How To Lower eBay Seller Fees (2024)

Using Gallery Plus is free for listings in collectibles, art, pottery and glass, and antique categories.

Optional Promoted Listings Fee

EBay sellers also have the option of promoting their listings so that their items get greater prominence in search results on eBay and appear in "related items" when buyers are browsing an item being offered by another seller. Promoted listings are available to all sellers, whether or not they have a store subscription.

The fee for promoted listings can be set by the seller, based on the ad-rate trends of what other sellers have committed to paying, starting at 1% or more of the final value fee that's assessed. The fees are only collected if a buyer clicks on an ad and then purchases the item advertised within 30 days. There are certain eligibility requirements:

• Seller performance level must be Above Standard or Top Rated
• The listing must include at least two images
• Only fixed-price listings can be promoted
• Vehicle, Real Estate, and Travel listings are excluded
• The listing must be complete (no "parts, not working" listings)
• Item cannot be offered for local pickup

Classified Listing Fees

Listing a classified ad is another option for selling on eBay. Unlike auction-style and fixed-price listings, eBay sends sellers contact information for buyers and allows them to get in touch directly. Although these transactions are conducted outside of eBay's platform, if the contact information is misused, sellers can face restrictions or suspension. Their ability to resolve disputes is limited if a buyer chooses not to pay.

The fee for listing a classified ad is $9.95 for a 30-day listing, and there are no final value fees.Sellers can place classified ads in four different categories:

• Business & Industrial (building materials and supplies, trade show displays, and websites and businesses for sale)
• Specialty services (artistic services, custom clothing and jewelry, graphic and logo design, home improvement, media editing and duplication, web and computer services)
• Travel (lodging, luggage, vintage luggage, and travel accessories)
• Everything else (eBay user tools, funeral and cemetery, information products, reward points, and incentives)

Punitive Fees

There are additional fees that sellers can incur if they don't abide by eBay's rules or they don't meet the minimum best practices established for sellers. If a seller attempts to coordinate a sale with a buyer outside of the confines of eBay by sharing contact information with a buyer, the seller will be charged a final value fee for the transaction, even if no sale has been made.

For auction-style listings, the fee is based on the whichever price is the highest: the starting auction price, the Buy It Now price, or the price negotiated by the buyer and seller. The final value fee for fixed-price listings will be assessed based on the fixed price or the price negotiated by the buyer and seller.

Payment Processing Fees: eBay Managed Payments

EBay offers a managed payment system for sellers, in which they can offer different payment options and consolidate all of their payment processing in one place. PayPal was the standard for payment processing on eBay before it transitioned to managed payments.

There are several advantages to using eBay's managed payments system. Sellers can accept a wider variety of payment methods, including Apple Pay, Google Pay, credit, debit, and gift cards, in addition to continuing to accept payments via PayPal. Sellers can also set up automatic transfers to their bank when a buyer submits payment, rather than having to manually arrange for a transfer through PayPal, which means avoiding fees changed by that third-party vendor.

The fees for managed payments on eBay are rolled into the updated final value fee.

and its fee structure is also straightforward. The company charges a 2.9% processing fee in addition to a set rate of $.30 for each eBay sales transaction.

To transfer payments from PayPal to their bank, sellers need to provide banking information. Although there is no fee for basic transfers, which take two to three days, if a seller prefers immediate access to funds, PayPal charges a 1% fee for instant transfers.

If the sale is from an international buyer, the percentage collected is 4.4%, and the set rate is based on the currency the buyer pays with. PayPal doesn't charge a fee to sign up for or maintain an account, and all major credit cards are accepted.

If a seller primarily deals with lower purchase price items, there is another option available for them to reduce their fees. Micropayments are geared to sellers who typically sell items for less than $12. The fee structure for this option charges a greater rate percentage-wise (5%) but has a lower flat-rate fee of $.05 per domestic transaction, and 6% plus a set rate based on a buyer's currency for international sales.

High-volume sellers also have an option to lower their fees by applying for PayPal's merchant rate, which is available to sellers who sell $3,000 worth of merchandise per month.

How To Reduce eBay Seller Fees

There are a few tactics you can use to reduce the amount of fees you pay eBay for selling on its platform.

Sign Up for the Right Store Subscription

You stand to save money by signing up for an eBay store subscription—but only if you get the right subscription for the number of items you sell. Make sure the subscription you choose matches your store's typical sales volume.

Avoid Unnecessary Upgrades

Although you may enjoy the variety of listing upgrades available, remember that these optional features come with a price. By keeping your listing simple, you'll be able to lower the fees you'd pay for upgrades.

Follow Up on Unpaid Sales

If you made a sale but the buyer doesn't pay, don't forget to request a fee credit from eBay. The final value fee is charged regardless of whether the seller is paid, so you'll need to cancel the sale or report the item as unpaid. You might also be able to get a refund for the listing fee when relisting the item for sale.

Don't Break the Rules

EBay charges punitive fees when sellers don't abide by its rules. For example, you can avoid a $20 dispute fee by taking care to avoid being found responsible in buyer-seller disputes, such as chargeback situations.

Fee Calculators

There are numerous third-party rate calculators you can use to estimate all the fees associated with eBay. There are some that calculate the eBay and PayPal fees, some that estimate how much profit you can make after fees are deducted, some that offer simple spreadsheet breakdowns, and still others that are available in app form.

Frequently Asked Questions (FAQs)

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