etsy Ad credits, unique web address savings, and more thorough shop customization.

Consider the following recommendations if you want to be a successful Etsy seller:

Increase your activities and imagination.
Increase the amount of product combinations available.
Use relevant and targeted keywords in the title and description.
Improve your grasp of copyright and trademark laws.
By providing additional special identities, you may avoid keyword stuffing.
Include more relevant keywords and links.
Remember to include picture alt tags.

eBay: Selling Ease

Using Seller Hub, you can easily become an eBay seller, just as you can on Etsy. It also provides step-by-step directions on how to get started, as well as some marketing ideas (like free listings).

Following the creation of your account, you will have two options:

Personal account (also known as Personal account)
Business Accountant (also known as Business account)

You may choose the appropriate account type to sell on eBay based on the size of your company. A business account is what you need if you intend to sell on eBay full-time, engage in high-volume transactions, or resell items.

Check out our full comparison of Personal accounts and Business accounts to discover the perfect solution for you.

After that, you’ll be able to see a summary of your selling page, which will show you all of the things you’re presently selling:

What’s great about eBay is that you may search for comparable things to utilize as a starting point for your listing. This may save you a lot of time when entering data such as size, color, and so on. You may also develop your own listing templates if you have a large number of listings to go through.

In reality, eBay is not the most aesthetically beautiful marketplace. It’s a touch clumsy, and it’s not always evident where crucial elements are (for example, the ability to build templates).

You should keep in mind that standing out on eBay might be difficult. At this point, concentrating all of your efforts on client experience is the greatest thing you can do.

Here are some selling tips for eBay that are similar to those for Etsy:

Find the best things to sell at a fair price.
Spend some time coming up with detailed names and descriptions.
Make high-resolution product photos.
Make certain that your shipping products are properly wrapped.

4 – Selling commissions

At first look, eBay seems to be more tempting to newcomers due to the fact that it allows up to 250 free listings. Etsy may not be as welcoming, but its costs are more predictable than eBay’s. Let’s compare the fees charged by Etsy and eBay.

Calculator for Etsy fees

Because eBay is significantly bigger than Etsy, you may wonder, “Is it cheaper to sell on eBay or Etsy?” To address this issue, have a look at Etsy’s fees; they are quite clear and thorough.

The business owners must pay three selling fees:

Whether or whether your item sells, making a listing on Etsy costs 20 cents; you must pay a $0.20 listing charge that expires after 4 months.
Etsy imposes a transaction fee of 6.5% on each item sold (including the shipping price you set).
Payment processing costs vary by jurisdiction, however Etsy charges 3% + $0.25 each transaction in the United States and Australia.

(*) In terms of selling on Etsy fees, there’s no monthly or yearly plan to sell on this marketplace.

Etsy Ads are used to show your product adverts throughout Etsy using Etsy fees in advertising. Etsy merchants have the ability to establish their own Ads campaign and budget. Etsy’s basic daily ad budget is simply $1.

The retailers will be paid whenever the adverts are clicked. This cost will be applied to the seller’s payment account the next day, which means Etsy advertising pay upfront with no certainty that their advertisements will pay off.

Offsite Ads
	Advertising fee	Participation
More than $10,000 USD in sales in a 12-month period	12%	Required
Less than $10,000 USD in sales in a 12-month period	15%	Recommended

Etsy also offers an offsite ad campaign, which allows your ads to show on a variety of social media channels as well as search engine results. This includes but is not limited to:

Facebook
Google
Pinterest
Instagram
Bing

Calculate eBay fees

When first starting out on eBay, sellers must pay monthly or annually. eBay seller fees may be paid on a recurring or one-time basis. The expenses of an eBay shop membership are shown below.

FEES ON EBAY
Insertion Fees	Final Value Fees	Listing Upgrades
Members can create up to 250 listings each month for free. Beyond that, the ‘insertion fee’ (or ‘listing fee’) for most categories is $0.35 per listing.	Also known as ‘selling fees’. Once your item sells, you’ll be charged a percentage of a item’s total sale price. For most categories, the final value fee is 12.55% or lower plus a $0.30 transaction fee.	You’ve got the power to attract more buyers with optional upgrades like larger photos, more than 12 photos, tagging a single listing in more than one category, listig on other international eBay sites, and more.
Learn more	Learn more	Learn more

Selling fees are classified into two types: insertion costs, which are paid when you make product listings, and final value fees, which are charged when your things sell. The fee charged by eBay is mostly determined by the item’s price, the format and category you choose for your listing, any optional listing enhancements you provide, and your sales conversion.

When it comes to advertising costs on eBay, the seller determines the amount based on a percentage of the item’s price. As a consequence, an eBay seller knows how much it will cost to promote and sell an item from the start.

Comparing Etsy with eBay Ads:

eBay seems to be a better alternative since the seller only pays when the item is up for sale on eBay. To be more explicit, when a consumer clicks on a sponsored item and purchases it within 30 days, the eBay ad cost is paid. The price is determined by the existing ad rate at the moment of the first click.

Indeed, eBay provides a plethora of marketing options directly on the site, including:

Email promotion
Promotional overlap
Promotion of like products
Top choices for sellers
The option to include branding elements such as your logo

Furthermore, eBay provides two kinds of advertising: brand adverts and sponsored listings. If you have enough money, you may purchase a large ad banner for your whole company. Most merchants, on the other hand, use sponsored listings to promote their items to the top of the list.

5 – Delivery

When comparing Etsy and eBay, both platforms go out of their way to make shipping convenient for merchants.

Shipping calculator on Etsy

Shipping with Etsy is worthwhile. Because Etsy provides sellers with subsidized postage labels, shipping through Etsy is less costly than shipping directly with most carriers such as USPS, FedEx, and Canada Post.

Etsy, in particular, has its own set of tools and features that facilitate delivery for vendors, such as computed postage Convenient cargo tracking provides peace of mind; the ability to create, update, and mass change delivery profiles to speed sending; and customs form help to make border crossings a snap.

Shipping calculator on eBay

With eBay, merchants may face some pressure to give free delivery. This is at your own cost, therefore your listing price will need to be adjusted appropriately. No vendor can afford to provide free delivery. The good news is that eBay offers free shipping on numerous transactions.

Furthermore, if you sell low-priced items on eBay, you may feel even more pressure! This marketplace is well-known for its reasonable price, and customers may discover particular goods by using the search option.

eBay may simplify the shipping process by offering sellers with particular tools. Shipping labels may be printed at home by businesses. Furthermore, this marketplace offers its consumers an eBay shipping calculator to assist them in estimating delivery prices among different shipping suppliers. Sellers on eBay may provide their consumers with a delivery discount, free shipping, or flat rate shipping.

eBay ultimately introduced Managed Delivery in 2020, allowing e-merchants to deliver purchases more effortlessly and quickly. Furthermore, eBay has a Global Shipping Program that allows sellers to send bought products to eBay dropshipping in Kentucky. The company will thereafter be in charge of handling any customs processes and sending the merchandise to customers all around the globe. As a result, this marketplace will be held liable for any delivery delays.

6 – Tools for sale

One of the most important considerations when deciding between Etsy and eBay is the selling tools. Both provide many features that help your company manage items, orders, inventories, and much more.

Etsy selling

Unfortunately, Etsy does not provide any tools to assist you in improving your selling process. However, Etsy has the benefit of being easy to use, and selling on this platform does not need a thorough knowledge of the eCommerce market.

To be a successful Etsy seller, knowing and adopting Etsy SEO may be the finest alternative for beating the search engines. It’s also feasible to utilize a third-party program, such as an Etsy scraper, to find new things to sell.

Furthermore, Etsy community forums enable sellers to actively promote, advise, and criticize one another. For sellers on the road, the Etsy app enables them to maintain their companies while they are out and about.

eBay selling

eBay is a very competitive marketplace. In fact, this marketplace encourages vendors to extend their listings and grow their companies. To assist them in doing so, eBay offers the following professional resources to help sellers accomplish and surpass their goals:

Seller Hub – Assist with business and management optimization.
Selling Manager tool – Help the vendors in managing, creating, and monitoring product listings.
Selling templates – Make the process of listing a single product or multiple items easier.
Promotions Manager – Help to create promotions for the target potential customers.
Sales reports – Help track your business, understand the main drivers of your sales, and guide key decision-makers.
The eBay App – Enable you to sell and work with eBay’s tools on the go with ease.

Because of these selling capabilities, eBay is a fantastic place for skilled internet sellers.

7 – Customer Service

When comparing Etsy versus eBay, consider how these platforms assist you throughout the selling process. If you’re new to selling and are having trouble setting up your company or have general questions about it, both platforms provide help center websites.

Customer service on Etsy

Let we begin with Etsy’s seller support center. Their contents are straightforward, covering topics like as order processing, company management, payment FAQs, common questions regarding Etsy listing tools, and more.

Despite the fact that Etsy has well-defined customer care channels, numerous consumers have complained that they take a long time to respond, especially to support difficulties. Call eBay’s tech support line to talk with a professional.

eBay Customer Service

When it comes to customer care, eBay features a comprehensive help section that includes information on selling fees, listing creation, refunds, shipping, selling tools, performance variables, and more.

While eBay’s assistance center is rather basic, Etsy goes above and beyond. They include advice on how to handle your company during the COVID-19 epidemic, how to utilize basic statistics, how to search on Etsy, and much more.

Indeed, many individuals believe that eBay’s customer service is better than Etsy’s. eBay makes communication easy by offering a range of communication channels such as email, phone, live chat, and social media.

FAQs: Etsy vs. eBay

Who pays for shipping on Etsy?

In most cases, buyers are the one who pays for the shipping as the shipping costs are added to the price of the product. Moreover, most Etsy shops charge an extra, separate shipping fee on top of the product price.

How can I lower my Etsy fees?

There are so many ways to reduce the Etsy fees, however, it’s important to understand that you cannot attempt to avoid Etsy fees; that’s prohibited by Etsy and will likely get your shop suspended or shut down:

Lower shipping fees
Reduce shipping countries
List prices in your banking currency
Reduce listings
Turn off the auto-renew function
Limit unique items
Use variations
Create bundle listings

Does eBay take a percentage of shipping?

eBay actually doesn’t charge any fees related to purchasing postage from them. The final value fee on shipping is based on what the buyer pays, so if sellers offer free shipping, then the fee is zero.

Does eBay always take 10%?

eBay takes a percentage of almost all sales, ranging from 1.5% to 15%. eBay’s final value fees are often the largest single cost for sellers. This is a percentage of the amount actually charged to the customer. This includes the item price, the shipping cost, and any sales tax.

Finally, which is better: eBay or Etsy?

To summarize, the comparison of Etsy versus eBay has concluded. Both are amazing internet markets that might benefit your company.

While eBay meets the demands of every expanding company due to its large reach and diverse inventory, Etsy is an excellent choice if you are a small business that offers handmade, creative, artistic, or unique items. As a result, everything is dependent on what you want to market and who your prospective clients are.

The comparison of Etsy vs eBay simply helps you pick which marketplace to integrate. In the long term, multichannel selling allows any merchant to offer their items on each or all of these platforms.

This might be a frightening endeavor at first, but LitCommerce is honored to be your companion. Why wait much longer? Contact us to acquire the ticket to efficiently expanding your company using LitCommerce.

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