Selling on eBay can be a brilliant way to reach more customers. But if you are a UK business, you need to understand exactly what you are paying in eBay fees before you can work out whether your sales are actually profitable. 

In this guide, we break down the main ebay seller fees, what they mean in real numbers, and how to keep more of your hard earned money.

Please note: eBay fee rates vary depending on category, sale price, and subscription type. Always check your eBay Seller Centre for the latest rates.

Why so many UK businesses choose eBay

With eBay you get access to millions of active buyers who are already searching for products like yours. You don’t need a website or an advertising budget to get started, so it can be an enticing option. Particularly for new online sellers.

Another perk for those considering dipping their toes into the world of online selling is that it’s flexible. You can start as a side hustle and scale up as your sales grow. 

Some key benefits to selling on eBay

• All payments are handled securely through eBay.
• Business costs are often lower than other online sales channels. 
• You get built in buyer trust. 
• If you’re smart with listings, you can create a repeatable and scalable process. 
• No big buy-in required.
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The realities of selling with eBay

So you’ve decided to give eBay a chance. You do the photos, craft the product listing, box up the goods and hit send. Then along come the eBay fees nibbling away at your margin. Suddenly the item you sold for a decent price is not quite as profitable as you thought. If you’re a UK business, knowing the eBay fees which apply is key. 

Private seller fee changes and what they mean for businesses

Recently eBay UK introduced a big change for private sellers (meaning people selling items from their own home rather than those running a business). As of October 2024, eBay removed Final Value Fees and regulatory operating fees for most private seller listings across the site, with a few exceptions such as vehicles. This makes listing and selling effectively fee free for private users. 

However, these changes do not apply to business sellers. Business seller listings are still subject to the standard eBay fee structure. So while private sellers may enjoy a near zero transaction cost, UK business sellers must continue to treat eBay fees as real overheads.

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What you actually pay: key eBay fees explained

Here’s a breakdown of the main costs you need to factor in.

Listing/ Inserting fees

As a business seller, eBay charges an insertion or listing fee. This applies for each item you list, though the cost is modest. For standard UK business listings, that fee is around £0.30 per listing. However actual insertion fees may vary depending on your shop subscription and the category. 

What’s important to note though is that this fee applies even if the item doesn’t sell. So if you list a lot and don’t sell much, insertion fees can eat into your budget without return. 
Some sellers are occasionally offered promotions that waive insertion fees. However, that does not affect the other eBay fees if the item is sold. 

Final Value Fee (the main cut)

This is the main fee, the one that really matters when the item sells. It’s a percentage of the total sale amount plus a fixed fee per order. The percentage varies by category and shop subscription. Many typical categories fall in the low to mid teens percentage points of the sale amount.

How much is the fixed fee?

For business sellers, rates vary depending on whether you have a ‘Store’ subscription and what category your item is in. For example, sellers on a basic Shop subscription have a lower rate compared with casual listings. 

As a rough example, the fixed fee per order is usually around £0.30. These figures are indicative and may differ by category and listing type.

Because this fee is calculated on the total sale value, sellers sometimes find that delivery costs and any extras get pulled into the fee calculations too, thus reducing the net profit more than they expected.

Additional/ regulatory fees and other charges

There is now a regulatory operating fee charged on top of standard fees for many UK sellers. On top of that, costs like listing upgrades can add up quickly.

What types of listing upgrades are there?

Examples of costed eBay listing upgrade fees include:

• Options to boost visibility.
• Add features.
• Use advertising/promoted listings. 

These fees can add up, so if you don’t watch your numbers, your total fee burden can end up far beyond the final value fee. One seller even reported total fees amounting to 32% of total sales when considering insertion fees, regulatory fees, ad fees, international fees and other costs. Though this isn’t the standard eBay fees you can expect, it shows that you need to carefully consider choosing your list price. 
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How VAT affects eBay sales in the UK

If your business is VAT registered, VAT adds another layer to consider when selling on the platform. Once your sales exceed the VAT registration threshold, you must charge VAT on your items. VAT is calculated on the total sale value, which can affect both your Final Value Fee and your net profit. For more information on what eBay taxes you should consider when you start selling on eBay, check out our HMRC eBay tax guide.
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What a real sale might look like

Say you sell an item for £80 with delivery costs of £5, bringing the total sale value to £85. Let’s look at what that might look like after considering all eBay seller fees involved. 

Let’s assume:

• Final value fee rate after any store discount ~ 11.5% (typical mid-range category rate for illustration).
• Fixed per-order fee: £0.30
• Insertion fee (already paid when listing): £0.30
• Regulatory fee and any small extras (packaging, shipping cost, VAT, etc.)

Costs:

• Final value fee: ~ £9.78 (11.5% of £85)
• Fixed fee: £0.30
• Insertion fee: £0.30 (already incurred)
• Regulatory / extras: variable, say ~ £0.50 depending on total sale and delivery costs/packaging

Net proceeds: ~ £74–£75

That’s before you account for your own costs. For example, the cost of goods, packaging, delivery costs, your time, returns, etc.

What might have felt like a healthy profit can quickly narrow, especially on lower-margin items.

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How eBay fees affect your margins

As you can see from the recent example, eBay seller fees can quickly eat into your profits if you’re not careful. Even small percentages on low-margin items can turn what looks like a good sale into a break-even or loss.

Common reasons margins can get squeezed

• Listing lots of items but only selling a few means insertion fees add up.
• High shipping costs or heavy items increase the “total sale value,” which drives up the final value fee and your postage costs.
• Optional upgrades like ads or promoted listings can boost sales, but using them indiscriminately reduces profit.
• Cross-border sales bring extra fees and complexity.
• Regulatory or compliance-related fees, while small individually, accumulate over multiple sales.

Ways you can protect your margins

1. Choose the right categories.

Some categories attract Lower Final Value fees, so research before listing.

2. Consider a Store subscription.

If you’re planning on listing frequently, consider getting a store subscription. It can lower the Final Value Fees and make costs more predictable. 

‍3. Be selective with listing upgrades.

Only use ads or promoted listings when there’s clear value and a healthy margin for you.

‍4. Factor in delivery and packaging costs early.

These count towards the total sale value, which in turn will affect what fees you pay.

5. Bundle items or batch shipping.

Fewer orders mean fewer fixed per-order fees and better fee efficiency. 

6. Track all overheads.

Include time, returns, packaging, and postage as real business costs when factoring in the price of items. 

7. Run the numbers before listing.

And finally, confirm your price definitely covers costs, desired profit, and all applicable fees. 

Tips for pricing strategically

Covering eBay fees in your pricing is essential if you want to actually make a profit. Here are some ways you can price smartly:

Maximising your profit on eBay

Regardless of selling fees on eBay, it’s still a powerful platform for UK businesses and side hustles. It’s just not without costs. Insertion fees, final value fees, regulatory charges and optional upgrades can add up quickly, eating into your margins if you are not careful.

Keeping track of these fees and how they affect your overall profitability is where good Ecommerce accounting comes in. Accurate records let you see exactly how much each sale contributes to your bottom line, plan for taxes and make smarter business decisions. When you combine careful fee management with solid accounting, you can protect your margins and turn every sale into real profit.

Fee structures on eBay change often. Always check your eBay “Selling Fees” page and the latest Seller Centre documentation before pricing, to confirm the insertion fees, final value fees, ROF or any promotions that might affect your cost base.

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