eBay is one of the most successful marketplaces in the eCommerce industry. The company started as an online auction website and quickly evolved into a marketplace for online shoppers. Currently, eBay has over 18.9 million active sellers with a colossal 1.7 billion active listings. These numbers are enough to fascinate new sellers. But one question always bothers them “how much does it cost to sell on eBay?”
eBay is a free-to-use platform for both buyers and sellers. The platform offers you enough tools and a monthly allowance for listing insertion to create and run a fully-functional eCommerce store. However, eBay includes different types of charges that you need to pay after every sale. These costs mostly depend on the product type and its category, so they can vary for different products.
In this post, we will discuss the different types of costs and service charges that eBay imposes for selling on its platform.
Table of Contents
- How Much Does It Cost To Sell On eBay?
- Standard eBay Fees
- eBay Pricing Plans
- Conclusion: How Much Does It Cost To Sell On eBay (2023)
How Much Does It Cost To Sell On eBay?
Here is the breakdown of fees and costs that eBay charges for using its platform for selling.
1. Selling Cost
The selling cost or final value fee is a commission taken by eBay for using their marketplace for selling. This cost includes processing fees from third-party payment providers, so you don’t have to pay extra for it.
2. Shipping Cost
The shipping cost depends on your selected shipping carrier and the customer’s location. You don’t have to bear the cost of shipping. Instead, the customer will select their preferred shipping type and pay accordingly.
3. eBay Store Membership
eBay offers a free plan that includes everything you need to sell on its platform. The free plan includes free 250 free listings for fixed-price and auction-type products. If these numbers are not enough for you, eBay offers tier-based pricing plans to their users. You will know more about its pricing plan further in this article.
4. Transaction Fees
eBay doesn’t charge processing fees separately for third-party payment gateways—it is included with the final value fees. However, you have to pay a transaction for card payments and PayPal fund transfers to the bank accounts.
Standard eBay Fees
Here is the list of standard costs that eBay charges for different services.
1. Insertion Fees
The insertion fee is a fixed cost that eBay charges for listing a product on its marketplace for sale. eBay charges for both fixed-price or auction-type listings. Fortunately, eBay offers up to 250 listing insertions for free each month.
Once you go past 250 free listings, eBay will charge you $0.35 per product listing. However, insertion fees for real estate listings are higher than regular ones. You might have to pay $35 for a 10-day listing, while the commercial insertion fee can go up to $100. However, you can unlock more free listings with a monthly premium subscription.
If you are just starting, you don’t need to subscribe to a paid plan. The free plan offers you enough free listings to kick-start your online business. Once your business starts growing, you can upgrade to a paid plan. Upgrading to the premium plan also gives a discount on eBay selling fees.
Note: These fees are non-refundable. Whether you sell your item or not, you will need to pay the insertion fee for listings.
2. Final Value Fees
When sellers sell an auction-style or fixed-price product, eBay keeps a percentage-based portion of each sale which is called the final value fee. eBay automatically deducts this fee when the customer makes a payment while purchasing your product.
The final value fee is not the same for all products. It mainly depends on the product’s category. However, eBay also charges an additional $0.30 with a fixed percentage commission, except for a few categories. Here’s a category-wise breakdown of eBay’s final value fees for each sale.
eBay’s Standard categories are automotive tools, vinyl records, eBay motors, safety & security, accessories, and supplies. The final value fee for these categories is 12.9% of the total amount of the sale.
Once you cross the sale of $7,500, eBay charges 2.35% of the sale.
Clothing, Women’s Bags, Shoes, and Accessories
eBay charges 15% of each sale if the total amount of sales is $2,000 or less in this category. If the total amount of sales is over $2,000, you will be charged 9% of each item.
Books, Movies, DVDs, and Music
In this category, eBay charges 14.6% of every sale if the total amount of sales is $7,500 or less. If the total amount of sales is over $7,500, eBay will charge 2.35% per sale.
Jewelry and Watches (Expect parts and accessories)
eBay charges 15% of each sale if the total amount of sales is $5,000 or less in this category. If the total amount of sales is over $5,000, you will be charged 9% of each item.
Jewelry and Watches (Including parts and accessories)
eBay charges 15% of each sale if the total amount of sales is $1,000 or less in this category. If the total amount is over $1,000 or less than $7,500, eBay will charge 6.5% per sale. For over $7,500 in sales, you will be charged 3% per sale.
Business & Industrial Categories
In this category, eBay charges 3% of every sale if the total amount of sales is $15,000 or less. If the total amount of sales is over $15,000, eBay will charge 0.5% per sale.
Select Clothing, Accessories, and Shoes
eBay charges 8% of the total amount in this category if the item costs $150 or more ($0.30 is not included). If the item’s cost is less than $150, eBay will charge 12,9% per item ($0.30 is included).
Art and NFTs
In this category, eBay charges a 5% commission on every sale.
3. Listing Upgrade Fee
eBay’s free listing includes all the essential elements that you need to create a product listing. But if you want to add an additional touch to your listing, you can do that by paying a little amount. This module follows a pay-as-you-go model, so you will only pay for whatever additional feature you use to create a listing.
Here are additional upgrades you can add to your listing:
- Adding subtitles
- Using eBay’s in-built listing designer
- Bold listings
- Additional images
- Reverse price set up for auction-style product listing
- Acquiring international visibility
- Other optional upgrades
Adding an additional touch to your listing gives you an edge over your competitors. A listing upgrade fee can cost between $0.50 to $6 per item. However, these upgrades are totally optional. eBay won’t charge you a single penny if you don’t use them.
4. Classified Listing Fees
eBay allows you to create a classified listing which they send to the buyer directly. This way, the buyer can contact a seller directly via phone, email, or live chat—anywhere except the platform. However, eBay has strict rules regarding classified listings. If a seller violates the code of conduct, eBay can suspend or restrict their account.
eBay charges $9.95/month for setting up a classified listing or advertisement. You won’t be charged any final value fee for selling via the classified listing. Your listing will appear in special categories, including business & industrial, travel, specialty services, and other categories. There are many subcategories inside these categories, so you can choose the one that suits your business the most.
5. International Fees
eBay charges international fees if you sell outside your region. For example, if you live in the US and are selling a product to a UK customer, eBay will deduct a small percentage of your sale as an international fee.
Usually, eBay charges 1.65% per sale for each international delivery. However, you don’t have to pay it upfront—eBay deducts the amount after the sale.
6. Promoted Listings Fee
Listing upgrades and classified listings are not the only thing that helps you boost your sales on the eBay marketplace. The platform also offers a listing promotion option at an additional cost. With this feature, you can increase your visibility and promote your listing to other eBay channels.
It is like PPC advertising. You set up a promoted listing for specific keywords and search terms. When a buyer uses those phrases or keywords, your listing appears in their search results. It is up to you how much you want to pay for your promoted listing. eBay charges your advertiser whenever a buyer clicks your listing.
7. Punitive Fees
eBay also charges penalty fees on sellers if they don’t follow the platform’s rules. If a seller deals with an eBay buyer outside the platform’s ecosystem, you will still have to pay the final value fee for selling items. The final value fee will deduct according to the final auction price instead of the base if you are selling auction-style products.
8. Payment Processing Fees
eBay won’t charge an additional processing fee if you have set third-party payment gateways such as Google Pay, Apple Pay, etc. In fact, this fee includes the final value fees. However, if a buyer uses credit/debit cards or gift cards to pay for your product, eBay will deduct 2.9% + $0.30 for each sale. PayPal also imposes a 1% transaction fee if you want to transfer your funds to your bank account.
eBay Pricing Plans
eBay is a free platform for sellers and buyers. They have several membership plans, but they don’t force you to subscribe to their paid plans. The free plan is enough for a beginner to run and grow their online store. But if you want to access additional features and advanced tools, you can upgrade your store with a premium plan.
1. Starter Store – $4.95/month
The Starter plan is best for beginners who want to promote their listings.
- All the Free plan features
- 250 free listings
- $0.30 per listing for additional listings
2. Basic Store – $21.95/month
Are you a beginner? But 250 free listings aren’t enough for you. This is the plan you are looking for. With this plan, you can enjoy more listings and pay the final value fee at exclusive discounts.
- All the Starter plan features
- 1,000 free listings (fixed-price)
- 250 free auction-type listings (for select categories)
- $0.25 per listing for free listings
If you have a wide product collection, the Premium store plan is the best option for you.
- All the Basic plan features
- 10,000 free listings (fixed-price)
- 500 free auction-type listings (for select categories)
- $0.10 per listing for free listings
- Free access to Terpeak Sourcing Insights
4. Anchor Store – $299.95/month
If you own a business or company, you can try the Anchor plan for your store. It will also provide exceptional customer support to subscribed members.
- All the Premium plan features
- 25,000 free listings (fixed-price)
- 1,000 free auction-type listings (for select categories)
- $0.05 per listing for free listings
- Dedicated customer support
5. Enterprise Store – $2999.95/month
The Enterprise plan is best for enterprise-level sellers who want to expand their business to an international level.
- All the Anchor plan features
- 100,000 free listings (fixed-price)
- 2,500 free auction-type listings (for select categories)
- $0.05 per listing for free listings
- Lower final value fees
- Dedicated customer support
Conclusion: How Much Does It Cost To Sell On eBay (2023)
I hope this guide helped you solve all your confusion about the costs that eBay charges for selling on the platform. eBay is a great platform to sell unwanted things that are lying around your house. The profit margin can be way higher than other eCommerce platforms as it allows you to create both fixed-price and auction-type product listings.
You don’t have to be intimated by eBay’s store subscription fees. If you are a new seller, consider starting with the free plan. Once you create a loyal customer base and find room for new products, you can upgrade to a paid plan for additional access.
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