Ebay/Paypal selling fees - any help for a beginner?

Charlton_King

As a regular buyer on Ebay via Paypal over many years, I'm used to that side of it but have never actually sold anything.

I've been attracted, as I assume have many, by their offer of zero insertion fees for the first 20 items each month and am considering playing with the site and seeing if I can't make a bit of pocket money in my upcoming retirement.

Can anyone confirm my reading of the fees situation, namely that a private seller like me will pay, per sold item, a grand total of 10% to Ebay and a further 3% plus 20p for the privilege of being paid through Paypal?

Just want to get things straight in my mind.

Racheya

Yep. I'm a new seller myself and I think I'm getting the hang of it. It's 10% to eBay of the final list price + P&P then 3.4% + 20p to PayPal on the same. Quite the double dip.

Best thing I've found is to use a calculator, or make a spreadsheet as I have done, to make sure that after fees and postage is deducted, you end up with the profit you want - or at least a profit.

Charlton_King

Ok, thanks. Now to mull over, as thousands must have done, just exactly what I could sell twenty of in a month..!

soolin

Charlton_King wrote: »

Ok, thanks. Now to mull over, as thousands must have done, just exactly what I could sell twenty of in a month..!

The 20 free listings are only for private sellers so you can only sell your own unwanted items. If you are looking to buy something to resell then you will be a business and as such wont be entitled to the free listings once you have registered properly with eBay. You would also need to register as a business with HMRC.

However, if you stick to selling your own unwanted odds and ends then do take a moment to read the sticky postage thread here:

https://forums.moneysavingexpert.com/discussion/3146680

timeforacoffee

Just make sure you take into account that the 10% is inclusive of postage as above, too many people I know have ended up out of pocket selling a low priced item because they weren't aware of the FVF on postage as well as the item.

The best advice I could give you for selling is:

• Research, research and more research on what you want to sell, how many of the item are sold, what price(s) they have sold for, how many available/are others selling, what is the price you are likely to get etc.
• Make sure your description of the item is very accurate ! - Once done, get someone else if possible to have a good look at your listing through 'a buyers eyes' so you can make sure it has correct info and answers any questions buyers would ask or what info about (this will save you getting lots of messages all asking the same things)
• Make sure the item(s) you list finish at a decent hour of the day, the time when a lot of people would be on Ebay, and also don't forget to do end it on a day when you know you can pack it up and post it out asap
• Before you list, make sure that a) you know how you are going to package it to send and you have that packaging ready and available and b) you have weighed said item and packaging to get the exact postage price so you do not get caught out !

Postage prices for RM can be found here:
http://www.royalmail.com/personal/sending-mail

but if you are sending parcels there are many other cheaper options

There are lots more tips but these are the main ones I can think of and there is a whole load of good seller info/tips to be found on MSE and other selling forums and sites

HTH

Charlton_King

soolin wrote: »

The 20 free listings are only for private sellers so you can only sell your own unwanted items. If you are looking to buy something to resell then you will be a business and as such wont be entitled to the free listings once you have registered properly with eBay. You would also need to register as a business with HMRC.

However, if you stick to selling your own unwanted odds and ends then do take a moment to read the sticky postage thread here:

https://forums.moneysavingexpert.com/discussion/3146680

My highlights. The question seems to raise itself: how can Ebay tell the difference in the case, say, of miscellaneous items..?

soolin

Charlton_King wrote: »

My highlights. The question seems to raise itself: how can Ebay tell the difference in the case, say, of miscellaneous items..?

I suppose the simplistic answer is that they shouldn't have to, they should rely on the honesty of sellers. However, even that is not as simple as it seems for an answer.

eBay do not really police their own site, the users do that themselves by a system of reporting , although frankly unless you are selling clothes either new or second hand it seems the chances of being told to change registration to a business seem remote.

Charlton_King

I'm not encouraging illegality. I was just wondering what the distinction was/is.

Anything you buy can be technically classed as 'your own' after all, and when and if you (re)sell it can be a matter of sheer whim or fancy.

I would have thought that someone aiming to make a fiver a week to buy a few luxuries in his retirement, even if from reselling items bought either for keeping or (after consideration) onward resale, can hardly be expected to start hiring accountants and filling in tax returns...

ballisticbrian

My highlights. The question seems to raise itself: how can Ebay tell the difference in the case, say, of miscellaneous items..?

eBay do by number of times you list in the same category. After so many, they transfer your account without forewarning you, to a business account.

Charlton_King

ballisticbrian wrote: »

eBay do by number of times you list in the same category. After so many, they transfer your account without forewarning you, to a business account.

Same category..?

For miscellaneous items..?

Excuse me..?

soolin

Charlton_King wrote: »

Same category..?

For miscellaneous items..?

Excuse me..?

I'm not sure what point you are trying to make?

eBay make strange decisions, no one here can tell you exactly what criteria will force you to upgrade, I personally know of a lot of people forced to upgrade - due to some voluntary work I do on occasions. Most of the ones I am aware of sold clothes or items picked up at car boots, they did not risk selling brand new items . We occasionally get new people on here post questions about forced upgrades, and some I believe have been treated harshly by eBay .


Your own use of the phrase 'aiming to make a fiver a week' shows you are trying to be clever with your 'understanding ' of tax rules , you may well manage it for many years - but playing fast and loose with the taxman is not something that we should be discussing here on MSE.

Seriously though, it is possible to make money for very little effort on eBay if you are looking to keep low end, but why not do it properly registered and not have to worry about getting caught.