Ebays cut on sales

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Fully understanding eBay fees is an essential component of selling on the marketplace.

You need to know exactly how much you’re spending on inventory, shipping and eBay fees to calculate your net margin and to ensure you’re making a healthy profit.

But eBay fees can get a bit complicated. Some fees are charged pre-sale, others post-sale, and there are also charges for optional extras. On top of that, fees differ for business sellers and private sellers.

Don’t worry, this comprehensive guide to eBay fees will help you figure out how exactly much you’ll be charged.

What types of eBay fees are there?

There are five different types of eBay fees, these are:

  • Store subscription fees
  • Insertion fees
  • Final Value Fees
  • Managed payment fees
  • Promoted listing fees

Let’s take a look at each of these in more detail.

1. eBay subscription fees

Signing up for a store is optional. But eBay offers plans to suit occasional sellers, right through to large scale enterprises. It’s definitely worth considering if you sell regularly.

Although subscriptions come with a monthly fee, you can also take advantage of more free listings, smaller fees, as well as some tools to increase conversions. The more you pay per month for your subscription, the smaller your other fees will be.

Here’s the breakdown of current eBay store subscription fees:

Starter (or occasional sellers): From $4.95 per month
Basic (for growing businesses): From $21.95 per month
Premium ( for large businesses): From $59.95 per month
Anchor (for high volume sellers): From $59.95 per month
Enterprise (for only the biggest brands): $2999.95 per month

2. Insertion fees

When you list an item on eBay, all sellers are charged an insertion fee.

Private sellers and business sellers without an eBay store subscription receive 50 free listings per month. These can be used to cover auction style sales or fixed priced items. After this, they are usually charged a flat fee of 35c per listing.

For store subscribers, their free listings and charges are as follows:

Auction style listingsFixed price listings
Starter100 free and 30c per listing thereafter
Basic250 free and 25c thereafter250 free and 25c thereafter
Premium500 free and 15c thereafter1,000 free and 10c thereafter
Anchor1,000 free and 10c thereafter10,000 free and 5c thereafter
Enterprise2,500 free and 10c thereafter100,000 free and 5c thereafter

It’s also worth noting that these fees are charged per listing and per category. So if you’re listing a baseball bat under both ‘sporting goods’ and ‘toys and hobbies’, you’ll pay two insertion fees – one for each category.

Your insertion fees are not refunded if your product doesn’t sell. And if you re-list your product, it will be charged again. Keep this in mind, if you’re using ‘Good ’til cancelled’ listings which renew automatically every month.

Fees for eBay’s optional listing upgrades

eBay allows sellers to make their listings stand out by adding subtitles, bold text or a customized design. These enhancements come with extra costs, which vary depending on duration, item price and listing format.

To give you an idea of the eBay fees for this, here are the starting prices:

Auction style listingsGood ’til cancelled listings
Bold textFrom $2From $4
SubtitleFrom $1From $1.50
Gallery plus* (enhanced images)From 35cFrom $1
Listing designer (customer entries)From 10cFrom 30c
International visibilityFrom 10cFrom 50c

Important point: All items sold under the Collectibles, Art, Pottery and Antiques categories benefit from Gallery Plus free of charge.

3. Final value fees

Once an item is sold, sellers pay a final value fee. Rather than a flat fee, eBay charges a percentage of the product’s final sale price – this includes the cost of the product, as well as any other shipping and packaging charges added to the sale.

The percentage you are charged depends on the product category in which your product was listed.

Final value fees for sellers not using eBay managed payments

For sellers whose payments are not processed by eBay yet, the below fees continue to apply.

On top of these eBay fees, they’ll probably pay a third-party charge to PayPal. This will cost 2.9% of the order, as well as 30c per transaction.

Final value feeFee capsMost categories10%$750Books, DVDs & movies, Music (except Records)12%$750Business & Industrial categories2%$300Musical Instruments3.5%$350

Final value fees for those using eBay managed payments

With eBay managed payments being rolled out to more and more sellers, eBay has introduced a new fee structure.

These new final value fees cover payment processing and also come with a 30c charge on each order.

Final value fee on first $7500
Most categories12.35%
Books, DVDs & movies, Music (except Records)14.35%
Business & Industrial categories4.35%
Musical Instruments5.85%

On any products which cost more than $7,500, eBay only charges 2.35% on anything above that figure.

It’s also important to note that sellers using eBay managed payments will now have to include sales tax in the final order price when calculating their final value fee.

Once a sale is finalized, eBay charges your account. But in situations where the buyer doesn’t pay, you can have the final value fee refunded by opening an unpaid item case in the eBay Resolution Center.

Reductions for store subscribers

If you have an eBay store subscription, you may benefit from reduced Final Value Fees.

Those on Starter plans will pay the same rates as the tables above. But those with Basic plans  and upward pay between 4% and 9.15% on most listings. However, it is unclear how eBay managed payments will affect these rates.

For subscribers, payment caps for each category are also reduced, which is worth keeping in mind if you sell high value items.

Save with multiple shipping options

As mentioned earlier in the article, shipping costs are taken into account when calculating final value fees. This is usually based on whatever shipping option a shopper selects and pays for.

However, for sellers in the US who offer buyers one-day or international shipping, as well as a free or less costly domestic option, the final value fee will be based on the cheaper option offered. Even if the buyer selects the more costly one! This loophole encourages sellers to offer more choice.

Related article: How to Combine Shipping on eBay in Three Simple Steps

How seller performance impacts Final Value Fees

Seller performance also comes into the mix when calculating eBay final value fees. If the service you offer isn’t up to scratch, you may be hit with a 5% increase on all your final value fees.

Sellers who aren’t meeting eBay’s performance standards won’t benefit from fee caps either. So poor performance could really hurt your income.

Sellers need to keep late shipments, transaction defects and unresolved customer cases to a minimum. Too many returns citing ‘item not as described’ will lead to extra fees too.

On the other hand, if you become an eBay top rated seller, any listings which meet top rated plus requirements get a 10% discount on final value fees.

Your current performance metrics are available in the Seller Dashboard. You can also find out more about eBay’s seller performance standards here.

4. eBay managed payment fees

As well as increased final value fees and a 30c charge on every order, fees for eBay managed payments may also include:

  • International fees: 1.65% is charged on orders you send outside of the US.
  • Currency conversion charge: If you sell on an eBay site with a currency that is different to your payout currency, eBay’s transaction exchange rate includes a charge of 3%.

5. Promoted listings fees

eBay promoted listings are a supplemental service which can help you boost the visibility of your products and increase sales.

How much it costs is up to you. Like with final value fees, the cost of promoted listings is based on the final sale price. Sellers can bid 1-20% of each sale.

However, you’re only charged when someone clicks on your ad and then buys your product within the next 30 days. If a click doesn’t end with a sale, you don’t pay anything!

Related article: 5 Ways eBay Promoted Listings Will Boost Your Sales!

If an item is returned, you can also claim back free ad credits. So it’s a low risk investment as long as you factor it in when pricing products. To see how much you’ll have to bid to beat out other advertisers, you’ll find a list of average ad rates by category in the Seller Hub.

Try a better way to support your customers. Sign up for a free 14-day trial today. No credit card needed.

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Sours: https://blog.edesk.com/resources/ebay-fees/

Understanding selling fees

Trading Cards

  • 11.5% on total amount of the sale up to $2,500 calculated per item
  • 2.35% on the portion of the sale over $2,500
  • $0.30 per order


  • 6.55% on total amount of the sale up to $2,500 calculated per item
  • 2.35% on the portion of the sale over $2,500
  • $0.30 per order


  • 12.5% on total amount of the sale up to $1,000 calculated per item
  • 4% on the portion of the sale over $1,000 up to $5,000 calculated per item
  • 3% on the portion of the sale over $5,000
  • $0.30 per order

Books & Magazines

Movies & TV

Music (except Vinyl Records)

  • 14.55% on total amount of the sale up to $2,500 calculated per item
  • 2.35% on the portion of the sale over $2,500
  • $0.30 per order

Most Musical Instruments & Gear

  • 9.5% on total amount of the sale up to $2,500 calculated per item
  • 2.35% on the portion of the sale over $2,500
  • $0.30 per order

DJ Equipment

Pro Audio Equipment

  • 8.5% on total amount of the sale up to $2,500 calculated per item
  • 2.35% on the portion of the sale over $2,500
  • $0.30 per order

Guitars & Bases

  • 5.85% on total amount of the sale up to $2,500 calculated per item
  • 2.35% on the portion of the sale over $2,500
  • $0.30 per order


  • 5% on total amount of the sale
  • $0.30 per order

Sneakers Over $100

  • 0% - Sneakers sales over $100 are not charged any final value fees


  • 8.7% on total amount of the sale up to $2,500 calculated per item
  • 2.35% on the portion of the sale over $2,500
  • $0.30 per order

Video Game Consoles

  • 6.55% on total amount of the sale up to $2,500 calculated per item
  • 2.35% on the portion of the sale over $2,500
  • $0.30 per order

Women’s Bags & Handbags

  • 13% if total amount of the sale is $2,000 or less, calculated per item
  • 7% if total amount of the sale is over $2,000, calculated per item
  • $0.30 per order
Sours: https://pages.ebay.com/seller-center/get-started/seller-fees.html
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Amazon or eBay, which is better for sellers? It’s a difficult question, as each marketplace has its advantages and disadvantages. Amazon is currently the biggest online marketplace in the world, with eBay in third place. While there are a growing number of alternative marketplaces available to sellers, these two titans of online shopping still stand head and shoulders above the rest.

Let’s take a detailed look at Amazon vs eBay, so you can make an informed decision on which one’s best for your business.

Amazon vs eBay: Market Size and Selling Potential

Let’s begin with the big question: when comparing eBay and Amazon, which platform gives you the most potential to sell your products? Which marketplace is bigger, providing the simple raw power of more possible eyes on each product?

Of course, there are other considerations too. Certain demographics might be more relevant to the product you’re selling, so let’s take into account who is using each platform. Different target audiences will each have their own expectations and standards, requiring a tailored approach to satisfy their needs.

Amazon’s market size

Amazon’s user statistics are staggering. On its own, it accounted for 13.7% of the global eCommerce retail market in 2019. In the US, that figure is a gigantic 52.4% market share.

In terms of raw traffic, Amazon brought in 2,507 million combined desktop and mobile visits in May 2020 alone.

It’s also worth noting that 44% of US homes are subscribed to the premium Amazon Prime service. Given that Amazon is so utterly dominant across the country, it makes sense that shoppers are comfortable enough to routinely pay more for faster shipping and lower prices on individual items.

eBay’s market size

eBay’s share of the US eCommerce market is estimated at around 5%. They were recently beaten into third place by Walmart, who now holds around 7% of the market.

eBay brings in around 167 million monthly users. These users are particularly discerning, preferring to only buy from sellers with the highest feedback scores. We’re talking scores of 100 or even higher. This makes protecting your reputation on eBay critical to your business.

Given eBay’s heritage, starting out as an auction site, the buying culture there revolves around price. It could be fair to say that eBay customers are interested in price and peace of mind, not necessarily the bells and whistles that come with premium subscription services.

The conclusion: market size and selling potential

The comparison here borders on unfair. Comparing Amazon and eBay in terms of raw market size is a decisive win for Amazon, who are beaten only by Alibaba and the sheer consumer might of China.

It’s not all doom and gloom for eBay, however. They’re still a major global player in eCommerce, with more than half of their annual sales revenue coming from tens of millions of buyers outside the US.

eBay’s audience is also slightly younger, with 32% aged 35 to 49. Compare that to Amazon’s average shopper age of 45 to 54 and you get a target market that is starting to come of age and really flex their buying power.

If you have a niche product and a laser-focused audience profile, eBay might be right for you. But in the majority of cases, Amazon’s market share simply can’t be touched.

Amazon vs eBay: Competitiveness

The hyper-competitive nature of eCommerce puts the shopper in control. Sellers, for the most part, must compete on price or go extinct. That’s hard enough when it’s one site selling against another, but what about platforms like eBay and Amazon?

Here, where tens of thousands of sellers are pushing the same product on the same site, you need to keep your wits about you if you want to turn a profit. So, is eBay more competitive than Amazon for sellers?

Amazon’s competitiveness

Amazon runs on a product catalog, with the goal of providing one clear listing per unique product. So, a customer searching for any given product will, in theory, be guided towards the best result no matter how many people are selling it.

Only when you click through to the product page will you see more potential sellers. But by then, the winner of the Amazon Buy Box will have already secured the trust (and the money) of most customers.

Amazon doesn’t tell us exactly how to win the Buy Box, it’s done via algorithm. But price is known to be a primary factor, as is the presence of the Amazon Prime badge on the listing.

This makes it easy for the shopper to get a good deal. Sellers, meanwhile, could be competing with potentially hundreds of rivals for that one prime spot in the Buy Box.

eBay’s competitiveness

As befits its roots as an auction site, eBay gives shoppers the freedom to compare multiple listings for the same item. Some will be new, some used, some in better condition than others, most will have differing options for shipping.

What’s more, eBay’s auction functionality means that ongoing item listings will compete with those available to buy now for one set price. This all combines to make eBay shopping a far more considered, nuanced experience.

This is good news for sellers. You have more opportunities to tweak your listing to appeal to different audiences. Products also have broader visibility, letting shoppers rummage around for the exact deal that’s right for them.

Related article: 16 Essential Hacks to Increase eBay Sales

The conclusion: competitiveness

The difference in competition between eBay and Amazon would appear to favor eBay, at least for sellers. You simply have more opportunities to get your product seen, and an audience who are more likely to spend time deliberating.

Amazon is ruthlessly competitive, with many different sellers aiming for one single spot; the Buy Box. However, this could potentially work in your favor. If you’re genuinely offering the best products in your niche at the best price point, you could win the Buy Box more often than not and make huge sales. But in most cases, eBay provides a more reasonable experience for sellers.

Amazon vs eBay: Shipping and Fulfillment Options

Of course, a huge market and an easy sale are only the beginning. Physically getting items to the customer’s front door is what secures you repeat business and a glowing review.

So, between eBay and Amazon, which is more firmly on the seller’s side in making that happen? Which platform provides the quickest and most convenient shipping and fulfillment for eCommerce?

Amazon’s fulfillment options

Fulfilment by Amazon (FBA) is a service letting you store your products in your nearest Amazon warehouse. From there, Amazon will pick, pack, and ship on your behalf when a sale is made.

They handle customer support, remove negative feedback due to shipping, and can also ship sales made through other channels. Yes, that includes eBay.

It’s not the cheapest service, but it does qualify you for the Amazon Prime badge, nudging you closer to the Buy Box.

Seller Fulfilled Prime (SFP) is a cheaper option. You ship from your own facilities, but you still qualify for the Amazon Prime badge.

eBay’s fulfillment options

Right now, eBay has no shipping and fulfillment services for domestic sellers. It does offer a Global Shipping Program, which we’ll talk about in more detail a little later.

For the moment, if you’re selling on eBay to those in your own native country, you’re responsible for picking, packing, and shipping your own orders. There are plenty of service providers out there who’ll do it on your behalf, if you can take the hit to your profit margins.

This could be a particular barrier to new sellers. Having to set up shipping and fulfillment from scratch, without support from the platform, is obviously costly.

The conclusion: fulfillment options

Given that Amazon provides eBay sellers with more shipping support than eBay does, this one’s a no-brainer. Even if eBay were to start offering such a service tomorrow, it would be competing with the most advanced delivery service on Earth, starting from scratch.

There’s a possibility such a service from eBay might aim to undercut FBA on price, opening up specific markets. But until it does, Amazon wins. 

Amazon vs eBay: Seller Fees

We can’t address the eBay vs Amazon issue without talking about selling fees. Jeff Bezos still has to earn an honest living but, when we compare Amazon and eBay directly, who is giving sellers the better deal?

Amazon’s seller fees

Amazon charges for Professional Seller status, as well as taking a referral fee per item sold. If you’re paying for FBA, you might also think of this as an additional seller fee, albeit an optional one.

A Professional Seller subscription on Amazon costs $39.99 per month. This gives you up to 100,000 free listings, and even more if you keep making regular sales.

Amazon referral fees are very different from category to category. As a rough guide, think 15% with a $0.30 per item minimum. For media products, you’ll also be charged a closing fee of $1.80.

eBay’s seller fees

There are two kinds of selling fees on eBay. First, you’ve got insertion fees, which apply when you list your product. Then there’s final value fees which apply when you sell the product. You’re also likely to be subject to a PayPal processing fee, strictly speaking not paid to eBay but still part of the process.

eBay charges insertion fees of about $0.35 per listing and category. Setting up an eBay Store gets you an allowance of free monthly listings. Basic Store costs $28 per month and gives you 250 free listings, with packages ranging up to the $350 per month Anchor Store.

The eBay final value fee is charged as a fraction of the product’s price. The exact amount is different from one product category to another, you’re usually looking at around 10%.

PayPal processing fees for sales made on eBay are typically 2.9% of the item’s price, with a $0.30 flat fee on top. As the marketplace rolls out eBay Managed Payments, sellers won’t have to rely on PayPal and the fees that are associated with using it.

The conclusion: seller fees

Comparing eBay and Amazon on seller fees is a close one to call. Once you account for PayPal processing fees, eBay is only about 2% cheaper than Amazon.

True, those fees are on their way out, but eBay also charges extras to make a listing truly competitive, like the subtitle upgrade. If you choose to pay for FBA, the difference between eBay and Amazon’s selling fees could be negligible.

This one’s a draw, with the right option depending on the type and volume of products you sell.

Amazon vs eBay: Advertising Options

It always helps to gain an edge over your rivals, and that’s often worth paying for. Amazon and eBay both provide additional services to push your products ahead of the competition. But which is the seller’s choice?

Advertising options on Amazon

Amazon Sponsored Products secures your products a first-page spot for specific keywords. You can dictate which keywords to target yourself or let Amazon do it for you automatically.

This is a pay-per-click (PPC) service, so you pay every time your ad gets clicked. Because of this, it’s important to keep an eye on how much you’re spending. However, it’s an advanced service with lots of apps and tools to help manage your campaigns in more detail.

Sponsored Products is just one of Amazon’s advertising options, with other services aimed at promoting brands and affiliates.

Advertising options on eBay

eBay offers Promoted Listings, which boosts your products in search. You ‘bid’ an amount to be paid on top of your final value fee, usually around 5-10%, and your product is boosted alongside other sellers’ products, each with their own bid.

eBay Promoted Listings are nice and straightforward, you only pay when you sell an item. It’s not a particularly advanced program, but it does the job of attracting attention and boosting sales.

The conclusion: advertising options

In terms of comparing Amazon and eBay’s services to help promote products, it’s actually closer than it first appears.

eBay provides a relatively simple service, but the platform is less competitive to begin with. A little nudge at a fair price could be all you need. Amazon Sponsored Products are years ahead of Promote Listings, but takes time to get to grips with and charges a fee even if you don’t make a sale.

Overall, the narrow win goes to Amazon for giving sellers more options and more control in how they promote their wares.

Amazon vs eBay: International Expansion

International eCommerce opens new horizons for sellers to engage fresh audiences without the need to make radical changes to their business model. But is Amazon better than eBay at helping sellers make the jump from domestic to global sales? Or does the auction platform go the extra mile?

Amazon’s international expansion options

You’ll need a separate account to sell in each of Amazon’s growing number of international marketplaces. The exceptions are Europe (covering the five European marketplaces) and North America (covering the US, Canada, and Mexico), these are each grouped together.

Because you’re using one account per marketplace, feedback is kept separate for each. This could make it more difficult to build a local brand or protect happy markets from the influence of troubled ones.

Amazon’s Global Store service, meanwhile, makes sure your products are shown to shoppers in their own currency, including shipping and import fees. Speaking of which, FBS offers international extensions across Europe and North America.

eBay’s international expansion options

Just one eBay account lets you trade across 23 sites in over 100 countries. It takes very little special effort to start making international sales on eBay.

We mentioned eBay’s Global Shipping Program (GSP) earlier. This lets you ship internationally via a warehouse in your country. eBay handles customs, imports, the works. The buyer is shown one clear price, including all extras, right there on the product listing.

Best of all, GSP is free to join. You only need to pay to send products to your local warehouse, as you would with a customer in your home country.

The conclusion: international expansion options

Here, eBay’s maturity as a global network lets it scoop a late win. It’s simply easier to sell internationally using eBay than Amazon.

If you only ship throughout Europe or North America, for example, you’re still selling globally but the difference between the two platforms there would be smaller. It’s very possible that Amazon might still be the right option for your business, given its monster share of some global markets.

eBay vs Amazon: The Final Verdict

So, let’s review. As we’ve seen today, Amazon supports sellers by:

  • Offering them a vastly larger audience.
  • Providing superior shipping and fulfilment support.
  • Giving more advanced advertising options.

eBay, meanwhile, is great because it:

  • Provides a less hyper-competitive marketplace.
  • Makes it much less hassle to sell internationally.

Both being about equal in terms of seller fees, that looks like a 3-2 win for Amazon. But think about the situation critically and assess what’s best for your business. If you’ve got a more niche audience in a lot of global markets, eBay might be right for you.

Now you’re armed with the facts, you can make the right call and win more business than ever before.

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UNDERSTAND What Ebay CHARGES \u0026 How much Are Ebay Fees? A step by step tutorial to Ebay Selling 2021

The Full Cost of Selling on eBay [Updated 2021]

What percentage does eBay take? Usually 12.55% (not 10% like it used to). But that's just one of the fees you'll face. What you should really be asking is, what does it cost to sell on eBay?

There are tons of hidden costs involved in selling on eBay. If you don’t know about them, you could lose money on items you thought would turn a profit.

We provide a quick explanation of the costs in “Selling on eBay for Beginners: 5 Steps to Success.” That’s a good place to learn the basics of how the fees are calculated. This article, though, is for those who want to go deeper.

Last updated 8/19/2021.

Final Value Fees (eBay's Percent of Every Sale)

Pocket Change

Short version: eBay takes a percentage of almost all sales, ranging from 1.5% to 15%.

eBay's final value fees are often the largest single cost for sellers. They're taken as a percentage of the amount actually charged to the customer. That includes the item price, the shipping cost, and any sales tax. (One small break: If the buyer chooses international or 1-day shipping, you're charged as if the shipping cost was your cheapest domestic option.)

The percentage depends first on whether you use managed payments. This is the default for new sellers, and all other sellers will be required to switch to managed payments by the end of 2021. You can find the final value fees for managed payments sellers here and for non-managed here.

Next, it depends on the category you're selling in and whether you have an eBay Store. Following is a quick overview of what you might have to pay on each sale. If you know what you want to sell, take notes—we'll get to calculating your total fees later on.

With no Store or a Starter Store (managed payments in bold not managed in italics / same for both in standard text):

  • 15% / 12.85% on watches.
  • 14.55% / 12.2% on books, magazines, movies, TV, and most music.
  • 12.55% / 10.2% for most listings.
  • 12.35% on bullion and on trading/collectible cards.
  • 5.85% / 3.5% on guitars and basses.
  • 5% on NFTs.
  • 3%2% on some Business & Industrial categories.
  • 0% on athletic shoes with a starting price of at least $100.

Note that on managed payments, most categories have tiered pricing structures. For example, if you sell an item worth more than $7,500, the fees often drop to 2.55%. On non-managed payments, there are usually fee limits instead, generally $750 as the max fee.

With a Basic or Premium Store (managed payments / not managed): 

  • Thresholds for lower fees on high-value items reduced, usually from item values of $7,500 to $2,500.Maximum final value fee of $350 on most categories, with a $250 maximum on Guitars & Basses and some Business & Industrial categories.
  • 14.55% / 12.2% on books, magazines, movies, TV, and most music.
  • 12.5% 10.35% on watches.
  • 11.7% / 9.35% for most categories.
  • 11.5% on collectible/trading cards.
  • 10.7% 8.35% for eBay Motors Automotive Tools & Supplies categories and most eBay Motors Parts & Accessories categories.
  • 9.5% 7.35% for most Musical Instruments & Gear categories.
  • 8.7% / 6.35% for most Cameras & Photo categories, most cell phones and memory cards, most Computers/Tablets & Networking categories, most consumer electronics, stamps, and most Video Games & Consoles categories (but NOT video games or consoles).
  • 8.5% / 6.35% for DJ and pro audio equipment and for paper money and coins.
  • 7% on bullion.
  • 6.55% / 4.2% on video game consoles and most major computing devices like computers, tablets, and printers and many of their components.
  • 5.85% 3.5% on guitars and basses.
  • 5% on NFTs.
  • 2.5%1.5% on some Business & Industrial categories, like heavy equipment.
  • 0% on athletic shoes with a starting price of at least $100.

With an Anchor or Enterprise Store:

The final value fee discounts can make a Store pretty tempting, and they will often save you a lot of money. Just make sure you know exactly when an eBay Store is worth the cost before shelling out your hard-earned money.

If you're selling cars on eBay, note that vehicles have their own special fees rather than final value fees. Some other listing types, like real estate, also have unique fee structures.

Customer Service Affects Final Value Fees

Woman Receiving a Damaged Package

If you offer a great customer experience, you can become a Top Rated Seller and get 10% off your final value fees. (E.g., if you normally paid 12.55%, you'd pay 11.295% instead.) 

But eBay knows people are only motivated so far by carrots. They also have a stick: if you drop below their seller performance standards, you'll get an extra 5% slapped on top of your final value fees (whether or not you use managed payments). They'll also nail you with the extra 5% in categories where your rate of "Item not as described" claims reaches "Very High," even if you're an above-standard seller.

Thankfully, these extra fees don't stack. You won't have to pay an extra 10% if both situations apply. But, the results are still really bad.

If you have one of these penalties, that means that if you normally paid 12.55%, you'd pay 17.55% instead.

Worse, this extra fee ignores caps and reduced-fee thresholds! That makes it equally bad regardless of whether you use managed payments or sell high- or low-value items. Here's how it can play out:

  • Non-managed payments: If you sold something worth $10,000, your normal 10.2% would stop at $750 as if it had only been worth $7,353. However, the 5% penalty would be charged on the whole thing for an extra $500 in avoidable fees.
  • Managed payments: If you sold an antique worth $10,000, you would normally pay 12.55% on the first $7,500, and then just 2.35% on the last $2,500. Your total fee should be exactly $1,000. But with the extra 5%, you'd pay $1,500 instead!

Those are some high stakes! Take eBay customer service seriously, be honest, and ship on time to keep your final value fees affordable.

Insertion Fees (eBay's Flat Fees)

Fees Adding Up

Short version: If you list a lot of items, you may need to pay an extra $0.35 or so for some of them.

Every eBay seller gets to list a number of items every month without paying insertion fees. For most categories, these are as follows:

  • No eBay Store: 250 items (with managed payments) or 200 items (without).
  • With a Store (managednot managed / both):
    • Starter Store: 250 listings total between fixed-price and qualifying auction listings.
    • Basic Store: 1,000 fixed-price items, plus 10,000 additional in select categories. / 350 fixed-price items. Plus, 250 qualifying auction listings.
    • Premium Store: 10,000 fixed-price items, plus 50,000 additional in select categories. 1,000 fixed-price items. Plus, 500 qualifying auction listings.
    • Anchor Store: 25,000 fixed-price items, plus 75,000 additional in select categories.10,000 fixed-price items. Plus, 1,000 qualifying auction listings.
    • Enterprise Store: 100,000 fixed-price items, plus 100,000 additional in select categories. / 100,000 fixed-price items. Plus, 2,500 qualifying auction listings.

Anything above those limits costs the following (these are the same with or without managed payments):

  • No eBay Store: $0.35 per listing.
  • With a Store:
    • Starter Store: $0.30 per listing.
    • Basic Store: $0.25 per listing.
    • Premium Store: $0.15 per auction, $0.10 per fixed-price listing.
    • Anchor Store: $0.10 per auction, $0.05 per fixed-price listing.
    • Enterprise Store: $0.10 per auction, $0.05 per fixed-price listing.

Now, you might be wondering why you get so few free auctions. Don’t sweat it. If your auction succeeds and the item sells, eBay will refund your insertion fee (as long as it isn’t in an excluded category).

They’ll also refund insertion fees on fixed-priced listings if they sell and the buyer doesn’t pay up.

For some categories (mainly big-picture stuff like real estate and vehicles), there are no free listings. You are always required to pay an insertion fee. This fee can range to well over $100, and it's the same whether or not you use managed payments or have a Store.

Other eBay Fees

You can opt in to listing upgrades (managed / non-managed) for set-in-stone prices or Promoted Listings for a percentage of the sale. These can more than double the fees you pay, so use them wisely!

Shipping and Handling

Small Package

Short version: Decide how much you’ll charge for shipping, because this charge counts toward your final value fee.

Now you know what eBay’s going to charge you... sort of. eBay will also charge its final value fee on any shipping costs you charge. You therefore need to know how much shipping and handling will cost so you can get an accurate grasp of the fees you’ll need to pay.

For those of you offering free shipping, knowing these costs is even more important because you need to factor them into every price.

Either way, you can’t really understand the cost of selling on eBay until you understand shipping and handling. Read our guide to shipping and handling costs to determine how much yours will run you.

PayPal, Managed Payments, or Other Payment Processing

Below: 2021 PayPal fees.

PayPal Fees

Short version: Whether your payment processor is eBay, PayPal, or a credit card company, you can expect them to take a fixed fee and a percentage out of every transaction.

If you don't have managed payments, your payment processor's fees should be a major consideration.

PayPal and other payment systems like credit cards all have to make money somehow—typically through complicated fee structures of their own. These usually consist of both a percentage and a fixed fee per transaction. For example, PayPal fees for selling from one US location to another total 2.89% to 3.49%, plus $0.49 per transaction.

These fees are charged on the gross value of the transaction, before the final value fee and shipping costs are taken out. It’s therefore important to consider your payment processing fees before setting your final price.

If you use eBay-managed payments instead of accepting payments through PayPal, cards, etc., you will pay a higher final value fee than other sellers, as seen above. You will also have to pay a fixed fee of $0.30 per order—noticeably lower than PayPal's $0.49. The per-order fee and the increase in final value fees are both there to cover the payment processing cost.

When you look at the difference between eBay's final value fees with and without managed payments, you can see that it's usually 2.35% or less. This modest payment processing cost applies even if the customer pays through PayPal. The result is that it's always cheaper to use managed payments than to use PayPal.

So, if you've been looking at the higher final value fees with managed payments and feel like you're getting ripped off, don't worry. eBay is actually saving you a ton of money!

If you use managed payments, the only payment processing fee you have to keep track of is eBay's $0.30 per-order fee. If you use something else, like PayPal, you need to make a note of both the percentage fee and the per-order fee.

Note: If you accept multiple payment methods, compare the different fee structures for each and try to determine how much you’ll pay on average.

Sales Tax

Sales Tax on an eBay Sale

Short version: While the buyer pays sales tax, any sales tax amount can increase your final value fees.

As of 2021, eBay charges and remits sales tax on behalf of sellers, at least in the US. You no longer have to panic about getting every sales tax license in the country to sell! 

However, eBay does count sales tax in the total order value before applying their final value fee. So on sales where tax is applied, your final value fee will go up accordingly.

Sales tax varies by location. The US average state + local sales tax at the time of this article's last update is 6.35%.

That may be a reasonable number to use in your calculations, but you may want to check your sales history to find a more accurate average for your business. You may have much higher or lower taxes if your buyers are concentrated in specific states or cities. If you do, make a note of your sales tax percentage.

Advanced Final Value / Payment Processing Fee Calculation

What Does It Cost to Sell on eBay?

Short version: If you want your customers to cover the cost of selling on eBay, calculate the price you will charge as "x" using the following system of equations: x = p + z + (y*q), x + (x*w) = q

Why You Need to Use Algebra

So, you know the final value fee is going to cost you 12.55% (or whatever happens to be the case). But you can’t just go slapping an extra 12.55% on your prices and expect that to cover the fee.

You also have to account for the impact of sales tax on your final value fee. But you can't just add an expected sales tax to your amount and then calculate the final value fee on that, either.

Say you plan to sell something for $40. You add eBay's $0.30 per order fee and get $40.30. Easy enough so far.

A 6.35% sales tax on $40.30 would be $2.56, bringing the amount to $42.86. The 12.55% final value fee on $42.86 is $5.38. So you should add that fee amount to $40.30, right? $45.68 will get you $40 on an average sale?

Wrong! The sales tax on $45.68 would be $2.90, and the final value fee on that $47.58 total would come to $5.97. Subtract that and eBay’s $0.30 per-order fee and you’re left with $39.41—still $0.59 short of your target of $40.

If you want to make sure that your price covers the final value fee and payment processing fee (both adjusted for sales tax), plus any other expenses, you need to use algebra.

Building Your System of Equations

Man Performing Business Calculations

First, add up all your fixed fees for selling one of your items. Start with any fixed payment processing fees. These include things like eBay's $0.30 or PayPal's $0.49 per transaction.

Next, add any other fixed fees, such as insertion and/or listing fees if this is a unique item. (These fees will be spread out across numerous sales if you’re using one listing to sell multiples of one product each month.)

The total value of all fixed fees above will be “z” in the formula below.

Next, tally any percentages charged on the sale price. This would generally be your final value fee and possibly a payment processing fee.

  • For managed payments users, this should only be your final value fee, usually 12.55%. 
  • For most non-managed payments transactions, that means add PayPal’s 2.89% to 3.49% percentage to eBay’s 10.2% final value fee, for a total of 13.09% to 13.69%.

Use this percentage value as “y.” To use a percentage in a calculation, you need to divide it by 100. So if you have 12.55%, you would use 0.1255 as "y."

You should also account for any sales tax you expect, using it as “w.” Find your expected average sales tax percentage and divide it by 100. For example, if you expect an average sales tax of 6.35%, you should use 0.0635 as “w.”

Finally, determine how much you need to receive from each transaction in order to cover the costs of buying/manufacturing + shipping and handling the item while still making an acceptable profit. This value will be “p.”

Now solve the system of equations below for “x” and “q.” “X” will be the amount you need to set as your listing price to get your minimum profit, and “q” will be the amount the customer is charged. You can solve this system easily by plugging it into an algebra calculator like MathPapa's.

x = p + z + (y*q), x + (x*w) = q


MathPapa Algebra Calculator

Let's say I upload an item as one of my free monthly listings. Since I use managed payments, the only fixed fee I have to deal with is the $0.30 eBay fee per transaction. Therefore, I enter 0.3 as “z.”

My final value fee is 12.55%. Since I'm on managed payments, I don't have to worry about a PayPal percentage fee, but otherwise I'd add that percentage here. I therefore enter 0.1255 as “y.”

I decide to take the easy answer of 6.35% for sales tax and enter 0.0635 as “w.”

After adding up the cost of shipping and handling and the cost of buying the item I’m reselling, I determine that I need to receive an average of $40 after fees in order to cover my expenses and make an acceptable profit. I enter 40 as “p.”

So the equation I get is: x = 40 + 0.3 + (0.1255*q), x + (x*0.0635) = q. After running that through an algebra calculator and rounding, I get $46.51 as “x” and $49.46 as “q.” So, I need to charge $46.51 to get my desired profits, and charging that means my customer will pay $49.46 on average.

Proof It Works

If I charge $46.51, a 6.35% tax on that would be $2.95.

2.95 + 46.51 = 49.46. So my charge plus the customer’s tax equals $49.46, just as the equation said. Good so far!

Now, eBay will charge its final value fee of 12.55% on the final amount (tax included) of $49.46. 12.55% of 49.46 is 6.21.

The amount I’ve actually received from the customer (tax not included) is $46.51. If I subtract that $6.21 fee, I get $40.30.

Finally, I remove eBay’s $0.30 per-order fee. That leaves me with a clean, even $40.

Using this formula will make sure you get exactly what you need out of every order, without guessing or overcharging.

Conclusion: What Does It Cost to Sell on eBay in Reality?

Business Charts and Calculations

The real cost of selling a given item on eBay is made up of the following:

  1. The costs of making or buying the item you’re selling.
  2. The costs of packaging, handling, and shipping the item.
  3. Any fees you’re paying eBay and/or your payment processor for the transaction.

These costs are in addition to your overhead: customer service, government permit fees, paying freelancers to take photos or write descriptions for you, the opportunity cost involved in researching the item and dealing with suppliers, etc. Make sure your margins are healthy enough to cover these expenses as well.

We knocked our own costs way down by integrating eBay with a helpdesk. We highly recommend it if you want to stay in the black!

Now that you have your accounting under control, you can focus on the more exciting aspects of running an eBay business. Start by figuring out what to sell on eBay. Then learn how to get a great eBay feedback score so you can keep the sales coming in!

Sours: https://www.channelreply.com/blog/view/cost-to-sell-on-ebay

On ebays sales cut

Everything else
Dolls & Bears
Entertainment Memorabilia
Health & Beauty
Home & Garden
Pet Supplies
Pottery & Glass
Specialty Services
Sporting GoodsThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Gift Cards & Coupons
StampsThe portion up to $2,500 - 8.70%
The portion above $2,500 - 2.35%Books
DVDs & MoviesThe portion up to $2,500 - 14.55%
The portion above $2,500 - 2.35%Business & IndustrialHeavy Equipment, Parts & Attachments > Heavy Equipment
Printing & Graphic Arts > Commercial Printing Presses
Restaurant & Food Service > Food Trucks, Trailers & CartsThe portion up to $15,000 - 2.50%
The portion above $15,000 - 0.50%Everything elseThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Cameras & PhotoCamera Drone Parts & Accessories Other Cameras & Photo Replacement Parts & Tools Tripods & SupportsThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Camera Drone Parts & Accessories > Memory Cards
Everything elseThe portion up to $2,500 - 8.70%
The portion above $2,500 - 2.35%Cell Phones & AccessoriesCell Phone AccessoriesThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Cell Phone Accessories > Memory Cards
Everything elseThe portion up to $2,500 - 8.70%
The portion above $2,500 - 2.35%Clothing, Shoes & AccessoriesMen > Men's Shoes > Athletic Shoes
Women > Women's Shoes > Athletic ShoesIf sold price (exclude shipping) is under $99.99 - 11.70%
If sold price (exclude shipping) is over $99.99 - 0%Women's Bags & HandbagsThe portion up to $2,500 - 11.50%
The portion above $2,500 - 2.35%Everything elseThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Coins & Paper MoneyBullionThe portion up to $1,500 - 7%
The portion over $1,500 & up to $10,000 - 5%
The portion above $10,000 - 4.5%
Everything elseThe portion up to $4,000 - 8.50%
The portion above $4,000 - 2.35%CollectiblesNon-Sport Trading CardsThe portion up to $2,500 - 11.50%
The portion above $2,500 - 2.35%Everything elseThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Computers/Tablets & Networking3D Printers & Supplies > 3D Printer Consumables
3D Printers & Supplies > Parts & Accessories
Computer Cables & Connectors
Keyboards, Mice & Pointers
Laptop & Desktop Accessories
Other Computers & Networking
Power Protection, Distribution
Tablet & eBook Reader AccessoriesThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Computer Components & Parts > CPUs/Processors
Computer Components & Parts > Memory (RAM)
Computer Components & Parts > Motherboards
Computer Components & Parts > Motherboards & CPU combos
Desktops & All-In-Ones
Drives, Storage & Blank Media > Hard Drives (HDD, SDD & NAS)
Laptops & Netbooks
Monitors, Projectors & Accessories > Monitors
Printers, Scanners, & Supplies > Printers
Tablets & eBook ReadersThe portion up to $2,500 - 6.55%
The portion above $2,500 - 2.35%Everything else
Tablet & eBook Reader Accs > Memory Card & USB AdaptersThe portion up to $2,500 - 8.70%
The portion above $2,500 - 2.35%Consumer ElectronicsMultipurpose Batteries & Power
Portable Audio & Headphones > Portable Audio Accessories
TV, Video & Home Audio > TV, Video & Audio Accessories
TV, Video & Home Audio > TV, Video & Audio Parts
Vehicle Electronics & GPS > Car Electronics Accessories
Vehicle Electronics & GPS > GPS Accessories & Tracking
Virtual Reality > Cases, Covers & Skins
Virtual Reality > Other Virtual Reality Accessories
Virtual Reality > PartsThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Everything elseThe portion up to $2,500 - 8.70%
The portion above $2,500 - 2.35%Jewelry & WatchesWatchesThe portion up to $1,000 - 11.5%
The portion over $1,000 & up to $5,000 - 4%
The portion above $5,000 - 2.35%
Everything elseThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%eBay MotorsAutomotive Tools & Supplies
Parts & AccessoriesThe portion up to $2,500 - 10.70%
The portion above $2,500 - 2.35%Parts & Accessories > Apparel & MerchandiseThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Parts & Accessories > In-Car Technology, GPS & SecurityThe portion up to $2,500 - 8.70%
The portion above $2,500 - 2.35%MusicRecordsThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Everything elseThe portion up to $2,500 - 14.55%
The portion above $2,500 - 2.35%Musical Instruments & GearGuitars & BassesThe portion up to $2,500 - 5.85%
The portion above $2,500 - 2.35%DJ Equipment
Pro Audio EquipmentThe portion up to $2,500 - 8.50%
The portion above $2,500 - 2.35%Everything elseThe portion up to $2,500 - 9.50%
The portion above $2,500 - 2.35%Parts & AccessoriesWatchesThe portion up to $1,000 - 11.5%
The portion over $1,000 & up to $5,000 - 4%
The portion above $5,000 - 2.35%
Everything elseThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Sports Mem, Cards & Fan ShopSports Trading CardsThe portion up to $2,500 - 11.50%
The portion above $2,500 - 2.35%Everything elseThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Toys & HobbiesCollectible Card GamesThe portion up to $2,500 - 11.50%
The portion above $2,500 - 2.35%Everything elseThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Video Games & Consoles Replacement Parts & Tools
Video Game Accessories
Video GamesThe portion up to $2,500 - 11.70%
The portion above $2,500 - 2.35%Video Game ConsolesThe portion up to $2,500 - 6.55%
The portion above $2,500 - 2.35%Everything elseThe portion up to $2,500 - 8.70%
The portion above $2,500 - 2.35%
Sours: https://www.ebayfeescalculator.com/usa-ebay-calculator/
eBay: The SECRET To Getting Your Listings to SELL! (2021)

How to Calculate Ebay and PayPal Fees

For first-time sellers on eBay, it's wise to take the time to find out what fees you'll incur from eBay and PayPal before you start selling. There are some basic fees that you'll be charged when you list an item and when you sell it, and those fees can add up and take you by surprise if you're not expecting them. Calculating the fees will help ensure that you make a profit on the items you list.

Listing Insertion Fee

The first fee you'll encounter is an insertion fee, which is the amount you’re charged for listing an item. This fee applies to both auction-style listings and fixed-price listings (also known as Good 'Til Canceled listings that renew automatically once per month). Sellers with a basic eBay account get 100 zero insertion fee listings each month for most categories. After exceeding that allowance, each additional item that you list is subject to a fee of $.30. 

eBay sellers who sign up for a store subscription, which ranges from $4.95 per month to $2999.95 per month, get a greater zero insertion fee allotment and incur less in fees if the established thresholds for their subscription are exceeded. While a basic eBay account is suitable for low-volume sellers just getting started, signing up for a store subscription makes sense once your sales increase.

Final Value Fee

The final value fee is the charge that is applied at the end of a transaction when a sale has been made. It is a percentage based on the purchase price of an item, plus shipping and handling. The shipping fee is based on the shipping method chosen by the buyer, unless the seller has opted for 1-day or domestic shipping, in which case, the fee will be calculated using the cheapest method.

The fee is applied at the time of sale, regardless if the buyer pays for the item or not. If a seller does not receive payment, they can cancel the sale or report the sale as being unpaid, and they will be eligible to receive a credit on their account, rather than a refund.

Sellers with a basic eBay account pay a 10% final value fee for most items (with a $750 maximum), 12% for books, DVDs, movies, and music (with a $750 maximum), 2% for select business and industrial categories (with a $300 maximum), and 3.5% for musical instruments and gear (with a $350 maximum). Sellers who maintain a store subscription are charged lower fees based on their subscription model.

eBay Store Subscription Options
Subscription TypeAnnual Subscription Fee
(Paid Monthly)
Annual Subscription Fee
(Paid Yearly)
Free Fixed Price Insertions Free Auctions in Collectibles and FashionAdditional Fixed Price Insertion Fee Additional Auction Insertion FeeFinal Value FeeMaximum Fee

Optional Listing Upgrade Fees

There are numerous options available to enhance and create additional exposure for your listings in searches.

The optional upgrades include making the listings bold, adding a subtitle, being able to add more pictures (there is no charge for the first dozen photos you post with your listing), using eBay's Listing Designer (which allows you to enhance listing with HTML formatting), setting a reserve price for auction items, getting international listing visibility, and more.

Items listed in two categories are subject to both a fee for insertion and for an optional upgrade in each category (only charged one final value fee is charged). Also, the rules for selling real estate and vehicle listings are altogether different, as are the fees, including for optional listing upgrades.

Optional Listing Upgrades - Auction-style Listings
Optional Listing
Item Starting Price of Up to $150
or Real Estate Listings
Item Starting Price
of More Than $150
1-3-Day Duration$1.00$1.00
Gallery Plus*$.35$.70
List in Two CategoriesInsertion and optional listing upgrade fees apply for each category. Final value fees are charged once per item, if your item sells.
Listing Designer$.10$.20
Subtitle$1.00 ($.50 for Real Estate Listings)$3.00
International Site Visibility$.01-$99
$50 or More
Reserve Price Set a Minimum Price That Must Be Met for Your Item to Sell$5.00 or 7.5% of reserve price, whichever is greater (maximum fee $250) charged whether or not your item sells
Reserve Price in Select Business and Industrial Categories, including Heavy Equipment, Commercial Printing Presses, Food Trucks, Trailers, and Carts$5
Optional Listing Upgrades - Fixed-Price Listings
Optional Listing
Item Starting Price of Up to $150Item Starting Price
of More Than $150
Classified Ad Format or Real Estate Listing
Gallery Plus$1.00$2.00$1.00
International Site Visibility$.50$.50N/A
Listing Designer$.30$.60$.30
Schedule ListingFreeFree$.10

*Using Gallery Plus is free for listings in collectibles, art, pottery and glass, and antique categories.

Optional Promoted Listings Fee

eBay sellers also have the option of promoting their listings so that their items get greater prominence in search results on eBay and appear in "related items" when buyers are browsing an item being offered by another seller. Promoted listings are available to all sellers whether they have a store subscription or not.

The fee for promoted listings can be set by the seller, based on the ad-rate trends of what other sellers have committed to paying, starting at 1% or more of the final value fee that's assessed. The fees are only collected if a buyer clicks on an ad and then purchases the item advertised within 30 days. There are certain eligibility requirements.

  • Seller performance level must be Above Standard or Top Rated.
  • The listing must include at least two images.
  • Only fixed-price listings can be promoted.
  • Vehicle, Real Estate, and Travel Listings are excluded.
  • The listing must be complete (no "parts, not working" listings).
  • Item cannot be offered for local pick up.

Classified Listing Fees

Listing a classified ad is another option for selling on eBay. Unlike auction-style and fixed-price listings, eBay sends sellers contact information for buyers and allows them to get in touch directly. Although these transactions are conducted outside of eBay's platform, if the contact information is misused, sellers can face restrictions or suspension. Their ability to resolve disputes is limited if a buyer chooses not to pay.

The fee for listing a classified ad is $9.95 for a 30-day listing, and there are no final value fees. Sellers can place classified ads in four different categories:

  • Business & industrial (building materials and supplies, trade show displays, and websites and businesses for sale)
  • Specialty services (artistic services, custom clothing and jewelry, graphic and logo design, home improvement, media editing and duplication, web and computer services)
  • Travel (lodging, luggage, vintage luggage, and travel accessories)
  • Everything else (eBay user tools, funeral and cemetery, information products, reward points, and incentives)

Punitive Fees

There are additional fees that sellers can incur if they don't abide by eBay's rules or they don't meet the minimum best practices established for sellers. If a seller attempts to coordinate a sale with a buyer outside of the confines of eBay by sharing contact information with a buyer, the seller will be charged a final value fee for the transaction, even if no sale has been made.

For auction-style listings, the fee is based on the whichever price is the highest, the starting auction price, the Buy It Now price, or the price negotiated by the buyer and seller. The final value fee for fixed-price listings will be assessed based on the fixed price or the price negotiated by the buyer and seller.

Payment Processing Fees: eBay Managed Payments

eBay is moving toward a managed payment system for sellers, in which they can offer different payment options and consolidate all of their payment processing in one place. The company hopes to have most sellers transitioned over by the end of 2020.

As of June 2020, however, the managed payments option is only available to a select group of sellers who received invitations. Sellers can express interest in enrollment, and eBay will notify them when and if they become eligible.

There are several advantages to using Managed Payments on eBay, as the service has been branded. Sellers can accept a wider variety of payment methods, including Apple Pay, Google Pay, credit, debit, and gift cards, in addition to continuing to accept payments via PayPal, which is the current standard. Sellers can also set up automatic transfers to their bank when a buyer submits payment, rather than having to manually arrange for a transfer through PayPal, which means avoiding fees changed by that third-party vendor.

The fees for Managed Payments on eBay are straightforward. Sellers who were enrolled by June 4, 2019, pay a final transaction fee of 2.7%, which includes shipping and handling, plus a payment processing fee of $.25 per item sold. The other applicable fee that can be applied is $20 if a dispute arises between the buyer and seller, and the latter is deemed to be the responsible party.

Payment Processing Fees: PayPal

PayPal is currently the standard for payment processing on eBay, and its fee structure is also straightforward. The company charges a 2.9% processing fee in addition to a set rate of $.30 for each eBay sales transaction.

To transfer payments from PayPal to their bank, sellers need to provide banking information. Although there is no fee for basic transfers, which take two to three days, if a seller prefers immediate access to funds, PayPal charges a 1% fee for instant transfers.

If the sale is from an international buyer, the percentage collected is 4.4%, and the set rate is based on the currency the buyer pays with. PayPal doesn't charge a fee to sign up for or maintain an account, and all major credit cards are accepted.

If a seller primarily deals with lower purchase price items, there is another option available for them to reduce their fees. Micropayments are geared to sellers who typically sell items for less than $12. The fee structure for this option charges a greater rate percentage-wise (5%) but has a lower flat-rate fee of $.05 per domestic transaction, and 6% plus a set rate based on a buyer's currency for international sales.

High-volume sellers also have an option to lower their fees by applying for PayPal's merchant rate, which is available to sellers who sell $3,000 worth of merchandise per month.

Fee Calculators

There are numerous third-party rate calculators you can use to estimate all the fees associated with eBay. There are some that calculate the eBay and PayPal fees, some that estimate how much profit you can make after fees are deducted, some that offer simple spreadsheet breakdowns, and still others that are available in app form for Android users.

Sours: https://www.thebalancesmb.com/what-to-know-about-ebay-and-paypal-fees-before-you-sell-1140371

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