eBay Beats Amazon For 81% Of Marketplace Sellers

Amazon is an e-Commerce leader in so many areas, it’s natural to assume it’s also the number one destination for marketplace sellers. But in this area the retail king has been dethroned.

According to The State Of E-Commerce Marketplace Selling In 2017: A Study On The Behaviors And Preferences Of E-Commerce Marketplace Sellers a survey report by Hyperwallet, 81% of respondents named eBay as their top choice among sellers, compared to 41% for Amazon and 21% for Etsy.

Amazon Sellers Swap Safety For Shipping And Speed Of Payments 

The motivation for becoming an e-Commerce marketplace seller varies depending on the marketplace. Overall, 60% of 1,500 surveyed e-Commerce marketplace sellers say they would quit their full-time jobs to focus on e-Commerce selling. For Etsy sellers, more than half (52%) pursue for creative passions and a love of hobby. For eBay and Amazon, making extra money on the side is the main reason (48% and 52%, respectively).


The reasons for staying loyal to any of the top three platforms, however, varied. The survey found that eBay and Etsy sellers cited the number of users/buyers on the platform as their number one loyalty factor, but also placed a high importance on trust and safety. In contrast, Amazon sellers care more about shipping options than a sense of security.

For Amazon, the top three loyalty factors are: 

  • Speed of payments: 69%;
  • Shipping options: 57%; and
  • Number of users/buyers: 52%.

For eBay:

  • Number of users/buyers: 74%;
  • Speed of payments: 53%; and
  • Sense of trust and safety: 52%.

For Etsy:

  • Number of users/buyers: 70%;
  • Sense of trust and safety: 61%; and
  • Speed of payments: 48%.

Speed And Cost Of Payments Can Decrease Loyalty

With so many options available, e-Commerce sellers have the freedom to easily switch marketplaces following even the most minor inconvenience. Two areas marketplaces seeking to retain sellers should focus on are payments and customer service. Nearly 60% of sellers stay loyal to an e-Commerce marketplace due to speed of payments. If the payment process is too slow, however, sellers won’t stick around. In fact, 13% of sellers have switched to another online marketplace due to frustrating payment processes. 

Of those that have switched marketplaces:

  • Almost half (49%) switched because the fees were too high;
  • Nearly one-third (30%) switched because payments took too long to process;
  • 26% of sellers did not receive payment for products sold; and
  • More than half (53%) didn’t trust the security of their personal information.

Fees Are Frustrating

More than one in three sellers (35%) aren’t satisfied with the associated fees of selling on their current marketplace. Nearly four out of five sellers (79%) would switch e-Commerce marketplaces if fees were too high.

The Future Of Marketplaces

No matter which marketplace sellers decide to try, by making continued efforts to improve the payments process and increasing seller trust, marketplaces will have the opportunity to grow. In turn, instead of keeping their e-Commerce careers as part-time supplemental income providers, sellers may reach the goal of turning a side gig into a full-time job.

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