As a small business owner who has sold over $500k in goods on eBay over the past decade, I‘m often asked, "How much does eBay actually take from each sale?"
It‘s a valid question for any entrepreneur considering leveraging the platform‘s built-in audience of over 159 million buyers. But deciphering eBay‘s complex array of fees can be confusing.
I‘m going to break down exactly how much eBay deducts from your sales in simple terms – including hard numbers based on real sales data.
A Look Back: How eBay‘s Fees Have Changed
Let‘s start with some background. Over the past several years, eBay has repeatedly updated its US fee structure and raised rates across categories:
- In 2020, fees increased between 2% to 4% based on the item category
- In 2021, most final value fees rose around 3%
- Most recently in March 2022, final value fees increased another 1.5% for non-store sellers and 0.5% for store subscribers
While increments may seem small, they add up quickly. For context, had you sold $100k in goods on eBay in 2019, a 4% increase in final value fees would‘ve cost you over $4k extra in 2024!
As a small business, staying abreast of these changes is crucial for maintaining profitability.
eBay Fee Structure Breakdown
When listing an item on eBay, you‘ll incur:
- Insertion fees to create the listing
- Final value fees when your item sells
You may encounter others like listing upgrade fees too, but insertion and final value fees make up the bulk of what eBay deducts from transactions.
Insertion Fees
Insertion fees to list an item are free up to your monthly allowance:
- 50 free auction-style listings
- 150-250 free fixed-price listings
After exceeding your allowance, you‘ll be charged $0.35 per listing.
Pro Tip: Make the most of free listings before paying insertion fees to maximize profit per sale!
Final Value Fees
However, the final value fee is where eBay really takes its cut. This fee applies to the total sale amount including item price + shipping + taxes.
As a percentage-based fee, your payout decreases as sales increase:
- For non-store sellers, final value fees range from 10% to 15% based on category
- With a Basic eBay Store, fees range from 8% to 12%
- Anchor Stores see the lowest final value fees from 5% to 9%
How Final Value & Insertion Fees Impact Your Payout
To demonstrate how these variable final value fees affect your bottom line as a seller, let‘s compare three examples:
- Non-store seller
- Basic eBay Store Subscriber
- Anchor eBay Store Subscriber
We‘ll assume a sale of a collectible trading card valued at $1000 with $15 shipping.
| Seller Type | FVF Rate | Fees | Net Payout |
|---|---|---|---|
| Non-Store | 12% | $127 ($1000 sale + $15 shipping) x 12% | $888 |
| Basic Store | 10% | $106 ($1000 sale + $15 shipping) x 10% + $21.95 monthly fee | $887.05 |
| Anchor Store | 7% | $74 ($1000 sale + $15 shipping) x 7% + $349.99 monthly fee | $590.01 |
Key Takeaway: While Anchor Stores see the lowest final value fee rates, the high monthly subscription negates this at lower sales volumes. Basic eBay Stores make the most financial sense for small businesses with <$20k in monthly sales.
Tips to Minimize eBay Fees in 2024 And Beyond
As an experienced seller, here are my top 4 tips to reduce the fees eBay takes from your sales:
1. Leverage Promotions
eBay frequently offers special discounts for Top Rated sellers and coupons to reduce final value fees during peak seasons.
2. Price Items Strategically
Consider bumping prices by 1%-2% on common sale categories like electronics and toys to account for higher final value fees.
3. Swap Uncompetitive Categories
Redirect efforts from categories with fees exceeding 12% to more favorable ones like books, shoes, and clothing.
4. Negotiate Custom Packages
If you‘re moving significant inventory (>5000 units/month), contact support to discuss discounted pricing.
While eBay fees eat into margins more than competitors like Kijiji and Facebook Marketplace, the unparalleled access to buyers worldwide frequently makes up for this premium.
Carefully monitoring changes to eBay‘s fee structure and utilizing the above savings tactics allows small retailers like us to thrive on the platform. Feel free to reach out if you have any other questions!
