In general, eBay’s fees are cheaper than those charged by Amazon when selling. As a wise seller, you should know which is better than Amazon or eBay.
- Fees charged by eBay
These are the fees you’ll have to pay if you’re selling on eBay:
- When they create a listing on the site, fees charged to sellers are known as insertion fees. According to eBay, sellers are offered “250 zero (free) insertion free listings” per month. There’s also the extra option if you run a store on the web.
- Final value fees: When your item sells, eBay takes a percentage of the final sale price as a fee. Shipping and handling are included, but no sales tax.
This is the ‘Final value’ price schedule in its most basic form.
- Payments processing fees: This cost is included in the ‘Final value’ fee since eBay now forces sellers to use their managed payments system.
- Fees for optional listing upgrades: These fees are only applicable if you want to build a unique, customized listing. Add strong font, add a subtitle, and establish a minimum/reserve price for your goods as optional upgrades.
If you use eBay’s listing improvements, the costs pile up rapidly. You may, however, use eBay’s fee calculator to estimate how much you’ll have to pay before listing your item. Nonetheless, eBay’s fees are lower overall than Amazon’s.
- Fees charged by Amazon
Fees vary depending on the product being sold and the fulfillment method (FBA or FBM) used by Amazon. Please take a look at one of our Million Dollar Case Study (MDCS) items, Washable Pee Pads, to understand the expenses connected with selling a product on Amazon. Jungle Scout is currently available for $32.99. We can obtain a fair estimate of the fees we’d be charged if we sold the pee pad FBA versus FBM by using Amazon’s FBA calculator (for the US shop) and entering that price point into the ‘Item Price’ sections. Note that shipping is not included in the overall cost of ‘Your Fulfillment’ (FBM). If you decide to sell FBM, you will make a profit.
Only the ‘Selling on Amazon fees,’ including the ‘Amazon Referral Fee’ and the ‘Variable Closing Fee,’ would be charged when selling FBM. These are also the responsibility of FBA sellers. However, in addition to the ‘Selling on Amazon costs,’ FBA sellers must pay a ‘Fulfillment by Amazon fee,’ which is computed based on the weight and dimensions of the sold object. The ‘Monthly Storage’ and ‘Fulfillment’ fees make up this price. So, if you sell $32.99 goods on Amazon and are an FBA seller, you’ll have to pay at least $11.55 in fees. And if you sell the same goods as an FBM vendor at the same price, you’ll have to compete.
All Amazon sellers must pay the following fees, regardless of their fulfillment method:
- Individual per-item fees or subscription fees: When selling on Amazon, you can use either an individual or a professional seller account. You’ll have to pay a $0.99 fee for each unit sold if you sell as an individual. On the other hand, professional vendors are charged a $39.99 monthly subscription fee.
- While refund administration fees only apply if a consumer requests a refund, it’s crucial to note that Amazon does charge you for processing that reimbursement. The price for this will be either $5.00 or 20% of the refunded payment, whichever is lower.
