Even then, to succeed on this platform you have to make a profit. To help, our eBay selling fees guide will look at what they are and how to calculate them so you can identify ways to improve your success.
eBay Seller Fees
Just like it is selling on Amazon, listing items on eBay for sale costs money. To ensure you’re making healthy profits on your products and have enough to invest in SEO, advertising, and business growth, it’s crucial to understand the eBay selling fees and how you can calculate them.
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eBay Selling Fees - What You Need To Know
So, what are the different types of eBay listings and their specific charges? And most importantly, how do you calculate the selling fees? Let's find out.
#1. Types of eBay listing Formats
When looking to sell on eBay, you'll get three listing formats to trade your products (the formats influence the costs you'll incur for selling on eBay).
Let's identify them and see how they affect the selling fees you'll incur.
i) Auction-style with a Buy it Now Listing Format
If you list your items under the auction-style format, you'll choose the starting price and let buyers place their bids. And just as in the real world (physical) auctioning, the highest bidder wins and pays for your products.
You can auction your items for 1, 3, 5, 7, or 10 days, depending on their time sensitiveness.
Even more, you can add the Buy it Now price in your auction-style listing such that buyers can purchase your products instantly or place a bid, depending on their preference.
However, the Buy it Now price is only available if there are no bids. Once a buyer places a bid, the Buy it Now option disappears, and your product listing continues in auction-style.
That said, what listing fee will you incur using this format?
In addition to all standard listing fees and final value fees, you'll be charged $ 0.05.
ii) Fixed price Format
For fixed price listing format, there's no bidding. You set the price at which you'll sell your items immediately to interested buyers.
And unlike in auction-style with Buy it Now listings where there are additional charges per item, you won't incur extra fees apart from the standard listing fees and final value fees.
Note that all fixed price items are under Good 'Til Cancelled listings (doesn't apply to auction-style listings). Meaning, fixed price items get listed for 30 days and are automatically renewed and relisted at the end of the period.
Keep in mind that the insertion fees and the applicable listing upgrades charges (discussed in the next section) apply for the first-time listing and each time the item is renewed or relisted.
iii) Store Item Format
To list your items in this format, you must have an eBay store. And similar to the fixed price format, there's no bidding - you sell your products immediately (at a price you'll set) to interested buyers.
So, what makes this format different? Well, you must subscribe to one of eBay's store packages that come with different advantages, depending on the package you'll choose.
But generally, you get more benefits if you sell using an eBay store than selling without. For instance, you get more free listings that reflect lower eBay selling fees. Also, you'll access additional tools to promote and manage your business.
Here's a table of the eBay store packages and their subscription fees.
#2. eBay Selling Fees
Now that you know the types of eBay listings and different store packages, it's easier to understand the various selling fees and how they apply to your business. Let's dive right in.
i) Insertion fees
These are eBay listing fees. For each item you put for sale, you'll be charged an insertion fee (with some exceptions).
However, you're eligible for free listings (zero insertion fee listings) every month, though other charges may still apply.
Once you've depleted your monthly free listings, you'll be charged an insertion fee for each item you list on eBay.
If you have an eBay store, you'll access more benefits than those without. Specifically, you'll get additional zero insertion fee listings per month. The following tables will provide more clarity.
A Table of Zero Insertion Free Listings Per Month, Depending on the Store Type And Payment Method
|Monthly Zero Insertion Fee Listings|
|eBay Store Type||Merchants With eBay Managed Payments||Merchants Without eBay Managed Payment|
|No Store||Up to 250 free listings||Up to 200 free listings|
|Starter||Up to 250 free listings||Up to 250 free listings|
|Basic Store||Up to 1000 fixed price + up to 250 auction-style free listings||Upto 350 fixed-price + upto 250 auction style free listings|
|Up to 10000 fixed pricings + upto 500 auction-style free listings |
Plus additional 50,000 fixed price listings in select categories
|Up to 1000 fixed prices + up to 500 auction-style free listings|
|Up to 25000 fixed price listings + up to 1000 auction-style free listings |
Plus additional 75000 fixed price free listings in select categories
|Up to 10000 fixed price + 1000 auction-style free listings|
|Up to 100000 fixed price + 2500 auction-style listings |
Plus additional 100000 fixed price listings in a select category
|Up to 100000 fixed price + 2500 auction-style listings|
A Table of Zero Insertion Fee Listings Allocations (depending on Package and Listing Type) And Insertion Fees After Depleting the Free Listings
Subscriber fees eBay
Note: Some product categories, regardless of the store type you opt for or the listing format, are not subject to zero insertion fee listings, and this means there are no free monthly listings for select categories.
For example, with any store subscription package, eBay will charge you a $20 insertion fee for some products under the Business and industrial category - you'll never list them for free.
Additionally, some categories are not subject to insertion fees at all. For instance, items in the Musical Instruments & Gear > Guitars &Basses category are free from insertion fees.
From the tables above, it's safe to say that the insertion fees you'll incur and the free listings you'll get per month depend on the following things:
- Whether you have an eBay store or not;
- eBay store subscription package you select;
- The product category;
- The listing format (fixed pricing or auction-style);
- Whether you're using third-party payment gateways or eBay managed payments.
All these factors also influence the general eBay selling fees you'll incur for trading your products.
ii) Final Value Fees
These are the charges you incur when your product sells. For every item your customer buys, you'll pay a Final Value Fee, which is charged as a percentage of the total amount of sales plus an additional $ 0.30 per order.
But what exactly does the total sales amount consist of? Also, how do you describe an order on eBay?
The total amount of the sale includes the product's price, sales tax, handling fees, shipping charges, and any other applicable fee.
On the other hand, an order is any number of products a customer buys with the same shipping method.
Meaning, if a buyer purchases 20, 50, or 70 items and selects the same shipping method, the additional charges on the final value fee will stick to $ 0.30.
Note that eBay charges the final value fee at the time of sale regardless if the buyer has made the payment or not.
So what happens if you don't receive the payment? eBay will credit your account with a percentage portion of the final value fee. The same applies to refunds to a buyer or cancellation of the sale.
However, the additional fee ($0.30 per order) won't get credited.
That said, most item categories are charged a final value fee of 12.55% of the sales amount that adds up to $7500 per item - for products beyond this amount, eBay charges a 2.35% final value fee (for most categories). Learn more here.
Additional final Value Fees
You'll incur additional final value fees for two reasons: violating eBay policies or failing to meet the platform's performance expectations.
For instance, referencing your contact information or asking a buyer's contacts for trading outside eBay, you'll incur a final value fee even if your item doesn't sell.
On the other hand, if you don't meet eBay's minimum seller performance standards, you'll attract a final value fee.
Also, if your rate of "item not as described return requests" shoots up beyond a certain limit, you'll get hit by an additional 5% on the final value fees for sales in the product categories in question.
In a nutshell, the following factors influence the final value fee (and the general eBay selling fees) you'll incur when your product sells.
- Product price;
- Sales tax;
- Compliance with eBay's policies;
- Your performance on eBay;
- Item category;
- Handling fees.
iii) Charges for Optional Listing Upgrades
If you're an ambitious seller looking to stand out in the crowd and attract more buyers to your store, listing upgrades are there for you at extra charges. The platform has plenty of upgrades to enhance your listings.
For starters, you can bold your listings, add more pictures in addition to the first twelve that are free, add subtitles, access eBay's listing designer to customize your listings for a professional look.
Again, these listing upgrades come at an extra cost and vary depending on the product's price, listing format, and duration (for auction-style listings).
Note: The cost of listing upgrades can add up and elevate the eBay selling fees. Check the costs before using the upgrades.
#3. How to Calculate eBay selling fees: eBay Selling Fees Calculator
Now that you know the fees you'll pay for selling on eBay, how do you calculate the charges?
There are dozens of providers offering fees calculators, but in this section, we'll use the eBay fees calculator to demonstrate the process - step by step.
- Visit ebayfeescalculator.com;
- You'll see a row of country flags. Click one to select your selling location (country);
- Scroll down and you'll see a page to insert details about the item you've sold (or want to sell) and other relevant details.
For instance, you'll see a tab of Sold price, shipping charged, Item Cost, and more. Fill in the tabs relating to the factors that have affected your sales.
- After filling in the relevant tabs, scroll down past the details page to see the results. You'll see total eBay fees in terms of cash and percentage. Also, you'll see the payment gateway charges(like Paypal) and the total profit you'll get.
#4. eBay Vs. Amazon
Amazon and eBay are two giant competitors. Finding out how their selling costs and related features compare will help you select the platform fitting your business needs. Here's a closer look at the comparison.
|Subscription Plans and Pricings||5 store subscriptions (highest $2999.95-yearly renewals, lowest $7.95 per month)||2 Subscriptions; Professional Selling Plan - $39.99 per month no per-item fee if your product sells |
Individual Selling Plan - No Subscription Fee
|Free Listings and Listing Charges per Item||Monthly Zero insertion fee listings for eBay store owners and those without - some exceptions apply. Free listings vary with the store package you opt for |
The listing fee depends on the item category, listing type, and listing upgrades you'll opt for.
Product listing is free.
|Charges When an Item Sells||Final value fee for each item you sell (varies with the category)+ an additional $0.30 per order + any other applicable fees||Referral fees (changes depending on the category) + per-item fees (only for Individual plan subscribers = $0.99 per item sold) + Variable Closing Fees in select categories|
|Shipping and handling costs||Seller-managed shipping. You pack your products and send them to the buyer—no support from eBay.||Seller Managed Shippings and Amazon managed shipping (FBA and FBM fulfillments) both methods attract a fee, but FBA shipping costs are higher than FBM charges|
Is eBay The Way To Go When Launching Your Online Store?
While selling on eBay attracts some fees, this doesn’t mean that you cannot make profits on this platform. By understanding eBay selling fees and how to calculate them, you can make the most of eBay and earn more profits.