Dropship Mysteries: What Is A Final Value Fee?

If you ever listed or sold anything on eBay, you know that listing fees apply depending on the type of listing you insert, whether the item sells or not, and how much the item sells for.

For those items that actually do sell, a final value fee is charged based on the winning bidder’s amount.

*Auction-styled versus fixed priced listings on eBay*
For auction-styled listings, the method for calculating final value fees is very simple.  Of course, if the item doesn’t sell there is no fee whatsoever.

For all items that sell for one cent or more there is a 9.0% rate of that amount subtracted from the total sales amount.  Thankfully, there is a maximum final value fee charge of 50 dollars that can apply to high priced items sold.

As for fixed priced listings, the final value fee has a more complicated structure.  Not only does is this fee dependent on the amount the item is sold for, but also what classification this item is sold under: Electronics; Clothing, Shoes & Accessories; Books, DVDs & Movies, Music, Video Games; or All Other Categories.

The pricing structure of final value fees for fixed priced listings is a bit trickier to figure out as well.  The three sales proceeds amount groups are from 99 cents to 50 dollars, 50 dollars to 1,000 dollars, and 1,000 dollars and up and the general percentages applied are 8%, 12%, or 15%.  Not only are these flat percentages applied, but additional amounts depending on the winning bid.  If you want to know the fee your fixed priced listing is subject to see the Final value fees for fixed price format listings table on the eBay site Exceptions to eBay final value fees

There are situations where you won’t be charged this fee providing:

* No one bids on or purchases your listed item
* The winning bid is less than your reserve amount
* Your listing is non-binding real estate property
* The item or service you’re trying to sell is listed under the classified ad format

It’s hard not to agree that final value fees can take a bite out of what you earn.  These little fees can amount to a significant chunk of change, especially if you sell a big ticket item.  There is no way of getting around it if you actually do sell on eBay.

Still, eBay is like the “Yellow Pages” of auction sites and though going to another site may cost less to list and sell your item, not as many people will see it there. Hence, your chances of selling it would be far less than on eBay.  Simply, think of the final value fee as an advertising expense.

Even less known auction sites charge final value fees.

Though all auctioning sites operate very much the same, their terms are somewhat different.  Before you list on another site, find out what its final value fee is first.