Jan 312014
 

eBay Listing and Selling Fees LogoIf you’re a new seller on eBay then you need to know about eBay listing fees. Specifically, there are insertion fees and final value fees that you will be charged. There are also Paypal fees for processing your customer’s  payment. And then there are costs associated with shipping your item you need to consider too.

In this article we’re going to use an Ipod as our example item. For simplicity, let’s say you wish to sell it for $100.00 even. Here’s how the eBay listing and selling fees will be assessed from beginning to end.

eBay Listing Insertion Fees

There are 2 types of listings you can make on eBay. Auction style and fixed price. The auction style listing is an ad placed on eBay with a low starting price where potential buyers are invited to bid on an item until the listing expires (usually 7 days). The person with the highest bid wins and purchases the item. With a fixed price listing you just place an ad with the sale price you’d like (usually for 30 days) and people can purchase it instantly.

Insertion fees are charged for placing either of these types of listings on eBay. However, your first 50 listings per month are always free. If you go beyond 50 listings each auction-style listing will cost $.30 each . For fixed price listings it’s a bit more complex. You’ll be charged $0.05 for listings in the Books, DVDs & Movies, Music, and Video Games categories, and $0.30 for fixed price listings in all other categories.

Examples:

  • Auction Listing: You’ll be charged $0.00 as long as you’re under the 50 item limit for the month. You’ll be charged $0.30 if you’re over the 50 item limit.
  • Fixed Price Listing: You’ll be charged $0.00 as long as you’re under the 50 item limit for the month. You’ll be charged $0.30 if you’re over the 50 item limit.

Pretty simple so far. You’re probably not going to be charged any insertion fees at this point if you’re a new seller.

eBay Listing Final Value Fees

Final value fees are charged based on how much your item sells for, including any shipping fee that you charge. It doesn’t matter if it’s an auction or fixed price listing, the same rules apply. It’s always 10%

Examples:

  • Listing With Free Shipping: If your Ipod sells for $100.00 (in either listing format) and you listed it with free shipping your fees will be 10% of $100.00, or $10.00.
  • Listing With Shipping Fee: If your Ipod sells for $100.00 (in either listing format) and you charged the customer $10 for shipping your fees will be 10% of $110.00, or $11.00.

Yes, eBay charges you commission on your shipping costs. Many sellers believe this is not fair. However, eBay does cap their final value fees at $250.00. No matter how much you sell an item for, you’ll never be charged more than $250.00

Paypal Fees

Most sellers use Paypal to accept online payments from their eBay customers. The fees are $0.30 per transaction plus 2.9% of the sale price. These fees will be charged in addition to any eBay insertion and final value fees.

Examples:

  • Listing With Free Shipping: If that Ipod with free shipping is $100.00 then the Paypal fees will be 2.9% of $100.00 plus $0.30 or $3.20. Remember this will be in addition to the $10.00 Final value fees, so now you’re up to $13.20 in total fees.
  • Listing With Shipping Fee: If that Ipod with $10.00 shipping is $110.00 total then the Paypal fees will be 2.9% of $110.00 plus $0.30 or $3.49. Remember this will be in addition to the $11.00 Final value fees, so now you’re up to $14.49 in total fees.

Again, you’ll be charged commission on your sale amount plus your shipping amount in order for Paypal to process the payment. However, once your account is established there are a few ways you can reduce your Paypal fees. And if the math on PayPal’s fees seem a bit complex, you can use our Paypal Fee Calculator.

The Final Tally on Your eBay Listing  Fees

So let’s say you’ve listed that Ipod as a fixed price listing of $100.00 with free shipping an you’re under your 50 listing limit for the month. Your eBay listing fees would come out like this:

Price ($100.00)
–  Insertion Fee ($0.00)
– 10% Final Value Fee  ($10.00)
–  Paypal Fee of $0.30 + 2.9% ($3.49)
= $86.51 Profit

Note that does not include the amount you’ll need to pay in order to ship your item. If you pay $5.00 to ship your Ipod to your customer then your final profit will actually be $81.51

If all this math is a bit complex to do long hand like this, you can use our eBay Fee Calculator which includes sections for your Paypal fees and shipping costs.

If you’re like most of us and think that all these fees are WAY to high then you take some steps to reduce them as outlined in our article on Reducing eBay Fees.

  2 Responses to “eBay Seller Fees Explained in Simple Terms”

  1. If your Paypal payment comes from another country you are charged a high amount then if it’s from your county. I know this is a beginner lesson but I though it would be a good add on that Paypal fees change. Thanks for all your notes. I have enjoyed them. Suzi

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