Our view at Stack - Shopify has just about everything you need if you're looking to sell online. It excels with unlimited products, user-friendly setup, and 24/7 support. It offers 6,000+ app integrations, abandoned cart recovery, and shipping discounts up to 88%. Plus, it allows selling both online and in-person, scaling as your business grows.
Auction-style platforms like eBay often market the relative ease with which you can use their services to sell goods. But looks can be deceiving. While buying an item on eBay is as simple as clicking a few buttons, selling an item entails much more: setting a minimum final selling price, advertising (and honoring) realistic shipping times, and understanding the platform’s fees.
That last point particularly impacts how much profit you can expect to take home after selling an item on eBay.
Here, we’ll explore some of the common fees eBay sellers pay, share sample scenarios in which a combination of fees might apply, and offer tips for reducing seller fees.
Types of fees on eBay
eBay sellers must pay some fees regardless of what they sell, while other fees apply only in specific situations. Here are some of the most common fees the platform charges:
Insertion fees
eBay sellers pay an insertion fee to list an item on the site. If you’re listing fewer than 250 items per month, eBay waives this fee. However, if you surpass this listing floor, you pay a 35¢ insertion fee per auction listing.
Insertion fees are nonrefundable, even if the item for which you paid the fee never sells. If you’re approaching 250 listings in a calendar month and want to avoid paying insertion fees, pay close attention to this threshold.
🌟Wondering how to sell on eBay? Follow our step-by-step guide, where you can also learn about how eBay can integrate with your Shopify store.
Final value fees
When your item sells, eBay charges you a final value fee. This fee is a percentage of the total amount of the sale, plus 30¢ per order. The total amount of the sale includes your item’s selling price, handling charges, some shipping costs, sales taxes, and other applicable fees.
The final value fee percentage depends on the type of item you’ve sold. For example, the final value fee percentage for women’s handbags is 15% if the total sale amount is $2,000 or less, and 9% if the item’s price is more than $2,000.
To provide another example, the final value fee percentage for collectible trading cards is 13.25% if the total amount of the sale is $7,500 or less, then 2.35% on the portion of the sale over $7,500.
Promoted listing fees
You can promote your eBay listings to increase their visibility by paying a promoted listing fee. This fee only applies if your items actually sell through the promoted listings. As the seller, you choose how much you pay per promotion by choosing an ad rate for each item. This will be between 2% and 100% of the item’s total sale amount.
🌟eBay dropshipping is a low-cost business idea that provides access to a large audience of buyers. Here’s how to get started.
Optional listing upgrade fees
Aside from promoting your listing, there are more things you can do to increase the likelihood of a sale. For instance, you can add optional listing features like subtitles (50¢ to $3), bold-faced text ($2), and reserve pricing, or the minimum selling price you’re willing to accept. The fee for adding a reserve price is $5 or 7.5% of the reserve price, whichever is greater (for a maximum fee of $250).
International selling fees
If you sell an item to a buyer outside your registered country, eBay charges you an international fee, which you pay on top of the final value fee. The amount will vary depending on your home country:
Seller’s registered country | International fee |
Japan | 1.35% |
South Korea | 1.45% |
India | 1.70% |
New Zealand | 1.00% |
Rest of Asia Pacific (APAC) | 1.30% |
Europe (excluding the EU) | 1.30% |
Rest of the world | 1.55% |
Real estate listing fees
If you plan on selling real estate on eBay (yes, it’s possible!), you’ll pay a separate real estate listing fee. The fee amount varies depending on the type of real estate (residential or commercial) and the listing format (classified ad listings, private mortgage notes, etc.).
Note that real estate listings on eBay are highly regulated. The law prohibits sellers who do not hold the appropriate real estate license in their home state from selling property on eBay on behalf of a third party.
eBay store subscription fees
Some sellers choose to sell items through their own dedicated eBay store. If you go this route, you must pay a store subscription fee depending on whether you sign up for a Starter, Basic, Premium, Anchor, or Enterprise account:
- Starter: $7.95 monthly when charged per month and $4.95 monthly when billed per year.
- Basic: $27.95 monthly when charged per month and $21.95 monthly when billed per year.
- Premium: $74.95 monthly when charged per month and $59.95 monthly when billed per year.
- Anchor: $349.95 monthly when charged per month and $299.95 monthly when billed per year.
- Enterprise: $2,999.95 per month, billed annually.
One benefit of opening an eBay store is lower final value fees and free listings each month above the 250-listing threshold.
Example sales and eBay fees
Let’s look at a few hypothetical eBay sales scenarios to see how the seller fees stack up:
Example 1: Selling a handbag
Julie sells a vintage Louis Vuitton monogram handbag for $575 on eBay. Since this is Julie’s 251st listing for the month, the insertion fee is 35¢.
The final value fee is 15% of the total amount of sale, which also includes the shipping cost ($20) and sales tax (10%, or $57.50). This means the total sale is $652.50, and the final value fee is $97.88.
With the addition of the insertion fee, the total fees associated with Julie’s listing are $98.23.
Example 2: Selling an iPhone through a promoted listing
Mark sells his old iPhone X for $145.00 on eBay. He does so using a promoted listing plus optional listing features, including bold-faced text ($2) and an enhanced image gallery (35¢). Mark selected a promoted listing ad rate equal to 6% of the total amount of sale, or $9.74. This is his first-ever eBay listing, so the insertion fee is waived.
Shipping will cost $10, and the sales tax amounts to 5% of the item price, or $7.25. That brings the total amount of sales to $162.25.
The final value fee for cellphones is 9% of the total amount of sale, up to $2,500, making the final value fee in this example $14.61.
All together, Mark’s total seller fees are $2 + 35¢ + $9.74 + $14.61, totaling $26.70.
Example 3: Selling a book to an overseas buyer
Stephanie sells a first-edition copy of Stephen King’s It for $70 on eBay to a buyer in South Korea. This is Stephanie’s 280th listing for the month, so she must pay an insertion fee of 35¢.
It costs $25 for international shipping to Seoul, and the sales tax is 10%, or $7. This brings the total amount of sales to $102.
The final value fee for books and other printed material is 14.95% on the total amount up to $7,500 and 2.35% on the portion of the sale over $7,500. This makes Stephanie’s final value fee $15.25.
Because Stephanie is based in the US, the international selling fee is 1.55% of the total sale amount, or $1.59. Therefore, the total seller fees associated with Stephanie’s sale are $17.19, or 35¢ + $15.25 + $1.59.
How to reduce eBay seller fees
Finding ways to reduce your sales feescan increase your sales proceeds. Some tips for lowering eBay seller fees include:
- Keep it simple. Reduce your eBay selling fees by making your listings attractive without resorting to listing promotions or optional listing upgrades. Use clear headings and compelling product descriptions that preempt inevitable buyer questions (e.g., describe wear and tear, material type, etc.).
- Keep your listings number low. Staying below 250 listings per month means you can avoid insertion fees.
- Open an eBay store. Opening an eBay store comes with a subscription fee, but it can also lower final value fees and provide free listings over the 250-listing threshold every month. Stores can be a great cost-saving option if you become a high-volume seller.
- Offer free shipping. This can attract more buyers and increase the likelihood of a sale; also, by offering free shipping, you can lower an item’s total sale amount and the final value fee. (Of course, you still have to factor the cost of shipping into your own expenses.)
How much does eBay take from a sale FAQ
How much does eBay take from a buy-it-now sale?
eBay charges a nonrefundable fee of 5¢ for fixed-price listings, also known as “buy-it-now” sales.
Do you pay eBay if an item doesn’t sell?
It depends on how many listings you have. To sell on eBay, you can enjoy up to 250 free product listings per month. After 250 listings in a month, you pay insertion fees to list every item beyond that threshold. Insertion fees are nonrefundable, even if the item doesn’t sell.
How do you avoid fees on eBay?
It is not possible to sell something completely fee-free on eBay. However, there are strategies you can take to reduce your seller fees, such as selling through an eBay store or offering free shipping.
If Shopify is of interest and you'd like more information, please do make contact or take a look in more detail here.
Credit: Original article published here.