Are you a physical shop owner looking to expand your business online? Do you have any items to sell online? Maybe you have a Shopify store and would love to explore and grow by setting up an eCommerce store. If so, you may have noticed there are multiple options concerning eCommerce sell channels. Two of the most popular eCommerce sell channels are eBay and Etsy. Though it’s easy to use these channels as a buyer, selecting the best platform to sell your products can be challenging. Below is an ultimate guide on Etsy vs. eBay. Read through to find out more.
Etsy vs. eBay: Overview
Online marketplaces are experiencing a significant visitor uptick which has accelerated since the Covid-19 pandemic. Many people turned to online marketplaces as brick and motor shops remained closed. Though Bay and Amazon record the highest number of visitors globally, many competitors are catching up, according to Statista’s report. eBay is one of the most popular and widely spread platforms. Etsy nowadays is another popular marketplace alternative. But selling on eBay or Etsy, or Amazon which one should you use? Let us compare Etsy vs. eBay.
What is the difference between Etsy vs. eBay?
The main difference between these two marketplaces is the products sold on these platforms, thus differentiating visitors who visit these platforms.
What is Etsy?
Etsy is a global marketplace, just like eBay. As of 2020, the Etsy platform had 81.9 million buyers and 4.3 million sellers. Though it houses a few active users, it was ranked among America’s top 10 popular retail websites. The purpose of Etsy is to create a platform for product creators to sell items.
What to sell on Etsy
Etsy tends to be a niche-oriented platform. Etsy gives sellers a chance to market their fashion accessories, handmade products, interior decorations, craft supplies, antique items, and other digital things to sell on Etsy. This marketplace focuses on individual items. Since there are various things to make and sell on Etsy, it’s a perfect chance to advertise and get customers.
Most products listed on Etsy are by crafters, independent artists, and creators. Other users may also list vintage products on their Etsy page. Is it worth selling on Etsy? Yes, Etsy is a good marketplace for original and handmade items or products. You cannot sell used items on Etsy. The platform has also listed items that do not sell on the forum, it includes:
· Mature content
· Internationally regulated items
· Animal products
· Hazardous materials
Target Market on Etsy
As aforementioned earlier, Etsy is a niche-specific platform. Etsy visitors are those who look for unique and original products. Ideally, Etsy buyers want items or products to add to their collection. Some buyers also purchase products in bulk if the store has this alternative. The approximated and largest demographic on Etsy are young women. More visitors will shop from your store by using the correct Etsy SEO tricks.
What is eBay?
eBay is one of the most popular online marketplaces with over 187 million global users. This platform isn’t only for sellers and buyers; you can auction and trade your items here. eBay offers various products categories. You can sell new and used items, antiques, handmade products, wholesale items, vintage, etc. eBay is the ideal platform for different product categories.
Also, some items cannot sell on the eBay platform, which includes;
· Adult items
· Weapons and firearms
· Food and alcohol
· Event tickets
· Used clothing
· Used cosmetics
Target Market on eBay
eBay attracts a larger audience because the types of items sold on the platform are virtually limited. There are various types of buyers on eBay. You will get one-time buyers, returning customers, or those buying a couple of items while others buy in bulk. Most eBay buyers are Gen X, 35-49 years old, and baby boomers, 50-64 years old.
Generally, an eBay buyer looks for available products set at reasonable prices. They need to find items at their lowest prices and best condition. Therefore, eBay buyers can visit your store if you have the lowest rate for your generic products.
Difference between selling on Etsy vs. eBay
We’ve already discussed the main difference between Etsy and eBay: the types of products or items sold are different. Since the products listed vary, the audiences also differ. Ideally, Etsy is a niche-specific platform, whereas eBay offers flexible products listings to the targeted audience.
When comparing Etsy vs. eBay marketplaces, a few things are for consideration. Below are some technical differences between them that sellers need to know. So, is it good to sell on eBay or Etsy?
Seller Fees for Etsy vs. eBay
Before we look at Etsy vs. eBay fees, both platforms have various advantages. Though both platforms allow users to start an online store, there are some differences;
· Etsy has cheaper pattern stores with fixed prices for plans. Conversely, on eBay, they vary depending on the number of items, category, and so on.
· On the eBay platform, users benefit from the 50 free monthly listings. But, Etsy doesn’t have such benefits. It always needs substantial fees.
Sellers get charged either monthly or annually, depending on the monthly subscription selected on the eBay platform. However, eBay sellers’ fees vary because the platform offers various packages and store subscriptions. It takes into account the seller’s listing and several sold items. If you plan to open a store on eBay, here are the subscriptions to expect:
· Starter: $7.95/month or $4.95/month yearly renewal
· Basic: $27.95/month or $21.95/month yearly renewal
· Premium: $74.95/month or $59.95/month yearly renewal
· Anchor: $349.95/month or $299.95/month yearly renewal
· Enterprise: $2,999.95/month- annual renewal only available
Every plan has a certain benefit. For example, a starter subscription comes with a markdown manager, a promotions manager, an eBay store listings link, and subscriber discounts. The basic package has all starter benefits, insertion fee credits, and Terapeak sourcing insights.
The higher subscriptions offer more benefits. Every seller enjoys a zero insertion fee listings share monthly with higher packages getting more. The standard item that uses the zero insertion fee listing is athletic shoes priced at $100 or more. Also, you should consider fees like international fees, final value fees, and dispute fees.
If you plan to become an Etsy seller, you should understand the different approaches that Etsy uses to charge its sellers. First, it doesn’t have a monthly or yearly plan fee to sell on the platform. There are three types of payments;
· Transaction fees
· Listing fees
· Payment processing fees
Once you put an item up for sale, you create a listing. Every time you post an individual listing, Etsy charges you whether the items get sold or become unsold. Each listing is charged a $0.20 fee (flat rate charge) and a 3.5% commission on the item sold. This listing fee is valid for four months or until the item gets sold. Also, a transaction fee of 5% is included in the costs of the total products. However, if you charge your buyer a separate shipping fee, you’ll get charged 5% full shipping charges.
If the product sold has variations, $0.20 is charged for each variation bought by a customer. Conversely, for every private listing you post, you get charged $0.20. There is also a payment processing fee that is a set rate plus a percentage of the total sale price of a product. The payment processing fee depends on your country. Etsy deducts payment processing fee from an item’s total sale price, including applicable sales tax and shipping fees.
Etsy only charges a payment processing fee on every transaction that applies to Etsy payments.
Etsy charges seem to be more comprehensive and reasonable, unlike eBay seller fees, which are more complex.
Sellers advertising fees
For potential buyers to find your listing, you have to pay advertising fees. These fees affect the financial stability of your eCommerce store once you launch it. Both Etsy and eBay have an in-platform advertising program. The eBay advertising program gives sellers control over their advertisements. You’ll select the advertising rate based on the item’s sell price percentage as a seller. It is a low-risk ad program charging eBay sellers once an item is sold.
In contrast, the Etsy platform functions like Facebook ads. You decide your daily budget limit. You’re charged per click once a user clicks the ad, even if the product doesn’t sell.
Seller tools for Etsy vs. eBay
eBay seller tools
eBay platform offers various seller tools for business optimization. If you complete your first ten sales, it provides you with a seller dashboard to keep track of your eBay store performance. You’ll analyze your store rating and improve the needed areas on the dashboard.
The various seller tools in the eBay platform include;
Selling manager tools help in managing, creating, and monitoring the product listing
Seller Hub helps in business and management optimization
Promotions manager helps in making promotions, thus targeting potential buyers
Selling templates ease the product listing process
Etsy seller tools
Etsy’s platform selling process is very different from eBay. It doesn’t have any seller tool for optimizing the selling process. However, the platform has an easy-to-use advantage; therefore, no need for in-depth knowledge about eCommerce selling on the Etsy platform.
eBay seller tools make it the best platform for professional sellers.
Etsy vs. eBay: Which one should you choose?
Etsy vs. eBay, which one is better? Etsy and eBay are the leading online marketplaces. The platform you select depends on your intentions and target audience.
Selling on eBay is quicker than Etsy but costly because of higher selling fees. Etsy is niche-specific to its audience, whereas eBay has more of an audience as it’s suitable for any user. Also, eBay’s inventory is diverse and rich.
To select your store, you have to find a profitable niche. After that, find an item that fits your niche audience. Once you’ve your niche, targeted audience, and product, find out which platform suits your targeted audience and products. Etsy and eBay platforms have a unique audience, so you need to understand Etsy marketing and the eBay marketplace. Let’s have an overview of the pros and cons of each platform.
Pros and Cons of Etsy vs. eBay Platform
To find the best online marketplace that meets your business, you have to understand the pros and cons of each platform.
eBay Pros and cons
The eBay platform is popular globally compared to Etsy. If you target your listings to reach many people, eBay is the best platform. That’s because it’s larger, and there is more chance of your items being discovered by potential buyers.
Most sellers favor eBay platforms even though other popular platforms like Amazon. Also, eBay has more convenient features for its sellers, and you can create more listings with ease.
Another outstanding eBay benefit is the extra tools and services offered, making selling efficient and straightforward. Getting started on eBay is not costly as there are various seller subscription packages to select from. However, their fees multiply fast depending on the items being sold. Lastly, you can sell multiple things on eBay and even auction them.
The drawback of selling items on the eBay platform is recording every detail about your item. You have to take quality photos, measure, and clean depending on the sold products. Product listing on eBay is not easy.
Another problem is that not all eBay buyers are reliable. Some cancel or delay payments which may cost you money and time if regularly.
Etsy pros and cons
One of the advantages of Etsy is that you’ll get a targeted customer base. After identifying your niche, you need to be patient with customers. Some Etsy customers don’t mind paying a little extra for the products.
Setting up an Etsy eCommerce store is quick and easy. You don’t have to set up a product page or website to get started. Also, creating listings only takes a few minutes. Its built-in analytics tool makes it more convenient to monitor the store. Comparing the seller fees, Etsy is cheaper than the eBay platform.
The disadvantage of using Etsy is that it’s a niche-specific platform. All the items sold have to be unique and handmade. For example, you can find some of the top-selling digital products on Etsy or the best place to print invitations. Etsy doesn’t approve of selling second-hand or used products.
Another drawback is the saturated niches making it challenging for sellers to succeed. It can take some time before Etsy buyers find your store or products. Also, there is no creation of a customer’s email list as it violates Etsy’s term of use.
Verdict: Etsy vs. eBay
Now we can answer our ultimate question: Etsy vs. eBay: Which One Is the Best Stock to Pick In 2022?
Select eBay marketplace if you’re selling general consumer or used goods. If you’re targeting massive buyers, then eBay is the best option. But, you should be ready to spend more on seller subscriptions and the platform competition.
Choose the Etsy platform if you don’t want to set up a website or page. If your items are handmade and unique, Etsy is your platform. More so, if you have a niche-specific product targeted to a specific audience, you can rely on Etsy. But, remember, Etsy platform niches are very saturated.