eBay only provides a platform for its users, and it does not sell anything to buyers. eBay is like a big bazaar. Sellers rent a space to display their goods, and buyers are like strolling in a bazaar. If they see something they are interested in, they will buy it directly or take a picture of it. Sellers have to pay “rent” to the bazaar after renting a place; while buyers can just pay the money to the sellers directly without paying any other fees. In the United States, regardless of whether the seller’s goods are sold or not, they have to pay money, which is called the insertion fee (Insertion Fee or Listing Fee). The amount of the insertion fee varies according to the size of the seller’s offer. If the transaction is completed, the seller must pay another final value fee (Final Value Fee) based on the final transaction amount. In some places, eBay can display goods for free, and only the final value fee is paid if the transaction is completed.
1. eBay auction item fee rules
When eBay sellers list goods by auction or fixed price, the cost expenditure is the sum of the following three aspects.
(1) The corresponding listing fee is charged based on the starting price or the reserve price of the product.
(2) The function fee generated by the seller’s use of certain specific functions.
(3) After the product is successfully sold, an appropriate transaction fee is charged based on the transaction amount.
2. eBay’s means of earning income from online auctions
(1) A site fee is charged for each eBay auction item, ranging from 2 cents to 25 cents.
(2) A transaction fee of 1.25% to 5% is charged from each transaction. Compared with portal sites that provide a large number of free services, this model can directly generate a large amount of income from transactions.