As an ecommerce data analyst, clients often ask me for advice on whether to open shop on Etsy vs eBay. With over 5 million sellers on Etsy and 25 million sellers on eBay worldwide, both marketplaces provide major sales opportunities – but also differ greatly in fees, target audience, tools and more.
The right marketplace aligns closely with your products, brand identity, and business goals. By outlining the key differences between Etsy and eBay from a seller perspective, you can determine where you are likely to find the most success.
Introduction: Seller Fees, Products, Buyers on Etsy and eBay
First, let’s look at latest overall statistics on some of the critical deciding factors between the two platforms:
Etsy
- 5.3 million active sellers
- $12.2 billion in merchandise sales (2021)
- 66.3 million active buyers
- 6.35% seller fee + payment processing fees
- Handmade, vintage and crafting supplies only
eBay
- 25 million sellers
- $87.5 billion in gross merchandise volume (2021)
- 159 million active buyers
- Avg 10% final value seller fee + payment processing fees
- All products allowed (new/used) besides prohibited items
While both provide sales opportunities, eBay‘s much larger buyer pool suggests greater earning potential on the surface. However, we need to dive deeper into several other differentiating elements before deciding which platform is best aligned with your business.
History and User Base Growth Trajectory
Etsy and eBay were both founded in the 1990s, but took very different paths in terms of product mix and pace of scaling users.
Etsy’s Niche Marketplace Origin Story
Etsy launched in 2005 with the goal to create an online, indie arts and crafts focused marketplace centering makers and community. After eight years they reached their first billion dollars in sales.
While the company has faced some criticism around sustainability and ideals as it grew to a multi-billion dollar business, it has largely stayed true to its mission empowering homemade artisans.
Below we can see how that narrow specialization in handmade and vintage items drove steady but not exponential user base growth. By providing dedicated tools catering just to that seller niche, Etsy carved out a distinct ecommerce space.
eBay’s Broad Mainstream Appeal
Alternatively, eBay took a mass market approach from the start as one of the very first online person-to-person auction marketplaces back in 1995. By listings virtually any legally sellable product, and also allowing used resale goods, eBay appealed to frequent bargain hunters.
Rapid growth ensued surpassing the 100 million active user mark just five years after launch thanks to those broad product categories that attracted everyone.
While growth eventually began to slow over the last decade, eBay still maintains over 150 million active buyers – more than double Etsy’s audience.
But a wider audience doesn‘t directly translate to higher earnings. You need to align your product mix closely with the matching buyer intent and interests on each unique marketplace.
Next let’s compare the fee structures impacting profitability.
Seller Fee Structures Comparison
As an ecommerce seller, the fees deducted from your transactions significantly affect how much profit you retain. Etsy and eBay take different approaches with their fee models.
This table summarizes the key fees side-by-side:
| Fee Type | Etsy | eBay |
|---|---|---|
| Listing Fee | $0.20 per listing (good for 4 months) | Free up to 50 listings then $0.35 per listing (renews every 30 days) |
| Transaction / Final Value Fee | 5% of transaction total | 10% of item final price |
| Payment Processing | + 3% + $0.25 per transaction | Avg 2.9% + $0.30 per transaction |
For example, if you sold a hand carved cutting board for $75 on Etsy, your overall seller fees would be:
- $0.20 listing fee
- $3.75 transaction fee (5% of $75)
- $2.54 payment processing (3% + $0.25)
- Total fees = $6.49
That‘s only 8.65% of the $75 sale price kept as fees. So your profit would be $68.51
Now if you sold that same cutting board on eBay for the same $75 and it sold successfully:
- $0.35 listing fee (over 50 listings)
- $7.50 final value fee (10% of $75)
- ~$2.23 payment processing (2.9% + $0.30)
- Total Fees = $10.08
So 13.44% goes to fees, leaving you with $64.92 profit.
For a single higher priced item, Etsy’s lower 5% transaction cap beats eBay‘s 10% final value bite. But for sellers listing high volumes of lower cost items, eBay‘s free 50 monthly listings + cheaper $0.35 for bulk advantage adds up.
You have to assess your own sales volume and average order value to see if lower % trumps free listings, or vice versa.
Now let’s explore how allowed product selections also impact ideal marketplace fit.
Permitted Product Categories on Etsy vs eBay
With very different target audiences comes divergent expectations on what users want to discover when browsing and shopping each website. This determines the restrictions and allowances for seller goods.
As outlined earlier, Etsy maintains strict standards aligned with showcasing handcrafted, specialty items. All products must be:
- Handmade: Created entirely by you or a production partner but not made from commercial molds or patterns
- Vintage: At least 20 years old with signs of wear
- Crafting Supplies and Tools: Fabric, sewing patterns, jewelry components, etc to assist makers
They also prohibit mass-produced factory items and drop shipping.
Comparatively, eBay allows buying and selling of almost every legally permissible new and used product categories examples:
- Electronics – laptops, cameras, smartphones
- Home goods – furniture, appliances, decor
- Fashion – clothing, shoes, accessories
- Toys – dolls, action figures, games (vintage & new)
- Sporting goods – gear, equipment
- Motors – cars, trucks, motorcycles & parts
- Collectibles – from comics to cards to coins
Unless you are selling prohibited or highly regulated items like alcohol or prescription medications, almost anything goes on eBay.
This range suggests greater profit potential thanks to endless product selection variety attracting all buyer interests. However, you’ll also face immense competition in saturated markets like electronics and apparel. Standing out with stellar listings and marketing is crucial.
For makers of ceramic mugs or crocheted blankets, the natural artisan audience on Etsy offers built-in demand without needing to differentiate themselves as widely.
Now let’s explore how customization and creative branding also sets Etsy apart.
Customized Seller Profiles and Listings
Every seller wants to stand out from the pack and share their unique story and offerings. The two sites contrast quite a bit in available tools for branding and showcasing your business.
Etsy offers full control for sellers to design the look, feel and messaging across their shop fronts. Customizable elements include:
-
Profile: Upload seller portrait, customize banner with logos & imagery, write an in-depth story about you and your creative journey
-
Shop: Choose stylized banner image to reinforce brand visual identity, craft descriptive shop name and announcement text conveying your specialty
-
Sections: Add custom images and descriptions to sections showcasing product types, business ethos, policies, awards etc
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Listings: Upload multi-angle high quality product photos and leverage descriptions to relate artisan details from conceptualization to methodology for creating the item
In aggregate, these numerous areas for personalization allow Etsy crafters to share their artistic souls beyond just the items they sell. Shoppers seeking handmade and vintage goods want to feel connected to the human maker behind their purchases. They want to hear personal touches like how a knit scarf was inspired by your grandmother’s designs from the 1940s.
That level of intimate creative storytelling sets the right brand expectation around craftsmanship and thoughtful sourcing – cornerstones of the Etsy community.
In contrast, eBay focuses more on ease and speed for sellers getting listings live using templated forms. Outside of product images and descriptions, custom branding is limited to:
- Seller Profile: Small banner image, 500 character “About Me” text
- Returns Policies
- FAQ sections
- Sales History Reviews
With buying priorities centering around lowest prices, widest selections, and reliable delivery, eBay shoppers dedicate less attention to personalized back stories. Brand strength comes more from customer service satisfaction and star rating counts.
So if you sell hand-poured soy candles scented with local wild flowers, the creative latitude on Etsy helps immerse buyers into your world centered around artisanal craft. But if you’re drop shipping phone chargers in bulk from Alibaba at low cost, product details and shipping times take priority over branding on eBay listings.
Understanding these areas for differentiation (or lack thereof) assist matching unique makers versus commodity goods to suitable platforms.
Expanding globally also factors into marketplace choice, which I’ll compare next.
International Selling Features
A huge benefit driving sellers to ecommerce marketplaces is expanding beyond geographical limits to ship products worldwide. But managing international transactions brings added complexities like currency conversions, duties and taxes calculations, return logistics and more.
Etsy enables a few key capabilities to simplify global selling:
- Multi-currency pricing: Natively allow buyers around the world to checkout with costs converted to their local currency
- Localized site translations: Display Etsy site copy in various languages so foreign buyers feel comfortable navigating
- International shipping profile: Specify countries you are willing to ship to based on carrier rules and services
- Responsibilities education: Provide guidance around import regulations, taxes, duties to be transparent with buyers
A 2021 survey found approximately 26% of Etsy sellers engage in global trade, compared to just 15% of small businesses overall. Top exporting countries include Canada, United Kingdom, Australia and European Union.
Etsy certainly makes dipping your toes into international waters more feasible for microbusiness crafters. However, eBay goes above and beyond in terms of hands-on support services through their Global Shipping Program:
- eBay fulfillment centers: Ship your items domestically to eBay warehouses first, they handle international sending and returns
- Duties and taxes pre-payment: Collects charges upfront from customer on your behalf so no billing hassles
- Tracking and delivery: Monitors packages door-to-door providing tracking updates to buyers and sellers
- Currency conversions: Converts foreign sales into USD payouts for you, so no exchange rate math
- Return handling: Facilitates all returns back through their centers as domestic packages back to you
These soup-to-nuts solutions explain why a striking 29% of eBay commercial sellers ship internationally compared to just 1% that utilize Amazon. From 2019 to 2020, eBay also saw 34% YoY increase in U.S. merchants expanding export countries they sell to.
If you want to grow a specialty soap making shop and explore beyond U.S. demand, Etsy satisfies by connecting you to a community of international artisan enthusiasts. But if you’re running an electronics resale enterprise, leveraging eBay’s logistics program simplifies borderless order fulfillment.
Both platforms empower microbusinesses to thrive globally – play to each’s strengths aligned with your niche, appetite for complexity risk, and knowledge gaps needing support.
Wrapping up this decision guide, I’ll summarize my recommendations for choosing Etsy vs eBay fitting your goals.
Final Thoughts: Should You Sell on Etsy or eBay?
Deciding where to set up your online store comes down to multiple variables based on product types, appetite to customize branding, and business growth pace into global markets.
For creatives selling specialty handmade items or vintage goods to a niche audience valuing craftsmanship stories, Etsy shines through custom branding, intimate creative community and buyer willingness to pay premiums.
Commodity goods sellers focused on surfacing everyday products competitively like electronics accessories or household items will likely achieve greater revenue thanks to eBay’s immense buyer pool and lower fee listings model.
As your ambitions grow to expand product lines across more categories or export internationally, eBay’s infrastructure advantages also help manage complexity behind the scenes while you focus on acquiring more happy customers.
Hopefully weighing all the key elements compared above illuminates the right direction to point your business based on your short-term and long-term objectives. Any further questions, feel free to reach out! I’m always happy to offer 1-on-1 marketplace insight tailored to your specific product vision using my data analysis background.
