Ebay How To--Step 5: Fees and Final Notes on Selling on Ebay

Be sure to familiarize yourself with the fees that both PayPal and Ebay charges.  On Ebay if you do not have a store, here are the highlights effective March 30, 2010. The smaller type is taken directly from Ebay's website:

STANDARD FEES (For sellers without a store ONLY)

List Auction-style FREE with a low start price—pay only if your item sells.

• NO Insertion Fees for Auction-style listings when you list your item with a start price under $1—up to 50 listings per month. Pay only if your item sells.

With no or low Insertion Fees for Auction-style listings—plus the fact that Auction-style listings get an automatic boost in search results when they're about to end—these standard rates are a great value if you sell occasionally or sell to earn extra cash. Be sure to read the red paragraphs below.  

UPDATE 9.18.12:  Please keep in mind that Ebay has restrictions on new sellers. Your money will sit in your PayPal account for at least 3 days after the item has been shipped. Confirmation of delivery is required  for you to withdraw your money which means you need to be sure that you print your label from the Ebay site with a tracking number.    If you don't do this, it will stay there until you have reached $250 in sales or 25  transactions whichever comes first.

I learned this the hard when when I opened a "demo" Ebay account to teach someone how to sell and listed five of my own items (rather than theirs).    The good news is that three sold almost immediately but the bad news is that my money will not be available to me for several more days.  

If you think you'll have plenty of Ebay items to sell over a period of time, go ahead and get set up and list (and hopefully sell) your items.  Within a few months you'll be free of the restrictions and can get your money in the usual 2-3 day turnaround time rather than waiting for the shipping confirmation.

IF YOU ARE CONSIDERING A STORE:

• FREE pictures—up to 12 per listing
• FREE Selling Manager Pro with Premium and Anchor subscriptions
• Plus all the other great marketing tools you get with an eBay Stores subscription, including your own customizable store front and Markdown Manager. These extra tools are very helpful,  particularly at tax time.

Choose the package that's right for you.  (Ebay's Fee Illustrator is helpful in determining which store, if any, is best for you.  I currently have the BASIC store.)

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  BASIC: 20¢ Fixed Price Insertion Fees, $15.95/month.  Consider a Basic Store if you list more than 50 Fixed Price or Auction-style items a month. It's a great starter package if you plan to start an eBay business or ramp up your selling.   I like to keep at least 200 items in my store and auction about 10 per week, so 40 per month.  The extra exposure that Ebay will be giving store items is expected to increase sales dramatically.  
  
  
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  PREMIUM: 5¢ Fixed Price Insertion Fees, $49.95/month.  Great choice for higher volume sellers (more than 250 items per month) and sellers listing in both Auction-style and Fixed Price formats. 
  
  
• ANCHOR: 3¢ Fixed Price Insertion Fees, $299.95/month.  Get the same great deal as the old Store Inventory format-now with full exposure in search results! With an Anchor Store subscription, higher volume sellers get top savings and the lowest package rates on eBay. 

Be sure to calculate how much you would have to sell just to meet the fee requirements.  For me, it 1-2 items a month.  My shipping & handling charge ($1.50 per item) more than meets the fee requirements so it is not difficult to break even.  When I first opened my Ebay store, I withdrew $100 from our savings account and within two weeks put it back in and have never had to take money out again to keep my store open.  

Set a goal of  listing a few items a week  and try to maintain that. Start LOW, maybe even five items a week.  One popular Ebay seller who calls herself  The Queen of Auctions,  Lynn Dralle,  from whom I have learned a lot, lists 100 items every week and teaches others to do the same.  I don't have time for that at this stage of life but she continues to be my favorite source for information and tips.  Sign up for her free newsletter which comes out 2x a month which is very helpful.  You can disregard the chatter and sales pitches if you are not interested.  I have also read several of  her books from the local library and even bought one.   Definitely motivating.

I encourage everyone to try selling on Ebay and to teach your kids how to do so as well.  Both of my sons earn extra $$ selling things they don't use any longer and occasionally they will pick up something for resale as well.  There is definitely a learning curve and the more you do it, the easier it becomes.  I wanted to learn something totally different when I turned 50 (a few years ago) and took an entire summer reading everything I could find and "practicing" selling.  The thrill of the hunt is fun and every now and then buying something for 50 cents and selling it for $50+ is exciting, too (I've done this several times).  This home business  has paid off for us, particularly during Christmas, graduation and wedding seasons when there are so many extra expenses incurred.  The extra money cushions our main family income which my husband provides and yes, we do declare the income on our tax return.    Enjoy the adventure!