HOW TO REDUCE YOUR EBAY FEES

The eBay fees seem to be going up every year. Since only the sellers pay these fees, any profits you make from selling on eBay are affected by them. If you are not careful, the fees can add up to take a significant percentage of your profit. We'll show you how you can minimize unnecessary fees so you can maximize your return on your listings.

You can use our eBay and PayPal fee calculator to experiment with different options to minimize your fees.

EBAY AUCTION FEES

These are fees charged for auction and fixed price listings. Fees for eBay motors, real estate and certain categories in the business and industrial use a different fee schedule.

Insertion Fee

An insertion fee is charged whenever you list an item for sale on eBay. This fee is charged even if your item does not sell or the buyer does not pay for it.

Starting Price Fee
$0.01 - $0.99 $0.15
$1.00 - $9.99 $0.35
$10.00 - $24.99 $0.55
$25.00 - $49.99 $1.00
$50.00 - $199.99 $2.00
$200.00 - $499.99 $3.00
$500 or more $4.00

When you are choosing your starting price, you need to be aware of the insertion fee thresholds. Starting an auction at $25 instead of $24.99 will cost you an extra $0.60 in insertion fees. Setting starting prices that end in .99 will help you avoid going over a insertion fee threshold by accident. Besides, starting at $49.99 instead of $50.00 is a time proven marketing trick used by retailers.

Insertion Fee Credit

If you relist an unsold item, eBay will credit back your insertion fee if the item sells. This credit is available only on the first relisting and you must use eBay's relist feature to be eligible for the credit. The credit only applies to the insertion fee and not to any upgrade fees (bold, highlight, subtitle, etc). You will be charged for another insertion fee if the relisted item does not sell. For complete details about the insertion fee credit, see eBay's relist policy.

Listing Upgrades

There is a large assortment of additional upgrades that you can add to your listing. Some are very useful, while others don't offer as much value.

Listing Upgrade Fee Description
Gallery FREE Show a thumbnail next to listing
Gallery Plus $0.35 Show a larger image on mouse over
Listing Designer $0.10 Add a theme layout for your listing
Subtitle $0.50 Add additional text under the title
Bold $1.00 Emphasize the title using bold text
Scheduled Listings $0.10 Specify date & time to insert your listing
10 Day Duration $0.40 Increase auction duration to 10 days
Gift Services $0.25 Add gift wrap service icon to your listing
Highlight $5.00 Highlight background of your listing
Border $3.00 Place border around your listing
Featured First $24.95 Display your listing at top of search page
Home Page Feature $59.95 Display your listing on eBay's home page

The 10 day upgrade is great for expensive items. It allows you to increase the exposure of a 7 day auction 3 more days for only $0.40. Scheduled listings are useful if you can't be at the computer to insert your auctions at the ideal time (see eBay Selling Tips for more information about auction starting times). The subtitle upgrade is of questionable value since it is not included in the default title search. The other upgrades may be useful for very expensive and rare items.

Picture Services

EBay allows you to upload one photo of your item for free. Additional photos are charged a fee. To have a successful auction, you need to have good pictures. Both quality and quantity is important. See eBay Selling Tips for more details.

Picture Service Fee
Each additional Picture $0.15
Picture Pack 6 photos $0.75
Picture Pack 12 Photos $1.00

If you sell on eBay regularly, the picture fees will begin to add up. You should look into finding a free photo hosting service such as Photobucket or ImageShack. Your internet service provider may also have free image/web hosting services.

Reserve Price Fee

You can set the lowest price that you are willing to accept on your auction. This price is called a reserve price. Buyers don't know what the reserve amount is, but the auction listing will say "Reserve not met" if the reserve price has not been met. The fee for setting a reserve depends on the reserve amount set:

Reserve Price Fee
$0.01 - $199.99 $2.00
$200.00 or more 1% of reserve price. $50.00 maximum fee

It is a good idea to state in the listing the reserve price amount. This will let interested buyers know the minimum amount they need to bid to purchase the item. Buyers quickly lose interest and move on to another listing if they have to guess the amount of your reserve price.

Buy It Now (BIN)

The Buy It Now feature allows a buyer to purchase and end an auction immediately without waiting. This is quite a handy feature for a buyer who is in a hurry and believes the Buy It Now price is a fair price. Make sure your Buy It Now prices are reasonable or you will be just wasting money on Buy It Now fees that never get used.

Buy It Now Price Fee
$0.01 - $9.99 $0.05
$10.00 - $24.99 $0.10
$25.00 - $49.99 $0.20
$50.00 or more $0.25

Final Value Fee (FVF)

When you sell an item on eBay, you will be charged a final value fee. The amount of the fee depends on the final selling price and is based on the following sliding scale:

Final Price Fee
Not Sold No Fee
$0.01 - $25.00 8.75% of final price
$25.01 - $1,000.00 8.75% of the initial $25 ($2.19) + 3.50% of remaining value
$1,000.01 or more 8.75% of the initial $25 ($2.19) + 3.50% of $25.01 - $1,000 ($34.12) + 1.5% of value over $1,000

Final Value Fee Credit

EBay charges a final value fee even if the buyer does not pay for the item or if the item is returned. To recover the fee, you must file for a final value fee credit. See Request Final Value Fee Credit for more information. You have up to 60 days after the auction ends to file for the final value fee credit. You have to wait 7 days before you can file an unpaid item dispute with eBay.

For more information regarding eBay fees, see eBay's Fee Page.

EBAY STORE FEES

These are fees charged for items in your eBay store.

Store Subscription Fees

Opening an eBay store is as easy as picking your store level and subscribing. All items in your eBay store sell at a fixed price. There is no bidding on store items. An eBay store has a monthly subscription fee as follows:

Store Level Fee Description
Basic $15.95 / month Just starting out, not much inventory
Featured $49.95 / month For expanding your business
Anchor $299.95 / month For high volume sales

You should start with a basic store subscription and upgrade when the need arises. See Store Subscription Details for more information about each subscription level.

Store Insertion Fees

Insertion fees for eBay stores are very simple and quite inexpensive. The fees are good for 30 days and for any quantity of the same item. If you have 1 or 100 of the same item, you pay only a single insertion fee. The listing can be set to expire after 30 days or automatically renew every 30 days, until cancelled. Store inventory have a minimum price of $1.00.

Starting Price Fee
$1.00 - $24.99 $0.03 / 30 days
$25.00 - $199.99 $0.05 / 30 days
$200.00 or more $0.10 / 30 days

Store Final Value Fee (FVF)

Just like auction listings, eBay will charge a final value fee for items sold in your eBay store. The FVF fees for eBay stores are significantly higher than for auction listings.

Final Price Fee
Not Sold No Fee
$0.01 - $25.00 12% of selling price
$25.01 - $100.00 12% of the initial $25 ($3.00) + 8% of remaining value
$100.01 - $1,000.00 12% of the initial $25 ($3.00) + 8% of $25.01 - $100 ($6.00) + 4% of $100.01 - $1,000
$1,000.01 or more 12% of the initial $25 ($3.00) + 8% of $25.01 - $100 ($6.00) + 4% of $100.01 - $1,000 ($36.00) + 2% of value over $1,000.01

For more information regarding eBay store fees, see eBay Store Fees.

PAYPAL FEES

To accept payments from most eBay buyers, you need to open a PayPal account. To be able to receive credit card payments on eBay through PayPal, you need to open a premier/business account. Those accounts are charged a transaction fee for each payment received.

Transaction Fees

The amount of the transaction fee depends on your average monthly sales. The higher your sales volume become, the lower the transaction fees will be. Note: each transaction has an added $0.30 transaction fee. This severely penalizes small transaction amounts. For example, if you were paid $1.00, you will be charged $0.33 ($0.03 + $0.30) transaction fee. That is a whopping 33% fee. Definitely avoid receiving small payments from PayPal.

Monthly Sales Transaction Fee
$0.00 - $3,000.00 2.9% + $0.30
$3,000.01 - $10,000.00 2.5% + $0.30
$10,000.01 - $100,000.00 2.2% + $0.30
$100,000.01 or more 1.9% + $0.30

For more information about PayPal fees, see PayPal Account Fees.

International Transaction Fees

One great feature of using PayPal is it gives you the ability to accept payments from all over the world. However, the expense of receiving international payments is higher. The transaction fees are one percent higher than domestic fees. In addition, a 2.5% exchange rate fee will be charged.

Monthly Sales Transaction Fee
$0.00 - $3,000.00 3.9% + $0.30
$3,000.01 - $10,000.00 3.5% + $0.30
$10,000.01 - $100,000.00 3.2% + $0.30
$100,000.01 or more 2.9% + $0.30

The transaction fee shown is for receiving international payments within the United States. The rates for other countries may vary. See PayPal International Fees for more information.