Everything You Need to Know About eBay Selling Fees

Marketplaces 101
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Everything You Need to Know About eBay Selling Fees

If you're thinking about selling on eBay, then you've probably already heard a lot about the various fees that are involved. After all, everything from listing your items to processing payments comes with a cost. But while it can be easy to get overwhelmed by all the different fees out there, it's important to remember that some of these charges are crucial to maintaining a sustainable e-commerce platform.

 

For example, insertion fees encourage sellers to be selective when choosing which items they want to list, helping to keep the marketplace well-curated and high-quality. Similarly, fees for optional listing upgrades will help your listing stand out from your competitors. In this blog post, we'll walk you through all of the different types of fees that are involved in selling on eBay.

 

Insertion Fee

 

When you list an item for sale on eBay, you'll be charged an insertion fee of $.35* per listing unless you have an eBay store subscription. Every month, eBay gives all their sellers up to 250 FREE listings aka you do not have to pay for an insertion fee or more listings depending on what type of eBay store subscription you have (more on that later). After you've used up all your zero insertion fee allowance, you will have to pay an insertion fee for each item you list. Here are things to keep in mind:

 

  • The insertion fee is non-refundable, even if your item doesn't sell.

  • You are charged per listing and per category.

  • You will be charged an insertion fee each time you choose to delist and relist your item.

  • A listing with multiple variations will only be charged once per listing. For example, 3XL Mens Hanes Hoodie with different colors as variations counts as one listing.

  • The allotted insertion number does not roll over to the next month.

  • eBay automatically renews your fixed-price listings every month.

 

* Here are a few exemptions:

  • If you sell in the Business & Industrial categories, the insertion fee is $20.

  • If you sell in the Musical Instruments & Gear > Guitars & Basses category, the insertion fee is $0.

  • If you sell men's or women's athletic shoes for $150 or more, the insertion fee is $0.

 

eBay Store Subscription

 

There are 5 different types of store subscriptions and these are billed per month. eBay will either deduct the cost from your earnings or charge the credit card on file. There are a few great benefits to having a store subscription, two of which are having an eBay storefront and slightly lower insertion fees and final value fees. When choosing which store is best for you, ask yourself these two questions:

 

  • How much inventory do I have?

  • How many times do I want to manually delist and relist my items?

 

Here is the list of store subscriptions, cost per month, and their benefits. Please note, when you first subscribe, you have the option between automatic monthly or yearly renewal. The prices below are based on monthly renewal.

 

Starter Store $7.95 per month

 
Free listing: 250/month (auction or fixed-price)
Insertion fee: $.30 for additional

 

Basic Store $27.95 per month

 
Free listing: 1,000/month (fixed-priced), 250/month (auction)
Insertion fee: $.25 for additional
Additional benefits: lower final value fees, access to Terapeak Sales Insight tool, and a $25 coupon that can be used on eBay's shipping supplies store (issued per quarter)

 

Premium Store $74.95 per month

 
Free listing: 10,000/month (fixed-price), 500/month (auction)
Insertion fee: $.15 for additional

Additional benefits: lower final value fees, access to Terapeak Sales Insight tool, and a $50 coupon that can be used on eBay's shipping supplies store (issued per quarter)

 

Anchor Store $349.95 per month

 
Free listing: 25,000/month (fixed-price), 1,000/month (auction)
Insertion fee: $.10 for additional

Additional benefits: lower final value fees, access to Terapeak Sales Insight tool, a $150 coupon that can be used on eBay's shipping supplies store (issued per quarter), and dedicated customer support.

 

Enterprise Store $2,999.95 per month (subject to yearly renewal only)

 
Free listing: 100,000/month (fixed-price), 2,500/month (auction)
Insertion fee: $.10 for additional

Additional benefits: lower final value fees, access to Terapeak Sales Insight tool, a $150 coupon that can be used on eBay's shipping supplies store (issued per quarter), and dedicated customer support.

 

Does having an eBay store make sense for you?

 

My personal opinion: yes, only if you are an above-average casual seller with more than 250 items for sale. Skip the Starter store and get the Basic so you have the option to manually delist an item, improve its description and relist it without having to wait for next month's renewal.

 

You might also like: 10 Great Marketplaces Every Reseller Should Consider

 

Final Value Fee

 

In addition to insertion fees, eBay also charges what's known as a final value fee on all successfully sold items. This fee is calculated as a percentage based on the total sale amount plus a $.30 payment processing fee per order. The total amount of your sale includes the item price, handling charges, and shipping services that are selected by customers. It also takes into account sales tax if it applies to their location as well. Here are things to keep in mind:

 

  • An order is a group of items purchased by the same buyer at checkout with one shipping method.

  • If you need to refund or cancel an order, eBay will issue you a credit for the final value fee but not the $.30 processing fee.

  • If you issued a partial refund, then your credit will be proportional to that amount. For example, a 20% refund means you'll be credited 20% of the final value fee.

  • If eBay has to get involved in a dispute between you and your buyer.

 

If you’re looking to sell on this platform check out this helpful guide to shipping on eBay or How to Get Started Selling on eBay.

 

Here is the list of popular categories, and their final value fee for sellers who have an eBay store subscription of Basic and above:

 

Athletic Shoes (men's or women's):

Total sales of over $150 = 7% final value fee + $0 processing fee
Total sales of less than $150 = $12% + $.30

 

Clothing, shoes (non-athletic) and accessories (men's or women's):

Over $2,500 = 2.35% + $.30
Less than $2,500 = $12% + $.30

 

Jewelry and watches (except parts & accessories):

Over $5,000 = 7% + $.30
Less than $5,000 = $13% + $.30

 

Books and magazines:

Over $2,500 = 2.35% + $.30
Less than $2,500 = $14.6% + $.30

 

Movies and TV, and music (except vinyl records):

Over $2,500 = 2.35% + $.30
Less than $2,500 = $14.6% + $.30

 

Baby:

Over $2,500 = 2.35% + $.30
Less than $2,500 = $12% + $.30

 

Sporting goods:

Over $2,500 = 2.35% + $.30
Less than $2,500 = $12% + $.30

 

Sports trading cards:

A flat fee of 5%

 

Video games, accessories, and replacement parts and tools:

Over $2,500 = 2.35% + $.30
Less than $2,500 = $12% + $.30

 

As you can see, the final value fee has a common theme: the higher your item sold, the fewer fees you'll have to pay.

 

To see the full list of categories, please check here

 

Other Fees

 

eBay is a robust eCommerce platform. But, it also has the most complicated fee structure of any online marketplace. If you're not careful, you could end up paying more in fees than you make in sales. Here are some additional fees that you may encounter:

 

Listing Upgrades

 

You may improve your listings to help them stand out by adding certain features, such as subtitles or bold font. Depending on the price of your item and the format and duration of your listing, you'll have to pay different costs for these optional improvements. Here are some examples:

 

Bold font: $4 (item less than $150), $6 (item more than $150)

Subtitle: $2, $6

Scheduled listing: $.10

Enlarged photo: $1, $2

 

Poor Performance

 

Unlike other platforms, eBay will charge an additional 6% on the final value fees if you do not meet certain performance standards. This is designed as both incentives for good behavior but also to ensure that bad actors can't game the system. 

 

The seller performance level is calculated by 5 factors:

 

  1. Transaction defect rate: canceling an order due to being out of stock or simply not choosing to send it.

  2. Cases closed without seller resolution: cases such as "item not received" or "item not as described"

  3. Late shipments

  4. Tracking validation

 

You can avoid this fee by maintaining an "above standard" rating or above. You can check your performance rating by going to your Seller Dashboard.

 

Aside from the hefty fee, there are also major consequences of falling into eBay's Below Standard rating, such as:

 

  • Your items will be placed lower in search results

  • Limits or restrictions on what you can sell

  • Funds can be held from your sales

  • You cannot pay to promote your listing

  • Be downgraded to the Basic store subscription for more than 60 days

  • No access to the partial refund tool

 

Maintaining a high seller performance level is essential for success. A positive seller rating can make or break your business. It is essential to maintain a high rating in order for items to display on search, and if there's a problem, eBay will back you up. It also helps build consumer confidence so that they may buy from you.

 

Dispute Fee

 

If a buyer files a payment dispute with their bank, credit card company, or other payment institution, you have 5 days to accept or challenge the claim. If you lost the claim, then eBay will charge you a $20 dispute fee. There are many reasons why a buyer might file for a payment dispute, but as a seller, there is no guaranteed way to prevent it. However, if you do have to defend a claim, here are some pointers that might assist you:

 

  • Have a detailed listing with multiple, high-quality photos of the item.

  • Include signature confirmation for orders of $750 or more.

  • Always ship with a tracking number with proof of delivery to the address.

  • Keep any messages/ communications with the buyer through eBay.

  • When issuing a partial refund, always provide information to the buyer about the reason for the refund. For example "deducted 50% from the refund because the item was returned used"

 

International Fee

 

Whether you're selling your items through eBay's Global Shipping Program or on your own, you will be charged a fee of 1.65%. This fee is calculated based on the total sales amount, and it is deducted from your earnings. However, by being mindful of this fee and planning accordingly, selling internationally can still yield a high-profit margin.

 

Promoted Listing

 

One of the great benefits of using eBay is that it allows you to promote your listings in order to boost their visibility and give them a greater chance of being seen by potential buyers. This means that if you pay a certain fee based on the ad rate, which is a percentage of the total sale amount of your listing (including item price, shipping costs, handling fees, and taxes), your listing will be displayed at the top of search results. This can be an extremely valuable tool if you are looking to sell a high-value item or want to make sure that your listing gets as much exposure as possible.

 

eBay has been a popular eCommerce platform for years, and for good reason. Not only does eBay make it easy to find buyers for your products, but it also offers unmatched levels of scalability. Whether you are a brand-new seller or a seasoned eCommerce veteran, eBay has the tools and features necessary to help you grow your business. However, with this increased flexibility comes an equally complex fee structure that can be tricky to navigate. From listing fees to transaction costs, eBay's pricing model is full of hidden costs that can quickly add up if you're not careful. If you cannot memorize the fees for every category (trust me, you're not the only one!), a good rule of thumb for eBay fees is 15% which should cover the insertion fee + final value fee. Also, there are third-party websites that offer an eBay fee calculator for free, like here and here. Thanks for reading!

 

If you'd like to explore other marketplaces, a reseller platform like Vendoo is an ideal solution to cross-listing items on multiple platforms, increasing your listings exposure and streamlining your reselling business. 

 

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