You’ve sold some stuff on eBay—nice job! That little dopamine hit when the sale goes through? Priceless. But before you start mentally spending your earnings, let’s talk about what you actually get to keep.
When I first started selling, I’d watch my dashboard total climb and think, “Wow, I’m crushing it!” Then reality hit. My actual profit was nowhere near that number. Sneaky, eBay. So let’s break down where your money goes.
🧾 Sales Tax
If the buyer’s state requires sales tax, eBay automatically collects it and deducts it from your total. You don’t see that money—it’s gone before it hits your account.
🚚 Shipping Costs
If you offered free shipping, guess who’s footing the bill? You are. That cost comes straight out of your earnings, so make sure it’s baked into your item price.
💻 Platform Fees
This one’s a bit of a maze. Every seller gets a monthly allotment of zero-insertion-fee listings. If you stay within that limit, you’re golden. If you exceed it, you’ll be charged an insertion fee, which varies depending on your item category, listing format, and whether you have an eBay store.
Then there’s the final value fee, which is a percentage of your sale price plus a per-order fee. This also varies by category. It’s worth checking eBay’s fee calculator to get a clearer picture.
📣 Promoted Listings
If you chose to promote your item, that fee is deducted once the item sells. It’s based on the ad rate you selected, so it can add up quickly if you’re promoting multiple listings.
All these deductions can be a real eye-opener. Watching your total shrink after each sale is disheartening—but it’s not all bad news.
eBay gives your listings visibility you probably couldn’t achieve on your own. You’re tapping into a massive marketplace, and that reach can be worth the fees—if you price your items strategically.
💡 Final Tips
- Use a spreadsheet to track your actual profit per item.
- Factor in all costs before setting your price.
- Experiment with promotions to see if they’re worth it for your niche.
- Revisit your pricing strategy regularly as fees and shipping rates change.
Selling on eBay can be profitable, but only if you treat it like a business. Know your numbers, adjust your strategy, and don’t let the dashboard fool you.