eBay. Amazon. Poshmark. Mercari. Facebook Marketplace. When it comes to deciding where to sell, the possibilities seem almost endless. Naturally, you might want to choose based on which are easiest to use or have shoppers likely to buy your products. But, there’s another factor that can play an even bigger role in making or breaking the bank– online selling fees.
Present on nearly every online selling platform, seller fees are what channels such as eBay and Amazon charge users to sell to their buyers. These fees are typically collected once an item is sold and are a percentage of the total price a customer pays for the product. However, types of fees can vary widely and sometimes include charges long before a sale is ever made.
With each platform charging their own unique fees, it can be difficult to determine which will have the least impact on your bottom line. To get you started, we’ve broken down the seller costs for five of the most popular channels, based on the fees for individual, non-store subscription sellers. Read on to learn which may be best for you.
Note – For businesses affected by COVID-19, eBay is waiving selling fees for new businesses through June 30, 2020. Learn more about how to register for their “Up & Running” Program.
For an individual seller who DOES NOT have a store subscription, eBay charges two basic online selling fees for most items and categories.
- Insertion Fee: Each month, individual sellers are given 50 zero insertion fee, or free, listings. After these are used, sellers then have to pay a small fee for each additional listing. This cost varies based on an item’s category, but is typically about $0.35 per listing.
- Final Value Fee: When an item sells, eBay collects a percentage of the total amount of the sale as commission. The total amount of the sale is the amount the buyer pays, including any shipping and handling charges, but not sales tax.
For a detailed estimate of these fees per item category, check out eBay’s “Basic Fees” chart here.
eBay sales also withdraw a payments processing fee based on the total order amount, which is 2.7% if you’re part of their managed payments program or 2.9% if you use PayPal.
For more information on eBay’s seller fees, check out their Selling Fees guide. You can also explore their Subscriptions and Fees page to check the price of different store subscriptions, which can include various benefits and lower fees in exchange for a monthly charge.
Similar to eBay, Amazon charges a few different types of fees for individual sellers listing items on their platform.
- Per-Item Fees: Sellers on Amazon’s Individual Plan are charged $0.99 per listing, with no monthly subscription fee. It’s generally recommended for those expecting to sell less than 40 items per month.
- Referral Fees: For each item sold, sellers pay a referral fee based on the item’s category and selling price. These typically range between 6-20% of the total price and are best determined by checking out Amazon’s Seller Fee Schedule. Each category also has a minimum referral fee, which is typically $0.30 per sale for most items.
- Shipping Fees: If you’re fulfilling items yourself, Amazon applies their shipping rates to all orders for individual sellers. These rates are based on product category and shipping service selected by the buyer, which are then passed onto sellers via “shipping credits.” Check out Amazon’s shipping credits for individual sellers to see exact rates.
- If Amazon is fulfilling orders for you (FBA), you’ll also be charged additional fees for fulfillment, storage, and optional services. Learn more about Fulfillment by Amazon fees.
For more information on Amazon’s seller fees, as well as the cost and benefits of their Professional Plan, check out their Selling on Amazon page.
Aside from being easy to use, one of the biggest reasons new sellers gravitate to Poshmark is its simple fee structure.
- Selling Fees: There are no monthly subscription or individual listing fees for Poshmark. Instead, the platform draws a commission from each individual sale based on the final selling price.
- For sales under $15, Poshmark takes a flat commission of $2.95.
- For sales greater than $15, Poshmark takes 20%
Check out Poshmark’s FAQs for further explanation of their fee structure.
Mercari is another platform that strives to make their fees easy to understand.
- Selling Fees: Similar to Poshmark, there is no monthly subscription free or cost to list on Mercari. Rather, sellers are charged 10% of an item’s selling price.
- Shipping Fees: Mercari charges standard shipping rates based on a package’s weight, up to 150lbs. Those looking to hand off some of the fulfillment work can also opt for the Mercari Pack and Ship at UPS service, which includes a box, packaging and the item’s shipping cost for an added fee.
Learn more about Mercari’s fees and shipping rates on their Selling Fees page.
The most inexpensive of all the options, Facebook Marketplace is entirely FREE for sellers. There are no fees to list or sell items, and payment methods are handled directly between you and the buyer. Most sales are typically local, so there are also no shipping cost or fees to worry about.
As most sellers know, each of these platforms comes with its own benefits, drawbacks and buyer bases to consider. Understanding fees is just one step to determining which options are best for you.
Sellers- how do you navigate fees on each of these platforms? Comment below with your advice!