Jul 31, 2023

eBay and PayPal Fee Calculation Example For Beginners

Understanding eBay and PayPal fee examples.

eBay and PayPal Fee Calculation Example For Beginners

his is a reference article for some of the eBay fee terminology.

Insertion Fee

eBay charges a listing fee for each product you put on the site whether or not the item sells. This insertion fee varies by product category, but most have a charge of $0.35.

Now you have listed your product and someone bought it! eBay now charges a Final Value Fee.

Final Value Fee

This is the fee that eBay charges when you sell an item. The Final Value Fee is based on which category your item is in and is a percent of the total amount of the sale including shipping but not including taxes. For instance, Books, DVDs & Movies and Music (not Records) have a final fee charge of 12% with a max of $750.

But how will you collect the money? Some users decide to use Paypal.

PayPal and eBay

PayPal is a payment processing service that has its advantages and disadvantages (fees). They charge $0.30 for every transaction and 2.9% fee for the amount. For instance if you are collecting a $100 dollars with Paypal, they will charge you $2.90 plus $0.30 for a total of $3.20. Thus, in the end you will collect $96.80.

A common question among many sellers is which fee happens first. The answer is that PayPal and eBay fees happen at the same time! They are both based on your transaction amount.

Full eBay Fee Example

For instance you are selling a product in the Imaging and Aesthetics category for $1500. eBay charges an insertion fee of $20 and a final value fee of 2%. You meet the minimum performance standards and do not have to pay the 4% penalty.

Ebay fees = $1500 * 0.02 + $20 = $50.
You will end up owing eBay $50 dollars for selling the product. Now if you use Paypal

Paypal fees = $1500 * 2.9 % + $0.30 = $43.8.

You will owe Paypal $43.80 for the transaction. So for the combined Paypal and Ebay fees you owe $93.80.

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