5.10.11

How to Calculate eBay Fees

eBay is an online marketplace where people sell both new and used goods. Over the years, eBay sellers have steadily seen an increase in their final value fees, which is the percentage that eBay takes for each item sold. This has made making a profit difficult for sellers with slim profit margins. Before you decide to sell your goods on eBay, calculate the eBay fees to ensure it's worth it.

Instructions:

1) Visit eBay's help pages (see References) to determine the fee for the item you intend to sell. Fees vary based on listing style and the type of product. Determine if you will sell your item via auction-style or eBay's fixed-price listing.

2) Determine what your listing fee will be. For example, auction-style listing fees typically start at 10 cents to 15 cents, and fixed-price listings fees are .35 cents. Be sure to add any listing upgrades or reserves.

3) Determine what your final value fee will be by calculating the final sale price by the correct percentage. For example, auction-style listing final value fees start at 8.375 percent for the first $25. Fixed-price listing final value fees range from 6 percent to 15 percent, depending on the category of the item sold. Keep in mind that you won't know your final sale price with an auction until the auction ends. However, you can compare similar items sold via auctions to get an idea of what your item may sell for.

4) Subtract any PowerSeller discounts from your final value fee if you are a qualifying PowerSeller.

5) Calculate the PayPal fee. The average eBay seller can expect to incur a transaction fee of 2.9 percent plus 30 cents. Multiply this by your sale price (or anticipated price). eBay only accepts PayPal as a payment method for any items that will be shipped (versus the buyer picking up the item from your home or store), so the fee is unavoidable.

6) Add steps 1 to 4 to determine your total eBay fees.



Source - eHow