Does It Cost Money To Do An Ebay Aution

Last updated 8/19/2021.

What percentage does eBay take? Usually 12.55% (not 10% similar it used to). But that's just one of the fees you'll face up. What yous should really exist asking is, what does information technology toll to sell on eBay?

At that place are tons of hidden costs involved in selling on eBay. If y'all don't know nearly them, yous could lose money on items you lot thought would turn a turn a profit.

We provide a quick explanation of the costs in "Selling on eBay for Beginners: 5 Steps to Success." That's a skillful place to larn the basics of how the fees are calculated. This article, though, is for those who want to get deeper.

Final Value Fees (eBay'south Percent of Every Auction)

Brusque version: eBay takes a percentage of nearly all sales, ranging from 1.v% to 15%.

eBay'southward final value fees are often the largest single toll for sellers. They're taken every bit a pct of the corporeality actually charged to the customer. That includes the item price, the aircraft toll,and whatever sales taxation. (One small-scale break: If the buyer chooses international ori-day aircraft, you're charged every bit if the shipping price was your cheapest domestic pick.)

The percentage depends first on whether you utilize managed payments. This is the default for new sellers, and all other sellers volition be required to switch to managed payments past the end of 2021. You lot can find the final value fees for managed payments sellers hither and for non-managed here.

Next, information technology depends on the category y'all're selling in and whether you take an eBay Store. Following is a quick overview of what you might take to pay on each sale. If yous know what you desire to sell, take notes—we'll go to computing your full fees later on.

With no Store or a Starter Shop (managed paymentsin bold/not managed in italics / aforementioned for both in standard text):

• 15% /12.85%on watches.
• xiv.55% / 12.2% on books, magazines, movies, TV, and most music.
• 12.55% /10.2% for nigh listings.
• 12.35% on  bullion and on trading/collectible cards.
• 5.85% /three.5% on guitars and basses.
• five% on NFTs.
• iii% /2% on some Business concern & Industrial categories.
• 0% on athletic shoes with a starting price of at least $100.

Note that on managed payments, most categories have tiered pricing structures. For example, if you sell an item worth more than $7,500, the fees oftentimes drop to 2.55%. On non-managed payments, at that place are usually fee limits instead, generally $750 as the max fee.

With a Bones or Premium Shop (managed payments /non managed):

• Thresholds for lower fees on high-value items reduced, usually from item values of $7,500 to $2,500. /Maximum final value fee of $350 on well-nigh categories, with a $250 maximum on Guitars & Basses and some Business organisation & Industrial categories.
• 14.55% /12.2% on books, magazines, movies, TV, and most music.
• 12.5%/x.35%on watches.
• 11.7% / 9.35% for most categories.
• 11.5% on collectible/trading cards.
• 10.7%/8.35% for eBay Motors Automotive Tools & Supplies categories and nearly eBay Motors Parts & Accessories categories.
• 9.5% /seven.35% for about Musical Instruments & Gear categories.
• 8.7% / 6.35% for nearly Cameras & Photograph categories, most jail cell phones and retentivity cards, almost Computers/Tablets & Networking categories, virtually consumer electronics, stamps, and most Video Games & Consoles categories (just Not video games orconsoles).
• eight.5% /half-dozen.35% for DJ and pro audio equipment and for newspaper money and coins.
• 7% on bullion.
• vi.55% / 4.2% on video game consoles and most major computing devices like computers, tablets, and printers and many of their components.
• 5.85%/iii.five% on guitars and basses.
• five% on NFTs.
• two.5% /1.five% on some Business concern & Industrial categories, similar heavy equipment.
• 0% on able-bodied shoes with a starting price of at least $100.

With an Anchor or Enterprise Store:

• Maximum final value fee of $250 on all categories (not-managed payments sellers simply).
• Otherwise, the aforementioned as Basic and Premium stores.

The last value fee discounts tin make a Store pretty tempting, and they will often save you a lot of money. Only make sure you know exactly when an eBay Store is worth the cost before shelling out your hard-earned money.

If you're selling cars on eBay, note that vehicles take their own special fees rather than final value fees. Another list types, similar existent estate, also have unique fee structures.

Customer Service Affects Concluding Value Fees

If you offer a nifty customer feel, you can become a Top Rated Seller and get ten% off your concluding value fees. (Due east.g., if you unremarkably paid 12.55%, you'd pay xi.295% instead.)

But eBay knows people are only motivated so far past carrots. They also have a stick: if you drop beneath their seller performance standards, y'all'll get an extra v% slapped on summit of your last value fees (whether or non y'all use managed payments). They'll also nail you with the extra 5% in categories where your rate of "Detail not as described" claims reaches "Very High," fifty-fifty if you're an higher up-standard seller.

Thankfully, these extra fees don't stack. You won't have to pay an extra 10% if both situations use. Just, the results are still really bad.

If you have i of these penalties, that means that if yous normally paid 12.55%, you'd pay 17.55% instead.

Manage eBay customer support from your favorite helpdesk.

Explore how to streamline eBay heir-apparent messages, resolution center issues, proactive messaging, and more.

Worse, this extra fee ignores caps and reduced-fee thresholds! That makes it as bad regardless of whether y'all use managed payments or sell high- or low-value items. Here's how it can play out:

• Non-managed payments: If you sold something worth $10,000, your normal 10.two% would finish at $750 as if it had just been worth $7,353. However, the five% penalty would be charged on the whole thing for an actress $500 in avoidable fees.
• Managed payments: If you sold an antiquarian worth $ten,000, you would normally pay 12.55% on the get-go $7,500, then simply 2.35% on the final $2,500. Your total fee should be exactly $1,000. But with the extra v%, you lot'd pay $1,500 instead!

Those are some high stakes! Take eBay customer service seriously, be honest, and transport on time to go on your final value fees affordable.

Insertion Fees (eBay'south Flat Fees)

Short version: If yous list a lot of items, you may demand to pay an extra $0.35 or so for some of them.

Every eBay seller gets to list a number of items every month without paying insertion fees. For nearly categories, these are as follows:

• No eBay Store: 250 items (with managed payments) or 200 items (without).
• With a Shop (managed /not managed/ both):
  • Starter Store: 250 listings total between fixed-price and qualifying auction listings.
  • Basic Shop: 1,000 fixed-price items, plus 10,000 additional in select categories. / 350 fixed-price items. Plus, 250 qualifying sale listings.
  • Premium Store: 10,000 fixed-price items, plus l,000 additional in select categories./1,000 stock-still-price items. Plus, 500 qualifying auction listings.
  • Anchor Store: 25,000 fixed-price items, plus 75,000 additional in select categories. /10,000 fixed-cost items. Plus, 1,000 qualifying auction listings.
  • Enterprise Store: 100,000 fixed-toll items, plus 100,000 boosted in select categories. / 100,000 stock-still-toll items. Plus, 2,500 qualifying auction listings.

Anything in a higher place those limits costs the post-obit (these are the same with or without managed payments):

• No eBay Store: $0.35 per listing.
• With a Store:
  • Starter Store: $0.30 per listing.
  • Basic Store: $0.25 per listing.
  • Premium Store: $0.xv per auction, $0.10 per fixed-price list.
  • Anchor Store: $0.10 per sale, $0.05 per fixed-price listing.
  • Enterprise Store: $0.10 per sale, $0.05 per stock-still-cost list.

At present, you might be wondering why you get then few costless auctions. Don't sweat information technology. If your auction succeeds and the item sells, eBay will refund your insertion fee (equally long as it isn't in an excluded category).

They'll also refund insertion fees on stock-still-priced listings if they sell and the buyer doesn't pay upwardly.

For some categories (mainly big-picture show stuff like existent estate and vehicles), there are no costless listings. You are always required to pay an insertion fee. This fee tin can range to well over $100, and it's the same whether or not yous utilize managed payments or accept a Store.

Other eBay Fees

You can opt in to listing upgrades (managed / non-managed) for set-in-stone prices or Promoted Listings for a percent of the sale. These can more than than double the fees you pay, so use them wisely!

Shipping and Handling

Short version: Make up one's mind how much you lot'll charge for shipping, because this charge counts toward your concluding value fee.

Now you know what eBay's going to charge you... sort of. eBay volition also charge its last value fee on whatever shipping costs you charge. You lot therefore need to know how much shipping and handling will toll so you can get an authentic grasp of the fees you lot'll need to pay.

For those of you offering free shipping, knowing these costs is even more than of import because y'all need to gene them into every price.

Either way, you can't actually sympathise the toll of selling on eBay until you empathize shipping and handling. Read our guide to shipping and handling costs to determine how much yours will run yous.

PayPal, Managed Payments, or Other Payment Processing

Below: 2021 PayPal fees.

Short version: Whether your payment processor is eBay, PayPal, or a credit card company, yous tin can look them to take a fixed fee and a percentage out of every transaction.

If yous don't have managed payments, your payment processor'due south fees should be a major consideration.

PayPal and other payment systems similar credit cards all take to brand money somehow—typically through complicated fee structures of their ain. These usually consist of both a percentage and a fixed fee per transaction. For instance, PayPal fees for selling from i U.s.a. location to another total two.89% to iii.49%, plus $0.49 per transaction.

These fees are charged on the gross value of the transaction, earlier the last value fee and shipping costs are taken out. It's therefore important to consider your payment processing fees before setting your last cost.

If you lot use eBay-managed payments instead of accepting payments through PayPal, cards, etc., you volition pay a college final value fee than other sellers, as seen above. Yous volition too accept to pay a fixed fee of $0.30 per order—noticeably lower than PayPal's $0.49. The per-order fee and the increment in last value fees are both there to encompass the payment processing cost.

When you lot wait at the difference between eBay'due south final value fees with and without managed payments, you can encounter that it'due south unremarkably 2.35% or less. This modest payment processing toll applies even if the customer pays through PayPal. The result is that it's ever cheaper to employ managed payments than to use PayPal.

And so, if you've been looking at the higher final value fees with managed payments and experience like you're getting ripped off, don't worry. eBay is actually saving you a ton of money!

If you lot employ managed payments, the only payment processing fee y'all have to keep rails of is eBay'southward $0.xxx per-club fee. If you use something else, similar PayPal, you need to make a note of both the percentage fee and the per-society fee.

Note: If you have multiple payment methods, compare the unlike fee structures for each and try to determine how much you lot'll pay on boilerplate.

Sales Tax

Brusque version: While the heir-apparent pays sales tax, any sales revenue enhancement corporeality can increase your terminal value fees.

Every bit of 2021, eBay charges and remits sales tax on behalf of sellers, at least in the United states. Yous no longer have to panic nigh getting every sales tax license in the country to sell!

However, eBay doescount sales revenue enhancement in the total guild value before applying their final value fee. So on sales where tax is applied, your terminal value fee will go upwards accordingly.

Sales tax varies past location. The US average state + local sales revenue enhancement at the time of this article's last update is 6.35%.

That may be a reasonable number to use in your calculations, simply you lot may want to bank check your sales history to discover a more accurate average for your business organization. You may have much higher or lower taxes if your buyers are concentrated in specific states or cities. If you do, make a note of your sales tax percentage.

Avant-garde Final Value / Payment Processing Fee Calculation

Curt version: If you want your customers to cover the cost of selling on eBay, calculate the price you lot will accuse as "ten" using the following arrangement of equations: x = p + z + (y*q), x + (x*w) = q

Why You Need to Employ Algebra

And so, y'all know the final value fee is going to cost you 12.55% (or whatever happens to be the instance). But y'all tin can't simply go slapping an extra 12.55% on your prices and expect that to cover the fee.

Yous likewise accept to account for the impact of sales revenue enhancement on your terminal value fee. But you tin't just add together an expected sales revenue enhancement to your amount and then summate the last value fee on that, either.

Say you plan to sell something for $40. You add together eBay'south $0.30 per order fee and get $xl.thirty. Like shooting fish in a barrel enough so far.

A 6.35% sales tax on $40.thirty would exist $2.56, bringing the corporeality to $42.86. The 12.55% concluding value fee on $42.86 is $5.38. So y'all should add that fee amount to $40.thirty, correct? $45.68 will get you $40 on an boilerplate sale?

Wrong! The sales tax on $45.68 would be $2.ninety, and the concluding value fee on that $47.58 total would come to $5.97. Decrease that and eBay's $0.30 per-lodge fee and y'all're left with $39.41—still $0.59 short of your target of $forty.

If you want to make sure that your price covers the final value fee and payment processing fee (both adapted for sales tax), plus whatsoever other expenses, you lot need to utilize algebra.

Edifice Your System of Equations

Outset, add together up all your fixed fees for selling one of your items. Outset with any fixed payment processing fees. These include things like eBay's $0.30 or PayPal's $0.49 per transaction.

Next, add together any other fixed fees, such as insertion and/or list fees if this is a unique item. (These fees volition be spread out across numerous sales if you're using one listing to sell multiples of one product each month.)

The full value of all fixed fees above will be "z" in the formula beneath.

Next, tally whatsoever percentages charged on the auction price. This would more often than not be your last value fee and possibly a payment processing fee.

• For managed payments users, this should only be your last value fee, normally 12.55%.
• For most non-managed payments transactions, that means add PayPal's 2.89% to iii.49% percentage to eBay's 10.ii% concluding value fee, for a total of 13.09% to 13.69%.

Use this percentage value every bit "y." To apply a percent in a adding, you need to divide it past 100. So if you have 12.55%, you would use 0.1255 as "y."

Y'all should also business relationship for whatsoever sales tax yous wait, using it as "west." Find your expected average sales tax percentage and divide it past 100. For example, if you expect an average sales tax of 6.35%, y'all should use 0.0635 as "westward."

Finally, determine how much y'all need to receive from each transaction in order to cover the costs of buying/manufacturing + shipping and handling the item while withal making an acceptable profit. This value volition be "p."

Now solve the organization of equations below for "ten" and "q." "10" will exist the amount you demand to set every bit your list toll to get your minimum turn a profit, and "q" volition be the amount the client is charged. Y'all tin solve this system easily by plugging it into an algebra reckoner like MathPapa's.

x = p + z + (y*q), x + (x*west) = q

Instance

Let's say I upload an item as i of my gratis monthly listings. Since I use managed payments, the merely fixed fee I take to bargain with is the $0.xxx eBay fee per transaction. Therefore, I enter 0.3 every bit "z."

My terminal value fee is 12.55%. Since I'm on managed payments, I don't take to worry about a PayPal per centum fee, just otherwise I'd add together that pct here. I therefore enter 0.1255 as "y."

I decide to accept the piece of cake reply of 6.35% for sales taxation and enter 0.0635 as "w."

Afterward adding up the cost of shipping and handling and the cost of buying the particular I'k reselling, I decide that I need to receive an average of $40 subsequently fees in order to comprehend my expenses and make an acceptable turn a profit. I enter 40 equally "p."

Then the equation I go is: x = 40 + 0.three + (0.1255*q), x + (x*0.0635) = q. After running that through an algebra figurer and rounding, I get $46.51 equally "ten" and $49.46 as "q." Then, I demand to charge $46.51 to get my desired profits, and charging that means my customer will pay $49.46 on average.

Proof It Works

If I charge $46.51, a 6.35% tax on that would exist $ii.95.

ii.95 + 46.51 = 49.46. So my charge plus the customer's tax equals $49.46, but every bit the equation said. Proficient so far!

Now, eBay volition charge its final value fee of 12.55% on the concluding corporeality (taxation included) of $49.46. 12.55% of 49.46 is half-dozen.21.

The amount I've actually received from the customer (taxation non included) is $46.51. If I subtract that $vi.21 fee, I go $xl.30.

Finally, I remove eBay's $0.thirty per-society fee. That leaves me with a clean, even $forty.

Using this formula volition brand sure you lot go exactly what you need out of every order, without guessing or overcharging.

Decision: What Does It Price to Sell on eBay in Reality?

The real cost of selling a given item on eBay is fabricated upwards of the following:

1. The costs of making or buying the item yous're selling.
2. The costs of packaging, handling, and shipping the item.
3. Any fees you're paying eBay and/or your payment processor for the transaction.

These costs are in improver to your overhead: customer service, government permit fees, paying freelancers to take photos or write descriptions for you, the opportunity cost involved in researching the particular and dealing with suppliers, etc. Brand sure your margins are healthy plenty to embrace these expenses besides.

We knocked our own costs way downwards by integrating eBay with a helpdesk. We highly recommend it if you want to stay in the black!

Now that you have your accounting under control, y'all tin can focus on the more exciting aspects of running an eBay business. Start by figuring out what to sell on eBay. Then acquire how to get a great eBay feedback score so you lot can keep the sales coming in!

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