You’ve read many stories of eBay sellers making huge profits selling items on eBay. Now, you want to dip your toes into the ecommerce business landscape.
So, you’ve decided to open an eBay store to make sales and earn extra income. And yet, you’ve got so many questions on how to get started and what it cost to start an eBay store.
Starting a business – ANY business – requires a lot of planning and preparation. One of the things you NEED to know is that eBay charges its users to sell through the platform.
Is it worth it?
How much does an eBay store cost?
You have come to the right place as this guide will help you navigate the complex process of eBay store subscription. At the end of this article, you’ll learn about what fees eBay charges and other costs you must consider when building your eBay storefront.
Let’s begin!
Article Overview
Types of Fees eBay Charges
1. eBay Store Subscription
2. Insertion Fees
3. Final Value Fees
4. Promoted Listing Fees
5. eBay Managed Payment Fees
6. Shipping Fees
Is an eBay Store Worth It? eBay Store Benefits
Final Thoughts Before Opening an eBay Store
Types of Fees eBay Charges
Nothing is ever free in this world nowadays. The same goes with an ecommerce business.
Despite that, setting up an online store is cheaper than starting a brick-and-mortar shop. Hence, it’s still a suitable option for aspiring entrepreneurs with a limited capital.
And yet, you can leverage the popularity of eBay as an ecommerce platform to launch your business and reach millions of potential customers.
There are six different types of fees that you have to pay when you create your store on eBay.
Let’s get to know each of these eBay fees in more detail.
1. eBay Store Subscription
There are various levels of eBay store subscription that you can choose from, if you want to upgrade from your free plan to a store subscription. First off, that’s an amazing choice to take the next big step because you have the opportunity to scale your ecommerce business and build a store that would become a legitimate business.
To get your eBay business off the ground, you need to pay the store subscription. The subscription fee is one of the costs of becoming an eBay seller.
The type of eBay store subscription you choose will determine the listing volume on your eBay store. For example, the higher the store level in your store subscription, the more listings you can add to your eBay store.
Even if you have to pay monthly for the store subscription, it does not impose limits to the amount of products you can list under your seller account. Therefore, eBay sellers are willing to pay the store subscription in exchange for more listings.
You can check out our detailed guide on the eBay store levels so you can determine the right subscription level for your eBay business. Here is a general overview of the eBay store subscription fees:
- Starter Store – $4.95 a month (if you have an annual subscription), $7.95 per month for monthly renewal
- Basic Store – $24.95 a month (if you have an annual subscription), $27.95 per month for monthly renewal
- Premium Store – $59.95 a month (if you have an annual subscription), $74.95 per month for monthly renewal
- Anchor Store – $299.95 a month (if you have an annual subscription), $349.95 per month for monthly renewal
- Enterprise Store – $2,995 a month if you have an annual subscription
Obviously, the higher the store subscription fees, the more features and benefits you have access to. It’s important to choose the right store level according to your sales and goals for your eBay store. The goal is to minimize your expenses so that you could break even faster.
2. Insertion Fees
An insertion fee is the fee that you must pay eBay for being able to list the items you’re selling on the website. The cost of insertion fees vary depending on your store subscription and the type of listing (fixed price listings versus auction style listings).
The insertion fee is non-refundable. Therefore, you have to pay the fee regardless if you can sell the item listed or not.
If you don’t have a store subscription, you can open an eBay seller account and you have up to 50 free listings per month. You can use those free listings on your account for both fixed price listings and auction style listings.
After you’ve used up your available listings, you have to pay an insertion fee starting at 35 cents per listing.
If your listings are in multiple categories, you have to pay an insertion fee for each category it is listed in. For example, you can list a baseball bat in two categories: toys & hobbies and sporting goods. You will be charged two insertion fees for the respective categories.
You won’t be charged insertion fees if you did not meet the allotted 250 items per month. But if you buy a store subscription, you can get a higher listing volume to improve your chances of making more sales.
In addition, relisting your goods will charge you with an additional insertion fee.
3. Final Value Fees
The final value fee is the amount that eBay will take from the sale of an item. It is the highest of the fees that eBay charges all business account holders. The final value fees will vary according the product category and the total sale amount.
The total sale amount will depend on the cost of the item, and additional costs such as processing, tax, and shipping costs.
The final value fees are percentage-based, which is why it is not easy to determine until the total sales amount is determined. You will also pay a fixed price of $0.30 per order.
Final value fees can be 30 to 50 cents, or about 15% of the item’s total value. You can learn more about final value fees from eBay.
4. Promoted Listing Fees
In addition to the free listings on your seller account, promoted or sponsored listings are another fee that you must consider in running your eBay store. When you pay for listings, it will help increase visibility for your listings and boost the potential to make sales.
However, promoted listings are different from insertion fees because you’re only charged the fee if you are able to make a sale from the promoted listings. The promoted listings are similar to final value fees since they are based on the item’s final sales price.
It can be anywhere from 1 to 20% of the final sale.
The ad rates for your sponsored listings can also vary based on current ad rates. It depends on the competition and how much similar listings are paying for ads.
It’s one of many optional listing upgrades that you must consider based on your sales goals and how fast you want to break even.
5. eBay Managed Payment Fees
Another fee that you must consider when setting up an eBay store. The eBay managed payment simplifies the process of managing your transactions in your eBay store, which is a service that comes with a fee.
The eBay managed payment system will charge 2.9% plus an additional fee of $0.30.
6. Shipping Fees
The cost of shipping is not automatically included when an item sells, so you have to calculate the shipping fee separately. The shipping costs vary depending on your preferred provider.
Most shipping companies provide their own shipping calculator, so make sure to check each of these providers so you know how much you’re paying for shipping.
Is an eBay Store Worth It? eBay Store Benefits
There are several fees that sellers must consider when setting up an eBay store. These costs can add up over time, so you have to think about these costs before opening an eBay store.
The best way to determine if an eBay store subscription is worth it is to calculate the fees. The fixed fees for running your eBay store include the final value fees, sales taxes, and shipping costs.
You can think about insertion fees if you plan on exceeding the allowed listing volume for your store subscription level.
Meanwhile, the optional listing upgrades and international costs are going to be a factor if you want to advertise your listings and ship internationally, respectively.
The free seller account on eBay limits you to 10 listings per month. If you don’t plan on listing more than 10 items, then you won’t have to worry about buying a store subscription, which is the case for casual or hobbyist sellers.
But if you want to add more listings, you should calculate the insertion fees for each added listings so that you can determine if buying a store subscription would make more sense.
Final Thoughts Before Opening an eBay Store
The costs of opening an eBay store are something sellers have to consider, depending on your sales goals and your reason for starting an eBay business. Understanding the fees enable you to set a timeline on when you can break even and other strategies you should employ to maximize your profit margin.
Analyzing the eBay store fees will help you determine if buying a store subscription is worth the investment. As a new seller, you can take advantage of the free monthly allotment on your eBay store. However, you should consider the costs of opening an eBay business if you are looking to grow your eBay business.
