Is Selling on eBay Still a Good Business Idea in 2025?

eBay remains one of the most recognizable eCommerce platforms in the world, but as online retail evolves, many entrepreneurs wonder: Is selling on eBay still a viable business in 2025? The answer is nuanced. While the marketplace has faced stiff competition from Amazon, Shopify, and emerging platforms like Temu, eBay continues to offer unique advantages—particularly for resellers, niche sellers, and small businesses testing eCommerce for the first time. However, success today requires a strategic approach that differs significantly from the early days of online auctions.

This article examines whether eBay is still a worthwhile venture and, if so, how to build a profitable business on the platform. We’ll explore the pros and cons of selling on eBay, including its massive built-in audience, competitive fees, and flexibility in selling formats. But we’ll also address the challenges—high competition, strict policies, and the need for meticulous financial tracking.

Beyond just listing products, successful eBay sellers in 2025 must optimize their listings for search, leverage promotions intelligently, and provide exceptional customer service to maintain high ratings. Scaling beyond a side hustle requires reinvestment strategies, automation, and potentially expanding to other platforms.

Whether you’re a casual seller looking to declutter for profit or an entrepreneur considering eBay as a primary sales channel, this guide will provide actionable insights to help you navigate the modern eBay marketplace—and avoid the common mistakes that derail many sellers.

Learn all the ins and outs of Selling on eBay

Pros of Selling on eBay

In an eCommerce landscape dominated by giants like Amazon and Shopify, many entrepreneurs wonder whether eBay remains a viable platform for online selling. While newer marketplaces have risen in popularity, eBay continues to offer unique advantages that make it a compelling choice for certain sellers. However, like any business model, success depends on understanding its strengths and limitations. Below, we examine the key benefits of selling on eBay in 2025, assessing why it remains a profitable option for many small businesses, side hustlers, and niche sellers.

A Large and Established Customer Base

One of eBay’s most significant advantages is its massive global audience. With over 130 million active buyers, the platform provides immediate access to a vast pool of potential customers—something that would take years to build independently. Unlike starting a standalone eCommerce store, where driving traffic requires substantial marketing investment, eBay sellers benefit from built-in organic search visibility. Buyers frequently visit eBay specifically to hunt for deals, rare items, or collectibles, meaning sellers can tap into an existing demand rather than having to create it from scratch.

Low Barriers to Entry

Compared to launching a Shopify store or selling on Amazon, eBay has relatively low startup costs. There is no need to design a website, handle complex hosting, or invest heavily in branding upfront. Sellers can list products quickly, with minimal upfront fees, making eBay an attractive option for those testing the waters of eCommerce. While eBay does charge final value fees (typically around 10-15% per sale), these costs are often lower than the combined expenses of running a standalone store, including web hosting, payment processing, and advertising. For entrepreneurs with limited capital, eBay provides a low-risk way to start selling online.

Flexible Selling Models

Unlike many modern eCommerce platforms that focus solely on fixed-price listings, eBay retains its original auction-style format, allowing sellers to choose between auctions and "Buy It Now" listings. This flexibility is particularly useful for unique or high-demand items where competitive bidding can drive up the final sale price. Collectors, resellers, and vintage dealers often find that auctions generate higher profits than fixed pricing, especially for rare or trending products. Meanwhile, sellers of everyday goods can opt for fixed-price listings for predictable, steady sales. This dual approach gives eBay an edge over more rigid marketplaces.

Global Selling Made Easier

Expanding into international markets can be daunting for small businesses, but eBay simplifies the process through programs like the Global Shipping Program (GSP). This service handles customs, international logistics, and even customer service for cross-border sales, reducing the burden on sellers. For businesses looking to reach buyers in Europe, Asia, or other regions without setting up separate fulfillment centers, eBay’s infrastructure provides a streamlined solution. While international shipping does come with additional complexities, eBay’s tools help mitigate many of the traditional challenges associated with global eCommerce.

A Stronghold for Niche and Used Items

Perhaps eBay’s most enduring strength is its reputation as the go-to marketplace for used, vintage, collectible, and hard-to-find items. Unlike Amazon, which prioritizes brand-new, mass-produced goods, eBay thrives on uniqueness. Sellers of antiques, rare books, discontinued electronics, and secondhand luxury goods often find that eBay’s audience is more receptive than on other platforms. The site’s search algorithms and category structure cater to collectors and hobbyists, making it easier for niche sellers to connect with their ideal buyers. Additionally, the platform’s feedback system builds trust for sellers dealing in pre-owned or refurbished merchandise, something that can be harder to establish on newer or more impersonal marketplaces.

Learn all the ins and outs of Selling on eBay

Cons of Selling on eBay

While eBay offers numerous advantages for online sellers, it is not without its drawbacks. The platform’s long-standing presence in eCommerce means that competition is fierce, fees can accumulate quickly, and sellers must adhere to strict policies that can sometimes feel restrictive. Additionally, unlike running an independent online store, eBay sellers operate under the constraints of the platform’s algorithms and rules, which can impact visibility and profitability. Below, we examine the key disadvantages of selling on eBay in 2025, providing a balanced perspective for entrepreneurs considering this marketplace.

Intense Competition in Saturated Markets

One of the most significant challenges eBay sellers face is the sheer volume of competition. Because the platform has been a dominant force in online retail for decades, many product categories—particularly electronics, clothing, and collectibles—are oversaturated with sellers. This saturation drives prices down, making it difficult for new or small-scale sellers to compete on profit margins. Unlike niche marketplaces such as Etsy or specialized B2B platforms, eBay’s open structure means that sellers often find themselves in direct competition with large retailers, liquidation wholesalers, and even overseas manufacturers offering rock-bottom prices. For sellers without a unique product or competitive sourcing advantage, standing out in such a crowded marketplace can be an uphill battle.

Fee Structures That Cut Into Profits

Another major drawback of selling on eBay is its fee system, which can significantly reduce profit margins if not carefully managed. Unlike running an independent eCommerce store, where transaction fees are limited to payment processing (typically 2-3%), eBay imposes multiple charges:

• Insertion fees (for listings beyond the free monthly allowance)
• Final value fees (usually 10-15% of the total sale price, including shipping)
• Payment processing fees (if using eBay’s managed payments system)
• Optional listing upgrades (e.g., bold titles, promoted listings)

For low-margin items, these fees can make the difference between profitability and loss. Additionally, eBay’s fee structure is less transparent than platforms like Shopify or Amazon, where sellers can more easily calculate costs upfront. Without careful pricing strategies, sellers may find that after fees, shipping, and overhead, their actual earnings are minimal.

Restrictive Seller Policies and Dispute Risks

eBay’s buyer-centric policies, while beneficial for consumer trust, often place sellers at a disadvantage. The platform’s money-back guarantee and generous return policies mean that sellers are frequently forced to accept returns—even in cases where the buyer’s claim is questionable. Fraudulent returns, where buyers falsely claim an item was not as described or damaged, are an ongoing issue. Additionally, eBay’s strict performance metrics (e.g., late shipment rates, defect rates) can lead to account suspensions or restrictions if not carefully managed. Unlike running an independent store, where sellers have more control over return policies and dispute resolutions, eBay sellers must comply with the platform’s rules or risk losing selling privileges altogether.

Algorithm Dependence and Lack of Control

Perhaps the most frustrating aspect of selling on eBay for many entrepreneurs is the lack of control over their store’s visibility. eBay’s search algorithm, Cassini, determines which listings appear at the top of search results, and its ranking factors (e.g., seller performance, pricing, keywords) are not fully transparent. This means that even well-optimized listings can suddenly lose visibility due to algorithm changes or shifts in eBay’s promotional priorities. Unlike having a standalone website, where SEO and marketing efforts directly benefit the seller’s own brand, eBay sellers are at the mercy of the platform’s ever-changing policies and ranking systems. A sudden drop in search placement can lead to a dramatic decline in sales, with little recourse for the seller.

Verdict: Who Should Sell on eBay?

As with any business platform, eBay is not a one-size-fits-all solution. While it offers distinct advantages for certain types of sellers, it may be a poor fit for others depending on their products, business models, and long-term goals. Evaluating whether eBay aligns with your needs requires an honest assessment of what the platform does well—and where it falls short. Below, we examine the ideal and less-than-ideal candidates for eBay selling in 2025, providing clarity for entrepreneurs deciding where to focus their efforts.

Who Thrives on eBay?

1. Side Hustlers & Part-Time Sellers

For individuals looking to generate supplemental income without the commitment of a full-fledged business, eBay remains an excellent option. Its low barrier to entry—no need for a standalone website, minimal upfront inventory costs, and flexible time commitments—makes it ideal for those dipping their toes into eCommerce. College students, stay-at-home parents, or professionals seeking a side income can list items in their spare time, scaling up or down as needed. Unlike platforms requiring consistent branding or complex marketing strategies, eBay allows casual sellers to monetize unused household items, handmade goods, or small-batch inventory with relative ease.

2. Resellers (Thrift, Liquidation, Collectibles)

eBay’s ecosystem is particularly well-suited for resellers who source undervalued items and flip them for profit. Thrift store finds, liquidation pallets, vintage clothing, rare books, and collectibles (e.g., trading cards, memorabilia) perform exceptionally well due to eBay’s search-friendly interface and buyer demographics. The auction format can even amplify profits for rare or trending items, as bidding wars drive up final prices. Unlike Amazon, which favors new, mass-produced goods, eBay’s audience actively seeks unique, secondhand, or discontinued products—making it the go-to marketplace for resale entrepreneurs.

3. Small Businesses Testing eCommerce

For brick-and-mortar shops or small brands venturing into online sales for the first time, eBay provides a low-risk testing ground. Its built-in traffic eliminates the need for immediate investments in digital marketing, allowing businesses to gauge demand for their products before committing to a standalone website. Artisans, boutique retailers, and niche manufacturers can use eBay to validate product ideas, refine pricing strategies, and build initial customer feedback—all while avoiding the complexities (and costs) of platforms like Shopify or Amazon’s FBA program.

Who Should Avoid eBay?

1. Brands Prioritizing Control & Long-Term Equity

Businesses aiming to build a distinct brand identity or cultivate direct customer relationships will find eBay limiting. The platform offers minimal customization for storefronts, and repeat buyers often associate purchases with “eBay” rather than the seller’s brand. Additionally, eBay’s policies (e.g., forced returns, fee structures) can undermine pricing strategies and customer service standards. For brands focused on loyalty and scalability, investing in a Shopify store—or even Amazon’s brand registry—provides more autonomy and long-term equity.

2. Sellers of Ultra-Cheap, Low-Margin Goods

Products with razor-thin profit margins (e.g., generic phone accessories, mass-produced trinkets) struggle on eBay due to fee structures and competition. When eBay’s final value fees (10–15%) and payment processing costs are layered onto already low prices, sellers often net pennies per sale. Worse, these categories are dominated by high-volume overseas sellers who undercut pricing relentlessly. Unless sellers have exclusive sourcing advantages or bulk discounts, competing in these markets is a race to the bottom. Platforms like Temu or AliExpress often absorb these sellers more effectively, leaving eBay better suited for higher-margin, differentiated inventory.

Final Considerations

Ultimately, eBay’s value depends on alignment between a seller’s strengths and the platform’s dynamics. It rewards agility, niche expertise, and hands-on management—but penalizes those seeking passive income or brand dominance. Before committing, sellers should ask:

• Do my products cater to eBay’s demand for unique, collectible, or value-priced goods?
• Can I absorb fees while maintaining profitability?
• Am I prepared to navigate competition and algorithmic unpredictability?

For the right entrepreneur, eBay in 2025 remains a viable, even lucrative, sales channel. But as the eCommerce landscape grows increasingly crowded, success demands more than just listing items—it requires strategy, adaptability, and a clear-eyed assessment of whether eBay is the best home for your business.

Learn all the ins and outs of Selling on eBay