If these numbers are not enough for you, eBay offers tier-based pricing plans to their users. The free plan includes free 250 free listings for fixed-price and auction-type products. eBay Store MembershipĮBay offers a free plan that includes everything you need to sell on its platform. Instead, the customer will select their preferred shipping type and pay accordingly. You don’t have to bear the cost of shipping. The shipping cost depends on your selected shipping carrier and the customer’s location. This cost includes processing fees from third-party payment providers, so you don’t have to pay extra for it. Well that brings us to the end of today’s post.The selling cost or final value fee is a commission taken by eBay for using their marketplace for selling. While you can get slight discounts on the regular PayPal percentage charge, depending on your monthly volume of sales, Micropayments are always charged at 5% + 5p. There are no volume discounts/price breaks for Micropayment fees! There is one last thing I want to mention though and it’s something you should be aware of before deciding to switch to Micropayments. You have an average transaction amount of less than £5Īs long as you meet these two requirements, then you can simply give PayPal a call to apply.That you’re signed up for a PayPal Business account &.Well that’s incredibly easy as there are really only two requirements – Now that we’ve gone over what Micropayments is and who it applies to, how can you actually use it for your business? So bear that in mind when looking at the above table. It doesn’t matter if you only sell items worth £6 and therefore you’d be better off on Micropayments, as PayPal will only accept applications from businesses with an average order value of below £5. Let’s take a quick look at how that affects the total PayPal fee at a few different sale amounts:Īs you can see, Micropayments actually works out cheaper for anything up to £9.īUT – you can only apply for Micropayments if your average transaction amount is under £5. Instead of the usual 3.4% + 20p, you’ll pay 5% + 5p.īasically a higher percentage but lower fixed cost. It works in exactly the same way as regular PayPal, so there is change whatsoever for your customers. Put simply, this is a special rate you get from PayPal when processing “low value transactions”. But for some reason it’s something that very few people seem to know about or use. Thankfully though there is a simple and effective solution. That is a huge difference of nearly two and a half times higher fees, in effect, for the cheaper item!Īnd this is a problem that I am emailed about all the time! For low value items, the 20p per transaction charge from PayPal can completely destroy your margins!Īfter all, at 8.5%, you’re paying more to PayPal that you did to eBay to actually make the sale. So total PayPal fees of £0.34 for the cheaper item.Īnd that means for the cheaper £4 Blu-ray, I pay 8.5% in PayPal fees (0.34/4 x 100) compared to just 3.6% for the £100 item!! Now looking at a different product, a Blu-ray movie for example, which I sell for £4: If I sell a product for £100, say a used mobile phone, then I’ll pay the following PayPal fees: Let’s take a quick look at exactly what I mean: Well, yes and no, as while PayPal fees are the same for all products, that 20p can work out very differently. We saw this in our recent eBay vs Amazon Fees competition (check it out here if you missed that: eBay vs Amazon – Which Is Cheaper?).īut what do I mean by “especially for certain products”? After all PayPal fees are a set 3.4% + 20p right, so there shouldn’t be any difference…? As anyone who sells on eBay will know – the PayPal fees can make up a fairly large portion of your total selling fees, especially with certain products!
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