Selling unwanted items is a great way to make some extra cash. Ebay fees can be a bit of a shock at times though. It is therefore important to be able to minimise the fees when selling on Ebay.
The fees you pay can be divided into 3 main parts:
When you are actually adding your item to Ebay you go through the process of listing it. There are various fees charged at this stage in the process.
The first fee will depend on whether you have a Private Seller Account or a Business Seller Account.
With a Private Seller Account you can list up to 20 items a month for free. After your free 20 items, each item you list costs £0.35.
With a Business Seller Account it is much more complex as you can add various shop subscriptions. For this post I will assume you have a Private Seller Account.
In addition to the fees based on your account type, there are fees to add various features to your listing. These are added as you complete the listing process:
You start off with a title, for example “Gold Necklace” and then decide which category to list it in. When you enter the title you will now get various options to choose from in a drop down menu:
Click on one of these options to get to the listing form. Your choices on the listing form are important. You should note the fees for the following:
- Adding a Subtitle – This adds £1 to your cost
- Listing your item in more than one category – This adds 35p
- Displaying a larger photo in search results – This adds £2.50 for some listings but is free for others.
- Adding a reserve price – This adds 4% of the reserve price you set (reserve of £10 = 40p)
- Adding a buy now price – This adds 50p to your cost
All of these are optional and personally I do not use any of them.
The price you charge for postage effects ebay fees too. You need to be aware of this when filling in the listing form.
Ebay charges a final value fee of up to 10% (for private sellers). This is on the full price the item has sold for INCLUDING the postage. This means selling an item for £5 + £3 postage will cost 80p.
Fees for receiving payment
You will also have to pay a fee if the buyer uses paypal as the payment method. This is 3.4% of the TOTAL amount you receive + 20p per transaction.
Total Fees Examples
To help simplify things for you I have done a few of the calculations for your info. These calculations DO NOT include listing costs.
Total Selling Cost
£1.00 = 10p Ebay + 24p Paypal + Postage. 55p is lowest price for UK postage, so at this rate you will get 11p for this sale.
£3.00 = 30p Ebay + 31p Paypal + Postage. 75p is the lowest price for large letter UK postage, so at this rate you will get £1.64 for this sale.
£5.00 = 50p Ebay + 37p Paypal + Postage. £2.85 is the lowest price for small parcel UK postage, so at this rate you will get £1.28 for this sale.
£10.00 = £1 Ebay + 54p Paypal + Postage. £4.95 is the lowest price for medium UK postage, so at this rate you will get £3.51 for this sale.
£20.00 = £2 Ebay + 88p Paypal + Postage. £6.05 is the lowest price for recorded medium UK postage, so at this rate you will get £11.07 for this sale.
£50.00 = £5 Ebay + £1.70 Paypal + Postage. £6.05 is the lowest price for recorded medium UK postage, so at this rate you will get £37.25 for this sale.
£100.00 = £10 Ebay + £3.60 Paypal + Postage. £11.99 is the lowest price for recorded UK postage with sufficient insurance, so at this rate you will get £74.41 for this sale.
As you can see selling fees and postage can take quite a chunk of the money made from sales on Ebay. I used to list items starting at 1p or 99p on ebay, but due to the fees it is no longer worth risking this in my opinion.
How to Minimise the Fees on Ebay:
- Use only your Free Listing allowance of 20 items per month.
- Do not add a subtitle to your listing.
- List in one category only.
- Do not use larger photo listings
- Avoid adding a reserve price
- Do not add a buy now price to auction listings
- Keep your postage charge low
- Offer local collection
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