eBay seller fees can be extensive and 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.
If you’re selling on eBay, understanding how much eBay charges in fees is essential for pricing items and maximizing your profit. Since eBay’s fee structure is a little more complicated than other marketplaces, we’ll go over it more in depth later in this article.
In general, most sellers will pay two main types of fees:
There are also additional fees sellers might encounter, such as upgrades, promoted listings, etc, but these are less common.
Now let’s break each category down more in depth to see how it’ll affect your sales.
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. The name can be bit confusing, but insertion fees are basically just eBay listing fees.
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:
* Here are a few exemptions:
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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:
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.
Free listing: 250/month (auction or fixed-price)
Insertion fee: $.30 for additional
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)
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)
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.
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.
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.
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So, how much does eBay take from a sale? eBay charges what's known as a final value fee on all successfully sold items. This fee is calculated as a percentage (usually 12%-15%) 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:
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:
Total sales of over $150 = 7% final value fee + $0 processing fee
Total sales of less than $150 = $12% + $.30
Over $2,500 = 2.35% + $.30
Less than $2,500 = $12% + $.30
Over $5,000 = 7% + $.30
Less than $5,000 = $13% + $.30
Over $2,500 = 2.35% + $.30
Less than $2,500 = $14.6% + $.30
Over $2,500 = 2.35% + $.30
Less than $2,500 = $14.6% + $.30
Over $2,500 = 2.35% + $.30
Less than $2,500 = $12% + $.30
Over $2,500 = 2.35% + $.30
Less than $2,500 = $12% + $.30
A flat fee of 5%
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.
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:
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
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:
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:
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.
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:
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.
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.
Note that PayPal does not process payments on eBay anymore, so you cannot use Paypal to receive payments (and you will not be subjected to Paypal fees). You have to sign up for a managed payments account and provide eBay with a checking account. Of course, buyers can still pay with PayPal, sellers just cannot receive funds this way. Learn more here.
Selling on eBay can be highly profitable, but it’s important to understand the costs involved to ensure you’re making a profit. A good rule of thumb is to expect to pay about 12%-15% of the total sale, unless you’re selling in a category that has wildly different fees.
Don’t forget to keep an eye on any additional costs like listing upgrades or promoted listings, to make sure that those aren’t dipping into your profit too much!
Since eBay fees can add up quickly, many resellers choose to cross list their items on multiple platforms so they’re not only relying on eBay sales.
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.