A Beginner’s Guide to eBay Listing and Selling Fees in Canada

As you think of opening an eBay store in Canada, you need to understand the eBay fees. As one of the biggest and oldest online marketplaces, eBay is home to several store owners, including collectors, hobbyists, and business owners selling many items.

The good news is that when you list items on eBay, your brand can reach out to over 159 million active buyers globally. The chances are high that you’ll sell your products faster. However, listing and selling fees can affect your profitability on the platform.

What are the eBay Selling Fees Canada?

As a seller on eBay in Canada, you must not ignore the costs of listing items on your store because it may affect your profitability. Without evaluating the cost and profitability of your sales, you may make losses when you develop a habit of listing and relisting.

You are in business. So, consider the money going out as costs and the profits coming in from completed sales. The initial listing fee is just one of the many costs to incur when selling on eBay. You must also factor in the costs of features you will use.

The amount of money to pay as the selling fees depends on the product’s price, format, and category. There are also a few optional listing upgrades you may add that could affect your eBay selling fees. Your seller’s conduct or performance also contributes.

There are two main types of selling fees on eBay in Canada: Insertion fee and final value fee. These fees vary for every store subscriber. But before we look into that, let’s define the insertion fee and final value fee to help you understand what you’ll incur.

• Insertion Fee: Also called the listing fee, an insertion fee is the amount of money you will pay when listing an item on eBay. You’ll only pay this fee when listing over 250 products monthly. However, casual sellers don’t need to pay anything.

• Final Value Fee: The amount of money eBay keeps when you complete sales on the online marketplace. If your product sells, expect to pay 12.55 percent to eBay and an additional $0.30 per order.

Generally, the selling fees to pay on eBay depend on your number of listings, the category of the listed product, and your eBay store subscription. 

In-Depth Analysis of the eBay Fees Canada

So far, you already know the two types of fees on eBay, but that’s not all. We continue exploring the eBay fees, including how they work and apply to your eBay online store.

eBay Insertion Fees

When listing over 250 products on eBay every month, you’ll have to pay the insertion fees. However, every seller on the platform gets monthly access to zero insertion fees listings. As a result, they will be able to list items on eBay without paying insertion fees.

Sellers with basic or higher levels of eBay Store will receive additional zero insertion listings every month. On the other hand, sellers without eBay Store subscriptions are limited to the free 250 listings every month. 

The Number of Free Listings for Different eBay Store Subscriptions

You’ll start paying the insertion fees after using the zero insertion fee allowance. 

The insertion fees are:

• Non-refundable if the products listed don’t sell
• Charged once per listing for a listing with multiple items
• Charged for original listing and every time you want to relist a product
• Charged per listing when you use duplicate auction-style listings for similar items
• Charged per product listing and category. You’ll pay an insertion fee twice when you list the product in two categories

Have you heard about Good ‘Til Cancelled listings?

Well, these are fixed-price listings that automatically renew once every calendar month. eBay charges an insertion fee and other applicable fees when you list a product for the first time and every time it renews. The fee amounts apply when your listing goes live.

eBay Final Value Fees

The final value fee only applies when you complete a sale on eBay. You won’t need to worry about other payment processing fees. The cost gets calculated as a percentage of the total sale amount and an additional $0.30 per order.

The final value fee is calculated based on the total sale amount, including the item’s cost, sales tax, shipping, and other applicable fees. 

Suppose your store provides international or one-day shipping and another cheaper option, such as domestic shipping. In that case, eBay will calculate your total amount of sales using the most affordable domestic shipping option offered.

However, suppose you offer international or one-day shipping only without a cheaper option like domestic shipping. In that case, eBay calculates your total amount of sales using the service selected by the buyer. 

Note that the final value fees only apply when you sell a product, and it also depends on the product category.

For example, if an electronic sells for $50, you will pay 8 percent of the final sale price as the final value fee. When you buy a pair of shoes at $50, you’ll pay 12 percent of the final sale price as your final value fee. The variation applies to other product categories.

Here are the final value fees for items in various product categories.

How to Reduce eBay Listing and Selling Fees

High fees can reduce your profits on eBay. For that reason, you need to implement tips and ideas that can lower eBay costs. Here are some of the things to do.

• Offer cheap or free shipping in Canada to increase your profit margins
• Pay an annual subscription fee instead of making monthly payments
• Take full advantage of the zero insertion fees allowance
• Advance to a top-rated seller to enjoy discounts on final value fees

Final Words

When running an online store on eBay, you must consider your listing and selling fees affecting your profit margins. The eBay fees Canada don’t have to stop you from making profits. Carefully manage your listings and implement the tips shared to reduce costs.