eBay is no doubt one of the most reliable intermediaries between sellers and buyers. It does not matter whether you are just getting started or have been in the game for so long, you can both enjoy the same level of service.
I have noticed that setting up right away, selling on eBay and using the various selling tools have always been a smooth ride. One of the few problems that sellers do encounter especially newbies is understanding the fees attached for selling off items.
Adding the second problem; the ways by which buyers scams occurred. Information is power, as they say, knowing all that is needed to be known on eBay is the best way to be prepared.
The main reason why people run business is to make money, in order to know how much to charge for a particular item, one must be able to take into consideration miscellaneous fees. This could help to keep on managing a profitable venture.
Know your selling fees on eBay
Let’s take a look at the cost of listing and selling on eBay. There are two main charges on the platform, one is insertion fee and final fee.
1. Insertion fee
Insertion fee is the amount you pay for having your products or items listed on eBay.
Think of it as the fee you pay to a shop owner for using his or her space. It does not matter whether you sell it or not, you will be charged irrespective of the outcome.
Before you were billed for listing, you will get up to 50 free listings every month. Do note that other fees may still apply.
To get more free listings, you must have an eBay store. When you have a store on eBay, it puts all your merchandise under one umbrella and also gives seller added tools and discounts.
To open an eBay store, you must already have an eBay seller account. If you are yet to do so, go to the website and sign up.
The most notable things about selling on eBay are in this order – List items, ship quickly and earn more cash as your rating reaches the top. It is quick, secure and convenient.
Now back to how to join eBay store, here are the simple steps:
- Locate “Account” on My eBay.
- Tap “subscriptions”
- Tap “Choose a store”
- Browse the available stores, subscribe to your preferred store and review.
- Click on “submit order” to buy store.
As a seller with eBay store, understand that you will be charged other fees which include advanced listing upgrade fees and other additional service fees if you used them.
Final value fees will be deducted after you have been able to sell your item(s) on eBay.
Conditions guiding insertion fees on eBay
- Insertion fees are non-refundable even when you do not make sales on listed items.
- eBay only charges once per listing. If you have more than one item of the same listing, you only pay once even when you run of inventory.
- If a seller lists an item in different categories, you will pay insertion fees for each of the listings on the categories.
- Insertion fee will be charged for any item listed on eBay. It will also attract a fee when you relist it.
- Sellers are not allowed to have more than one fixed price listing of the same item and at the same time. If you are running more than one auction-style listing, say two listings, with no buy it now features, you will be charged per listing but the other will only become operative the moment the former receives a bid or ends.
2. Final value fees
These fees only come into play when sellers sell their items. There are several categories on eBay, the fee charged on listed items depend on the category.
In the event that the deal does not go as planned or the buyer backs out of the deal, sellers will need to cancel the sale or report the items as unsold in order to be excused from charges.
The final value fees for most categories on eBay are at 10% of the selling price with the maximum fee being $750. Only books, DVDs, movies and music attracts more, about 12%.
On business and industrial categories, you can pay about 2% of the amount paid by the buyer. The items covered under this category are heavy equipment parts and attachment, printing and graphics art, and restaurant and food services. Insertion fee is $20 and no free listing. The maximum fee is $300.
If you are into musical instruments and gears, you have got the best deal on eBay. All items that fall into this category can be placed on eBay free of charge. You only pay the final value fee which stands at 3.5% with the maximum fee being $350.
Other eBay seller fees on eBay
1. Final value fees on shipping
Customers are given the option to choose his or her own shipping services depending on what is available in the store.
For instance, a seller may offer the quickest means of shipping to the customer or a cheaper means to customers, the charges will be borne based on the cheapest shipping the seller offer to buyers.
Another way this might occur is when you offer one day or fastest means of transportation without the regular shipping, eBay will charge based on what the buyers choose.
2. Classified ads listing format fees
If you are familiar with some top classified ads like olist and gumtree in some parts of the world like in the USA, UK, and South Africa, then you should have no problem with understanding the slight difference between a full-time eCommerce store and classified ads site.
When you list your items on classified ads, the mode of operation will be a little different. On classified ads sites, eBay only charges insertion fees of $9.95 for each month and there are no final value fees.
One more word, the rules guiding classified ads are a bit different from other selling platforms.
There are some rules you should know;
- eBay will send you the contact information of any interested buyers, do note that all business talks stay on the platform and not for anything you should share it with others.
- Treat this like any other classified ads site, ensure you guide yourself against fraud or injury that might arise while taking care of transactions outside eBay.
- Since only business talks occur on eBay while the transaction takes place outside, do note that you can’t open a case over unpaid items or request for feedback.
- Keeping buyers’ information is also a priority, failure to do that might have your account limited or suspended.
Here are guides on how to sell with eBay classified ads
- Tap on sell at the top of eBay page or follow this link for advanced listing form
- Fill up the spaces with the details of your items.
- Locate in format and select classified ads.
- Hover your cursor to list item and click on it.
3. Real estate fees
Are you a realtor or an estate agent? You should not miss out on having your real estate listed on one of the most visited stores in the world.
Remember, I mentioned something about paying only insertion fees on eBay classified ads, fees are different for sales of buildings and lands.
Fees included are insertion fees, notice fees, and fees for listing upgrades you carried out. Now that you have been able to peep on charges you might encounter on eBay.
Let’s be honest, no seller loves giving out chunks of money to eBay but not many know what they should know. Using these various adds on especially listing upgrade might really increase your sales which is done by giving you more exposure but not without some tips to eBay.
Sellers need to always be cautious especially when using a new add-on like listing upgrade, ensure you cross-check your fee before sending the commands.
That way, you will be able to know how much extra cash you will be spending. If you can not afford one, just go with the former commitment.
Penalties incurred while transacting on eBay
- In a bid to ensure that the seller is held accountable at all times, eBay can add extra final value fees when sellers violate the policy guiding buying and selling especially when sellers take the business outside eBay.
- Sellers will be charged final fees based on the value of the items even when the item does not sell. Charges will be determined using fixed-price listing and auction-style listing format…
- What then is a fixed price listing format? Fixed price is the actual amount of the item or the price agreed between the seller and buyer. Whichever is higher becomes the determinant.
- For auction-style listing format, whichever is high between the price identified by the buyer and seller, bidding start price, buy it now price, and the reserve price will be used to determine the additional final value fee.
- Additional final value fees can also be incurred when their performance falls short of expectations.
4. Processing fees for using payment systems
Most sellers would want to use their preferred payment system and eBay has never shied away from providing various tools to make their selling easy.
Depending on the country you reside in, you can have access to various payment options in just one place which will also make buyers’ shopping experience great.
As a managed payments seller, there is nothing else you should do, just concentrate on improving your sales and giving your customers a reason to come back.
It is currently in test mode, if you are qualified to join, you will receive a notification bearing your registration link which will be sent to you.
To complete this small task, sellers will need to provide their business information, bank account and verify their identity.
eBay will handle the entire process, therefore, buyers will now be able to make their payments while sellers get their funds, which are sent directly to their bank account. This great tool comes with eBay fees. For every transaction, there is a charge incurred which will be shown on the seller’s invoice.
The traditional payment method is Paypal, it will probably be for a short period as there are ongoing plans by eBay to have their own payment system.
By using managed payments system by eBay, you will have no alignment with any other aside from eBay deals directly and also on behalf of others. Just like Paypal, expect a charge.
Paypal charge 2.9% processing fee plus $0.30 for each successful sales while eBay managed system charges 2.7% of the value of the item.
In the future, expect to be fully opted-in few years to come. The more convinced eBay, the closer you get to using the managed payment system if you have not been doing so.
Pros of managed payments system
- More payment systems at your disposal. Instead of relying on just PayPal, you can have access to a lot of payment systems including PayPal, google pay and gift cards.
- Simplify your payment systems into just one platform. No need to bring in the third party in, you can manage your payment needs and sell within eBay.
- Get protected. Have all you ever need in one place including disputes and claims that may occur. With eBay, it gets easier and better.
- Automated payouts. Enjoy direct and instant transfer of funds into your bank account.