A link to download the PDF will arrive in your inbox shortly. While some users compare eBay to other marketplaces , like Amazon, eBay still ranks as the second most important online marketplace in the United States. During December , the most popular retail sites in the U. The resulting ranking revealed:. Being an eBay seller is certainly fun, exciting, and can be very profitable for brands and retailers around the world.
But in order to make the most of the marketplace, it is important that you have a full understanding of eBay seller account fees. They can also vary depending on the eBay market. Prior to listing on eBay, you need a full understanding of what to expect. Final value fees are what most people think of when they think of eBay selling fees. These are based on the subtotal amount your customer pays. An insertion fee is a listing fee.
These are all optional. But, most sellers on eBay actively use PayPal for all their transactions. PayPal charges a fixed amount and percentage to your transaction. When it comes to refunds on eBay, an eBay seller should fully understand eBay refund policies. Be aware that eBay offers assistance to buyers as well, to request a refund from an eBay seller that may have opted to not accept refunds.
In this case, the eBay seller will get their money back. Fees for return shipping are paid by whoever is designated in the return section of the listing on eBay. Sellers can select to either pay for returns or have the buyer responsible for costs associated with return shipping. Requiring the buyer to pay for return shipping can deter buyers from returning an item unless absolutely necessary. To check your current Seller Level, visit your Seller Dashboard. Source: Returns.
The additional final value fees added to your total cost are not subject to the maximum final value fee caps that ordinarily apply, as they are penalties. To work out the fees you might expect to pay using different versions of eBay, try this eBay final value fee calculator. This next section will cover how to avoid eBay final value fees being higher than necessary. We already touched briefly on the benefits of having a store subscription over a basic account.
Longer subscription periods can also lower your fees. The longevity of a subscription can play a major role in reducing your final value fees. When you have an eBay Store subscription, you get more Zero insertion fee listings per month than sellers who don't have a Store.
The number you get depends on the Store subscription package you choose. All existing selling limits on your account as well as category and item limits still apply and may prevent you from creating the maximum number of listings associated with your eBay Store subscription.
Good 'Til Cancelled listings are fixed price listings that renew automatically once per calendar month. These listings count toward your monthly zero insertion fee listings. Fee amounts are based on the terms in effect when the listing goes live and when it renews. From time to time, eBay presents promotional offers with additional zero insertion fee listings, so keep an eye on your messages and the Seller Center.
The total amount of the sale includes the item price, any handling charges, the shipping service the buyer selects, sales tax, and any other applicable fees. If you offer 1-day or international shipping as well as a cheaper or free option like domestic shipping , the total amount of the sale is calculated based on the cheapest domestic option you offer. If you only offer 1-day or international shipping but no cheaper option like domestic shipping, the total amount of the sale is calculated based on the service the buyer chooses.
An order is defined as any number of items purchased by the same buyer at checkout with the same shipping method. If you need to refund the buyer or cancel the sale, you may be eligible for a credit of the variable percentage portion of the final value fee provided that you refund the buyer in full in resolution of a return or cancellation request. You can enhance your listings to help make them stand out by adding certain features, such as subtitles or a bold font.
The fees for these optional listing upgrades vary depending on your item's price and the listing format and duration. Most of the fee structure is the same as for non-Store subscribers. You can find them in this table. If your items are relisted automatically, you'll be charged insertion and optional listing upgrade fees each time your item is relisted.
Not all optional listing upgrades are available with every listing tool and not all optional listing upgrades may be displayed across all our sites, services, applications, and tools. You may be charged final value fees if you violate our policy of buying or selling outside of eBay, or eBay may apply additional final value fees if you are not meeting our performance expectations.
Also eBay charges a Dispute fee and an International fee for Store subscribers as it does for non-Store subscribers. Additional final value fees. Dispute fee. International fee. When you create listings or sell items on an international eBay site, eBay may convert your funds to a different currency in order to collect amounts owed by you to eBay, or to payout funds due to you. For example, if your registered address is in the US and you create a listing on eBay.
When the item sells on eBay. If eBay converts your funds, the conversion will be completed at the transaction exchange rate eBay set for the relevant currency exchange. Amazon is a well-known online shopping platform, and once you learn to tag your products, they may show up in recommended lists. Amazon will also store your products in their massive warehouses if running a small business via Amazon. This can be a significant advantage over using your garage or paying for storage for your products.
Amazon Prime shoppers are more likely to do the bulk of their shopping on Amazon, and if you can reach that audience, you will likely pull in more sales. Like eBay, the fees are a downside, you don't get any interaction with your customers unlike eBay , and your products and your business are enveloped within Amazon, so you don't get the opportunity to grow a brand.
E-commerce can be a risky business, but overall, Amazon may have more safeguards in place because you don't have to interact with your customers. Amazon handles the payments to the seller. However, both Amazon and eBay have many safeguards in place to protect their sellers and customers. There are approximately 7 million U. Amazon has approximately 6 million global sellers. There are around million global eBay customers. Amazon has over million active users around the world.
Whether selling through eBay or Amazon, the key is research. Given the different pricing schemes associated with each company, an item that might be cheaply sold on Amazon could demand high fees from eBay. But the higher price could be justified for the customer service received and a specific audience reached.
Both sites offer pros and cons for sellers, but if you want to create a brand, eBay may be a better option. If you want built-in storage for your products, Amazon may be the right fit.
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