I Need Help to Understand eBay Charges

I recently started selling on ebay, and have cracked sales around $5000 with free freight.
They are charging over 10% Selling Fees, and 3% for collecting my money for me. plus another $30.00 that I can't even begin to understand yet.
And there is $9.95 a month for Selling Manager Pro. So I am up for 14%, which is more than my Freight.
I have tried to understand eBay's charging strategy, but don't have time to get the degree.
Does anyone know if there is a way through their options, and set up my account to get me a reasonable cost??????

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Comments

  • The basic cost of selling an item on eBay.com.au =

    • Insertion fee (if applicable)
    • Feature fees (if used)
    • Final value fee (if sold)

    Also Paypal fees if buyers pay with Paypal. Selling Manager Pro is optional, you can use Selling Manager for free.

    http://pages.ebay.com.au/help/sell/fees.html#

    I have tried to understand eBay's charging strategy,

    I guess insertion fees are to prevent people from spamming ebay with crap. Final value to take a percentage of when/if the item sells. Paypal is now a separate company, but buyers love to use it for purchase protection, which I assume comes out the profit from their fees. Other features are optional, if you choose to use them.

  • +4

    The only way you can reduce final value fees and not have to pay the expensive 9.9% FVF fee is to become a store.

    http://pages.ebay.com.au/help/sell/fees.html#upgrades

    And here is a table showing the differences in fees paid between a regular user (without a store) and the Basic store, Featured Store and Anchored store
    http://imgur.com/UhjTUcN

    Now the next question is how much does it cost to become a store?

    Fees for eBay Stores subscriptions are as follows

    Basic Store
    $19.95 / month

    Featured Store
    $49.95 / month

    Anchor Store
    $499.95 / month

    And here are your store benefits
    http://sellercentre.ebay.com.au/ebay-for-business/about-stor…

    My analysis is that you are a regular ebayer with no store, and you're selling a large number of goods and are also paying roughly $10 a month for Selling Manager Pro. If you pay $19.95 a month for the Basic Store package you will get Selling Manager Pro for free… so it might be worthwhile subscribing for a Basic Store package which essentially only will set you back an extra $10 a month.

    However, the in the longer term you will get reduced final value fees. between 9.5 percent and 6 percent depending on which category you sell. And you also get 200 free listings per month (as opposed to just 40 per month).

    • Good summary scrimshaw. Another bonus of a store is that you can have GTC (Good Until Cancelled) listings. This basically means at the end of 30 days the item relists itself. I find this saves me time and makes the whole process less tedious. Combine this with the slightly lower FVF fees and 200 free listings (as opposed to 40) I find having the Basic Store more convenient. It's more "set and forget". I kind of wish I'd switched to a store sooner.

      • Yeah, that's really helpful. I've been selling on eBay for years and did not know this.

  • i need help understanding their fees to ;)

  • Thanks everyone. I read lots of Ozbargain forum posts, but you guys have been a real help. i will focus on basic store.
    What'a FVF mean…sorry, I'm newish to ebay.
    Still wonder why Paypal charges 3% while everyone else, looks like even AMEX now, can manage 2%.
    That's 50% more!

    • FVF is final value fee. The basic 9.9% fee you pay to ebay.

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