In this video I answer the question: “Should I sell on eBay or Amazon?” And discuss eBay vs. Amazon’s fees.
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As I discuss, the answer to the question should I sell on eBay or Amazon isn’t simple. It is going to depend on these three factors:
1) What type of account you have with eBay and/or Amazon.
2) What the item you’re selling is.
3) How you plan to fulfill the order.
For each item, when asking should I sell on eBay or Amazon, you’re going to need to calculate the different fee’s that eBay and Amazon charge to work out your profit after fees. Here is how to work out your eBay seller fees:
Ebay insertion fee: You get to list 20 items for free on eBay. After that, you have to pay an eBay insertion fee. The one exception is the Collectibles category, where you can list an additional 20 items for free. If you’re selling collectibles, this is an important consideration when you’re wondering, should I sell on eBay or Amazon.
If you have a basic eBay store, you’ll only pay 20 cents to list a fixed price item. Premium stores pay 10 cents, and Anchor stores pay 5 cents.
If you create extra auction-style listings, you’ll only pay a 25 cent insertion fee as a Basic eBay store, 15 cents as a Premium store and 10 cents as an Anchor store.
Ebay final value fee: This is a percentage fee paid on the cost of the item you sold. You pay it on both the cost of shipping, AND the cost of the item. It is only paid after you have successfully sold an item.
When you ask yourself, should I sell on eBay or Amazon, whether you have an eBay store is key. If you don’t have an eBay store, you pay a 10% fixed fee. But, if you do have an eBay store, your final value fees will be between 4-9% depending on the item category. If you are a PowerSeller you’ll save an additional 20% on the final value fee on the cost of the item, but NOT the eBay shipping final value fee.
These are your eBay fees to calculate when answering for each item should I sell on eBay or Amazon. However, you need to keep in mind that having an eBay store is pretty expensive: A basic store costs $19.95 or $191.40 if you pay a 12-month subscription upfront.
You also need to pay the PayPal fees. This is a flat 45 cent fee, plus 2.9-2.2% of the transaction for most people.
Those are the eBay fees. Now, to work out the answer to question of should I sell on eBay or Amazon, you need to Amazon’s seller fees. Here’s how to work them out. Note, there are NO upfront fees. You only pay fees on items you successfully sell:
Amazon Commission Fee: This depends on the category and is between 6-45%, but it will usually be between 12-15%. This is on the cost of the item, not the shipping.
Amazon Variable Closing Fee: There is a fixed Amazon Variable Closing Fee on media items of $1.35. For everything else, you pay a variable price based on the shipping selected. For standard shipping, you pay 45 cents + 5 cents per pound. For domestic expedited shipping, you’ll pay 65 cents + 10 cents per pound.
Amazon-Per-Transaction Fee: You’ll pay 99 cents per transaction. If you have a PRO account you don’t have to pay this, but your PRO account costs $39.99. Only buy this if you are selling 40+ items per month.
However, what this doesn’t take into account is that Amazon will also give you a shipping credit IF you are fulfilling the order yourself and not through the Amazon FBA program. This acts like a “refund” for your Amazon fees.
Amazon FBA Fees: You only pay these if you’re fulfilling your orders through Amazon FBA. You will have to pay a pick & pack fee and a fee based on the weight of the item. Certain non-media items also have a order handling fee of $1. This is in addition to the other fees. And
So, when you’re wondering, should I sell on eBay or Amazon, and which one is cheaper and has the lowest fees, you need to calculate each item for yourself using the following equations:
* Ebay fees: Insertion Fee + Final Value Fee + PayPal Fee.
* Amazon fees: Amazon Commission Fee + Variable Closing Fee + Transaction Fee – Amazon Shipping Credit.
And work out which one is cheaper.
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