Fees are simpler when eBay manages your payments

We’re creating a simpler, more modern managed marketplace

What’s changed

eBay now manages the end-to-end selling experience for our marketplace. This means you no longer need a third-party payments processor, and there is no more separate payments processing fee. For most sellers, this means savings for their business.* It’s that simple.

*Savings based on annual total sales volumes, and comparisons of (a) prior eBay final value fees plus typical 3rd party payment provider fees, with (b) new eBay final value fees (without any 3rd party processing fees).

Now, when it comes to payments, fees are more transparent and reconciliation is easier. The main thing to think about is your final value fee. The final value fee is a percentage of the total sales amount that varies by category (for sellers without an eBay Store subscription, this is 12.35% for most categories), plus a fixed $0.30 per order.

Here’s how it works for most categories:

Fees then

2.9% Third-party payments fee 10% Final value fee
Automatically deducted
from the sale
Invoiced monthly

Fees now

12.35% Final value fee
One bundled fee automatically deducted from the sale

Note: this is the variable percentage for non-Store sellers in most categories. There’s also a $0.30 per order fee. If you have been notified to register for managed payments, you can learn more about the specifics by category and for Store sellers here.

Seller fees when eBay manages your payments: What You Need to Know

Fees for managed payments sellers starting late July 2020

Learn more about how eBay is simplifying fees for managed payments sellers, making it easier to sell and get paid.

The good news
No more third-party payments processing fee. You pay a final value fee that is automatically deducted from your sales. The rest of your proceeds will be paid directly into your checking account. And, if a buyer wants to return a product, we’ll give your final value fee back.*

Sellers have already saved millions of dollars with eBay managing their payments.

*Unlike third-party payments processors, in the event of a full refund or cancellation, the variable percentage portion of the final value fee will generally be returned to the seller, while eBay will retain only the per order fee of $0.30.

The not-so-fine print
The new final value fee is calculated on the total amount of the sale, inclusive of tax, shipping or handling, and any other applicable fees. The old final value fee was calculated on the total amount of the sale, excluding tax. With the old final value fee, you also had to pay a separate payments processing fee to a third-party based on the total amount of the sale, including tax.

For most categories, the final value fee is now 12.35% for non-Store sellers and 11.5% for Store sellers. For full fees information, including specific category rates and details on how the final value fee applies to shipping, sellers notified to register for managed payments can click here.

Seller experiences

Unpacking how fees change in a variety of scenarios so you can see how managed payments may work for you. The examples below are for illustration only. Your specific situation will vary.

Vanessa

Vanessa
Pottery, No eBay Store
$500 monthly sales

Vanessa’s customers are based exclusively in the United States, and 70% of her sales are in states with sales tax.

Before eBay managed payments
Vanessa’s final value fee was 10% of her sales, because she sells pottery. Vanessa also paid 2.9% of her sales + $0.30 per transaction to a third-party payments processor.

Now that eBay manages payments
Vanessa’s final value fee is 12.35% of her sales + $0.30 per order. eBay now handles end-to-end payments for Vanessa — she does not pay any third-party payments processing fees. Overall, Vanessa’s costs are about the same.

Vanessa's Fees Then and Now
*In this example we assume that the number of transactions is 10 and that the amount of sales tax collected is $25.20.

Jasmine

JasmineStar
Jewelry, Premium Store
$15,000 monthly sales

Jasmine’s customers are based exclusively in the United States, and 60% of her sales are in states with sales tax.

Before eBay managed payments
Jasmine’s final value fee was 9.15% of her sales, because she sells jewelry. Jasmine also paid 2.9% of her sales + $0.30 per transaction to a third-party payments processor. She was a Top Rated Seller, so she saved 10% on her final value fee on Top Rated Plus items, pre-shipping costs.

Now that eBay manages payments
Jasmine’s final value fee is 11.5% of her sales + $0.30 per order. eBay now handles end-to-end payments for Jasmine — she does not pay any third-party payments processing fees. Since Jasmine is a Top Rated Seller, she continues to receive a 10% discount on her final value fee on Top Rated Plus items, and that now applies to her shipping costs and sales tax too. Overall, Jasmine’s costs are lower now.

Jasmine's Fees Then and Now
*In this example we assume that the number of transactions is 200 and that the amount of sales tax collected is $612.00.

Paolo

Paolo
Antiques, Basic Store
$5,000 monthly sales

Paolo’s customers are spread across the globe, with 10% of his sales outside of the United States and he incurs a charge for currency conversion. For his domestic sales, 90% are in states with sales tax.

Before eBay managed payments
Paolo’s final value fee was 9.15% of his sales, because he sells antiques. Paolo also paid 2.9% of his sales + $0.30 per transaction to a third-party payments processor. For his international sales, Paolo also paid a 1.5% international fee and a 3% currency conversion fee to the same third party.

Now that eBay manages payments
Paolo’s final value fee is 11.5% of his sales + $0.30 per order. For his international sales, Paolo pays a 1.65% international fee and the same 3% currency conversion fee. eBay now handles end-to-end payments for Paolo on all sales, domestic and international — he does not pay any third-party payments processing fees. Overall, Paolo’s costs are lower now.

Paolo's Fees Then and Now
*In this example we assume that the number of transactions is 104 and that the amount of sales tax collected is $315.27.

Regina

Regina
Motorcycle parts, Anchor Store
$50,000 monthly sales

Regina’s customers are based exclusively in the United States, and 70% of her sales are in states with sales tax.

Before eBay managed payments
Regina’s final value fee was 8.15% of her sales, because she sells motorcycle parts. Regina also paid 2.9% of her sales + $0.30 per transaction to a third-party payments processor.

Now that eBay manages payments
Regina’s final value fee is 10.5% of her sales + $0.30 per order. eBay now handles end-to-end payments for Regina — she does not pay any third-party payments processing fees. Overall, Regina’s costs are lower now.

Regina's Fees Then and Now
*In this example we assume that the number of transactions is 1,000 and that the amount of sales tax collected is $2,520.00.

 

 

 

 

Derek

Derek
Consumer electronics, Premium Store
$10,000 monthly sales

Derek’s customers are based exclusively in the United States, and 80% of his sales are in states with sales tax.

Before eBay managed payments
Derek paid 9.15% as his final value fee, because he sells consumer electronics accessories. Derek also paid 2.9% of his sales + $0.30 per transaction to a third-party payments processor. Since Derek was not meeting our minimum performance standards he was charged an additional 5% on the standard final value fees.

Now that eBay manages payments
Derek pays 11.5% as his final value fee + $0.30 per order, and he does not pay any third-party payments processing fees. Because Derek was not meeting our minimum performance standards he will continue to be charged an additional 5% on the standard final value fees. Derek’s costs are slightly higher than before.

Derek's Fees Then and Now
*In this example we assume that the number of transactions is 40 and that the amount of sales tax collected is $518.40.

Chris

Chris
Sports memorabilia, Basic Store
$3,000 monthly sales

Chris’ customers are spread across the globe, with 30% of his sales outside of the United States. For his domestic sales, 80% are in states with sales tax.

Before eBay managed payments
Chris’ final value fee was 9.15% of his sales, because he sells sports memorabilia. Chris also paid 2.9% of his sales + $0.30 per transaction to a third-party payments processor. For his international sales, Chris also paid a 1.5% international fee to the same third party.

Now that eBay manages payments
Chris’ final value fee is 11.5% of his sales + $0.30 per order. For his international sales, Chris pays a 1.65% international fee. eBay now handles end-to-end payments for Chris on all sales, domestic and international — he does not pay any third-party payments processing fees. Overall, Chris’s costs are lower now.

Chris' Fees Then and Now
*In this example we assume that the number of transactions is 100 and that the amount of sales tax collected is $134.40.

Note: Where applicable, a 6% sales tax is included in the calculations.

  • What are the final value fees by category?

    Final value fees vary based on category, as well as if you operate an eBay Store. For non-Store sellers, most categories have a final value fee of 12.35%, plus a fixed $0.30 per order. For Store sellers, most categories have a final value fee of 11.5%, plus a fixed $0.30 per order. For full fees information, including specific category rates, sellers notified to register for managed payments can click here.

  • Why has eBay removed final value fee caps for sellers with managed payments?

    We are replacing our current final value fee caps with a new final value fee structure. The new fee structure eliminates the need to pay a separate fee to a third-party payments processor.

    The change features a two-tier final value fee structure with specified category thresholds (e.g., $7,500). The rate below the threshold reflects the prior final value fees but now includes facilitation of the associated payments. The rate above the threshold has been structured to ensure basic costs associated with payments facilitation are covered.

  • How will you calculate final value fees for high value items using the new final value fee structure?

    Example—current fee structure for a $10,000 total amount of the sale


    Fees used to be

    10% final value fee applies to item and shipping, capped at $750 $750
    2.9% payments processing fee applies to the total amount of the sale, inclusive of shipping and sales tax $290
    Per transaction fee $0.30
    Total final value fee for $10,000 item $1,040.30

    Fees are now

    Portion of the total amount of the sale up to the $7,500 (12.35%) $926.25
    Portion of the sale above $7,500 (2.35%) $58.75
    Per order fee $0.30
    Total final value fee for $10,000 item $985.30
  • Will I still get a 10% discount on item final value fees for my Top Rated Plus items?

    Yes. If your item qualifies for the Top Rated Plus discount, you will continue to receive your 10% discount. Moving forward, your 10% discount will not only be applied to the item price as it is today, but on the total amount of the sale including shipping and tax. This will result in additional savings on most Top Rated Plus items.

    Items in categories where your service metrics are rated as “Very High” will continue to be excluded from receiving Top Rated Plus discounts. The $0.30 fixed fee per order will not be subject to the 10% discount.

    Below is an example of how the new final value fee structure will work with the Top Rated Plus discount compared to the current final value fee structure with a Top Rated Plus discount.


    Example transaction

    Item price $50
    Shipping $5
    Tax @ 6% $3.30
    Current final value fee 7.15%
    Current payments processing fee 2.9% + 30 cents
    New final value fee
    (no payments processing fee)
    9.5% + 30 cents

    Current final value fee calculation including payments processing

    Final value fee $3.93
    Payments processing fee $1.99
    Total fees before Top Rated Plus discount $5.92
    10% Top Rated Plus discount - $0.36
    Total fees including Top Rated Plus discount $5.57

    New final value fee calculation with no payments processing fee

    Final value fee $5.84
    10% Top Rated Plus discount -$0.55
    Total final value fees including Top Rated Plus discount $5.28
  • What is the per order fee?

    There is a minimum cost to service each order. With each sale, you’ll pay a $0.30 fixed per order fee. An order is defined as any number of items purchased by the same buyer at checkout with the same shipping method.

  • Why is the final value fee now calculated on the total amount of the sale, including tax?

    Our goal is to create a simpler, more streamlined fee structure. Calculating the final value fee on the total amount of the sale (inclusive of tax) helps do that, and helps you reconcile your accounting with that in mind. Certain states collect tax on eBay sales and eBay handles this on behalf of sellers. For a full list of states that require tax collection, click here. Please note that the final value fee will not apply to tax until September 1, 2020.

  • Will final value fees still apply to sneakers sold for over $100?

    Due to the overwhelming positive response, the final value fee will remain at 0% for sneakers sold for $100 or more and we will not charge payments processing fees.

  • Can a buyer still pay by wire transfer in an approved category?

    Bank-to-bank transfers are not currently supported by managed payments. If the majority of your sales are in an approved category that is not supported by managed payments we will contact you to participate when we support the features and use cases associated with your sales.

  • Will you be offering special rates on micropayments?

    When we simplified the fees structure, we replaced the per-listing fee with a per-order fee to help address seller concerns. We believe the new structure addresses the needs of sellers across a wide range of selling prices. We continually monitor your feedback to ensure that we are meeting your needs.



Join us on the journey towards a simpler, more modern managed marketplace

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