When you sell anything there is usually going to be some kind of advertising cost. If, for example, you had a garage sale at your home, you would have to put a classified advertisement in the local newspaper and buy or make garage sale signs to post around the neighbourhood.
Advertising would be limited, to say the least.
When you list an item for sale on eBay, the advertisement can be seen around the world in every industrialized nation.
Millions of people can read your advertisement and have the opportunity to buy whatever you are selling. So when you think of eBay fees as advertisement, they turn out to be real bargains.
There are two fees that eBay charges: the insertion fee and the final value fee.
The insertion fee is based on the asking price of the item. For item that is listed for under $1.00 , the insertion fee is $.20. For an item that is listed for $500 or more the insertion fee is $4.80.
The final value fee doesn't apply until an item is sold. If the item listed does not sell then there is a final value fee.
For items that sell for $25 or less, the final value is $1.31. For items that sell for more than $25, the fee is $1.31 plus 3% of the sales price over $25.
The math may be a bit mind boggling but the fees are very reasonable when you think about the value of the advertising you receive.
The Insertion fee for Multiple Item Dutch Auction and fixed price listings will never be more than $4.80 no matter how many items items are listed.
However, the final value fee is based upon the sales price of each item rather than on the total of sales.
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Saturday, August 2, 2008
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