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The True Cost Of Selling On eBay

Updated on September 27, 2013

eBay Can Look Expensive

There are many people around that feel eBay is too expensive, I not only disagree I think they are foolish to believe that. Yes they have fees, and they charge you several different ways, but when you stop and look at what you get for your money there is no better place to sell your products.

Although many people tell you eBay has tons of fees, they really only have two types of cost, there is the listing fee, this fee is a fee you pay to list your item, sell it or not, you must pay, unless you only use the 50 free auctions that ebay gives every person that has an account.

The other fee they have is a final value fee, this fee is ONLY paid if you sell an item, then you pay a percentage of the final selling price to ebay.

The only other thing eBay charges for is if you have a store, but that really isnt a fee, that is more like rent. but we will discuss all these cost one at a time. I know when you first look at selling online it can be overwhelming, but if you do your homework you can make a good living as well.

Traffic Traffic Traffic

For a long time I was one of those people that said, DAMN, the fees are high to sell on ebay, but when you stop for a few minutes and really take a look at what you are paying for, the fees are worth every penny you pay.

When you list an item on ebay you pay a listing fee, this fee is based on the starting price of your item, and it can range from free to over 2 bucks for each item. eBay gives you as a seller 50 free ads, and if thats all you list they are free. If you list more then that, then you start to pay for the listings or ads.

So we are going to examine what you get for a listing fee, well the first thing you get is the listing, or auction on eBay's site. WOW there are many places that you can do that for free like craigslist. So you really dont see any value in that fee yet

Next you get traffic, depending on your listing, you could get alot of traffic from eBay's website, without your ad being on there, eBay's customers would not see your ad. Have you ever listed something in the newspaper? expensive when you figure out how many calls you get for each dollar you spent.

But there is still MORE, when you list on ebay you auction or item will be seen by google, and you can get traffic from there as well, for auctions and short term store items this isnt much but, for long term store users this could be a great amount, I have some listings that get more traffic from google then ebay.

eBay Traffic Tips

Wahoo I Sold My Item

eBay will be there to collect a final value fee as well, this fee is a hard one to understand why you have to pay it, I will try to explain the best I can, part of it is profit for the auction site, they are in business to make money. Part of it is for security, and website development. Yes they spend millions of dollars, on site security, and development, not so much for you as the seller, but for the buyers peace of mind.

Thats right ebay is more concerned about the buyer then you, WHY?? without buyers their site would fail, if you stop listing on their site there are 10 more people that will start. BUT wait stop and think about it for a minute. If the buyer feels safe, they will spend their money and get their credit card out to pay you. How many horror stories have you heard about people being ripped off on other websites. credit card theft, over charging, thats why ebay spends so much on peace of mind, and in the end we help pay for that.

Finally look at what you get for your money, they chase the customer if they dont pay, they send the winning buyer an email, they have everything for you to run your business easy and efficiently for no additional cost.

Doing Business Cost Money

Whether you are opening a brick and mortar store, selling a few of grannies nick nacks for her, or running a full blown internet business, there will be cost involved build your own website and there are hosting cost, advertising cost, security cost (you have to be compliant for credit cards) and the list will go on and on.

OR

You can look at eBay fees as part of the cost of doing business, build it in to the price of your product, and enjoy all the benefits of selling your products on eBay like I do. I dont even have a website anymore, all my domain names go directly to my ebay store which is my website.

Enjoy this article? Follow me for more of this same type of straight forward talk in the near future, and learn from not only my successes but my failures as well, unlike most people I talk more about my failures then successes so you dont have to make the same mistakes I did...

God Bless,
John C

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