How much does it cost to sell on eBay?

E-commerce is one of the biggest and fastest-growing industries in the world. In 2019, e-commerce sales were about $3.5 trillion worldwide and are expected to hit $6.54 trillion by the year 2022.¹

eBay is one of the biggest e-commerce platforms, as it allows third-party sellers to put up goods for sales and reach an unprecedented number of interested buyers. However, if you are a beginner on eBay, or even if you've been at it for a while, it is important to know how much it costs you to sell on eBay. Making sales on eBay has a cost implication, and understanding exactly what that cost implication is will allow you to plan and maximize your profits.

In this article, we’ll look at how much it costs to sell on eBay. We’ll also look at the additional fees that you’ll incur when withdrawing from your payment gateway. Finally, we’ll take a look at how you can save some money on your sales using Wise Business.

What are the fees for selling on eBay?

When selling on eBay, there are two kinds of accounts that you can have: A private seller account or a business seller account. Most beginners don’t know the difference, but it is quite important. A private seller account is aimed at sellers that want to sell a few items on eBay that belong to them personally. A business account, on the other hand, is more suited to sellers that want to set up a business and often sell on eBay.

If you're having trouble deciding between which kind of account you should get, then these questions should help you:

If your answer to any of the above is yes, then you probably need a business seller account.

As you might suspect, each of these accounts has different fees associated with them. Let's take a look at the fees you are likely to incur when you use a private account and a business account.

Private Account Seller Fees

Private sellers can list the items for free on eBay - you only pay for any additional upgrades that you choose, as well as a final value fee for when your item is sold.² The price that you pay depends on the price of the item, the category, and format that you choose for your listing, as well as any other optional listing upgrades that you decide to add.

Private sellers have a monthly allocation of 1000 free listings. Anything above that, and you're charged £0.35 for each new listing you create.

Private account sellers pay a final value fee when the item is eventually sold. This fee is 10% of the total transaction value, including postage. The final value fee is also capped so that you don't pay more than £250 for any single item.

Here are the fees for optional listing upgrades.

Business Account Seller Fees

For those using a business account, eBay charges two main types of fees when you sell.³ A listing fee, also known as an insertion fee and a final value fee when the item is sold. Sellers can also run their own eBay shop for a monthly subscription. The benefits and fees for shops depend on the kind of subscription that you choose.

Here are the additional fees for using the eBay shop option.

Other External Fees

As a seller on eBay, the primary way for you to receive payments is with PayPal. Of course, there is a service charge when you receive payments. The amount charged depends on how much is sent and where the sender is from. Paypal charges around 2.90% + 30p on every transaction if the buyer is in Europe. For other buyers outside Europe, that fee can rise to 4.90% + 30p.⁴ We have done the math for you in this easy to use PayPal eBay calculator.

While this might seem negligible, it can be significant when it accumulates. Fortunately, there is a way to save money on sales with Wise.

Wise offers online sellers with a borderless self-service business account where they can hold and receive money in various currencies. Let’s take a closer look at how Wise helps eBay sellers save money on sales.

How to save money on Sales

One of the main ways Wise helps you save money is converting your money using the real exchange rate without hidden mark-ups. Most payment gateways, including PayPal, charge a markup, meaning that exchange rates are lower than they are in the market, and this way, you get paid even less. Remember that this is after eBay and PayPal might have charged you, respectively.

There's a small fee for converting your money that is always shown upfront so you know exactly how much you'll pay before you make the transfer.

Wise not only saves you money but also provides additional financial services that are tailored to your needs as an online seller. Here are some of them:

• Giving you the capacity to get paid and hold money in over 40 currencies.
• Giving you Wise API access to make payments on a schedule, and to automate things like budget reconciliation and accounting includes integration with Xero and Quickbooks.)
• A debit card (Wise Business Mastercard) that does automatic, real market-rate currency conversion to help you make payments faster and more convenient.

Start saving today with Wise