Successful Online Selling

14 Ways to Reduce Your eBay & PayPal Fees

how to cut costs in ebayThere’s no doubt that eBay is a leader when it comes to online selling and auctioning. But one of the biggest complaints by sellers is the relatively high fees. Even for top rated sellers, fees eat a reasonable amount into their profit margins.

Nonetheless, there are many unnecessary charges that sellers continue to pay for when they really shouldn’t.  The following is a list of 14 ways that can help you avoid the unnecessary fees on eBay:

1. Merchant discounts by PayPal

If your sales volumes are high, you might qualify for merchant discounts on PayPal fees. However, to be considered, you need to apply for discounted fees through the fees page in your PayPal account. You can potentially save up to 2 percent on PayPal transactions.

2. Credits for relisting

Normally, you cannot get a refund on insertion fees but eBay will credit the insertion fee for an auction that doesn’t go through under the condition that you use a relist feature – such as ‘relist your item’ button – to relist the item for the concluded listing and it is sold immediately after listing. You can potentially save up to $4.8 on every listed item.

3. Reclaim fees when bidder fails to pay

If a buyer bids on an item and fails to pay, you can us eBay’s unpaid item procedure to request for a fees refund. You will have up to 45 days after item closes to make your claim.

4. Host your Photos

As you know, eBay charges for any additional photo you use to describe your item. However, you can skip these costs by hosting your photos on a free hosting service.

5. Adjust your starting price

It’s important to carefully choose your starting prices as a small price variation can result into a big increase in insertion fees. For instance, a starting price of $49.99 incurs $ 1.2 in insertion fees while that of $50.00 leads to $2.40 in insertion fees.

6. Use a cash back credit card to pay your eBay fees

A number of credit cards offer rebates on money spent, s, depending on your type of card, you can receive a small rebate on your eBay fees, normally if you clear your credit card bill in full every month.

7. Learn HTML

reduce spending on ebayEBay’s listing designer service is a handy tool for making seller’s listings look better. But costs for this quickly shoot up if you’re listing multiple items. If you have simple HTML skills, you can build your own template and save on these costs.

8. Create an e-commerce store

Possibly, the best strategy is to grow your business beyond eBay. You can use your eBay traffic to direct customers to your website where you will make sales without any eBay fees.

9. eBay Shop Listings

On the whole, eBay shop listing fees are still generally less than core listings, despite an increase. Items that need a prolonged listing period are better listed on eBay shop.

10.  Sell more pricey items

eBay charges higher for cheaper items so, by selling more expensive products, you can reduce the fees you pay to eBay.

11. Re-evaluate the way you use listing upgrades

Because they are costly, listing upgrades should be avoided unless they bring a positive change to selling prices and sell-through rates. There are various tools that will help you determine how effective listing upgrades are for your product categories.

12. Second chance offers

The second chance offer feature on eBay enables several items to be sold from a single listing, saving on listing fees for the extra items. Note that second chance offers are lower than the final price of the item so they are a trade-off between sales volume and price.

13. Keep starting prices low

It is pretty obvious that lower starting prices attract more bids and reduce listing fees and given that insertion fees depend on starting price, you’re better off keeping them low.

14. Dutch Auctions

Finally, make the most of Dutch Auctions because you can be able to use a single listing for multiple items, saving on listing fees.

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