April 1, 2020
Should I Sell on eBay or Amazon? Ebay vs. Amazon’s Fees

Should I Sell on eBay or Amazon? Ebay vs. Amazon’s Fees


Sarah: In today’s video, I’m going to look
at whether or not it is cheaper to sell on eBay or Amazon and which one has the highest
cost fees. But the truth though is it’s actually quite a complicated question and it’s going
to depend on three factors. One, it’s going to depend on the type of account that you
have with eBay and Amazon. Two, it’s going to depend on the type of item that you’re
selling. And three, it’s going to depend on how you plan to fulfill that order. So, unfortunately, there’s no clean answer
for you. I can’t just come out and say eBay is cheaper or Amazon is cheaper. You’re going
to have to do the math for yourself. But I’m going to help you do that, so keep watching
this video. Let’s start out by talking about eBay’s fees.
The first fee that you’re going to need to pay is the eBay insertion fee. eBay lets you
list 20 items per month for free. After, it’s going to cost 30 cents per item that you list.
If you have a basic eBay store, this is going to cost you 20 cents instead. If you have
a premium store, it’s going to cost you 10 cents. And if you have an anchor store, it’s
going to cost you just 5 cents. But if you choose to list auction-style listings
instead, with the basic store, it’s going to cost you 25 cents for insertion fees, it’s
going to cost you 15 cents for a premium store, and then 10 cents for an anchor store. The
one exception to this is if you’re listing items in the collectibles category. If you’re
doing that, you get to list an additional 20 items per month for free. Now, if I’m going
to be realistic about you as an e-commerce seller, if you want to be serious with this
business, you’re going to be listing more than 20 items per month. So this insertion
fee is actually very relevant. The next fee that you need to pay is the final
value fee. This is a fee that is paid out on the percentage of the item cost that is
sold. You will only pay this fee, though, after you have successfully sold the item.
On eBay, if you don’t have any type of a store, this is going to be a fixed 10% fee. Now,
that is a 10% fee on the cost of the item and the shipping that you’re charging and
so this is a huge fee. But with an eBay store, you can make some substantial savings on your
final value fee and it will cost you 4 to 9%, depending on the category. But you also need to keep in mind that eBay
store subscriptions are definitely quite pricey. For a basic store, it is $19.95 per month
or $191.40 if you buy a year’s subscription. Now, if you are a power seller, you make even
more savings because you get a bonus 20% on the final value fee on the cost of the item
sold. Now, that is not the shipping, but you get it on the final value fee of the item
price. To help you understand, I’ll give you an example.
Let’s say that you’re on eBay and you’re selling a book. Your book sells for $20 and you’re
charging $5 for shipping. Your book has a 9% final value fee on the book itself and
the shipping that you’re charging. So a 9% fee works out to be a $1.80 on the book and
then on the shipping, it works out to be 45 cents. Your power seller 20% discount is applied
to the $1.80, which is the final value fee on the book and not the 45 cent fee, which
is the fee that is applied to the shipping cost. This means then that your $1.80 final value
fee on the book goes down to just $1.44 while of course, the final value fee on your shipping
remains at 45 cents. This means then that you’ll be paying $1.89 for your final value
fee after the discount of having an eBay store and your power seller discount is also applied. The other sneaky fee that you need to account
for when selling on eBay are the PayPal fees because the vast majority of your transactions
on eBay are going to take place on PayPal. Every PayPal transaction has a flat 45 cent
fee plus an additional fee that is based on the percentage of your sales volume. So your
fee is based on the amount of sales that you make in a month. For most people, this means
that their fee is going to be between 2.9% to 2.2%, depending on how much you sell. So
basically, to work out your total eBay fees, you need to go insertion fee plus final value
fee plus PayPal fee. So let’s work on the basis that you are a
small-time eBay seller and you’re selling an item in a category like books that has
a 9% final value fee. And because you are a small-time eBay seller, your PayPal transaction
fee is 45 cents plus 2.9%. Here’s how you’d work out your total fees on the item. A 20 to 25 cent insertion fee, which will
be dependent on whether or not you listed a store-style listing or you listed an auction-style
listing, plus 9% final value fee, which is on both the cost of the item and the shipping,
plus a flat 45 cent fee for PayPal plus a 2.9% transaction fee. Your total fees would
be 11.9% plus a 65 to 70 cent flat fee. Now, let’s compare those to the prices that
you would pay for your fees on Amazon. Firstly, Amazon has no insertion fee, you only pay
fees on items that you successfully sell. This makes Amazon a great place for new sellers.
Now, the fees I’m about to say are relevant to you whether you are selling through Amazon
FBA or whether you’re fulfilling orders yourself. It doesn’t matter whichever you’re doing,
you’re going to have to be paying these selling-on-Amazon fees. The first fee that you need to pay is the
Amazon commission fee. Now, this varies greatly depending on whatever item that you’re selling.
It will vary between 6 to 45%, but most items have between 12 to 15% Amazon commission fees.
This commission fee is only applied to the cost of the item, plus any gift wrapping that
is selected. It is not applied to the cost of shipping. The second fee that you need
to pay on Amazon is the variable closing fee. For media items like DVDs and video games,
it is a flat $1.35 fee. For other items, you pay a flat 45 cent fee plus 5 cents per pound
if your customer selects domestic standard shipping. And if they select domestic expedited
shipping, you will pay 65 cent flat fee plus 10 cents per pound. Plus, there is an additional
99 cent per transaction fee on each sale that you make. Now, you don’t have to pay this if you have
a Pro Merchant account, which costs $39.99 per month, so obviously, if you’re selling
40 or more items a month, this is a great deal and you need to get an Amazon Pro merchant
account to save money. Now, I can imagine that you’re looking at
these fees and you’re thinking, “Well, obviously, Sarah, eBay is the cheaper option, right?”
Well, that is because you are not taking into account the fact that Amazon gives you a shipping
credit, which basically acts like a refund if you are a private seller and you are fulfilling
orders yourself and you’re not selling through Amazon FBA. The shipping credit that you get
varies widely. For media items, you will get between $3.99 or $46.50 depending on the type
of shipping that your customer selects. And for non-media items, you will get $4.49 plus
50 cents per pound if the customer selects domestic standard shipping. And you’ll get
$6.49 plus 99 cents per pound if your customer selects expedited domestic shipping. The shipping credit is awesome, but keep in
mind, this means then that you don’t have control over how much you’re charging for
shipping. Amazon will charge the customer their general rates for shipping and they’ll
credit that money to you. If shipping for you is cheaper than the credit, then that’s
awesome and you win out hugely. But if the shipping is more expensive, that means then
that you lose money. So to work out your total fees on Amazon,
you need to do this: Amazon transaction fee if you don’t have a Pro Merchant account,
plus the commission fee plus the Amazon variable closing fee minus shipping credits. So let’s
work on the basis that you were selling a book on Amazon. This has a 15% Amazon commission
fee plus a fixed variable closing fee and your customer selects standard domestic shipping.
Your total fees on this item would be a 99 cent transaction fee plus a 15% commission
fee plus a $1.35 variable closing fee minus $3.99 as a shipping credit. So your total fees would be 15% plus $2.34
minus $3.99. And remember, if you had a Pro Merchant account, you wouldn’t be paying that
transaction fee. And now, keep in mind, if you want to sell on Amazon FBA, you won’t
be entitled to that shipping credit because it is them who is shipping the item and not
you. You will also have to pay additional fees.
You’re going to need to pay a Pick & Pack fee, which is based on the weight of the item
that you’re selling. And certain non-media items have an order handling fee of $1. It
is also important to note that if an item sells for $300 or more, you won’t have to
pay any FBA-specific fees, which is nice. So with all these fees swirling around, which
is cheaper? Usually, eBay’s going to come out on top. Now, that doesn’t mean that eBay
is the place that you should be selling your item. But it often comes out as the place
that has the cheaper fees. But it is going to depend on item to item and category to
category. These are the two big considerations that
you need to take into account. Firstly, are you a new seller and you want to minimize
your risk? If so, I recommend selling on Amazon because you don’t have to pay any fees unless
you successfully sell an item. Secondly, are you drop shipping? If so, you should take
into consideration the weight of the item and the shipping price that the drop shipper
is charging you. Sometimes as a bonus, drop shippers will offer free shipping and if you’re
selling an item that is 10-plus pounds or more, the Amazon shipping credit that they
give you can often make this way cheaper to sell it on Amazon rather than eBay. But again, you need to do the math for yourself
and work out which is the cheapest and most affordable solution for your business. And
if you’d like to know how to make a full-time income selling online, then be sure to download
our free e-book, “How to Make $10,000 a Month Online with Drop shipping.” You’ll find a
link on how to download this incredible, life-changing e-book in the video description below. Man: Hey there, and thanks for watching this
video created by us here at Wholesale Ted. It is our mission to help everyone start and
grow their own online business and that is why we’ve created a simple e-book, which shows
how anyone, yes, even you, can make $10,000 each and every month with drop shipping, even
if you don’t have start-up money. And best of all, we’re giving away this e-book for
free. And yes, we really mean it, absolutely free. So if you’d like to get this potentially
life-changing e-book, simply click on the link in this video description and get it
now.

100 thoughts on “Should I Sell on eBay or Amazon? Ebay vs. Amazon’s Fees

  1. I think you're beautiful Wholesale Sarah! Your accent is like music to my ears 😍 Oh yeah, I like your tutorials too, great ebook.

  2. Can someone help me figure out what my API information is????? I have my amazon selling account established but can't seem to find my API info

  3. I sold one book on Amazon – they suspended my account, would not give me a reason, would not review my account, and would not pay me for my item that I sold

    I gave them the tracking # to my sold item – they did not care – they are screwing sellers all the time

    the washington state At. generals office has thousands of complaints about this…

    I have heard that Amazon does this to cut down on competition on products that they are selling – that makes sense, doesn't it?

    greedy bastards at amazon

  4. hi , dont u think dropshipping on Amazon incurs more cost, If I use my own dropshippers. Dropshippers cost will add to total cost, secondly, if I ship the product from dropshippers to amazon FBA center, it will cost MORE. Dropshhiper cost+Amazon FBA+Amazon Fee.
    Which is better ?

  5. She sounds Aussie, but the accent sounds watered down to almost like us in the USA and not as strong as it used to sound.

  6. wait this video came out dec 2015. the date now is july 2017. did ebay and amazon change their fees? ebay fees at the moment should be 10% of item price, plus listing fee .30, plus paypal fee which is .30 cents and 2.9%.

  7. Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee × 1000000000000000 How many times does this word come out of her mouth in this video fml

  8. Amazon has too many restrictions now. Unless you plan on selling off–brand items from Alibaba or some other hack, expect lots of resistance.

  9. I began to understand a lot more about Amazon and Ebay selling, just from Sarah's post. This led me to research much more in depth regarding this subject. So, in my opinion, great work Sarah!!! Additionally, I imagine the reviewers leaving negative comments believe they are showing a humerus side of themselves, but only identifies them as ignorant and unpolished. Her accent is amazing and I suspect she does hail from New Zealand. If you haven't traveled, the country possesses an undefinable beauty, North and South. The Kiwi population (aka New Zealanders) are a wonderful, warm, welcoming and positive people. I would live there in a heart-beat and would relish hearing words like, DEPIEND and CIENTS, its quite enjoyable to hear. Let's bear in mind that English existed far longer than America, so we need to be tolerant of other English speakers, including Speakers of English as a Second Language.

  10. Guys – pay attention that fucking Amazon will not allow you to sell more than 40 items/month as a free account seller
    you need to feed them 39.99$/month to have a profissional account to be able to sell more than 40 items/month , add to that 15% fees , and you need to apply to the category that you want to sell in – and to have a website for your products in special categories like clothes …….
    Amazon is a greedy bullshit

  11. looks like she is fast reading from a script the patter is much too fast like some commented poor delivery so thumbs down

  12. This video was made 2015 now lets fast forward to now 2018 (HAPPY new years) is this information still the same or has it changed ?

  13. Am i the only one who didn't notice the eyebrows cuz i was so caught up by what she was saying and proceeding in my head?

  14. Actually the prices and fees are great for sellers. You have to think of the cost of monthly rent of a physical store. Some stores pay a monthly rent of over $3000…. not to mention that your customer base is only going to be who can make it to shop. eBay reaches the world and is the #1 source for people buying and selling.

  15. nope.. this is not a friendly video. My brain got fried. All I could hear were endless numbers and percentages; and "then there's this fee, that gets you to the next fee, which will give your final fee" fee fee feee feee feeeeeeee. Basically you there's a fee for every step you click on in order to sell something. Imma try it out tho, because in the end Ebay is a huge platform to get your products out there. I wouldn't trust amazon tbh.

  16. I honestly got distracted because she moved her eyebrows more times then all the word's she said in this video. And the only word's that stuck was ebay, Amazon and the word depends…

  17. This is such bullshit. It’s worse than doing your taxes!! There should be flat fees based on your final sold price and nothing else. Greedy bastards.

  18. JUST KEEP IT SIMPLE FOR ME PLEASE…….I JUST WANT TO SELL A FEW ITEMS; I DON'T WANT TO START A BUSINESS. TELL ME HOW TO SELL LESS THAN 20 ITEMS OK? THANKS. COULD YOU SPEAK A LITTLE SLOWER PLEASE AND MAKE IT SIMPLE.

  19. I think the accent is sexy. Couldn't understand anything she's saying, so I went ahead and rubbed one out.

  20. Wow! And I though eBay was bad enough with seller fees. Might as well stick with eBay since amazon has more seller fees than eBay. Thanks for the info!

  21. Bunch of creeps in comments, this was very informative and helpful thank you for going out of your way to help and educate.

  22. THE WORST ACCENT EVER. DOES SHE HAVE AN SOUTHERN AUSTRALIAN VOICE? A FUCKING REDNECK AUSTRALIAN! I NEVER KNEW AUSTRALIA HAD A SOUTHERN ACCENT.

  23. You’ve got the knowledge. But you do not get the concept of educating. Way too fast. Should break the video up into parts.

  24. My experience of using Amazon platform for selling products is a big negative and disappointment. They ask for your bank statement, certified copy of bank details, photocopy of your passport and copy of your utility bills in order to pass all that information apparently to tax office. I had a seller’s account in the past and it was such a headache which I closed it permanently. Amazon is a nightmare for selling.

  25. eyebrows freak me out and the whole video is pure waffle. I am more confused than i was before. All i know is her eyebrows use 4000 calories per day alone.

  26. The idiots at ebay are no longer accepting their own gift cards without
    having a paypal account signed in. However, if you own no credit cards,
    nor debit cards that can not cover the purchase, you can not make a
    paypal account. Thus, if you get an ebay gift card, you can not use it
    if you have no credit cards nor debit cards. I hate ebay!

  27. The idiots at ebay are no longer accepting their own gift cards without
    having a paypal account signed in. However, if you own no credit cards,
    nor debit cards that can not cover the purchase, you can not make a
    paypal account. Thus, if you get an ebay gift card, you can not use it
    if you have no credit cards nor debit cards. I hate ebay!

  28. The idiots at ebay are no longer accepting their own gift cards without
    having a paypal account signed in. However, if you own no credit cards,
    nor debit cards that can not cover the purchase, you can not make a
    paypal account. Thus, if you get an ebay gift card, you can not use it
    if you have no credit cards nor debit cards. I hate ebay!

  29. Love you, Your cute as a button. I so wish you were around when I was younger. I watched a video that I can not find now for some reason. You made it about print on demand with Printful and Ebay. Sounded good so I did both. Sadly, terrible terrible experience. I am already out $15 and can not put more than 1 shirt up for auction for an entire month. You read that right. I used the free 50 auctions anything you want. That is not true at all. There are these things called variants. You do not get 50 variants with your 50 free auctions. Best I can tell is you get about 8. I put 1 T-shirt up through Printful. 3 colors, sizes Med – 2XL. I could not include SM and 3XL because I did not have enough variants available for the month. So this pissed me off to no end. I said the same thing I always say to myself when literally everything I do goes wrong or does not work. Of course, I am going to have every problem possible trying to do this, I said. So I thought about it for a day. I thought, Ahh perhaps it is because I am on a free account. Ok, no problem. I will get the basic $7.95 per month get 100 auctions and that should take care of that. NOPE!! I still can not put another T SHirt up unless it is 1 color and 1 size. So I researched this variant thing and found lots of words talking about it but nothing that explains, what they are, why they are, how many there are, what is affected by them, what is not. So, in the end, I have spent $15 of money I did not have to try and make some money just to not be able to, by Ebay's own rules which are not plainly explained anywhere. So how in the hell is someone supposed to do this? I assume it is the same as everywhere else. You need money to make money. By that I mean there is not a, hey try our free service and get started making money. Certainly, are not going to do it on Ebay with T-shirts. If anyone can explain to me please what this variant crap is all about please do so. Best I can tell is If you put up 1 T-Shirt in 5 colors with 6 sizes that count as 12 variants or as 12 separate shirts. Now, this does not use 12 auctions it uses 12 variants which is WHAT exactly. If I have to buy the top tier of eBay for selling more than 1 shirt with 1 color and 1 size. This is all a waste of time for dirt poor people to even try. I mean seriously people like me use the money to try these things that we needed for something else. With me, it is 2 weeks worth of Primitine tablets I use to control my Asthma better. Not that I have not gone without it before. It is just REALLY nice to have the second one needs it. So I figured I can breathe hard for a couple of weeks just for the off chance this could be the break I have been waiting for, but as with everything I have done and tried, blocked at every corner. Unless I have lots of cash. Hell, my own government says I am too poor to get government help. I shit you not! Since I do not make at least $11,000 a year my state and federal government told me you are too poor. We will not help you in any way. Well, not in those exact words. I have needed to replace the main vein in my left leg for 15 years now. partially disabled. The entire leg from the knee down turns purple and black if I stand up for more than 4 hours. Its pretty bad. Turned down by every medical help in this entire country, can not afford any insurance. It Pathetic, I know, but true Anyway. SO sorry about this long bullshit, I just wanted to let our Cuite girl know that It is not as simple as they all make it sound. Also, I thumbed up this video and I am a subscriber. This is NOT a put-down or negative thing towards this channel. Just my input on what I did and what did not work for me. Thank you for tolerating the ranting of a middle-aged loser who probably did everything wrong and this is all my own fault. Sigh, Have a great day everyone. Keep up the good work Ed. I am going to look again and try to figure this out before I cancel my Ebay store. I can not afford another $7.95 without a chance of putting up 25 T-SHirts with various colors and sizes. SO far Eaby says NO. I will not be doing that. So anyone who would like to show loser what he is doing wrong would be greatly appreciated. Yes, I am calling my self a loser to try to get some sympathy. Is it working? It's all true though I am a loser mostly. Everything above is true I promise.

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