eBay Seller Fees Explained!

eBay Seller Fees Explained!

By at - 10 Minutes

How much are eBay seller fees?

Listing and relisting items without checking your profitability is easier to do than you may think. For many sellers, falling into a pattern like that is fairly common. It is important to add up all of the costs associated with selling on eBay on a regular basis, so you can continue to remain profitable. fees on ebay

The main seller fees for eBay

There are three main fees to consider when selling on eBay. Insertion fees, final value fees, and listing upgrade fees are the most common costs you will encounter as you list and sell items. There are also additional costs to consider, like refunds and business expenses that may come up less frequently. Overall, your eBay seller fees will depend what you sell and the volume of sales your business has. 

Watch this short video for a quick overview of fees:

eBay Insertion fees

Insertion fees may also be known as listing fees. This is a charge for listing an item, and you pay per item and per category. Quantity does not impact the insertion fee. However, your store status and item category will impact your listing fees. 

For most item categories, the insertion fee is $0.35 per listing. Some Business & Industrial categories have a higher listing fee of $20 for heavy equipment, commercial printing presses, foot trucks, trailers, and carts. Guitars and basses in the Musical Instruments & Gear category have a free insertion fee. eBay Insertion fees

eBay insertion fees by category 

Listing fees are non-refundable, so you will not get your money back if your item fails to sell. If you list an item in multiple categories, you will pay an insertion fee for the item and for each additional category. Also, you are charged an insertion fee every time you relist an item. As you can see, the small insertion fee can add up quickly over time.

Zero Insertion Fee Allowance 

Sellers receive a zero insertion fee allowance each month. These are free listings that you do not have to pay an insertion fee in order to list. The number of free listings you receive will depend on your eBay store status. Once you use all of your zero insertion fee listings for the month, you will be charged an insertion fee for each individual listing. 

  • Standard sellers without a store package receive up to 50 fixed price and auction-style listings.
  • Sellers with a Starter Store package receive up to 100 fixed price and auction-style listings.
  • Sellers with a Basic Store package receive up to 250 fixed price and 250 auction-style listings.
  • Sellers with a Premium Store package receive up to 1,000 fixed price and 500 auction-style listings. 
  • Sellers with an Anchor Store package receive up to 10,000 fixed price and 1,000 auction-style listings.
  • Sellers with an Enterprise Store receive up to 100,000 fixed price and 2,500 auction-style listings.

Some categories do not qualify for the zero insertion fee, such as Real Estate, select Motors categories, and certain Business & Industrial categories. auction style insertion fees ebay

Auction-style listings are eligible for zero insertion fees if they are in the categories listed above.

Final value fees

Final value fees are charged once your item sells, and they are calculated as a percentage of the total sale amount. The total sale amount includes everything that the buyer pays such as shipping and handling. However, sales tax is not included when calculating final value fees. For most categories, final value fees are capped. 

These fees are charged on an individual basis for single transactions. If the transaction does not actually go through or the buyer fails to pay, you may still be charged a final value fee. The final value fee percentage depends on the item category. You can reference the table above to see a break down of final value fees. 

In the past, eBay did not include shipping fees when calculating final value fees. However, some sellers abused this by pricing their items for a low amount and charging unrealistic prices for shipping to make up the difference. Now, both the listing price and shipping and handling fees are included when determining final value fees.auction style listing example

eBay provides examples of fee calculations to help you better understand seller fees.

Avoid additional final value fees

There are some cases when you may be charged additional final value fees. If you attempt to buy or sell outside of eBay on the platform or you have an unsatisfactory seller rating, you can be charged more than the typical final listing fee. These instances are easy to avoid if you follow the rules. 

Offer your contact information or asking a buyer to share their contact information in order to buy or sell outside of eBay is prohibited. eBay claims this is a protection policy that keeps the buyers and sellers from experiencing fraud. While that is likely true, they also do not want you to sell outside of their platform and avoid their fees. 

Still, it is better to follow the rules than to incur an additional cost on your listings. If you are caught trying to buy or sell outside of eBay, you can be charged a final value fee even if your item does not sell. 

For sellers that dip below performance standards, you can incur an additional 5% on top of the standard final value fees. You can check your seller level by visiting your Seller Dashboard to ensure you are meeting the minimum seller performance standards for eBay. Also, if your return requests for issues of “Item not as described” are Very High in any category, you will receive the additional 5% fee. 

Watch this video for detailed tips to reduce your eBay fees (skip to 19:44 to find the tips):

Listing upgrade fees

There are additional ways you can enhance your listing to help it stand out in search rankings and beat out the competition. These additional features are known as listing upgrades, and each comes with its own fee. Remember, eBay allows you to add 12 photos and schedule your start and end dates for listings free of charge. 

There is a wide range of listing upgrades available, and you can test various options to see if they impact your listing performance. For example, adding a subtitle is $1-$6 per listing and adding bolded font is $2-$6 per listing. The listing upgrade fee depends on the starting price of your item and the type of listing (Good ‘Til Cancelled or Auction-Style).listing upgrade fees

Additional listing upgrade fees for Auction-style listings

good til cancelled listing fees

Additional listing fees for Good ‘Til Cancelled listings

Promoted Listing Fees

Sellers have the opportunity to list their items as promoted listings. These listings get prominence in eBay search results and also show up in the related items section when shoppers are looking at another item. Promoted listings are available to any seller on the platform as long as you are in good standing and have a sales history. 

Fees for promoted listings are based on the final value fee and charged as a percentage. Sellers can set their own percentage to be charged as a fee based on what other sellers are paying for a similar item or category. While it may be tempting to go with the minimum 1% fee, meeting the ad rate trends can help you stay competitive and ensure your listings get seen more often. promoted listing fees

An example of ad-rate trends from eBay by category and subcategory, updated weekly.

These fees are completely optional. You do not have to pay to promote your listings through eBay unless you want to. If you are interested in testing out a promoted listing, you can start small and keep your budget low to see if there is any impact on your item. Fees are charged when a buyer clicks on your listing and purchases it within 30 days. 

Conclusion

Selling on eBay will cost more than you think if you do not take the time to calculate your seller fees. It is easy to spend a dollar or two here and there and forget that the costs add up at the end of each month. By becoming familiar with all of the seller fees associated with selling on eBay, you can plan ahead and optimize your profits for your eBay business. 

Mallory Peek

Mallory Peek is a copywriter and digital marketing specialist from Texas. She is an active Subivi Times blog writer and specializes in eCommerce including but not limited to eCommerce marketplaces, how to sell on eBay, eCommerce news and eCommerce customer service. Her Bachelor’s and Master’s degrees are in strategic communication and has a background in journalism & creative writing. She has been a content writer for the better part of 5 years and has a deep passion for helping eCom sellers grow their business.

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