Posts tagged ebay-fees
Well, after straying away from eBay as my main business as using it a to basically pimp a brand and e-commerce site, I have come full circle to building up an eBay presence again. It might be to do with the fees for core listings. They are lower, and you loose less to eBay:
|Price From||Price To||Auction Listing Fee||Final Value Fee||Gallery Fee||Paypal %||Total Cost||Percentage Lost|
You can see the full download here detailing fees to £200. I have taken out the paypal withdrawl fee on this sheet as I am going to assume that no one withdraws under £50. This sheet does not include media and technology categories.
The price points are the same but I now pay less for core listings, which is were we get all the traffic from.
Following on from this post: Know your eBay fee break points
Taking the £29.99 item, I used Fee calculator for eBay UK to give me a rough estimate of the money I would get back from that £29.99 item launched on eBay taking into account the highest paypal fees for the uk.
Listing the item with a Gallery Upgrade (always recommended, why eBay don’t make that standard I don’t know) the breakdown was as follows:
eBay Listing Fee: £1
Final Value Fee: £1.57
PayPal Fee: £1.29
Total Fees: £3.76 ( I am assuming postage costs are covered and no profit is made here)
Leaving us with £26.23. You loose 12.5% of the value of your item straight away. For a £9.99 item it is over 16%. I imagine the closer to the break point in fees the better your profit is (though I would have to create a giant spreadsheet to tackle this, I did once but the prices have changed since then. I might dig it out and mod it.) If I find it I will create a page and list all the prices up to £200 so ya’ll can use it as a reference. ( oh and here is it like magic – eBay Fee and Percentage Lost Calculations)
Once upon a time a titanium seller told me that when they started on eBay they listed everything starting at £1. They then realised they could save five pence on every listing by listing the items at £0.99.
This seller was selling over 500 items a month, spending £25 a month, for the sake of £5.
But if we look at the other break points in the eBay fee structure:
|£0.01 – £0.99||£0.15|
|£1.00 – £4.99||£0.20|
|£5.00 – £14.99||£0.35|
|£15.00 – £29.99||£0.75|
|£30.00 – £99.99||£1.50|
|£100.00 or morefor multiple item listings in £100.00 or more tier||£2.00£3.00|
If this seller was listing 500 items at £30 instead of £29.99, for the sake of £5 a month the additional listing fees would cost £375.
The final value fee break points are less of a worry point:
|0.01 – £29.99||5.25% for the amount of the high bid (at the listing close for auction-style listings) up to £29.99|
|£30.00 – £599.99||5.25% of the initial £29.99 (£1.57), plus 3.25% of the remaining closing value balance|
|Over £600.00||5.25%of the initial £29.99 (£1.57), plus 3.25% of the initial £30.00 – £599.99 (£18.53), plus 1.75% of the remaining closing value balance|
The difference in the final value fee would be 17p for the whole month!
Shops are the hidden Daemons of eBay, charging pennies (max 11p for 30 days over £500 price tag) to list the item, up to 10% of the final value if sold for lower priced items and giving little or no visibility on the marketplace.
|£0.01 – £4.99||10% for the amount of the selling price up to £4.99|
|£5.00 – £9.99||10% for the initial £4.99 plus 8% of the remaining selling price balance|
|£10.00 – £49.99||10% of the initial £4.99 plus 8% of the initial £5.00 – £9.99 plus 6% of the remaining selling price balance|
|£50.00 – £499.99||10% of the initial £4.99 plus 8% of the initial £5.00 – £9.99 plus 6% of the initial £10.00 – £49.99 plus 4% of the remaining selling price balance|
|Over £500.00||10% of the initial £4.99 plus 8% of the initial £5.00 – £9.99 plus 6% of the initial £10.00 – £49.99 plus 4% of the initial £50.00 – £499.99 plus 2% of the remaining closing value balance|
So take a look at your pricing, could you save by obeying the ‘break point’ rules?