For each auction that you conduct, eBay takes a small insertion fee when you list your item and then a commission on the back end when you sell your item. This commission is called the final value fee (FVF) and is based on the final selling price of your item.
eBay doesn’t charge a final value fee on an auction in the Real Estate/Timeshares category as they do in other categories; instead, they charge a flat notice fee of $35.00. There’s no FVF fee for Timeshares, Manufactured Homes, and Land or Commercial or Residential. But in the Automotive category, you pay a flat transaction services fee of $40.00 for passenger vehicles and $30.00 for motorcycles if your auction ends with a winning bidder.
In real life, when you pay sales commissions on a big purchase such as a house, you usually pay a fixed percentage. eBay’s final value fee structure is different: It’s set up as a three-tiered system. The following table covers the calculation of final value fees for auctions.
Closing Bid | To Find Your Final Value Fee |
---|---|
$0.01–$25.00 | Multiply the final sale price by 8.75%. If the final sale price is $25.00, multiply 25 by 8.75%. You owe eBay $2.19. |
$25.01–$1,000.00 | You pay $2.19 (8.75%) for the first $25.00 of the final sale price. Subtract $25.00 from your final closing bid and then multiply this amount by 3.5%. Add this total to the $2.19 you owe for the first $25.00. The sum is what you owe eBay. If the final sale price is $1,000.00, multiply 975 by 0.035. (Hint: The answer is $34.13.) Now, add $34.13 and $2.19. You owe eBay $36.32. |
$1,000.01 and over | You owe $2.19 (8.75%) for the first $25.00 of the final sale price. But you also have to pay $34.13 (3.5%) for the remainder of the price between $25.01 and $1,000. This amount is $36.32. Now, subtract $1,000.00 from the final sale price (you’ve already calculated those fees) and multiply the result by 1.5%. Add this amount to $36.32. The sum is the amount you owe eBay. If the final sales price is $3,000.00, multiply $2,000.00 by 1.5% (0.015). (Hint: The answer is $30.) Add $36.32 to $30.00. The sum, $66.32, is what you owe eBay. |
The above table shows where things get tricky. There are different final value fees for fixed-price items in different categories. Checking out the costs involved in the individual categories may help you decide which type of items you choose to sell. The following table, showing fixed-price final value fees, is an attempt to clarify the tiers.
eBay Category | Closing Price | Final Value Fee |
---|---|---|
Consumer Electronics, Video Game Systems, Cameras & Photo | $0.01–$50.00 | 8% of the final value |
$50.01–$1,000.00 | 8% of the first $50.00, plus 4.5% of the remaining final value balance ($50.01–$1,000.00) | |
$1,000.01 and over | 8% of the first $50.00, plus 4.5% of the amount up to $1,000.00 and then 1% of the remaining final value ($1000.01 to the final sale amount) | |
Computers & Networking | $0.01–$50.00.00 | 6% of the final value |
$50.01–$1,000.00 | 6% of the first $50.00, plus 3.75% of the remaining final value balance ($50.01–$1,000.00) | |
$1,000.01 and over | 6% of the first $50.00, plus 3.75% of the amount up to $1,000 and then 1% of the remaining final value ($1000.01 to the final sale amount) | |
Clothing, Shoes & Accessories | $0.01–$50.00 | 12% of the final value |
$50.01–$1,000.00 | 12% of the first $50.00, plus 9% of the remaining final value balance ($50.01–$1,000.00) | |
$1,000.01 and over | 12% of the first $50.00, plus 9% of the amount up to $1,000.00, and then 2% of the remaining final value ($1000.01 to the final sale amount) | |
Media (Books, Music, DVDs & Movies, Video Games) | $0.01–$50.00 | 15% of the final value |
$50.01–$1,000.00 | 15.00% of the first $50.00, plus 5% of the remaining final value balance ($50.01-$1,000.00) | |
$1,000.01 and over | 15.00% of the first $50.00, plus 5% of the amount up to $1,000.00, and then 2% of the remaining final value ($1000.01 to the final sale amount) | |
All Other Categories | $0.01–$50.00 | 12% of the final value |
$50.01–$1,000.00 | 12.00% of the first $50.00, plus 6% of the remaining final value balance ($50.01–$1,000.00) | |
$1,000.01 and over | 12.00% of the first $50.00, plus 6% of the amount up to $1,000.00, and then 2% of the remaining final value ($1000.01 to the final sale amount) |
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Source:http://www.dummies.com/how-to/content/calculating-final-value-fees-for-your-ebay-auction.html
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