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eBay Selling Fees: How Much, Types, How to Calculate

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by Eli S.posted on 09.11.2021

eBay Selling Fees: How Much, Types, How to Calculate

If you want to sell products on eBay in 2021-2022, you aren't alone. eBay has millions of sellers all willing to put up with the fees for selling that eBay offers. But how much does it cost to sell on eBay?

eBay sellers pay an average of 10% of their product's value. The cost changes depending on the value of the sale and the product category.

When it comes to using eBay's platform, understanding how much they take is essential to know you will make a profit. So if you want the ultimate breakdown on eBay fees for selling, keep reading.

Types of eBay Fees

eBay has six different fee types:

  • Insertion Fees.

  • Final Value Fees.

  • eBay Store Fees.

  • Advertising Fees.

  • Shipping Fees.

  • International Fees.

1. What are Insertion Fees?

An insertion fee is a cost you need to pay to have your item listed. It costs 0.35 cents per listing. These costs are non-refundable regardless of whether your item sells.

If your product is in multiple categories, you will need to pay a new fee per category. If your listing has various items (and one type), you only receive one charge. If you create duplicate listings, you will need to pay for each one.

eBay will not charge you an insertion fee if you list fewer than 250 items per month. If you have an eBay Store, this allotment is larger. Both businesses and individuals are required to pay insertion fees after they exceed their monthly allowance.

Insertions Fees Specific To Car Sellers

Those who sell cars and trucks have a more significant insertion fee of $50. Motorcycle and boat sellers need to pay $20.

Automobile sellers can purchaseadditional listing enhancers that include the following:

  • Bold title: $5.

  • A 10 or 30-day listing duration: $18 to $50.

  • Buy It Now option to Auction Listing: $10.

  • Gallery plus (improved images): $5.

  • Additional photos: $0.15 per photo (up to 12), $4 total (up to 24 photos).

  • Listing designer exclusive to selling manager pro subscribers: $5.

  • Reserve price (up to $75 thousand): $49 ($99 if beyond $75 thousand).

  • Subtitle: $5.

  • Subtitle/ Gallery Plus/ Listing Designer (otherwise known as the value pack): $7.

2. What are Final Value Fees?

Final value fees are the portion that eBay takes out upon the sale of an item. Typically, this is 0.30 cents and anywhere from 0.50 and 15% of an item's value.

Here is a breakdown of final value fees of the most common product categories:

  • Electronics  or laptops - 12.55%.

  • Sports cards (baseball cards) 12.35%.

  • Most other categories (like Auto) - 12.55%.

  • Books, movies, and music - 15.55%.

  • Musical instruments and gear - free.

  • Some clothing, shoes, and accessories - 15.55% (if product value is less than $100).

  • Business (including industrial equipment - 3% (if product value is less than $15 thousand).

  • NFTs - 5%.

  • Jewelry and watches - 15% (up to $1000), 6.5%, or 3%.

  • Paper money, coins, and bullion - 12.35% (up to $7.5 thousand) or 7%.

If you sell vehicles and make a deposit, you will need to handle a deposit processing fee of 2.8% of your value and $0.30.

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3. What are eBay Store Fees?

Opening a store on eBay comes with a few perks, but you need to be willing to pay subscription fees to get them.

Here are your store type options and a cost breakdown:

  • Starter - $59.40 per year ($7.95 per month).

  • Basic - $21. 95 per year ($27.95 per month).

  • Premium - $59.95 per year ($75.95 per month).

  • Anchor - $299.95 per year ($349.95 per month).

  • Enterprise - $2999.95 for total year (no monthly option available).

eBay store owners gain additional perks, which include the following:

  • Extra fixed-price listings (from 1 thousand to 100 thousand a month).

  • More auction listings (from 250 to 2,500 per month).

  • Reduced costs on final value fees.

  • Optional listing upgrades (like subtitles or auction reserve prices).

Determining whether these perks are worth it to you depends on the number of products you sell on your eBay store.

4. eBay Promoted Listing Fees (Advertising)

The eBay Promoted Listing Standard fee is only charged if someone purchases your product from the promoted listing. The cost is based on current ad rates that depend entirely on your competition for that time.

Ad rates can vary from 2% to 15%, depending on how many other sellers effectively sell what you want to sell.

5. How Much Does Shipping Cost on eBay?

eBay does not automatically include shipping costs, so you will need to calculate them yourself. Shipping costs might vary depending on your preferred provider.

Here are your options:

  • UPS - UPS has a shipping calculator for people who use their services.

  • USPS - USPS has a shipping calculator as well.

  • FedEx - You can estimate shipping rates using this tool.

If you have a shipping center from any of the above providers, you can get them to estimate your per-package costs. You can typically save money by opening a business account.

eBay Managed Delivery was eBay's fulfillment program, but it was closed before leaving the pilot stages.

6. What are eBay's International Fees?

eBay's international fees add to final value fees and shipping fees that change depending on the country you ship to. If the target address is outside of your registered country, you will need to pay these.

Your international fee will typically be one of the following:

  • India - 1.7%

  • South Korea - 1.45%

  • Japan - 1.35%

  • Europe (Excluding EU) and Other Asia-Pacific Regions - 1.3%

  • New Zealand - 1%

  • Everywhere Else (i.e., Australia) - 1.55%

If you are not part of the European Union but in Europe, you pay nothing for shipping to the Eurozone or Sweden.

Otherwise, you pay 1.2% for shipping to the UK. You also pay 1.6% for shipping to the US, Canada, and all other European countries. You have a 3.3% rate for all other countries.

If your country is not on this list, check out eBay's official page.

How to Calculate eBay Fees

To calculate eBay fees, you'll want to have a formula set aside for plugging things in. You can create this formula using an excel spreadsheet.

Here is a quick roundup of everything you should expect:

  • You will pay 0.35 cents if you have exceeded 250 sold items this month (insertion fee).

  • You will pay 0.30 cents and XX% of the sold value of your item (final item value).

  • You will pay sales taxes of XX% of the sold value of your item (depending on your local laws).

  • You will pay for any optional listing bonuses you used (see above for the list).

  • You will pay for any promotional fees you applied for (percentage of total sold value).

  • You will always pay shipping costs (calculated through your preferred provider).

  • You will pay international costs (assuming you are shipping internationally).

  • Subscription fees are not included because you do not pay them for items.

The formula should look like this:

0.35+0.30+(item's value * final item percentage) + (item's value * sales tax taken out) + optional listing bonuses + (item's value * promotional percentage fee) + shipping costs + (item's value * international cost percentage)

By creating an excel spreadsheet that contains all of these figures for you, all you need to know is what you sold your product for.

eBay's fees are pretty huge compared to other providers. When you specialize as an auction-based service that sells products individually, this is the struggle.

However, there are ways you can reduce these fees.

How to Reduce eBay Seller Fees

If you want to reduce your seller fees, here are some quick tips:

  • Do not exceed the 250 item-per-month limit on your storefront (if possible).

  • If you plan on regularly exceeding this per-item limit, pay for an eBay subscription.

  • To determine whether an eBay subscription is worth it, note your difference in the final value fee. Typically, you can save about 3% off the price per item listing.

  • If you list a large number of smaller products (i.e., collectors tickets, gift cards, stuffed animals), a subscription is almost always worth it.

  • Try to set up your account with direct deposit (so you can avoid PayPal fees).

Amazon vs. eBay Selling Fees

When you compare Amazon selling fees and eBay fees, Amazon typically wins. Amazon has a flat rate of about $39.99 a month on their subscription if you want to be a professional seller.

Amazon doesn't charge you a per-item listing fee if you are willing to become a professional seller. However, expect $0.99 per item as an individual seller. If you sell more than 40 items per month, becoming a professional seller is more cost-effective.

Comparison Amazon vs. eBay Selling Fees
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Amazon Sellers also pay a combination of referral fees which are similar to eBay's final value fees. However, you can save incredible amounts of money by becoming an FBA seller. For a simple calculation on the comparison, you can use this Amazon FBA Calculator from AMZScout.

The two sites might be comparable, but those starting professional stores will typically prefer Amazon's greater reach.

Conclusion

When comparing the selling fees between these two companies, it's always suitable for you to have a total breakdown between the two. The two fee breakdowns are similar, but eBay shines when you consider its ability to attract a unique audience who appreciates an auction shop.

You can also become a professional store on eBay with some potential, but you might want to compare your options. Typically, Amazon has a better breakdown on businesses that want something to scale quickly.

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