Are eBay fees too high? Maybe. As a matter of fact, rising eBay fees are a major reason why more sellers are looking for an alternative marketplace.
In many cases, eBay fees become too high because they are affected by your seller performance and additional charges besides the compulsory ones (store subscription, insertion, and final value fees). But is there any way to reduce your high eBay fees? Yes, there certainly are!
In this article, we’ll be showing you 9 ways to lower eBay seller fees, which are:
- Understand the eBay fee structure
- Calculate the profits before listing your item
- Revise your eBay subscription plan
- Opt for eBay annual subscription
- Claim your insertions credits from non-paying auctions
- Request for final sales fees credits
- Evaluate your listing upgrades
- Lower eBay shipping costs
- Become an eBay Top Rated seller
Let’s get right into it!
How Much Does It Cost to Sell on eBay?
Before discovering why are your eBay fees too high, it is important to note some new updates on eBay selling fees.
When did eBay fees get so high? Effective March 15, 2024, eBay will increase the per-order fee for sales exceeding $10 from $0.30 to $0.40 across all product categories. This change will result in an additional $0.10 fee for items priced over $10, including shipping and tax. For example, a $25 trading card will now incur a $3.71 fee instead of $3.61. To mitigate the impact on lower-priced items, the per-order fee for orders of $10 or less will remain at $0.30.
With eBay’s recent per-order fee increase, understanding the full cost of selling on the platform is crucial. Like most online marketplaces, eBay charges various fees. These fees have often sparked debate among sellers.
How much does eBay charge to sell? To provide a clear overview, we’ve outlined the eBay fees review in the table below. For a comprehensive breakdown, check our detailed article on the eBay fees for selling. It’s already available on LitCommerce Retail Blog!
eBay Selling Fees | |
Store subscription fees | From $7.95 to $349.95 per month (Monthly billing) From $4.95 to $2999.95 per month (Annually billing) |
eBay listing fees | First free 250 listings then $0.35 per listing |
Final value fee | 3% to 15% of the final order value |
eBay taxes | Variable depending on your income and other govern regulations |
Additional seller fees | Variable depending on your selling contexts and listing upgrades |
eBay has listed compulsory fees for opening a store. However, it is worth noting that you might be subject to several fees if you sell internationally or fail to adapt to eBay’s business performance standard.
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People are saying that selling on eBay is too expensive compared to many eBay alternatives, including Etsy, Amazon, and other selling channels. To make it clear if eBay fees are too high right, let’s compare it with other marketplaces:
Marketplace | Insertion Fees | Final Value/Transaction Fees | Subscription Fees | Payment Processing Fees | Additional Notes |
eBay | $0.35 after 250 free listings | 10% - 15.55% (average ~13.25%) + $0.30 | Starting at $7.95/month | $0.30 per transaction | Free listings up to 250/month |
Amazon | None | 6% - 45% (average ~15%) | $39.99/month (professional) | Varies (3% - 5% + $0.25) | FBA fees apply for fulfillment |
Etsy | $0.20 per listing | 6.5% on sale price | None | 3% + $0.25 to 6.5% + $0.25 | Etsy listings only last for 4 months |
Facebook Marketplace | None | 5% for shipped items | None | Varies (if using Facebook payments) | No fees for local sales |
Craigslist | None (most categories) | None | None | None | Fees apply for certain categories only |
So here are my thoughts:
While eBay’s fees can be seen as high, particularly the final value fees, they are comparable to those of Amazon and Etsy, especially for certain categories. However, eBay does charge some unusual fees on optional listing upgrades like bold listing fees.
Are eBay Fees Too High For You? How to Reduce eBay Fees in 9 Ways
Evidently, it is essential to learn how you can lower eBay selling fees. As you have been given the root causes of the “eBay fees too high” situation, keep scrolling and find practical ways to reduce fees while selling on eBay – one of the top online marketplaces in the world!
#1. Understand eBay fee structure
If you are new and find yourself struggling with expensive eBay costs, perhaps it is worth taking some time to learn the eBay fee structure and relevant policies. As mentioned in our section “How much does eBay charge for selling?”, we have rounded the 5 eBay seller fees, which are:
- Store selling fee
- eBay listing fees
- Final value fee (a.k.a category referral commission)
- eBay taxes
- Other selling fees (international, listing upgrades, etc.)
Apart from the basic selling costs on eBay, you may be dealing with dispute fees, additional final value charges, and high-commission categories. All these factors combined will lead to your “eBay fees so high” dilemma. Considering this aspect, the very first step is to understand well the eBay fee structure and relevant seller regulations to avoid any unnecessary fees.
#2. Calculate the profits before listing your item
Now that you know the different fees applicable to eBay listings, you want to ensure that it’s worth your effort to list your item and sell it on eBay.
Thus, we suggest using the eBay profit calculator, which is readily available. An eBay fee calculator will help you determine whether selling a product is profitable. Beyond that, the eBay calculator lets you enter detailed information about the products, such as your desired price, product category, and selling method.
Putting up a $100 item for sale will take as much time as a $10 item. So if possible, we recommend calculating eBay fees and comparing them to the profit margin beforehand to minimize the fee-to-profit ratio.
#3. Revise your eBay subscription plan
As aforementioned, one of the main reasons you may think, “Aren’t my eBay fees so high?” might be that your subscription plan isn’t suitable for your business.
- For a brand-new seller with little knowledge, it’s generally not worth getting an eBay store subscription right away. It’s better to gain some experience selling first before considering a store.
- The starter store plan doesn’t provide any discounts and may not be worthwhile if you are only listing around 250 items per month, which is the free limit for regular accounts.
- The final value fee discounts provided by store plans can make them worthwhile if you are a serious seller with a high volume. The fee savings can exceed the subscription cost.
- You should consider getting a store subscription when you consistently exceed the monthly free listing limits or reach about $1,500 in sales per month. For many, starting with the Basic store at around $21 per month is advisable.
#4. Opt for eBay annual subscription
After you’ve revised your subscription pricing and chosen the right plan for your business, you can save even more on your eBay fees by paying an annual subscription. As a matter of fact, going for an annual subscription on eBay may reduce your store selling fee by nearly 50% of the initial rate.
Let’s look at an example of eBay’s Basic pricing tier. The initial rate is $7.95 each month, while a yearly subscription requires you to pay $4.95 monthly. Therefore, If you’re paying for the whole year, you save $3 per month. And for small businesses, every penny counts!
#5. Claim your insertions credits from non-paying auctions
eBay insertion fees are charged per listing and are typically non-refundable. However, there’s a potential workaround for auction-style listings. If your auction ends successfully but the buyer doesn’t pay, you can relist the item within 90 days without incurring another insertion fee. To qualify for this credit, the re-listed item must be identical to the original listing.
While this can help offset some costs, it’s important to note that you’ll still be responsible for final value fees if the item sells again.
If you’re concerned about the high fees associated with selling on eBay, understanding the differences between Auctions and Buy It Now listings can help you make more informed decisions. While both formats have their own advantages and disadvantages, one may be more cost-effective for your specific selling needs
#6. Request for final sales fees credits
You’ll have to pay eBay final value fees when your item sells. But in some cases, you can request for this fee to be credited back. These are some of the circumstances where you can ask for a final value fee refund:
- Your buyer doesn’t pay for the item, and you report this to eBay within 32 days;
- Both you and the buyer agree to cancel the order;
- The buyer doesn’t pay or respond within 4 days;
- You issue a refund to your buyer because the sale item was lost during shipping.
Notes: Keep in mind that final sales fee credits may take up to 10 days, waiting for eBay to resolve.
#7. Evaluate your listing upgrades
Making your listings more appealing to buyers is essential for boosting sales. However, eBay’s upgrade fees can quickly add up. One example is the $2 fee for bolding your product title. While this can increase visibility, it may not be necessary for all items. To potentially save money, consider incorporating your bold title into the product image.
Plus, double-check your listings and ensure the “Stand out with a bold title in search results” option is unchecked if you don’t want a bold title.Another common example is the fee for product images. eBay has a certain limit for the number of photos you can upload for free, and an additional fee of $0.35 will be applied if you exceed that number. Make sure that you only upload the necessary images to avoid this fee.
#8. Reduce eBay fees of shipping
Some sellers feel that their eBay shipping fees are too expensive. This is because eBay doesn’t have its own shipping service. Instead, sellers will have to pay for postal services from shipping companies such as USPS or FedEx through their platforms. Therefore, understanding how to ship on eBay and shipping services is essential.
There are several smart tips you can make use of to reduce this cost.
- Take advantage of the different shipping types. For example, USPS Priority Mail is best for shipping heavier packages, while First Class shipping is the cheapest for items less than 16 pounds.
- Do combined shipping for customers who purchase items in separate orders. This is achievable through your agreement with the customers. By combining shipment on eBay, both you and your customers will benefit from reduced eBay shipping costs.
- Take a look at eBay global shipping program. With this program, you can ship your items to a designated shipping center in your country, where eBay then handles your shipping. This helps reduce costs as you do not need to manage international shipping processes or calculate additional fees.
#9. Become an eBay Top Rated seller
Finally, another way to solve your ‘eBay fees too high’ problem is to focus on your business and get recognized as an eBay Top Rated seller. eBay gives top-performing sellers with high seller ratings a discount of 10% on final value fees. This incentive program is designed to encourage excellent customer service and timely shipping.
These are the standard performance requirements by eBay for you to be evaluated as a Top Rated seller:
- Be an active eBay member for at least 90 days;
- Have at least 100 transactions and a total of over $1000 in sales within 12 months;
- Meet eBay’s requirements regarding a transaction defect rate of 0.5% or under and no more than 3 defects from unique buyers;
- Achieve no more than 5 late shipping cases and an overall late shipment of 3% or under;
- Upload tracking within your claimed handling time on eBay and carrier validation for 95% of transactions to US buyers;
- Reach a rate of closed cases without seller resolution of no more than 0.3% and two or fewer ones.
- Comply with other eBay policies.
In return, here are the benefits you will get:
- High visibility on eBay search results;
- Same or one-business-day handling, and a 30-day-or-longer free return period with money-back option.
- The Top Rated Plus seal, displayed prominently in search results and your listing description.
- A 10% discount on final value fees.
eBay Is Still a Profitable Selling Platform If…
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Why Are eBay Fees So High?
There are numerous reasons contributing to your “eBay fees too high” dilemma. Regarding the matter, LitCommerce has done some research. Here are 6 major causes leading to pricey eBay charges:
- Unsuitable eBay subscription plans
- High commission-rate categories
- Additional eBay final value fee
- Listing upgrade fees
- Dispute fees
- eBay fees for selling internationally
#1. Unsuitable eBay subscription plans
Currently, eBay implements 5 different store subscription fees, including Starter, Basic, Premium, Anchor, and Enterprise. The pricing tiers go from Start (the lowest) to Enterprise (the highest).
Except for the Enterprise eBay store subscription, the remaining 4 plans don’t vary much. However, such slight variance over time can contribute to high eBay selling fees. The reason why this is our case refers to you choosing an unsuitable plan due to misestimation of overall business performance, sales capabilities, and other relevant factors.
#2. High commission-rate categories
Being one of the most versatile marketplaces, eBay allows you to list and sell in countless categories, from apparel to real estate. At the same time, you are charged different eBay final value fee rates. This eBay selling cost is pretty much similar to commission rates in other selling platforms.
In particular, the highest commission-rate categories are:
- Watches, Parts, and Accessories (15%)
- Apparel (15%)
- Books and Magazines; Movies and TV (14.95%)
- Automotive Tools and Supplies (13.25%)
- Bullion (13.25%)
Should you be selling in any of these categories, there is a high chance that commission rates are turning your eBay fees too high. The case is even more applicable to those kicking off high-value items.
#3. Additional eBay final value fee
As a matter of fact, an additional eBay final value fee can be the cause of your rising seller costs. According to the house, an additional final value fee comes into the scene when you fail to meet business performance expectations.
Specifically, you may get charged an additional eBay final value fee in the following circumstances:
- You don’t meet minimum eBay seller requirements: If this is your case, eBay will take an additional 6% in the final value fee, starting from the following calendar month. Keep in mind that the additional eBay final value fee rule does not apply to Above Standard and eBay Top-rated sellers.
- You have a Very High “Item not as described” rating: On the 20th of each month, eBay will check your categories to find out if there is any return request because the item is not as described. Based on the gathered information, the marketplace will then determine your “item not as described” rate. Considering this aspect, if you have a Very High rate, you will pay 5% more in the final value fee, which is charged in the next calendar month.
#4. Listing upgrade fees
Another contributor to your “eBay fees too high” situation is listing upgrade fees. Remember that this is not a compulsory charge. Yet, you may have to pay for this eBay selling cost if you have auction-style listings in your store or wish to add premium listing features. Depending on your categories and upgrade types, you may have to pay $1 to $5 per listing.
#5. Dispute fees
eBay disputes can significantly impact your earnings. When a buyer initiates a dispute, you’ll incur a $20 fee regardless of the outcome. This occurs when a buyer claims an issue with their order and requests a refund through their bank. Such disputes can freeze your payouts and require immediate attention.You have two options: accept the dispute and refund the buyer, or challenge it with supporting evidence.
If eBay rules against you, you’ll pay the $20 fee and still have to refund the buyer. Given the rules, it is unsurprising that many disputes will raise your eBay fees too high.
#6. eBay fees for selling internationally
eBay charges an additional 1.5% final value fee on international sales. This fee applies in two scenarios:
1. When you, the seller, are based in the U.S. and ship to a foreign address.
2. When the buyer’s registered address is outside the U.S., regardless of the shipping destination.
If you are selling internationally, your eBay seller fees may include seller currency conversion, which accounts for 3% of the final sale price. However, this currency conversion rate is not fixed for every country. Hence, you should check out eBay’s regulations and determine your conversion pricing.
While eBay fees can be a concern for sellers, it’s important to consider the overall profitability of selling on the platform. Our eBay review explores the potential benefits and drawbacks of using eBay as a selling platform, including a detailed analysis of fees and their impact on your earnings
eBay Fees Too High: FAQs
Your eBay fees are too high can result from you being charged one of the following additional fees. They include: Although eBay will not charge the same amount for each seller, there are still a lot of fees that sellers need to pay. To reduce eBay selling fees, you can implement various strategies such as: Yes, it is worth selling on eBay. Although many e-sellers doubt eBay because of the high fees, the marketplace stills have many advantages, such as: eBay charges several types of fees for sellers, including: To get a more detailed breakdown of eBay fees, you can visit their website and check out the detailed eBay fees for selling. There is no way to avoid eBay’s final value fee because this is regarded as a category commission rate like any other selling platform. You can only avoid additional eBay final value fees by staying away from disputes, meeting eBay standard sale expectations, and describing your items precisely. Here’s new update for eBay’s final value fee in 2023: Effective February 15, 2023, eBay fee adjustments will be made to final value fees in select categories. The maximum increment in any category will be capped at 0.35%. Notably, certain categories, such as Jewelry & Watches and Women’s Bags & Handbags, will remain unaffected by these changes. eBay strives to maintain competitive selling fees within the industry. Furthermore, it’s worth noting that eBay does not impose additional charges for payment processing when sellers conduct transactions on the platform. eBay usually takes from 3% to 15% from a sale as a final value fee. This percentage can vary depending on sales revenue and category. eBay charges fees to cover the costs of operating its platform and providing various services to sellers. These fees help eBay maintain and improve its website, invest in technology infrastructure, provide customer support, develop and implement seller protection programs, and advertise to attract buyers to the platform. Additionally, eBay operates as a for-profit company, and charging fees is a primary way for it to generate revenue. While eBay’s fees may seem high to some sellers, they are comparable to or lower than fees charged by other online marketplaces. It’s also worth noting that eBay offers a wide reach and access to a large customer base, which can potentially offset the costs associated with selling on the platform. Ultimately, sellers should carefully consider the value they receive from eBay’s services and weigh it against the fees charged. eBay transaction fees may appear high due to several factors: While eBay’s transaction fees may seem high to some sellers, they are intended to provide value in terms of access to a large customer base, various selling tools, and seller protection measures. Sellers should carefully evaluate the costs and benefits of selling on eBay compared to other platforms to determine the best fit for their business. Avoiding eBay’s final value fees entirely is challenging because they are a fundamental part of the platform’s revenue model. However, there are strategies to minimize these fees: While it’s difficult to completely avoid eBay’s final value fees, these strategies can help sellers minimize their impact and optimize their profitability on the platform.
Wrapping Up: Are eBay Fees Too High For Small Businesses?
At first glance, many eCommerce sellers would question whether eBay fees are too high for them. However, when breaking down the fee components and comparing them to other eCommerce platforms, eBay fees are quite standard. Yet, they can be complex for new e-sellers.
Now that you know how to reduce the costs when your eBay fees are too high, it’s a great chance for you to try these tips on your store!
Just in case you need a recap, here are 9 ways to reduce eBay selling fees:
1. Understand eBay fees structure
2. Calculate the profits before listing your item
3. Revise your eBay subscription plan
4. Opt for eBay annual subscription
5. Claim your insertions credits from non-paying auctions
6. Request for final sales fees credits
7. Evaluate your listing upgrades
8. Make use of shipping discounts
9. Become a top-rated seller
Should you want to expand beyond eBay and sell on multiple marketplaces to maximize profits, consider using LitCommerce. This multichannel selling tool helps you manage your listings, inventory, and orders across numerous selling platforms like Shopify, Etsy, Walmart, and BigCommerce from one central dashboard.
If you need further consultancy, don’t hesitate to message us; we will reach out as soon as possible!
Finally, to connect with other sellers, learn about the latest eCommerce trends, and get advice on how to grow your business, let’s explore LitCommerce’s Retailer Blog. Happy reading!
