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How You Can Get Your Ebay & Paypal Fees For Free!

Updated on December 22, 2012

There are only selected few that know how this is done. They are the eBay elite you'll find them amongst the top rated and power sellers and usually have over 100,000 transactions. The reason why they have managed to achieve great success is because they have never had to pay their ebay fee's and Paypal fees from their profits. They Know every month that their calculated profit is going to be 100% accurate because of this method I am about to show you.

Do you think Paypal & Ebay charge too much for their fee's? Then why do you?! Ebay and Paypal fee's are part and parcel to Ebay! If you started your own online auction website which you can quite easily do you think you would be able to generate the amount of traffic Ebay produces? Do you think that even if you got the traffic people would actually want to buy from there? No! Just look at eBid, This is one of the closest auction sites to being a eBay competitor yet after being around for many years and thousands of signed up sellers hardly anyone buys on there. So if your moaning about ebay and paypal fee's you really need to see what your getting for your money. Where else could you go, place something for sale and it potentially sell within in minutes and being paid virtually instantly too? Nowhere. Ebay is one of the best ways to start making money online today.

Yes ebay and paypal eat in to your profits but if you had an old fashioned high street shop you would have to pay, rent,utilties,employees,rates. These are far more than what ebay charge. So is there anything you can do about these fees? Yes you can. The way you do this is intergrate the fees into your sale price before you start! So many people get confused how to actually calculate their fee's before they list an item and then cry about their fee's at the end of the month. If you calculated them in the first place you wouldn't think twice about them.

Here is how you do it.

First up if your selling your own item and it no longer has a cost price you just want to sell it. Lets say you want to get £50 for the item that is the amount you want to get after all fee's deducted. Now you're also going to find out exactley what it will cost the post the item out, lets say it will cost £10. So you now need to work backwards to find out the minimum price you will need to list the item for to make sure you end up with the £50 you want for the item.

Lets just be general for the fee percentages as these do change on ebay depending on catergory and starting price. So lets just say that ebay charge 10% of the sale price and Paypal charge 5% for any monies entered into your paypal account. Now you might be think just add 15% to £50 or even £60 (£50 sale + £10 postage = £60 ). Wrong!

Lets say you did that + 15% to £50, that will = £57.50. Lets say you list it as £57.50 buy it now with £10 postage. Total sale price £67.50.

Now lets work the fee's out properly. Ebay take 10% of the sale price ( not including postage ) and paypal take 5% of total amount of monies entered in to your paypal account ( including postage fee ).

So ebay will take 10% of £57.50 (can you see your already going to be out of pocket yet? ) that leaves you with £51.75. Paypal are now going to take 5% of you £67.50 the amount that went in to you account. £67.50 - 5% = £64.13. So paypal fees were £3.37. Take that away from what you was left with after ebay fee deductions. £51.75 - £3.37 = £48.38 so you haven't met your £50 sale price you wanted by just adding the fee percentages to price you want for it. There's also the listing fees as well. Now £2 out may not seem a lot on one item but if you get this wrong on multiple items your selling your fees will soon start to add up.

So you have to work backwards to get your desired profit you must go by your selling price not by your desired profit price. So you can start by saying list the item for £60 + £10 postage lets work out the deductions.Ebay fees - £60 - 10% = £54 (£6 ebay fee total ) Paypal fees £70 - 5% = £66.50 = £3.50 paypal fees £54 - £3.50 = £50.50 minus 40p listing fee = £50.10. Ok we go to your £50 profit target but remember Paypal took 50p of your postage charge so your actual amount you get profit is £49.60. Its not far off but this is where people get their fee's very wrong and do not calculate everything in to them before they start.

So lets say your happy with £49.60 pure profit from your £60 buy it now listing with its £10 postage how much can you wihdraw form paypal? all of it? no. Payapl take their cut straight away. You can on draw £49.60 + your £10 postage as the rest is taken by ebay at the end of the month. so lets do that £49.60 + £10 = £59.60. £59.60 - (£70-5%=) £66.50 = £6.90 and that is what is what you pay in ebay fee's and that is what should be left in the account.

Lets see if that's right. £6 ebay fee + £3.50 paypal fee + the 40p listing fee ( I bet you forgot that bit ) = £6.90

And that is how you get your ebay and paypal fees for free! By incorporating them correctly in the first place.

If you know exactley what you can draw out ( in this case it was £59.60 ) of Paypal, you will never have to "pay" for your fee's as the amount will always be left in there. You will always be happy too as you will always get what you wanted for the item.

If you're looking to make a living on eBay and living the life you've dreamed of then check out this site. You'll be amazed as to how you make money from the comfort of your home.

If you found this article helpful please facebook like it at the top of this page. Thank you.


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    • JP993 profile image

      JP993 5 years ago from England

      Thank's for that jon, it's been a while since I wrote this, I'll go through it and see what needs amending. Check out my other ebay tutorials.

    • profile image

      Jon 5 years ago

      "Lets see if that's right. £6 ebay fee + £3.50 paypal fee + the 40p listing fee ( I bet you forgot that bit ) = £6.90"

      If I add all those up it's £9.90?? or am I missing something

    • profile image

      mg 5 years ago

      Thank you JP993. This was a really helpful article. I look forward to more of your work in the future. I learnt a lot today, reading this page. Thanks again.

    • profile image

      michael 5 years ago

      good article. keep up the good work.

    • profile image

      anglowriter 6 years ago

      I've been using ebay for 7 years and have never had any problems with it. The only downfall is that the products you see online are not always how they look in reality.

      I've ended up keeping products because I can't be done with the hassel of sending them back considering you have to pay the return postage, it often works out cheaper to keep them.

    • profile image

      cb 6 years ago

      ebay is a scam they make u loose everything try and make up rules and paypal does this 2000 doller thing and ppl can say they never got item and they get there money fully refunded

    • JP993 profile image

      JP993 6 years ago from England

      Hi trimar7, Im not sure if I understand what you are trying to say. Do you mean how can you calculate it if you sell via auction? Using auction format is a gamble. I've written some hubs on ebay, using auctions effictevly listings effectively. Don't be afraid to list your item for what you want, in a buy it now format.

    • trimar7 profile image

      trimar7 6 years ago from New York

      I hear what you are saying but customers will only bid what they are going to bid at any given time. Yes, you can set a reserve but I know myself that when I see a reserve is set I tend to bypass bidding on the item. So your thoughts are good and logical in theory but how do you compensate for what I am stating?

    • JP993 profile image

      JP993 7 years ago from England

      Has that happened to you?

      You can still pay your fee's regardless if paypal have put a hold on your account as they will take it from your bank instead.

      Have you read about Paypal holding funds hence your concern?

    • profile image 7 years ago from Vancouver / Bangkok

      What do you do when paypal limits your account holding thousands of dollars, then they no longer allow you to pay your ebay fees using funds in your paypal account. Then they suspend your ebay account for not paying your ebay fees. They also might send emails to all your customers and tell them that they are at risk of fraud because of any transactions with you ?