7 Surprising Reasons EBay Reselling Is Declining—Even With AI Sourcing

Reselling on eBay — Image Source: 123rf.com

In the past, eBay reselling was one of the most reliable side hustles. Sellers could easily flip thrift-store finds, liquidation pallets, or collectibles for profit. Surprisingly, AI sourcing tools now make it easier than ever to identify “hot” items. Yet despite these advantages, many sellers are struggling or quitting altogether. Here are seven surprising reasons eBay reselling is declining in 2025.

1. Rising Selling Fees

Reselling fees have crept up over the years. Fees, like final value fees, payment processing, and shipping charges, cut into already small profits. Unfortunately, many smaller sellers find margins unsustainable. Even AI sourcing can’t offset shrinking profits. This can deter new sellers from trying reselling and is causing even established sellers to rethink their business models.

2. Oversaturation of Common Items

Every year, more resellers enter the picture. This creates an enormous amount of competition. With so many sellers, there’s competition for the best products. Plus, what once was a hot item is now oversaturated. Additionally, AI sourcing often points sellers toward the same products. Thousands list identical items, creating a race to the bottom. Prices collapse when supply overwhelms demand.

3. Shipping Costs and Logistics Headaches

Shipping prices continue to rise, especially for heavier goods. Buyers expect free or cheap shipping, hurting sellers. In addition, lost or delayed packages, especially around the holidays, damage seller ratings. Ultimately, logistics eat away at profits and patience.

4. Buyer Behavior Shifting Elsewhere

Buyer expectations and buying behaviors are continuing to shift. Younger buyers gravitate toward Poshmark, Depop, and TikTok Shops. Customers also demand fast free shipping. Amazon dominates these fast shipping expectations. eBay continues to struggle to attract Gen Z shoppers. Growth becomes more difficult when platforms like eBay lose market share.

5. Returns and Fraudulent Claims

Buyer-friendly policies often leave sellers vulnerable. Newer sellers are usually intimidated by these policies. Things like returns cut into profits, especially with shipping losses. In addition, fraudulent claims about damaged or missing items have risen dramatically. As these issues continue to permeate, trust in platforms like eBay continues to erode.

6. AI Sourcing Creating Unrealistic Expectations

AI tools promise sellers easy profits. But in reality, they flood the market with the same items. Sellers expect automation to replace hard work, knowledge, and effort. However, profit and success in reselling still depend on timing, branding, and customer service. AI is helpful, but not a silver bullet.

7. Burnout from Low Rewards

Resellers have a much harder time with profitability than in the past. Plus, there is a great deal of work that goes into running a reselling business. It requires constant listing, packing, and customer interaction. Many realize the effort outweighs the payoff. The side hustle feels more like a stressful job. Unfortunately, burnout drives many to quit.

The Takeaway on Reselling

Reselling on eBay isn’t dead, but it’s harder than ever. Fees, competition, and shifting buyer habits reduce profitability. AI tools help but can’t fix systemic issues. Casual sellers must adapt or explore other platforms. Success requires creativity, patience, and realistic expectations.

Do you still believe eBay reselling is worth it in 2025, or are the challenges making you rethink the side hustle?