Have You Done Your Math Before You List Your Item In EBay?
trading platform for buyers and sellers. It is more than a flea
market as brand new goods are being sold as well. Whether you
want to make it big in eBay or you just want to get rid of your
old stuffs, there is always a place for you.
If your intention is just to get rid of your old stuffs and your
motive is not to make a living out of it, then the various
administrative fees associated with it may not be a big concern
to you. However, it is good for you to know what these
administration fees are so that you will not get a rude shock
when you receive your final payment at the end of the
However, if you are a serious seller, the various administrative
fees will be a big concern to you. This is because, even though
you did not make a sale after listing, you will still need to
pay the listing fees. Depending on your pricing strategy, the
listing fees vary. It can really add up. If you just list a few
items, the total listing fees might not be substantial, but if
you list a lot of items, the listing fees many be huge.
Remember, you have to pay the listing fees irregardless of
whether you have made a sale.
The important administrative fees that you need to take note are
the listing fees (there are various types), eBay final value
fees and Paypal commission (assuming that you are using Paypal).
You will have to pay all these fees as they are compulsory and
you cannot get away with it. Therefore, it is important that you
take these fees into consideration before you list your item.
This is because, these fees will reduce your profit margin (cash
at hand after shipping and handling and administration fees).
Let us look at the two fees that you have to pay to eBay.
Firstly, it is the listing fees. EBay charge $0.3 for items that
have bidding price start at $0.01 to $0.99 range. It charges
$4.8 for items that having a bidding price starting at $500 and
upwards. There are other fees you may incurred if you choose to
have enhanced features such as, But It Now (BIN), highlighting
texts, featured product, gallery, bolding, gift icon, and
others. We shall not discuss those additional fees here.
The second component to watch out for is the percentage eBay
will deduct from your final value fees. Currently, the deduction
is set at 5.25% of the first $25, 2.75% of the next $975, and
1.5% of the amount over $1,000.
The third component to consider is the commission determined by
Paypal assuming that your payment is via Paypal. You will need
to consider Paypal as one of the payment option as this is one
of the most convenience ways of payment. The payment is
immediate and you can see the money coming into your account as
soon as the winner pays you through Paypal.
Let say you have managed to sell a camera staring at $0.5 and
sells for $500. You will need to pay the following,
Listing fee: $0.3 Final Value Fee: $25 x 5.25% + $475 x 2.75% =
$14.37 Therefore, your net profit is $485.63.
As you can see, the administrative fees have taken up 2.87% of
your final selling price. So, do you still make money with
$485.63. I do not know. It depends on your cost price.
Whatever case may be, the administrative fees cannot be taken
lightly as they play a major part in your overall pricing
strategy. If bottom line is your ultimate concern, then you will
have to take this seriously. Do you math first before you list
your item. The administrative fees can really eat into your
profit margin. If you are new to eBay and you want to sell your
stuffs at eBay, you will need to study into all these
administrative charges carefully and thoroughly. After all, it
is not free to sell on eBay. More information on eBay can be
found at eBay Summary.
(Note: Figures of Listing fees and final value fees percentage
are taken from 'eBay Strategies' by Scot Wingo. Prentice Hall