We all hate them. They add up so quickly. And it seems to be like so much. They eat right into your profits, too!
I’m talking about seller fees. Both Amazon and eBay charge a certain amount for each item when it sells. It’s different between the two online giants, but there still pretty similar. At least for some items. While these can be hard for some to figure out, this blog is to help you better understand them!
eBay has a lot of hidden fees. So it’s quite important that you know all of them if you want to be making profit.
eBay charges an insertion fee and a final value fee. On top of that, if you are using Paypal, your going to pay a basic .30 cent fee for having money transferred to your account and a 2.9% of how much was sent to you. For example, I recently sold a 3D face coffee mug for $12.59. Paypal took the 30 cents, bringing my net profit down to 12.29. After the 2.9% of the $12.59, they took another .37 cents. So technically, before fees for eBay, I’ve received $11.59 for the mug. I offered free shipping for the item, which cost $5.80. Bring my net profit to $5.79. My final value fee was at $1.26, and I bought the mug for 50 cents, so I made a net of $4.03. That’s not bad for a mere 5 minutes of listing the item, and packing it all up. Hopefully I didn’t make it too complicated.
In order to keep my costs down for coffee mugs, I always ship using USPS Priority mail Not only are the boxes free, printing labels off of eBay are discounted.
To put it simply: Paypal will charge you about 6% for a $10 sale. And eBay is at about 10% for final value, using my coffee mug. eBay also charges a certain percentage if you charge for shipping. That’s usually why I don’t charge for shipping.
Amazon uses a different way to charge you. Instead of having an upfront listing fee like eBay, they take out a their fees after an item sells. I’ve heard that Amazon takes out about a 3rd of the price you are selling an item for. Amazon is by far more upfront with their fees. The lowest Amazon will charge is 8% and that’s if your selling consumer electronics. And the highest is 15%, and that covers a lot of categories, books being one of them. On top of that, if you are not registered as a professional seller for $40 a month, you are going to be charge a $1 referral fee for anything you sell.
If you choose to do FBA, you’re going to have to pay a little bit more. You are going to pay a picking fee. And a storage fee. For standard size items, it will be .51 cents a cubic foot for the first 3 quarters of the year. The last quarter will be .68 cents. Oversize items are different. Those are .40 cents a cubic foot, and then .53 cents a cubic foot for 4th quarter.
Regardless of who you choose, you should utilize both eBays fee calculator and Amazons Revenue calculator. You should be really using these for every item until you get the basics of how much both Amazon and eBay will be taking out.
Other than that, happy thrifting!