Should eBay Drop All Seller Fees in the US?

For U.S. sellers, eBay charges two main selling fees: an insertion fee for listing items and a final value fee when an item sells. Insertion fees can be waived for the first 250 listings each month; after that, a fee of $0.35 per listing applies. This fee is non-refundable and can be charged multiple times if items are relisted or listed in multiple categories.

The final value fee is based on the sale price, calculated as a percentage of the total sale amount plus a per-order fee. For sales up to $7,500, the fee is generally around 13.25%, with a lower percentage for amounts over that threshold. Additional rates apply for specific categories, and there are different structures for sellers with eBay Stores or those selling vehicles.

A recent thread on Reddit discussed the fact that it is now free to sell across categories in the UK for private sellers as of Sept. 30. Commenters explored the notion of removing seller fees from eBay in the U.S. as well, with many expressing their enthusiasm and how much it would help their margins. However, some wondered if eBay would lose too much profit if U.S. seller fees were removed.

In response to eBay competitor Mercari removing seller fees this past March, an eBay community post from April also questioned whether eBay would ever remove seller fees, and responses were mixed. The most upvoted comment believed that eBay would never remove seller fees, stating, "There is no business out there that operates for free out of the generosity of their hearts, [least] of all eBay." Others wondered if the notion of removing seller fees would lead to buyers having new fees.

Another commenter explained how they believe companies like eBay still make plenty of profit without fees by resorting to advertising fees, selling sales/personal data, and other creative means.

According to TechCrunch, eBay making it free to list items across most categories in the UK follows the company's actions in Germany last year and aligns it with platforms like Vinted and Depop, which have attracted consumers interested in selling secondhand clothing and related items online. Vinted and Depop do not currently charge seller fees, opting instead for alternative revenue models.

As reported by Sky News, eBay, second only to Amazon in customer visits across the UK, faced growing pressure to make this change as competitors like Facebook Marketplace and Vinted allow users to sell without fees.

The change is good for sellers, but it might not all be beneficial. With the removal of these fees, buyers are "set to face a charge," though eBay has not yet announced how that will be applied, noting that it won't take effect until early next year. The company's UK boss told the outlet that the fee would be "small."

Mercari did something similar. After removing its seller fees, that cost was transferred to buyers in the form of a "payment processing fee" that has buyers upset, as shared on Reddit. At the time, many buyers expressed that they planned to abandon Mercari for other platforms.

Per Sky News, eBay shared that dropping seller fees for fashion back in April drove a strong increase in listings for sought-after items like jeans, shirts, and dresses, supporting sustainability by reducing landfill waste. The company also highlighted that the fee removal on its German site last year doubled the number of new sellers.

Overall, many consumers are worried that the elimination of seller fees on eBay will not translate into lower prices. Sellers may be less incentivized to reduce their prices, benefiting instead from improved profit margins. Consequently, shoppers might encounter new buyer fees, which could negate any anticipated savings, leaving them dissatisfied with the overall impact of the policy change.