Calculating PayPal and eBay Fees? Here’s a Guide to Help You!

2 min

Is this your first-time selling on eBay? If so, then keep reading.

With both PayPal and eBay, fees can stack in a way that disrupts your profit margin.

Below, we’ll look at some of the fees you’ll be charged. Explore them in-depth, and see how they affect your business!

#1 – Listing Insertions

Probably the 1st fee you’ll come across. It’s what you pay to list the item.

This fee is charged on both fixed-price and auction-style lists (both fall under good ‘til cancelled listing types).

On basic eBay registrations, you get 100 for free per month (and on most categories). Following that, you’re charged $0.30 per item you list.

#2 – Final Value

This is charged when a transaction is finalized, or after a sale is made.

Final value fees are a % based on item price. They also incorporate shipping + handling into the equation.

Shipping fees are calculated using the buyer shipping method selection. If they’ve opted for domestic or one-day shipping, then the cheapest formula will be applied. On  you check all your fees before starting to sell. 

#3 – Optional Listing Upgrade

Multiple options exist to add and improve exposure to a seller’s listings.

Here, those upgrades include font mods (such as bolding), the addition of subtitles, or introducing media content. Even acquiring international visibility is an option.

#4 – Optional Promotional Listing

Consider it a subtype of the previous point – but much more expansive.

eBay sellers can promote other sellers’ listings to get more viewers on eBay’s search engine, if a buyer browses items offered by other sellers.

Those listings are offered to other sellers too, whether or not they’re subscribed to eBay.

Sellers can set the listing fees. The fees are derived from ad-rate trends on what the average seller is paying. It starts at 1% of a final value commission.

Fees are paid when buyers click through an ad then buys the item (within a month of clicking).

#5 – Classified Listings

This is a different option for eBay sellers. Here, sellers receive buyer contact info, and are allowed to talk to them directly.

While such transactions are run outside of the platform, if the info is used for malicious intent, a seller faces suspension/restrictions.

Classified ad fees are at $9.95 per monthly listing. A final value fee isn’t charged.

Classified ads are allowed in 4 categories, which are:

  • Business and Industrial
  • Specialty services
  • Travel
  • “Everything else” subcategory

#6 – Punitive

Sellers may incur extra fees if they aren’t abiding by eBay rules, or if they aren’t meeting the standard of practices required.

Also, sellers who try to coordinate sales with buyers out of eBay might be charged final value fees, even if a sale isn’t made.

With an auction-style listing, fees are charged based on the highest price, whether it be a “buy it now,” starting price, or what was negotiated by buyers and sellers.

#7 – PayPal Payment Processing

Being the eBay standard for processing, sellers are charged 2.9% as a fee (plus $0.30 per eBay transaction) on withdrawal.

Banking info must be provided by sellers to send payments to their bank accounts. Basic transfers require no fee, but may take up to 3 days.

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