How to Understand eBay Fees

There are four different kinds of eBay fees that you will incur if you sell an item on eBay. Be prepared to calculate the fees before you start listing to make sure that will be profitable in your sale.

1. Understand eBay Fees

The following fees apply when you display your item on eBay:

  • Listing Fees – based on the starting price of the listing.
  • Final Value Fees – based on the value of your item (what it sold for).
  • Promotion Fees – optional fees for giving your item more exposure.
  • Payment Processing Fees – collected when a buyer pays you.

Click here to see the eBay Fee List.

2. Choose Your Pricing Strategy With eBay Fees in Mind

Once you determine the approximate value of an item, you can then make an informed decision about the best pricing strategy. There are a couple of pricing approaches that can be considered when deciding what strategy to use. The table below summarizes the two approaches and their consequences.

Low starting price
  • Many bidders
  • Leaves seller vulnerable to sell at low price
  • High likelihood that item will be sold
Higher starting price
  • Fewer bidders
  • Guarantees seller a minimum sales price
  • Lower likelihood that item will be sold

3. Recognize that eBay Feedback Builds Your Reputation

Building a great reputation on eBay is an important part of being a successful online seller. Your feedback score is displayed next to your user ID on all of your listings. High feedback inspires buyer confidence and increases sales. Start out by listing 10 of your own items to build your feedback. Work toward becoming a PowerSeller – an eBay program which gives recognition to successful sellers and earns buyer respect.

4. Understand How the Feedback Rating Works

The feedback rating system is based on comments from your buyers.

  • +1 point for each positive comment.
  • 0 points for each neutral comment.
  • -1 points for each negative comment.
  • A star icon for 10 or more positive comments.

5. Know How Your eBay Profile Can Work for You

Promote your credibility through your About Me page. This is your opportunity to promote yourself, your services and your website (if you have one). eBay users can access your About Me page by clicking the blue-and-red- “me” icon next to your eBay user ID.

Tips

  • With a low starting price, eBay fees are relatively low and the low price creates bidder excitement and demand. There is also little risk that the item won’t sell. However, this strategy will leave you vulnerable for the item to sell at a price that is lower than acceptable to you.
  • With a high starting price, eBay fees can be high and demand for the item would be dampened. However, there is no risk that the item would sell at a price that would be too low.

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