We understand the frustration of making a big sale only to see a percentage of your revenue go to fees. And given that eBay's final value fees range between 1.5% to 12.20%, it's important to know what you're paying for and how to maximize your return.
Ready to save some money? Let's move forward by explaining the eBay fees e-commerce businesses should know and how to potentially reduce them.
What are eBay Fees?
Like other online marketplaces, eBay charges a variety of fees to sell on their platform. However, the variables between certain items, listings, and account types make them somewhat tricky to pin down, which can become confusing.
So, what is the cost to sell a product on eBay? The best way to get a baseline of your fees is by using an eBay calculator ahead of each listing. You should also visit the ‘Fee Details’ page in the Seller Hub to see the cumulative cost associated with your store.
Basic eBay Seller Fees to Know
Platform Cost
Depending on your sales volume, eBay offers various monthly plans ranging from entry-level $4.95 options to $2,999.95 enterprise accounts. Each tier gradually offers more perks like insertion fee credits, discounts, and reduced final value payments as the price increases. Think of this as your subscription cost.
The easiest way to save on this fee is by simply paying for a year upfront rather than opting into a monthly charge.
Insertion Fee
Every seller receives at least 250 free listings monthly. If you go beyond that number, you'll pay a $0.35 insertion fee per listing. The best way to avoid this fee is by staying within 250 listings or enrolling your eBay store at a higher plan that offers additional zero insertion fees.
Final Value Fee
The final value fee is what eBay charges you based on a percentage that ranges between 1.5% to 12.20% of the total amount of a sale and depends on the type of product sold. This includes:
- The product price
- Taxes
- Shipping
- Handling fees
- Misc. fees
The good news is that these become hard-capped depending on your account level. For example, the final value fee cap is $750 if you're a starter store member, while premium account holders are capped at $350.
If you’re looking to save on final value fees, we recommend increasing your account level or becoming a top-rated seller to receive an additional 10% discount.
PayPal Fees
Most sellers use PayPal alongside eBay because it simplifies payments and returns. The bad news is that PayPal charges a 2.9% processing fee and a $.30 sales transaction fee on each sale. Fortunately, qualifying businesses selling above $3,000 in merchandise can reduce that percentage by opening a PayPal Merchant account.
Listing Upgrade Fees
These optional fees depend on the extras added to a listing to entice customer engagement and sales. Upgrade fees include bolded titles, access to international visitors, more images, subtitles, promoted listings, and more. You can save on upgrades by requesting credits from eBay and by changing your store plan.
Additional eBay Fees
Once you sell an item, you may encounter other fees beyond the ones listed above. Here are a few other expenses to account for when selling on eBay:
- Shipping fees and labels
- Advertising costs
- Refunds
- Disputed charges
Improve How You Sell on eBay
We always encourage folks to embrace eBay because our customers who expand to their platform see an average sales increase of 30%. That alone makes it an excellent opportunity for growth for any e-commerce business, even if the fees are hard to stomach.
Nevertheless, we’re here to help anyone looking for an exciting way to maximize eBay by automating, optimizing, and expanding your e-commerce business. If that’s you, we offer powerful listing and price management software that saves time, increases visibility, and boosts sales. Start by enrolling in a free 14-day trial of SellerActive today!
