Being an eBay seller can be fun, flexible, and highly lucrative. It’s the second most important online marketplace in the US and remains a popular shopping site for billions of users around the world.
Home to well-known brands and kitchen table enterprises, eBay attracts individuals and businesses because it remains one of the most accessible eCommerce platforms to start selling from.
There are no massive overheads to worry about; no rates to pay, typically no staff to employ and no utility bills to worry about.
However, nothing comes entirely for free and, in return for access to a global audience of shoppers, eBay charges fees for you to advertise your products on its platform.
These eBay seller fees must be taken into consideration for you to get the most out of the eBay marketplace, and of course, your success will come down to making a profit.
With this in mind, you must be equipped with a full understanding of the fees associated with your eBay seller account.
It’s also essential you understand how to reduce eBay fees and enjoy even more profitability.
The amounts charged depend on your product price, the category you choose to sell in, your listing format, and any listing upgrades you decide to add. Your seller performance is also taken into consideration.
First, let’s look at the fees you are likely to be charged when selling on eBay.
The eBay Fee Structure: Types of eBay Selling Fees and How to Reduce or Avoid Them
- Monthly account fee (eBay stores only)
- Insertion fee (listing fee)
- Listing upgrade fee
- Final value fee
- Payment processing fee
Monthly Account Fee (Applicable to eBay Stores Only)
If you sell multiple types of products and want to make them accessible all in one place, you can open an eBay store. eBay offers its sellers five different store subscription options as of 2025, and each comes with different seller benefits.
The packages are:
- Starter $7.95 per month or $4.95 per month paid annually
- Basic $27.95 per month or $21.95 per month paid annually
- Premium $74.95 per month or $59.95 per month paid annually
- Anchor $349.95 per month or $299.95 per month paid annually
- Enterprise $2999.95 per month, paid annually only
The subscription you choose will depend on the volume and price of the products you sell through eBay.
Insertion Fee
The insertion fee, or eBay listing fee as it is more commonly known, is payable every time you list a product on eBay and is due whether you sell your product or not.
It is calculated based on the category you have listed your product in, so can vary, although the current standard insertion fee is $0.35 per listing. This fee varies in some categories, so you should always check before listing.
If you own an eBay store, depending on your store type, you will have a pre-allocated number of zero insertion fee listings per month. These range from 250 free fixed-price listings with a starter package to 100,000 with an Enterprise store.
Listing Upgrade Fee (Optional Listing Upgrade)
Listing upgrade fees are all optional. They are charged when you choose to add additional features to enhance your listing. For example, a bold title, additional gallery images, a subtitle, international site visibility, or you choose to use the listing designer.
Fees range from $0.10 to $6.00, depending on the upgrade you choose.
Final Value Fee
Each time you make a sale on eBay, you will be charged an eBay final value fee. It’s calculated as a percentage of the total sale price, including your shipping fee but excluding sales tax. Final value fees do vary; however, the standard fee ranges from 12.7% to 14.9% for most categories in 2025, with a maximum fee of $750 for most sellers.
It’s worth noting that as of February 14, 2025, eBay increased final value fees by up to 0.35% in most categories to support platform enhancements.
Payment Processing Fee
Since eBay now manages all payments directly (known as eBay Managed Payments), sellers are charged a payment processing fee of 2.7% plus $0.25 of the total selling price. For orders $10.00 or less, there’s a per-order fee of $0.30, while orders over $10.00 incur a $0.40 fee.
An Example of Typical eBay Selling Costs – How Your Fee is Calculated
If you put all of these costs together, a simplified example of your eBay selling costs would be as follows:
- Selling price: $20.00 + $5.00 shipping cost
- Insertion fee: $0.35
- Listing upgrade fee: $1.00 for using a subtitle
- Final value fee: 12.9% of $25.00 = $3.23
- Payment processing fee: 2.7% of $25.00 + $0.40 = $1.08
- Total Fees: $5.66
You must also take into account your monthly account fee if you have an eBay store, and the wholesale cost of your product and shipping costs. Once you have deducted these costs and also deducted your eBay fees, you will be left with your profit.
As you can see, with eBay sales, fees and other costs can soon add up. Avoid unnecessary fees by understanding and implementing costs for every eBay listing, so your business on eBay is as profitable as it can be.
How Much Does eBay Charge and 7 Ways to Avoid or Reduce eBay Seller Fees
1. Open an eBay Store and Pay an Annual eBay Store Subscription
If you’re already considering opening a store, the minimum monthly fee you might pay will be $7.95 per month for the starter option.
However, if you instead pay the subscription fee as an annual amount, you’ll save overall. Paying monthly, over 12 months, you’ll spend $95.40, but if you pay annually, you’ll spend $59.40 – a saving of $36.00.
This is a commitment, but it can also motivate you to make your eBay business the best it can be.
2. Listing Fees: List Your Item at the Right Time To Take Advantage of Zero Insertion Fees and Pay eBay Less
With five store options and subscription costs, you must choose the subscription that suits your eBay business. To make an informed decision, you should look at your sales volume, because each subscription comes with a different number of zero-insertion-fee listings.
While you may automatically want to plump for the starter or basic package and receive up to 350 free listings, if you plan on listing more than 1000, it would be best to go for the premium package.
Although this will cost you more per month, you will save money overall as you’ll enjoy more free listings. So to reduce your eBay seller fees, pick the store subscription that best correlates with the number of listings you’ll be adding each month.
3. Use the eBay Fee Calculator to Become a Top-Rated Seller (TRS)
This is one of the best things you can do when selling on eBay because you can reap some big rewards, including a discount on your final value fees.
To become a Top-Rated Seller, you must meet the following criteria:
- Have an active eBay account for at least 90 days
- Have at least 100 transactions and $1,000 in U.S. sales within the past year
- Comply with eBay’s selling practices policy
- Meet eBay’s requirements for transaction defect rate, cases closed without seller resolution and late shipment rate
This might sound like a lot of effort, but as a top-rated seller, you could receive a 10% discount on your final value fees.
If you average final value fees of $500 every month, you’ll save $50 per month – that’s $600 annually!
To qualify for the even better “Top-Rated Plus” status (which provides the 10% discount), you must offer fast shipping (same or one business day) and a generous return policy (30-day or longer free return period with money-back option).Related: eBay Top-Rated Seller Status
4. Reduce Your Optional Upgrades to Avoid Both Optional Fees and Additional Fees
It’s natural to want to enhance your listings and easy to add those optional upgrades, but they all come at a cost. If you can’t make do without, choose wisely, as some are more costly than others.
If the upgrade you want is costly – for example, $6 for bold – make sure you monitor its success and calculate your return on investment. There’s no point paying for an upgrade that doesn’t increase your bottom line.
5. Request Credits Due for Final Value Fees When You Sell Items
When you sell a product on eBay, you will be charged a final value fee whether the sale is completed or not. However, that doesn’t necessarily mean you have to pay that fee. In some cases, you will be eligible for a refund.
- If you have a non-paying buyer
- If you and your buyer agree to cancel the transaction
- If you provide a refund for a missing or returned item
- If you issue a voluntary refund due to a dispute overpayment
You will only have a certain amount of time to apply for the final value fee credit, so make sure you apply promptly to avoid losing out.
6. Check If eBay Allows You To Claim Non-Paying Bidder Insertion Credits When You List An Item
In a similar vein, if you list your products as auction-style listings and your highest bidder doesn’t pay for their item, you will still be charged the insertion fee.
You can avoid paying a second insertion fee to relist the item as long as you relist it within 90 days of the original listing ending.
You mustn’t change any details and keep the starting price the same or lower than your original listing to qualify.
7. Make Sure you Have The Right PayPal Merchant Account, Or eBay May Charge You Unnecessarily
Understanding how to lower eBay seller fees is crucial for maintaining profitability. One effective strategy is offering free shipping, which can not only attract more buyers but also potentially reduce your eBay cut of sale.
Additionally, if you sell internationally, be aware that eBay charges an additional international fee of 1.00-1.70% on cross-border sales. By using the eBay fee calculator, you can accurately determine the total fees you’ll incur and price your items appropriately.
For those wondering how to avoid eBay fees entirely, consider focusing on improving your seller performance to achieve Top-Rated Plus status, which provides a 10% discount on final value fees. This status requires offering same or one-day shipping and a 30-day or longer return policy.
Final Thoughts: How to Sell on eBay and Reduce eBay Selling Fees While You’re At It
Like any eCommerce business, you will always need to take your costs into account, but knowing your numbers means that you can make a decent profit too.
It’s easy to get into the comfort zone of listing products without regularly analyzing and considering your profit. Understanding eBay seller fees and learning how you can reduce them, as outlined here, will help you make a huge success of your eBay business.By strategically planning how to maximize profits on eBay and reduce fees, sellers can significantly improve their bottom line. The key is to regularly review your selling strategies, use fee calculators, and adapt your approach based on the latest fee structures.
