# Section 127. Determine Your Selling Price and Estimate Your Selling Fees

BEFORE YOU BEGIN

Selling on eBay can be a form of entertainmentbut it's entertainment in which you get paid, rather than in which you do the paying. And perhaps for you it's not entertainment, but a way to make money.

Before you put an item up for auction, you should know how much money, at a minimum, you expect to make. So you'll need to know the minimum price at which you'll sell an item, and you also need to know the fees you'll have to pay eBay to list the item. Then just do the math: Take your minimum selling price, subtract the eBay fees, subtract how much money you spent to buy the item (if any), and you'll come up with your minimum profit. If people bid above your minimum selling price, you'll get even more profit. But to be conservative, assume the minimum selling price. Here's how you can figure out your minimum selling price and your eBay fees:

You have to pay two kinds of required feesan insertion fee and a final value fee . On every item put up for bid, an insertion fee is charged, regardless of whether the item sells. Final value fees are charged only for items that actually sell. In both instances, fees are charged on a sliding scalethe higher the price of the item, the more you pay.

KEY TERMS

Insertion fee The basic fee charged for every item you put up for sale on eBay. You're charged this fee regardless of whether the item sells.

Final value fee The fee you pay only if your item sells on eBay. If the item doesn't sell, you're not charged this fee.

Reserve price A secret price you set for the item you're selling; if the bids don't reach that price, you don't sell the item.

The following table lists insertion fee costs. They are based on the minimum price you set for the item you're selling, the reserve price you set, or the opening bid.

##### eBay Insertion Fees

Starting Price, Opening Value, or Reserve Price

Insertion Fee

\$0.01\$9.99

\$0.30

\$10.00\$24.99

\$0.55

\$25.00\$49.99

\$1.10

\$50.00\$199.99

\$2.20

\$200.00 and up

\$3.30

The next table lists the final value fees you'll pay. They're based on the final selling price of the item.

##### eBay Final Value Fees

Closing Value

Final Value Fee

\$0\$25

5.25% of the closing value

\$25\$1,000

5.25% of the initial \$25 (\$1.31), plus 2.75% of the remaining closing value balance (\$25.01\$1,000)

Over \$1,000

5.25% of the initial \$25 (\$1.31), plus 2.75% of the initial \$25\$1,000 (\$26.81), plus 1.50% of the remaining closing value balance (\$1,000.01closing value)

If you want to give extra visibility to your auction, you can pay for a variety of other options, such as adding boldface to your title for \$1. The third table lists the eBay optional fees. For more information about what each of these fees buys, go to http://pages.ebay.com/help/sell/fees.html.

\$99.95 (single quantity) or \$199.95 (quantity of two or more)

Featured Plus!

\$19.95

Highlight

\$5.00

Item Subtitle

\$0.50

Bold

\$1.00

Listing Designer

\$0.10

Gallery

\$0.25

Gallery Featured

\$19.95

List in Two Categories

10-Day Duration (the longest listing duration available)

\$0.10

Scheduled Listings

\$0.10

\$0.05

\$0.25

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ISBN: 0672326906
EAN: 2147483647
Year: 2006
Pages: 276