Term

What is Listing Fee?

3 MIN READ

Listing Fee

Listing fee, or insertion fee, is a type of nominal fee, which ecommerce platforms charge from sellers to post (i.e list) their products on the website. Popular examples include such websites as eBay and Amazon and also online auctions like Catawiki. The listing fee depends on the value of a product seller intends to offer on the platform – the higher the price of products the higher the listing fee will be.

Amazon and eBay listing fees

Listing fees depend on the platforms of the seller’s choice to start doing their business. Still, there are two popular fee calculators, which are provided by Amazon and eBay, to help ecommerce sellers calculate their fees for not only listing but also for shipping costs and fulfillment fees. 

Amazon fee calculator is based on three categories, which provide sellers information regarding fees for the fulfillment, monthly storage, and a referral fee

Fulfillment is the fee to be charged for the weight and size of goods, which the seller is putting for sale. This fee covers picking and packing orders, shipping and handling, customer service within the process, and product returns if requested. Fulfillment fee has two subcategories, which are monthly storage fee and a referral fee.

The monthly storage fee is the cost of your products to be stored in Amazon’s warehouses. The cost depends on the amount of space it takes to store your goods.

Referral fees are paid by sellers to Amazon for each product they sell to it. This fee is a percentage of the total item price.

eBay fee calculator has two kinds of costs, which are insertion fee and final value.

Insertion fees are based on the category and the quantity of categories sellers choose to mention for their products. Insertion fees are non-refundable, which means that even if sellers don’t sell any products they will still have to pay an insertion fee to eBay. However, if a seller doesn’t have an eBay store or just opened a store, he/she gets 50 zero insertion fee listings, which means that the first 50 goods provided by the seller won’t be charged by eBay. Zero insertion fees are valid only for the country, where the seller has registered.

Final value fee is the fee charged for the total amount of the sale. This fee includes the item’s final price and shipping charges. Sales tax is not included, though.

 

You may also like:

How To Create An Online Marketplace Like eBay From Scratch

Ecommerce Marketing Costs — Creating a Budget From Scratch

Types Of Ecommerce Businesses: What Model Is Right For Your Online Business?