Ebay Selling Fees Explained UK & US Seller Fees
This simple guide will explain fees associated with selling on Ebay, how final value and listing fees are calculated for both Ebay and Paypal so by the end of this tutorial, you will know everything you need to know about fees on Ebay. This is part of the How To Sell On Ebay Series
What are the different fees?
There are 3 different types of fees that will apply when first selling on Ebay. There will be others in the future like store fees if you ever subscribe to an Ebay store but I will discuss that in different post. For now, the 3 fees that we will discuss are
Ebay Listing Fees
Ebay Final Value Fees
The first is an Ebay listing fee.
When you list an item on Ebay US, you get to list up to 50 items for free on Ebay US and up to 1000 for free on Ebay UK.
This means that you will not get charged for listing these items
Once you have reached those limits, you will get charged a fee to list an item. On Ebay US it is $0.35 and on Ebay UK it is £0.35
As well as listing fees, you will also get charged a final value fee which is a little more complex however there is no need to over complicate things as there are free calculators to to calculate how much you will get charged. The final value fee will be a percentage of the sale price of the item You can get the exact fees for Ebay US and Ebay UK by clicking on the links above.
Finally there is the Paypal fee which is a fee from Paypal for handling the transaction. Although this may seem overwhelming, it is pretty simple to understand once you know how they work
When do I pay the fees?
When you make a sale, Paypal will automatically deduct the fees that you owe them so the money paid into your Paypal account will already have the Paypal fee deducted.
Ebay works slightly differently, any fees they charge will be invoiced so do not go spending your profits straight away as at the end of the month, Ebay will send you an invoice for how much money you owe them
How can I calculate the fees?
There are different fees for different categories on Ebay and there is no point trying to memorize them all because Ebay is a very dynamic platform and they are always making changes and updates to the platform so its better to have a basic understanding of how it works and then use tools to support you.
There are different final value fees for each category so as a rule of thumb, it works out to 10% on average for most categories.
This free Ebay Fees Calculator can be used to calculate how much profit you would make on each product. You can switch between different countries so at the top, make sure that you select the Ebay site you are selling on.
Looking at the example below, if we sold an item for $100, charged $4.95 for shipping and if we purchased the item for $60, we would make $26.17 profit after all fees. Have a look at the example and explanation below.
The example below is for Ebay US, for Ebay UK, watch the video I have linked at the bottom.
1) Sold Price
Enter the price you expect to sell the item
2) Shipping Charge
Enter the price you will be charging the customer for shipping, if you will offer free shipping, then leave it blank
3) Item Cost
Enter how much the item cost you
4) Shipping Cost
Enter how much it will cost you to ship out the item
5) Ebay Store
If you are subscribed to an Ebay store, select the store you are subscribed to
6) Top Rated Seller
If you are a Top Rated Seller on Ebay then select yes
Select the payment method you will receive the funds, this will be Paypal as default
8) Overseas Sales
Select if you are selling internationally, if you are just selling in your local country, then just leave as no.
9) Sales Tax
If you will be charging sales tax, add it here, otherwise leave blank.
10) Item Category
Select the category of your item
11) Ebay Fee
This figure will show how much Ebay will invoice you for the Final Value Fee
12) Sales Tax
This will be charged to buyer only
13) Paypal Fee
This figure will show how much Paypal will deduct automatically from the sale when funds are paid into your Paypal account
14) Total Profit
After all deductions, this figure will show how much profit you will make from the sale.
This calculator comes very handy, it would be a good idea to bookmark it on your phone so when you are out and about and see a product you may want buy to sell, you calculate potential profits on the go.
The video below goes into more detail so check it out to learn more about Ebay Fees.