How much does eBay take from sale? What are Insertion Fees?

How much does eBay take from a sale? What are Insertion Fees? If you want to sell products on eBay in 2023, you aren’t alone. eBay has millions of sellers all willing to put up with the fees for selling that eBay offers. But how much does it cost to sell on eBay?

eBay sellers pay an average of 10% of their product’s value. The cost changes depending on the value of the sale and the product category.

When it comes to using eBay’s platform, understanding how much they take is essential to know you will make a profit. So if you want the ultimate breakdown on eBay fees for selling, keep reading.

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How much does eBay take from a sale?

eBay does not automatically include shipping costs, so you will need to calculate them yourself. Shipping costs might vary depending on your preferred provider.

Here are your options:

UPS – UPS has a shipping calculator for people who use their services.
USPS – USPS has a shipping calculator as well.
FedEx – You can estimate shipping rates using this tool.

If you have a shipping center from any of the above providers, you can get them to estimate your per-package costs. You can typically save money by opening a business account.

eBay Managed Delivery was eBay’s fulfillment program, but it was closed before leaving the pilot stages.

What are Insertion Fees?

An insertion fee is a cost you need to pay to have your item listed. It costs 0.35 cents per listing. These costs are non-refundable regardless of whether your item sells.

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If your product is in multiple categories, you will need to pay a new fee per category. If your listing has various items (and one type), you only receive one charge. If you create duplicate listings, you will need to pay for each one.

eBay will not charge you an insertion fee if you list fewer than 250 items per month. If you have an eBay Store, this allotment is larger. Both businesses and individuals are required to pay insertion fees after they exceed their monthly allowance.

Insertions Fees Specific To Car Sellers
Those who sell cars and trucks have a more significant insertion fee of $50. Motorcycle and boat sellers need to pay $20.

Automobile sellers can purchaseadditional listing enhancers that include the following:

Bold title: $5.
A 10 or 30-day listing duration: $18 to $50.
Buy It Now option to Auction Listing: $10.
Gallery plus (improved images): $5.
Additional photos: $0.15 per photo (up to 12), $4 total (up to 24 photos).
Listing designer exclusive to selling manager pro subscribers: $5.
Reserve price (up to $75 thousand): $49 ($99 if beyond $75 thousand).
Subtitle: $5.
Subtitle/ Gallery Plus/ Listing Designer (otherwise known as the value pack): $7.

Final Value Fees (eBay’s Percent of Every Sale)

eBay’s final value fees are often the largest single cost for sellers. They’re taken as a percentage of the amount actually charged to the customer. That includes the item price, the shipping cost, and any sales tax. (One small break: If the buyer chooses international or 1-day shipping, you’re charged as if the shipping cost was your cheapest domestic option.)

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The percentage depends first on whether you use managed payments. This is the default for new sellers, and all other sellers will be required to switch to managed payments by the end of 2021. You can find the final value fees for managed payments sellers here and for non-managed here.

Next, it depends on the category you’re selling in and whether you have an eBay Store. Following is a quick overview of what you might have to pay on each sale. If you know what you want to sell, take notes—we’ll get to calculating your total fees later on.

With no Store or a Starter Store (managed payments in bold / not managed in italics / same for both in standard text):

15% / 12.85% on watches.
14.55% / 12.2% on books, magazines, movies, TV, and most music.
12.55% / 10.2% for most listings.
12.35% on bullion and on trading/collectible cards.
5.85% / 3.5% on guitars and basses.
5% on NFTs.
3% / 2% on some Business & Industrial categories.
0% on athletic shoes with a starting price of at least $100.

Note that on managed payments, most categories have tiered pricing structures. For example, if you sell an item worth more than $7,500, the fees often drop to 2.55%. On non-managed payments, there are usually fee limits instead, generally $750 as the max fee.

Customer Service Affects Final Value Fees

If you offer a great customer experience, you can become a Top Rated Seller and get 10% off your final value fees. (E.g., if you normally paid 12.55%, you’d pay 11.295% instead.)

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But eBay knows people are only motivated so far by carrots. They also have a stick: if you drop below their seller performance standards, you’ll get an extra 5% slapped on top of your final value fees (whether or not you use managed payments). They’ll also nail you with the extra 5% in categories where your rate of “Item not as described” claims reaches “Very High,” even if you’re an above-standard seller.

Thankfully, these extra fees don’t stack. You won’t have to pay an extra 10% if both situations apply. But, the results are still really bad.

If you have one of these penalties, that means that if you normally paid 12.55%, you’d pay 17.55% instead.

Worse, this extra fee ignores caps and reduced-fee thresholds! That makes it equally bad regardless of whether you use managed payments or sell high- or low-value items. Here’s how it can play out:

Non-managed payments: If you sold something worth $10,000, your normal 10.2% would stop at $750 as if it had only been worth $7,353. However, the 5% penalty would be charged on the whole thing for an extra $500 in avoidable fees.
Managed payments: If you sold an antique worth $10,000, you would normally pay 12.55% on the first $7,500, and then just 2.35% on the last $2,500. Your total fee should be exactly $1,000. But with the extra 5%, you’d pay $1,500 instead!

Those are some high stakes! Take eBay customer service seriously, be honest, and ship on time to keep your final value fees affordable.

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