When it comes to online selling, Amazon and eBay are the two most prominent players in the game, so in this blog post, we will compare their fees and explain what they cover.
So, if you’re looking to start selling online, and want to know if Amazon or eBay fees are better for your business, read on for all the info you need!
Amazon Vs. eBay Fees In 2023
For sellers looking to decide between Amazon and eBay to list their products, the fees charged may decide. Both Amazon and eBay have seller fees associated with listing, processing, and fulfillment in 2023. Both have fee options that begin on a per-item basis; however, Amazon also enables large-scale companies to pay a flat rate of $39/ mo (plus associated costs).
To find a more in-depth comparison of the seller fees charged by Amazon and eBay, keep reading for useful facts and tips!
What Fees Are Associated With Selling Products on Amazon?
When you sign up to sell products on Amazon, you will find three basic categories of fees you will be responsible for paying.
Generally, sellers will need to be aware of the following types of fees:
When selling on Amazon, businesses can select an individual or professional business plan. Lets look at these plans more in-depth:
For businesses that anticipate selling 40 units or less each month, the best option is an individual plan.
With options starting at $0.99/ item sold (plus additional costs), this plan includes the opportunity to list on Amazon and utilize the Amazon FBA services.
For more established businesses that sell over 40 units per month, the $39.99/mo. professional option provides many helpful services.
In addition to the services offered for individuals, professionals can also list in multiple categories, view personalized reports, run promotions, and use advertising tools.
When you sell an item on Amazon, the company takes a percentage (or minimum) of your sale price.
Amazon also charges referral fees for every customer that clicks through and buys from one of the available selling plans.
This is in addition to any other costs like shipping or wrapping gifts!
At a minimum, sellers are charged a referral fee of $0.30. However, referral fees may be as much as 45% depending on the product category.
Amazon FBA (Fulfillment by Amazon) allows sellers to store their products in Amazon’s fulfillment centers.
The company will then pick, pack, and ship the products to the customer.
This is a great option for sellers who want to take advantage of Amazon’s world-class logistics network but don’t want to worry about fulfilling their products themselves.
Sellers will find Amazon FBA fees vary depending on the size and weight of their products, as well as the categories they fall into.
When using FBA, sellers will find fees are as low as $2.35 and, depending on the weight, can exceed $150.
However, sellers also have the option to handle their shipping and handling.
When using this option, sellers receive credits that correlate with shipping rates paid by the customers. These credits start at $3.99 and can be as much as $46.50.
In addition, sellers may accumulate additional fees like:
- Rental Book Fees
- High Volume Listing Fees
- Refund Administration Fees
What Are eBay Seller Fees?
Some find eBay’s seller fees are a bit more complicated than Amazon’s, as sellers can incur several different types of expenses.
Here is a breakdown of the most common eBay seller fees:
Final Value Fee
When you sell an item on eBay, the company charges you one final value fee, and there are no more third-party payment processing fees.
This charge is calculated as a percentage of the total amount for sale plus 30 cents per order!
Most product categories valued at less than $7500 are charged a fee of 12.9% of the total sales amount, plus $0.30.
Every month, sellers are charged a fee for each item listed on eBay. For the first 250 listings, there is no fee. However, each additional listing is $0.35.
Listing Upgrade Fees
When sellers upgrade a listing to a featured or auction-style, they are charged a fee. These fees begin at $1.00 and can be as much as $50 or more.
Amazon and eBay are both great platforms for selling products online, but they each have their own set of fees that sellers need to be aware of. However, overall, which platform is a better deal depends on the needs of individual sellers and their niche.