eBay Final Value Fees: What You Need To Know [Guide]

eBay Final Value Fees: What You Need To Know [Guide]

Today, there are around 187 million active buyers on eBay.

Getting access to that kind of traffic comes at a price, and that price is eBay seller fees.

But seller fees on eBay, like with many of the ecommerce platforms, aren’t always straightforward.

Sure you’ve got your standard listing fee, but there are circumstantial fees that come into play only in certain scenarios, and those are what sellers need to get their heads around.

Why? So they can anticipate them, plan for them or change strategy to minimize them.

In this article, we’ll be focusing on one type of additional fee in particular: eBay final value fees.

You’ll gain a firm understanding of what they are, how they’re calculated, and what you can do to make dealing with eBay final value fees easier.

In this guide on eBay final value fees:

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eBay Final Value Fees: What Are They?

An eBay final value fee is the charge that occurs when you sell something on eBay. It’s applied right at the end of the transaction, or “post-sale”.

eBay final value fees are based on a percentage of the price an item sells for and the shipping and handling option your buyer chooses.

They are also charged even if a buyer doesn’t complete the sale, but in these cases, the fee is sometimes refundable.

Your eBay final value fee can depend on which eBay website your items are listed on. For example, the final value fee could be higher on ebay.com compared to ebay.ca or ebay.co.uk.

Other affecting factors include:

  • eBay subscription model
  • Business account type
  • Category of item

NB: eBay final value fees do not include sales tax.

eBay final value fees are changing with eBay managed payments

Back in August of 2020, eBay introduced a little something called “ managed payments”. This is essentially a way for eBay to simplify the selling and payment process for sellers.

For sellers using managed payments, eBay final value fee percentages work differently.

Final value fees are now calculated as a percentage of the total amount of the sale + 30c per order. See greater detail on this here.

How eBay Calculates Final Value Fees

Final value fees are not a set amount and are dictated by a number of different factors.

These include:

  • Shipping

The shipping method your buyer chooses impacts the final value fees you’ll be charged unless you’ve opted for 1-day or international shipping options combined with a cheaper (or free) option, such as domestic.

In this case, the final value fee will be calculated using the cheapest available method.

Learn more about eBay’s shipping fees here.

  • Subscription model

If you’re looking for an easy way to reduce your final value fees, a new subscription model might be the answer.

Sellers with a store subscription are charged less than those without. Where non-store subscribers pay 10% for eBay final value fees, those with the subscription can expect to pay as low as 3.5%.

The eBay final value fee caps (i.e. limitations to how much they can charge you) are also lowered by a store subscription – more on this in a moment.

  • Country and account type

Depending on which eBay marketplace region you’re using ( ebay.com vs ebay.ca, etc.), you could be paying more or less for final value fees.

The type of account you hold with eBay may also contribute to this:

eBay fees

Source: eBay export.

The above eBay final value fee chart demonstrates how both these variables can change the amount you’re eventually charged for final value fees on each sale.

  • Product category

For sellers with an eBay basic account (no store subscription), the standard final value fee for most categories is 10%. In this case, eBay final value fee caps at $750 per item.

However, the following categories are subject to different final value fees and in some cases, different caps:

  • Books, DVDs, Movies, and Music (excludes Vinyl): 12%, capped at $750.
  • Musical Instruments & Gear > Guitars & Basses: 12%, capped at $350.
  • Men > Men’s Shoes > Athletic Shoes: 0% for listings priced at $100+.
  • Women > Women’s Shoes > Athletic Shoes: 0% for listings priced at $100+.
  • Heavy Equipment Parts & Attachments > Heavy Equipment: 2%, capped at $300.
  • Printing & Graphic Arts > Commercial Printing Presses: 2%, capped at $300.
  • Restaurant & Food Service > Food Trucks, Trailers & Carts: 2%, capped at $300.

Items that are listed in two categories are only charged one final value fee.

NB: Vehicle sales work differently. Find more information on this here.

Other eBay final value fees to keep in mind

There are a few less obvious fee contributors worth keeping in mind, because these are avoidable and depend upon how you operate as a seller, rather than what you sell.

  • Low-performance seller fee

eBay expects sellers to meet the minimum of what they call Seller Performance Standards.

These can vary from one country to the next, but for US sellers, you’ll be charged an additional 5% on top of your usual eBay final value fees when your listed item sells.

Above Standard and eBay Top Rated Sellers are exempt from these extra fees.

To check your current Seller Level, visit your Seller Dashboard.

  • Inaccurate item description fee

eBay runs service metrics to assess how accurately sellers are describing their listed goods.

The “Very High” label = not good.

When a seller’s service metrics are shown as Very High (on the scale of inaccurate-item description), they will be charged an extra 5% on top of the regular final value fee rate.

Seller metrics

Source: Returns.Guru

The additional final value fees added to your total cost are not subject to the maximum final value fee caps that ordinarily apply, as they are penalties.

To work out the fees you might expect to pay using different versions of eBay, try this eBay final value fee calculator.

So aside from completed, honest listings, are there other ways to keep fees low?

Let’s see.

eBay Final Value Fees: How To Pay Less

All right, it’s time to make sure you’re not taking more hits to the wallet than you need to. This next section will cover how to avoid eBay final value fees being higher than necessary.

The best ways to pay less on eBay final value fees:

  • Upgrade your store subscription

We already touched briefly on the benefits of having a store subscription over a basic account. Longer subscription periods can also lower your fees.

The longevity of a subscription can play a major role in reducing your final value fees. At the time of this publication, an eBay seller can save up to $36 on final value fees by opting for a yearly subscription over monthly.

  • Become a Top-Rated seller

eBay supports sellers that provide excellent customer service with a rewards system known as the Top-Rated Seller Program.

Top-Rated Seller perks include things like boosted listing visibility, special seller protection, and a 10% discount on your standard final value fees.

  • Offer Fast N’ Free shipping

To eliminate the final value fee on shipping costs, you can choose to offer Fast N’ Free shipping.

If you qualify for Fast N’ Free shipping, this last option for reducing your final value fees could be just the hack you’ve been looking for.

eBay Final Value Fee Refunds

In some cases, you may be eligible for a final value fee credit refund.

If the buyer doesn’t pay for their order, you can apply for an eBay final value fee credit, which you can eventually get refunded into your account.

In order to be eligible for an eBay final value fee credit, you’ll need to either report the listing as an unpaid item or cancel the sale.

To request a refund of your eBay fees credit balance, follow these steps:

  1. Verify your credit balance by visiting your Seller Account.
  2. Check that your contact information and address are up to date.
  3. Contact eBay to request your refund. Refunds usually take 30 days to process.

Great, we’ve covered just about everything you need to know about eBay final value fees. At this point, you’ve probably realized that even a single fee can become an accounting whirlwind.

It’s easy to lose track of what’s happening within your eBay sales data, which is why in the next section we’ll look at how to deal with your ecommerce accounting without all the stress.

eBay Final Value Fees: A Simple Solution

Insertion fees, final value fees, optional listing upgrade fees, international fees… sometimes, it can all get a bit much.

Especially when you’re trying to reconcile the bank deposits eBay keeps sending and the statements don’t contain all the information you need to know.

Often they’ll span several months, making it difficult to accurately forecast sales and profit.

Accounting automation software can make this simpler on a foundational level. But to really get the most out of your accounting software, you’ll want to optimize the process.

That’s where A2X for eBay & QuickBooks or Xero comes in.

A2X: ecommerce accounting made easy

A2X functions as a connector app, syncing your accounting software with your eBay transactions.

By optimizing your accounting software with A2X, you’ll be able to:

  • Download tidy journal summaries of your transactions that break each deposit down into all its individual components.

  • Get a clear vision of your cash flow thanks to A2X’s accrual accounting method.

  • Save countless hours on accounting labor every year.

  • Easily map your taxes and be prepared for the end of the fiscal year.

Get your free trial of A2X for eBay today!

Also on the blog

Want to feel completely confident in your ecommerce bookkeeping?

Businesses that document their processes grow faster and make more profit. Download our free checklist to get all of the essential ecommerce bookkeeping processes you need every week, month, quarter, and year.

Download it here
Ecommerce Bookkeeping Checklist

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