The digital economy has cracked the door wide open for everyday Americans to turn hobbies into paychecks and clutter into cash. Whether you are looking to declutter your garage, launch a handmade jewelry line, or build a scalable retail business, the barrier to entry has never been lower. However, simply listing an item online doesn’t guarantee a sale—or a profit. The platform you choose determines your audience, your fee structure, and ultimately, your success.
If you aren’t ready to launch a full brand yet, you can still find ways to make money online without special skills using simpler task-based platforms.
These platforms offer some of the most popular ways to make money with a flexible schedule while building a long-term business.
Choosing between Etsy, eBay, and Amazon can feel overwhelming. Each marketplace operates with its own set of rules, fees, and cultural norms. Making the wrong choice can lead to lost profits, inventory that sits stagnant, or unexpected tax bills. This guide breaks down the three giants of e-commerce to help you decide which one fits your financial goals and lifestyle.
Audience Scope: This guide is for U.S. residents and general consumers looking to start a side hustle or small business. If you have complex circumstances such as international supply chains, high-volume manufacturing, or significant tax liabilities, we recommend consulting with a qualified financial professional.
Key Takeaways
- Know Your Product Niche: Etsy is strictly for handmade, vintage, and craft supplies; eBay excels at collectibles and used goods; Amazon is the king of new, mass-market products.
- Fee Structures Vary Wildly: Amazon generally has the highest fees but the most traffic; eBay offers flexibility; Etsy has lower listing fees but takes a cut of shipping costs.
- Tax Obligations Are Real: The IRS requires reporting income from online sales. Recent changes to 1099-K reporting thresholds mean you must keep impeccable records.
- Shipping Matters: Your shipping strategy (free shipping vs. calculated shipping) directly impacts your profit margin and search ranking on all platforms.
- Ownership vs. Rental: selling on these platforms is like renting space in a mall; you do not own the customer data, and you are subject to the landlord’s rules.
The E-Commerce Landscape: Why Platform Choice Matters
When you decide to sell online, you are essentially choosing where to set up your shop. Think of the internet as a massive city. Amazon is the sprawling mega-mall where people go to buy everything from toothpaste to televisions. eBay is the bustling flea market where buyers hunt for rare finds and bargains. Etsy is the boutique arts district where customers expect unique, personal touches.
Finding the right venue is only the first step; you must also figure out how to balance a side hustle with a full-time job to ensure sustainable growth.
Your success depends on matching your product to the venue. If you try to sell a mass-produced iPhone case on Etsy, you will get banned. If you try to sell a vintage, one-of-a-kind antique on Amazon, it will likely get buried under millions of new products. According to the Federal Trade Commission (FTC), understanding the terms of service and the nature of the marketplace is the first line of defense against business failure and fraud.
eBay: The Garage Sale of the Internet (and More)
eBay is the veteran of online auctions and remains the go-to platform for used goods, collectibles, and items that are difficult to categorize. While it has evolved to include “Buy It Now” options for new items, its heart remains in the secondary market.
If you find that the shipping and listing process is too labor-intensive, you might consider renting out your stuff as a lower-effort alternative to generate income from your assets.
Who Is It For?
eBay is ideal for the casual seller clearing out a closet, the “flipper” who buys low at yard sales to sell high online, and collectors dealing in trading cards, coins, or vintage electronics. It is the most democratic of the three platforms; you can list a single item without committing to a subscription.
The Fee Structure
eBay charges two main types of fees:
- Insertion Fee: This is the cost to list an item. Most casual sellers get 250 zero-insertion-fee listings per month. After that, it is usually $0.35 per listing.
- Final Value Fee: This is a percentage of the total amount of the sale (item price + shipping + sales tax). For most categories, this is around 13.25% plus $0.30 per order.
Pros and Cons
Pros: Huge audience for used items; auction format allows the market to determine the price; easy shipping integration; generally lower risk of account suspension compared to Amazon.
Cons: “Non-paying bidders” (buyers who win auctions but don’t pay) are a nuisance; the interface can feel dated; returns can be complicated if not managed correctly.
Etsy: The Artisan’s Marketplace
Etsy has carved out a specific niche: handmade, vintage (at least 20 years old), and craft supplies. It cultivates a community feel and attracts buyers specifically looking for gifts and unique items.
For many creators, running an online shop is one of the best side hustles for introverts because it minimizes direct customer confrontation.
Who Is It For?
If you make jewelry, sew clothing, design digital printables, or curate vintage decor, Etsy is your home. It is not for reselling mass-produced goods (unless they are craft supplies).
The Fee Structure
Etsy’s fees are straightforward but can add up:
- Listing Fee: $0.20 per item for a four-month listing period. If the item sells and you renew it, you pay the $0.20 again.
- Transaction Fee: Etsy takes 6.5% of the total sale price (including shipping and gift wrap).
- Payment Processing Fee: In the U.S., this is usually 3% + $0.25.
- Offsite Ads: Etsy may advertise your items on Google or Facebook. If a sale results from an ad, you pay an additional 12-15% fee, depending on your annual sales volume.
Pros and Cons
Pros: A targeted audience willing to pay higher prices for quality; easy-to-use shop interface; strong support for digital downloads (passive income potential).
Cons: Listing fees apply even if items don’t sell; the market is saturated in certain categories (like jewelry); strict rules against reselling non-vintage/non-handmade items.
Amazon: The Retail Behemoth
Amazon is not just a store; it is a search engine for products. Selling here puts your items in front of hundreds of millions of customers, but the competition is fierce, and the rules are strict.
While sellers focus on margins, buyers are often using Amazon shopping hacks to find your products at the lowest possible price.
Who Is It For?
Amazon is best for sellers with new inventory, private label brands, or those capable of high-volume sales. It is less friendly to the casual seller listing one-off used items (though it is possible for books and media).
The Fee Structure
Amazon offers two plans:
- Individual Plan: $0.99 per unit sold (plus other fees). Best if you sell fewer than 40 items a month.
- Professional Plan: $39.99 per month (no per-unit fee). Essential for volume sellers and access to advanced tools.
- Referral Fee: A percentage of the sale price, typically between 8% and 15% depending on the category.
- FBA Fees (Optional): If you use “Fulfillment by Amazon” (where they store and ship your stuff), you pay storage and fulfillment fees based on weight and size.
Pros and Cons
Pros: Unmatched traffic volume; FBA handles shipping and customer service; high trust factor with buyers.
Cons: Highest fees; Amazon “owns” the customer relationship; intense price wars; risk of “gatekeeping” (needing approval to sell in certain categories).
Head-to-Head Comparison: Fees and Features
To help you visualize the differences, here is a direct comparison of the three platforms based on critical factors for new sellers.
| Feature | eBay | Etsy | Amazon (Individual) |
|---|---|---|---|
| Primary Audience | Bargain hunters, collectors | Gift buyers, art lovers | Convenience shoppers |
| Listing Cost | First 250/mo free, then ~$0.35 | $0.20 per item (4 months) | $0.00 (pay $0.99 when sold) |
| Commission Cut | ~13.25% | 6.5% + $0.20 listing renewal | 8% – 15% + $0.99/item |
| Payment Speed | Daily or Weekly payouts | Daily, Weekly, or Monthly | Every 2 weeks |
| Best For | Used goods, Garage sales | Handmade, Vintage | New goods, High volume |
Real-World Profit Scenarios
Percentages can be abstract. Let’s look at a concrete example to see how fees eat into your bottom line. Imagine you have an item you want to sell for $50.00, and you charge the buyer $10.00 for shipping (Total collected: $60.00). The item cost you $10.00 to acquire.
Beyond calculating platform fees, understanding how to price your side hustle services is crucial for maintaining a healthy bottom line.
Scenario A: Selling on eBay
On eBay, the Final Value Fee applies to the total $60.00.
- Total Sale: $60.00
- Fee (~13.25% + $0.30): -$8.25
- Actual Shipping Cost (you pay): -$10.00
- Item Cost: -$10.00
- Net Profit: $31.75
Scenario B: Selling on Etsy
On Etsy, fees apply to the total, plus listing fees.
- Total Sale: $60.00
- Listing Fee: -$0.20
- Transaction Fee (6.5%): -$3.90
- Payment Processing (3% + $0.25): -$2.05
- Actual Shipping Cost: -$10.00
- Item Cost: -$10.00
- Net Profit: $33.85
Note: This assumes you did not make the sale via an Offsite Ad, which would reduce profit significantly.
Scenario C: Selling on Amazon (FBM – Fulfilled by Merchant)
Assuming a 15% referral fee category and the Individual plan.
- Total Sale: $60.00
- Per Item Fee: -$0.99
- Referral Fee (15% of $60): -$9.00
- Actual Shipping Cost: -$10.00
- Item Cost: -$10.00
- Net Profit: $30.01
As you can see, for this specific price point, Etsy offers the highest potential margin, provided you qualify to sell there. Amazon squeezes the margins the hardest but offers the volume to make up for it.
Tax Implications of Selling Online
Many new sellers treat online income as “under the table” money. This is a dangerous misconception. The IRS considers income from online sales as taxable, regardless of whether you receive a tax form. According to the Internal Revenue Service (IRS), you must report income from the gig economy on your tax return.
The 1099-K Rule
Payment processors and marketplaces are required to issue Form 1099-K to sellers who meet specific reporting thresholds. While the implementation of the lower $600 threshold has seen delays and adjustments in recent years, the trend is toward stricter reporting. You should prepare as if every dollar will be reported to the IRS.
Hobby vs. Business
The IRS distinguishes between a “hobby” and a “business.”
- Hobby: You sell occasionally for fun, not primarily for profit. You can generally deduct expenses only up to the amount of your income (rules vary, consult a pro).
- Business: You operate with the intent to make a profit. You can deduct necessary business expenses (packaging, mileage, home office portion) even if they exceed your income, potentially creating a loss.
Keep separate bank accounts for your selling activities. Commingling personal and business funds makes tax time a nightmare and can pierce the “corporate veil” if you ever form an LLC.
Logistics and Shipping: Who Handles What?
Shipping is often the most intimidating part of selling online. You have two main options: fulfilling orders yourself or outsourcing them.
The DIY Approach (eBay, Etsy, Amazon FBM)
When you handle shipping, you are responsible for buying boxes, packing the item, printing the label, and getting it to the carrier. All three platforms offer “commercial pricing” on shipping labels, which is significantly cheaper than what you would pay at the post office counter. Never pay retail postage. Always buy the label through the platform or a third-party service like Pirate Ship.
The Outsourced Approach (Amazon FBA)
With Fulfillment by Amazon (FBA), you ship all your inventory to Amazon’s warehouses in bulk. When a customer buys your item, Amazon picks, packs, and ships it. They also handle customer service and returns. This makes your items eligible for Prime shipping, which dramatically increases sales. However, you pay storage fees, and if your inventory doesn’t sell quickly, long-term storage fees can destroy your profits.
Common Pitfalls and Risks
Even seasoned sellers can stumble. Here are the most common risks you face when selling on these platforms:
- The “Item Not Received” Scam: A buyer claims they never got the package. Defense: Always use tracking numbers. For high-value items (over $750), require a signature upon delivery.
- Ignoring Platform Policies: Amazon is notorious for banning sellers who violate policies, often with little recourse. Common violations include asking for positive reviews or creating multiple seller accounts without permission.
- Underestimating Shipping Costs: New sellers often guess the weight of an item. If you guess low, the carrier will charge you the difference, or worse, charge the buyer “Postage Due” upon delivery, guaranteeing a negative review. Invest in a simple digital scale.
- Race to the Bottom: On Amazon and eBay, it is easy to get into a price war where you lower your price to beat a competitor until no one is making a profit. Know your break-even point and stick to it.
When to Consult a Financial Professional
While many people manage online sales as a DIY project, there are specific milestones where professional guidance becomes necessary to protect your assets and ensure compliance.
- You cross the $20,000 revenue mark: At this volume, sales tax nexus laws (where you owe sales tax in states other than your own) become complex. A CPA can help you navigate automated tax compliance tools.
- You want to form an LLC or S-Corp: If you are moving from a sole proprietorship to a formal business structure for liability protection, consult a business attorney or tax professional.
- You are importing goods: If you are sourcing products from overseas (like Alibaba) to sell on Amazon, you are an importer of record. This carries legal liabilities regarding product safety and customs duties.
- You are selling high-risk items: If you sell supplements, baby products, or electronics, the liability risk is high. Speak to an insurance broker about product liability insurance.
For help finding qualified professionals, the Certified Financial Planner Board and the National Foundation for Credit Counseling are excellent resources for locating reputable advice.
Frequently Asked Questions
Can I sell on all three platforms at once?
Yes, this is called “multichannel selling.” However, you must manage your inventory carefully. If you sell a unique vintage lamp on eBay but forget to remove the listing from Etsy, you risk selling an item you no longer have, which leads to account defects. Inventory management software can help automate this.
Do I need a business license to sell on eBay or Etsy?
Generally, you do not need a business license to start as a sole proprietor selling personal items. However, your local city or county may require a business license if you are operating a for-profit business out of your home. Check with your local chamber of commerce or city hall.
What happens if a buyer returns an item?
On eBay and Etsy, you can set your own return policies (e.g., “No Returns”), though the platform will override this if the item arrives damaged or not as described. On Amazon, you generally must accept returns within 30 days. You will typically have to refund the purchase price, and often the shipping cost as well.
How much money do I need to start?
You can start on eBay with $0 by selling items you already own. Etsy requires $0.20 per listing. Amazon’s Professional plan costs $39.99/month, but the Individual plan has no upfront subscription cost. The biggest initial costs are usually inventory and shipping supplies.
When should I consult a professional about my online sales?
You should consult a tax professional if you are unsure about estimated quarterly tax payments, if you have significant inventory costs to depreciate, or if you receive a 1099-K that doesn’t match your records. Ignoring these can lead to penalties from the IRS.
What are the risks of using PayPal or Venmo for local pickup sales?
According to the Consumer Financial Protection Bureau (CFPB), peer-to-peer payment apps may not offer the same fraud protection as credit cards. When selling locally (e.g., via eBay Local Pickup), cash is often the safest method to avoid chargeback scams where the buyer claims unauthorized use of their account after taking the item.
Last updated: January 2026. Information accurate as of publication date. Financial regulations, rates, and programs change frequently—verify current details with official sources.
This article was reviewed for accuracy by our editorial team.
For trusted financial guidance, visit
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Important: EasyMoneyPlace.com provides educational content only. We are not licensed financial advisors, tax professionals, or registered investment advisers. This content does not constitute personalized financial, tax, or legal advice. Laws and regulations change frequently—verify current information with official sources.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Individual financial situations vary, and we encourage readers to consult with qualified professionals for personalized guidance. For those experiencing financial hardship, free counseling is available through the National Foundation for Credit Counseling.
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