eBay vs. Etsy: Which Is Best To Sell Products Online?

If you want to sell products online, it’s important to choose the ecommerce platform that best suits your products, audience, and budget. eBay and Etsy are two of the most popular marketplaces, but you might not know which is the better option.

eBay enables you to sell products all over the world using the “Buy it Now” function or auctions. On the other hand, Etsy is primarily used for vintage goods or custom items. But, both platforms come with different seller fees, tools, delivery options, and payment methods.

In this post, we’ll compare eBay and Etsy across five key areas. Then, we’ll present a better alternative for selling products online. Let’s get started!

eBay vs Etsy: 5 Key Factors Compared

To help you make the right choice for your online business, we’re going to compare eBay and Etsy across five areas including seller fees, seller tools, payment options, and more.

1. Seller Fees

The first way to decide whether to set up an Etsy shop or an eBay store is to consider the seller fees on both platforms. Etsy charges a listing fee and a separate transaction fee when you make a sale.

The good news is that Etsy doesn’t discriminate based on your industry or product categories. Instead, every Etsy seller pays $0.20 for each item listed on the platform. Meanwhile, the transaction fee is always 6.5 percent of the overall sale (alongside a standard payment processing fee):

An additional consideration for Etsy sellers is that you’ll be automatically enrolled in the Offsite Advertising Program. That means you’ll be charged an additional 15 percent for all sales that come from Etsy ads. But, you can opt out of the program if your store has made less than $10,000 in profits.

Similarly, eBay sellers pay “insertion fees” (listing fees) and a final value fee. However, with eBay, you can list 250 items for free each month, which is a great perk. After that, you’ll be charged for your product listings.

It’s important to note here that unlike with Etsy, you’re charged per category. So, you’ll pay the fee twice if you list one item in two categories.

What’s more, insertion fees vary depending on the product category, but most sellers pay $0.35 per listing. However, some categories like heavy equipment, cost $20 to list an item:

And, you’ll pay another fee when you sell an item. Again, this depends on the product category, but it usually costs 3-15 percent of the sale.

2. Categories

Another way to decide whether to set up an eBay or Etsy store is to consider the product categories that each online marketplace supports. For example, Etsy tends to be a good choice if you want to sell handmade items, vintage items, or custom goods.

Some of the main categories include art and collectibles, craft supplies, gifts, jewelry, and accessories:

On the other hand, eBay offers a wide variety of products and attracts an international audience, so you might find it easier to sell goods there. And, you can sell new, used, or antique items. Plus, it covers more diverse categories like electronics, garden furniture, fashion, sports equipment, automotive supplies, and more.

3. Shipping and Delivery

In terms of shipping, eBay sellers have the option to deliver items themselves or use a shipping service like eBay delivery services, USPS, UPS, or FedEx. Plus, you’ll find domestic freight carriers like AAA Cooper, as well as export and import carriers.

Naturally, shipping costs vary depending on the size of the package and the destination. You can also print shipping labels from the Seller Hub or generate a QR code. And, if you want to ship items abroad but don’t want the hassle of logistics, you can opt in to eBay International Shipping.

Etsy, on the other hand, offers less shipping options compared to eBay. But, you can still ship items with USPS, FedEx, and Canada Post. Plus, you can save up to 30 percent on shipping labels, provide shipment tracking for customers, and print labels directly from your Etsy store.

4. Seller Tools

Another way to choose between Etsy vs eBay is to look at the selling tools and features that are available on both platforms. With the latter option, you’ll get access to the eBay Seller Hub to manage products, view orders, and track online sales.

What’s more, you can create listing templates to make it quick and easy to add similar items to your eBay shop. Plus, you can monitor sales trends and traffic with in-depth reports. And, you can use the Promotions Manager to create campaigns like discounts and free shipping offers:

Like with eBay, the Etsy seller dashboard lets you view listings, track keyword performance, and identify the most effective traffic referral sources. This way, you’ll know how to properly optimize your store for more sales.

You’ll also find useful integrations with social media sites and email marketing platforms. Meanwhile, if you’re a beginner, you can use the Etsy Seller Handbook to find out how to improve product photography or how to effectively price your items.

5. Payment Options

Before you choose your preferred online marketplace, it’s also important to think about how you’ll accept payments from customers. Both eBay and Etsy offer payment methods with strong protections for sellers and buyers.

For instance, you can accept credit and debit cards, PayPal, Apple Pay, and Google Pay. Additionally, some eBay customers qualify for wire transfers or online payment services like Escrow.com. That said, not all seller protections cover offline payment methods like bank-to-bank transfers.

Etsy payments include more flexible payment methods, which can be very popular with buyers. For example, shoppers in certain locations can pay for goods using Klarna, iDEAL, and Sofort which facilitate quicker (or more convenient) purchases.

Which Platform Should You Use to Sell Products Online?

Although there are major differences between Etsy and eBay, both marketplaces make good options for different types of sellers and products. That said, if you’re looking to sell products or services online, WordPress and WooCommerce offer a better (more affordable) solution.

For starters, the WordPress software is completely free, beginner-friendly, and highly customizable. You can use its intuitive, built-in tools (like the block editor and Site Editor) to design a website that reflects your unique brand:

Plus, you can easily extend the functionality of the platform using the free WooCommerce plugin. It enables you to transform your simple site into a fully-functioning online store.

The best part? You won’t be subject to listing or transaction fees. In fact, with WooCommerce, you can list as many products as you like:

And, you can further customize the platform with a range of WooCommerce extensions. For example, you’re able to add payment gateways (other than the default options available with the plugin).

Or, if you want to provide product recommendations or translate your site into multiple languages, you can find tools for that too. Plus, plenty popular marketing and Customer Relationship Management (CRM) software options (like Mailchimp and Hubspot) offer free integrations with WooCommerce.

While you can set up WordPress and WooCommerce yourself, the simplest method is to choose a quality web host to do it for you. NameHero is an affordable option that even provides dedicated WooCommerce plans:

In addition to hosting services, you’ll also get free Secure Sockets Layer (SSL) certificates, free website domains (with some plans), and branded email domains.

Plus, NameHero offers automatic updates, daily backups, and security measures like malware mitigation. Better yet, you’ll have 24/7 access to an expert support team if anything goes wrong.

Conclusion

Are you looking for a simple way to list and sell products online? eBay is a great destination for new and used goods while Etsy remains the prime choice for personalized and handmade items. But, there are some additional factors to consider.

eBay offers a wider variety of product categories, and provides 250 free listings. Meanwhile, Etsy provides a streamlined shipping process and flexible payment options. That said, WordPress paired with WooCommerce can be a better (more affordable) alternative since there are no listing fees, and it’s more customizable.

Do you have any questions about how to set up an ecommerce store with WooCommerce? Let us know in the comments section below!