EBay Seller Fees and How To Reduce Them

Building Your Business Operations & Success EBay Seller Fees and How To Reduce Them By Aron Hsiao Aron Hsiao Aron Hsiao began selling on eBay in 1998 and joined the site’s Trust and Safety Department in 2003, helping to resolve buyer and seller conflicts and marketplace rules violations. From 2013 through 2017, he served as senior communications manager for Terapeak, which offers marketplace research and listing analytics to online sellers. learn about our editorial policies Updated on November 29, 2022 Reviewed by Khadija Khartit Reviewed by Khadija Khartit Twitter Website Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities. She has been an investor, entrepreneur, and advisor for more than 25 years. She is a FINRA Series 7, 63, and 66 license holder. learn about our financial review board In This Article View All In This Article Listing Insertion Fee Final Value Fee Optional Listing Upgrade Fees Optional Promoted Listings Fee Classified Listing Fees Punitive Fees Payment Processing Fees: eBay Managed Payments How To Reduce eBay Seller Fees Fee Calculators Frequently Asked Questions (FAQs) Photo: The Balance / Daniel Fishel It’s wise to take the time to find out what fees you’ll incur from eBay before you start selling. Those fees can add up and take you by surprise if you’re not expecting them. Learn about the different fees you’ll be charged by eBay for listing and selling items, as well as other fees that may affect you. Knowing how to reduce these fees will help ensure that you make a profit on the items you list for sale. Key Takeaways The main fees you’ll experience as an eBay seller are listing insertion fees and final value fees.You may also have to pay upgrade fees, promotion fees, and payment processing fees as well.EBay sellers can reduce their fees by signing up for a store subscription, skipping optional listing upgrades and promotions, claiming fee credits, and ensuring they follow all eBay rules. 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 250 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 $0.35. EBay sellers who sign up for a store subscription get a greater zero insertion fee allotment and incur less in fees if they exceed established thresholds for their subscription. Store subscription fees range from $4.95 per month to $2999.95 per month when paid annually. 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 $0.30 plus a percentage based on the total price of an item including 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. If so, the fee will be calculated using the cheapest method. The fee is applied at the time of sale, regardless of whether 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 may be eligible to receive a fee credit. Sellers with a basic eBay account pay a final value fee between 2% and 12.20% for most items (with a $750 maximum). The final value fee is 14.6% for books, DVDs, movies, and music up to a total price of $7,500, and 2.35% on the portion of the price over that amount. For select business and industrial categories, the final value fee is 3% on a total sale price of $15,000 or less and 0.5% on the portion of the price over that amount. The final value fee is 6% for musical instruments and gear with a total sale price of $7,500 or less, and 2.35% of the portion over that amount. eBay Store Subscription Options Subscription Type Annual Subscription Fee (Paid Monthly) Annual Subscription Fee (Paid Yearly) Free Fixed Price Insertions Free Auctions in Collectibles and Fashion Additional Fixed Price Insertion Fee Additional Auction Insertion Fee Final Value Fee Maximum Fee Starter $7.95 $4.95 250 250 $.30 $.30 2-12.20% $750 Basic $27.95 $21.95 350 250 $.25 $.25 1.5-12.20% $350 Premium $74.95 $59.95 1,000 500 $.10 $.15 1.5-12.20% $350 Anchor $349.95 $299.95 10,000 1,000 $.05 $.10 1.5-12.20% $250 Enterprise N/A $2999.95 100,000 2,500 $.05 $.10 1.5-12.20% $250 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 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 Upgrade Item Starting Price of Up to $150 or Real Estate Listings Item Starting Price of More Than $150 1-3-Day Duration $1 $1 Bold $2 $3 Gallery Plus* $0.35 $0.70 List in Two Categories Insertion and optional listing upgrade fees apply for each category. Final value fees are charged once per item, if your item sells. Listing Designer $0.10 $0.20 Subtitle $1 ($0.50 for Real Estate Listings) $3 International Site Visibility $0.01-$99, $10-$49.99, $50 or more $0.10, $0.20, $0.40 Reserve Price (set a minimum price that must be met for your item to sell) $5 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 Upgrade Item Starting Price of Up to $150 Item Starting Price of More Than $150 Classified Ad Format or Real Estate Listing Bold $4 $6 $4 Gallery Plus $1 $2 $1 International Site Visibility $0.50 $0.50 N/A Schedule Listing Free Free $0.10 Subtitle $2 $6 $1.50 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 or not they have a store subscription. 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 RatedThe listing must include at least two imagesOnly fixed-price listings can be promotedVehicle, Real Estate, and Travel listings are excludedThe listing must be complete (no “parts, not working” listings)Item cannot be offered for local pickup 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 offers a managed payment system for sellers, in which they can offer different payment options and consolidate all of their payment processing in one place. PayPal was the standard for payment processing on eBay before it transitioned to managed payments. There are several advantages to using eBay’s managed payments system. 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. 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 rolled into the updated final value fee. 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. How To Reduce eBay Seller Fees There are a few tactics you can use to reduce the amount of fees you pay eBay for selling on its platform. Sign Up for the Right Store Subscription You stand to save money by signing up for an eBay store subscription—but only if you get the right subscription for the number of items you sell. Make sure the subscription you choose matches your store’s typical sales volume. Avoid Unnecessary Upgrades Although you may enjoy the variety of listing upgrades available, remember that these optional features come with a price. By keeping your listing simple, you’ll be able to lower the fees you’d pay for upgrades. Follow Up on Unpaid Sales If you made a sale but the buyer doesn’t pay, don’t forget to request a fee credit from eBay. The final value fee is charged regardless of whether the seller is paid, so you’ll need to cancel the sale or report the item as unpaid. You might also be able to get a refund for the listing fee when relisting the item for sale. Don’t Break the Rules EBay charges punitive fees when sellers don’t abide by its rules. For example, you can avoid a $20 dispute fee by taking care to avoid being found responsible in buyer-seller disputes, such as chargeback situations. 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. Frequently Asked Questions (FAQs) Does eBay always take 10%? No, eBay does not always charge 10%. The actual final cost of selling with eBay will vary, depending on what categories your item is listed in and the final sale price of the item. Generally, you’ll pay between 5% and 15% in fees. Why are eBay selling fees so high? Selling fees cover the cost of doing business on a platform that draws millions of potential customers. EBay also connects sellers with discounted shipping, a variety of sales formats, fraud protection, and managed payments. It’s up to you to decide whether these features are worth the fees. 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Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. eBay. “Selling Fees.” eBay. “Choose a Store Subscription.” eBay. “Selling Fees – Final Value Fees.” eBay. “Selling Fees – Basic Fees for Most Categories.” eBay. “Selling Fees – Fees for Optional Listing Upgrades.” eBay. “Selling Fees – Fees for Real Estate Listings.” eBay. “Fees for Selling Vehicles on eBay Motors.” eBay. “FAQs – What Is the Eligibility Criteria for Promoted Listings?” eBay. “Promoted Listings – Promoted Listings Lite.” eBay. “Selling With Classified Ads.” eBay. “Selling Fees – Basic Fees for Most Categories: Fees for Classified Ad Listing Format.” eBay. “Selling Fees – Additional Final Value Fees.” eBay. “Payments and Earnings.” eBay. “Fees and Financials.” Related Articles Best Apps for Selling Stuff How to Make Money on eBay PayPal Merchant Fees and How to Reduce Them How To Charge Sales Tax for Out-of-State Customers How To Sell Your House How Much Are Closing Costs for the Buyer? 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