For Seniors: How to Figure Out eBay Selling Fees

Unlike traditional businesses, on eBay, you don’t have to spend much money to sell your items. eBay keeps selling fees low and volume high. eBay does, however, charge sellers for selling their wares on the site.

Keeping costs low for sellers is one reason eBay has become one of the most successful e-commerce companies on the Internet and a darling of Wall Street.

eBay’s fees vary with the type of listing (auction, fixed-price, and so on), the type of product (media, vehicle, real estate, for example), and the special features used for a listing (bold typeface, extra pictures, and so on). eBay’s fees fall into three main types:

  • Insertion fees: Every item listed on eBay is charged an insertion fee. The insertion fee is calculated on a sliding scale based on the minimum bid (your starting price), your fixed-sale price, or the reserve price (the secret lowest price that you’re willing to sell your item for) for your item.

  • Final Value Fees (FVFs): If you follow the movie business, you hear about some big A-list stars who take a relatively small fee for making a film but negotiate a big percentage of the gross profits. This is known as a back-end deal — in effect, a commission based on how much the movie brings in.

    eBay does the same thing, taking a small insertion fee when you list your item — and then a commission on the back end when you sell your item. This commission is called the Final Value Fee and is based on the final selling price of your item.

  • Optional fees: You don’t have to pay a license fee and destination charge, but setting up your listing can be like buying a car. eBay has all sorts of options to spruce up your listing page.

blog comments powered by Disqus
Advertisement

Inside Dummies.com

Dummies.com Sweepstakes

Win $500. Easy.