… how you make your money.
In order to maximize profits, be prepared. Understand and think about your choices well in advance. You definitely don’t want any after-the-fact surprises. One such surprise could be your sale costs. Browsing and buying are free but selling is not. Before you list any item, you need to make sure that you know exactly what you will be charged...
1) Insertion Fees -- Insertion fees are required on some auction sites when you list your item. They are not refundable, even if your item fails to sell. The only exception is if your buyer does not follow through. In that case, you get a credit on fees. You can re-list your item once. If your item sells the second time around, you’ll get a refund of the insertion fee for the second listing. Please make sure the following conditions apply...
a) You didn’t receive any bids on your listed item during your first regular auction.b) You didn’t get any bids that met or exceeded your reserve price (for a Reserve Price Auction).
c) You are re-listing the same item within 30 days of the closing date of the first auction.
For a regular auction, the fees on eBay are as follows…
Opening Value Fees
$0.01 - $0.99 $0.30
$1.00 - $24.99 $0.55
$25.00 - $49.99 $1.10
$50.00 - $199.99 $2.20
$200.00+ $3.30
Auction Format
3,5,7 or 10 day listing $50
30-Day Listing $75
Ad Format
30-Day Listing $75
90-Day Listing $200
Auction Format
3,5,7 or 10 day listing $100
30-Day Listing $75
Ad Format
30-Day Listing $150
90-Day Listing $300
It’s not difficult to see why auctions are such a terrific business venture. If you are cautious, and learn what you are doing before you choose your merchandise, it is almost impossible to lose.
In a Reserve auction, the fees are the same except that if the reserve is below $25, there is an extra charge of 50 cents. For reserves in the $25 to $100 range, the fee is $1. Above $100, the fee is 1% of the reserve bid (maximum fee is $100). If the item sells, these fees are refunded. Just be aware that the fees are based on the reserve price, not the minimum bid. In a Dutch auction, the fees are based on the minimum bid. That fee is then multiplied by the number of items for sale -- whether they sell or not.
2) Final Value Fees -- If you have to pay final value fees, celebrate! If it doesn’t sell, there are no such fees. On eBay, the final value fees are as follows...
• $0 - $25 = 5.25%• $25.01 to $1,000 = 5.25 % of the initial $25 ($1.31), plus 2.75% of the closing value balance
• Greater than $1,000 = 5.25% of the initial $25 ($1.31), plus 2.75% of the initial $25-$1000 ($26.81), plus 1.50% of the remaining closing value balance
For Dutch auctions, the final value is the lowest successful bid, multiplied by the quantity of items you sold.
3) Fixed Fees - There are certain items that have fixed fees. For example, there’s a fixed $40 final value fee for passenger cars and other vehicles, and a $25 final value fee for motorcycles.