For those who haven't heard of them, here's a quick rundown of what they are:
eBay, The World Marketplace - eBay is the most popular auction style marketplace on the web. It offers you the ability to put up just about any kind of item you can think of for auction for a small listing fee. eBay serves international audiences as well, with several sister sites dedicated to specific countries.
Etsy - The Homemade Marketplace - Etsy is newer than eBay, but has grown in popularity recently due to the latest reports of success of its members. Unlike eBay, however, this online marketplace is dedicated to all things handmade (or suppliers of things to aid in the process of crafting things) and is not auction driven, but utilizes fixed price listings. As long as you have a credit card, you can sell on Etsy, no matter your country of origin. By handcrafted, I mean jewelry, artwork, sculpture, etc which are made by hand.
The Pros & Cons of Ebay
Personally, I only occasionally use eBay to auction off random original art, ACEO's (which are something of a fad on eBay right now), and ladder style commission auctions. I do not recommend the eBay Shop feature unless you are sure you can offload a high volume of art (see my eBay Shop review).
eBay has changed a lot since its inception. Nowadays, it's far easier to sell artwork than it used to be thanks to their new policies. Here are some things to think about if you're considering selling your art on eBay.
The Pros & Cons of Etsy
I have become a more avid user of Etsy, of late, due to its cheap listing fees and heartfelt community. When you buy something on Etsy, there's a warm fuzzy feeling that comes from knowing that each item was lovingly hand-crafted by an artist such as yourself. There's a great artist-to-artist atmosphere with an administration that really seems to care about what we think as users.
Etsy has filled the void that I had when I closed my eBay Shop. I can post here without worrying about the next subscription fee that may or may not be covered by my sales. They're a relatively new site with a bright future ahead of them.
Which One is Better?
It all depends on what you want to sell. eBay has more viewers, but art (fantasy art in particular) does not sell well there currently unless you are selling it for less than $100. In some cases, art can sell for more, particularly for those who have already built up a following outside of eBay and believe their art is investment-grade (generally of the fine art genre).
Etsy is a better solution for the artists who sell in smaller volumes and who want an audience who understands that their items are handcrafted and therefore aren't meant to be given away for a cheap price. Etsy is also more cost-effective for a storefront type of setting.
In the end, why not use both? I plan to start utilizing my 5 free auctions a month to auction off original art just for the free publicity while still maintaining my Etsy and personal web shop as my main outlets.
The key to art marketing and e-commerce is to combine your efforts to create the most effective results. I highly recommend trying both sites to see how they can work together for your art!