The Complete Guide to eBay fees in 2023

From clothes and shoes to furniture and electronics, eBay is the online marketplace to find great deals on almost anything. It's a platform for buying and selling new, used, and vintage items.

Selling on eBay means you can reach a large pool of potential buyers. Plus, the platform makes it easy to list and ship your items. But there's one catch: pesky eBay seller fees.  

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For almost every category, you need to pay a transaction fee and a flat $0.35/£0.30 per sale. That sounds like a simple calculation, right? Not exactly! Unfortunately, the platform charges an amount based on the value of the sale and several other expenses that can quickly eat into your profit margin.

Follow this guide for more clarity on the eBay fees for sellers. It will give you an understanding so you can price your items correctly and not lose money on the sale.

Understanding eBay Fees from Every Nitty Gritty

If you are a UK-based seller, you need to pay VAT for specific items. This is something we’ve  on the blog here when looking at rates and other related charges.

Transactions on eBay's site are divided into insertion and final value fees. But there are a few other miscellaneous fees you should be aware of.

1. Insertion fees
2. Final value fees
3. Additional final value fees
4. Real estate listing fees
5. Payment processing fees

Here's a quick rundown of the charges you can expect to pay as an eBay seller.

1. Insertion Fees

The fee applies to any item you list on the eBay site. The insertion fee listings are $0.35/£0.30 per item. The amount you pay depends on the category of the item you're listing and whether it's an auction or fixed-price listings.

Insertion fees depend on many factors, such as:

• Category
• Type of listing
• Listing duration
• Price and quantity of the product
• Promotional features

Sellers without a shop membership receive 250 free listings each month. It may be plenty for modest eBay merchants, but each additional listing costs $0.35/£0.30.

Category

Depending on the category, eBay insertion fees can vary:

• Gear and Musical Instruments: No insertion fees
• Athletic Shoes (Men’s & Women’s): Insertion fees aren’t applicable if starting prices are ≥ $100/£97
• Heavy Equipment: $20/£19.47 per listing
• Printing Presses (Commercial): $20/£19.47 per listing
• Food Trucks, Carts & Trailers: $20/£19.47 per listing

Listing Type, Duration, and Promotional Features

Depending on the listing and upgrade options, eBay insertion fees can change. Based on the optional listing upgrade fees, the costs for fixed-price listing are:

• Bold font: $2/£1.95 (for ≤ $150/£146) to $3/£2.92 (for ≥ $150/£146)
• Two category listing: extra fees
• Listing designer: $0.10/£0.90 (for ≤ $150/£146) to $.20/£.19 (for ≥ $150/£146)
• Subtitle: $1.50/£1.46 (for ≤ $150/£146) to $6/£5.84 (for ≥ $150/£146)

For auction-style listings, the costs are:

• Bold font: $4/£3.90 (for ≤ $150/£146) to $6/£5.84 (for ≥ $150/£146)
• 1, 3 or 5-day duration: $1/£0.90 (for all prices)
• Subtitle: $1/£0.90 (for ≤ $150/£146) to $3/£2.90 (for ≥ $150/£146)

Price and Quantity of the Product

You will need to pay for each one for duplicate listings. However, you'll only be charged once for your entire listing when you publish it with multiple goods like a pack of 4 trousers or items with different sizing and colour.

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2. Final Value Fees

The eBay final value fee is an additional charge for selling an item. It combines around 15% of the selling price + $0.30/£0.30 per sale for most categories. The selling price includes handling costs, the buyer’s chosen delivery method, sales tax, and others.

For example, if you sell a pair of shoes for $100, the final value price will be: 15.55% of 100 +  $0.30/£0.30 = $15.85. The price for the same item will be £12.20 when it's sold for £100.  

The fees for some common categories are:

• Clothing, shoes, and accessories: 15.55% for less than $100 and 11.9% in the UK
• Automobile: 12.55% (up to 8.9% in the UK)
• Electronic items: 12.55% (up to 9.9% in the UK)
• Movies, music, and books: 15.55% (9.9% in the UK)
• NFTs: 5%
• Business products and industrial equipment: 3% for less than $15,000 (11.9% in the UK)

The final sale price is calculated on the lowest shipping costs when you offer international or 1-day shipping and include a free option or a lower delivery charge. But if you don't offer any cheap or free shipping method, it's based on the buyer's chosen option.

3. Additional Final Value Fees

This charge applies if a seller breaches eBay’s off-site trade policies or the listing doesn’t fulfil performance criteria.

These fees can add up quickly and reduce the profit margins. So, be aware of eBay's rules and follow them.

4. Real Estate Listing Fee

This listing fee includes notice, optional listing, and insertion fees. Real estate listings might be auctioned, classified ad-style, or fixed price.

• Auction-style (1, 3, 5, 7, or 10 days): $35 (notice fee) + $35 (insertion fee)
• Classified Ads (30 days): $0 (notice fee) + $150 (insertion fee)
• Auction-style or Fixed Price (until cancelled or 30-day): $35 (notice fee) + $50 (insertion fee)

UK sellers have to pay a flat £35 listing fee (including no final value fee) for each property listing.

5. Payment Processing Fee

eBay manages the payments for sellers. It was created years ago to streamline eBay’s cost structure and eliminate third-party transactions for sellers and customers.  

The platform does not charge any extra fee for payment processing. It's included in the final value fee of a sold item. The good news is you can save money on your eBay fees through eBay management payments.

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How to Calculate eBay Fees

Before calculating eBay fees, you'll need to know the selling price of your item. The listing price is a fixed amount determined by the item category.

This sounds like a lot of work, and it is! But to make your life easier, we have collated a list of the best eBay fee calculators which conveniently show any fees or deductions applied to your item's final selling price.

FAQs about eBay Seller Fees

Do I pay eBay fees if an item doesn’t sell?

Yes, you will pay the insertion fees whether your items get sold or not. However, you don't need to pay the final value fee for unsold items.

How do I reduce eBay seller fees?

To reduce the eBay selling fees, you must open an eBay store, create a PayPal account, lower your optional listing upgrades, and increase your shipping amounts.

Do I need a tax ID to sell on eBay?

You only need a tax ID once the sales total is over $600. Sellers in the USA must submit an Individual Tax Identification Number (ITIN) or Social Security number (SSN). eBay UK requires the sellers' VAT registration number.

Final Words

eBay fees are an essential consideration for any seller interested in maximising their sales earnings. While eBay provides several ways to sell goods, it also charges sellers for each listing.  

I hope that this guide has been helpful in understanding eBay seller fees in 2023. However, if you don’t want to waste your precious time calculating eBay fees manually, let Link My Books take care of it for you.