Getting a Handle on eBay Seller Fees

Selling your merchandise or unwanted items on eBay is a great way to make money and move merchandise. Insertion and final value fees pay for your right to sell on eBay.

When you list an item on eBay, you are charged an insertion fee. It is the price eBay charges for listing your item for sale. These fees are not refundable, even if your item does not sell (although you can receive a credit if you relist the item). The insertion fee for multiple-item Dutch auctions and fixed price listings is based on the starting price of your items.

If you choose optional upgrades to enhance your listing, such as setting a reserve price, format enhancements (such as bold, subtitles, and highlighting), or premium picture services, charges for these services will be included in your insertion fee.

In addition to the insertion fee, if your item sells, a final value fee is assessed. You are charged a final value fee if your listing ends with a winning bid; it is due whether or not you complete the sale with the buyer. Under certain circumstances, you may request a final value fee credit; for example, if a buyer backed out and did not buy the item. You will not be charged a final value fee if there were no bids on your item, or if your reserve price was not met. Rules vary for other categories, including eBay Motors and Real Estate.

The total cost of selling an item is the insertion fee plus the final value fee. You can save money with multiple-item Dutch auctions, because the final value fee is assessed based on the lowest successful bid and multiplied by the total number of items sold.

In the event your seller account is suspended for any reason, any amounts due on your seller account will immediately become due and payable.

Seller fees are part of the cost of doing business on eBay. Some new sellers get giddy when their first rounds of auctions close and they see how much money they've made. But you have got to factor in all seller fees to get a true picture of your return on investment.

Find more advice on and at AllBusiness.com. AllBusiness provides practical information and services for business professionals and growing businesses.