This is first article of a series of two in which we will be discussing the fees involved with listing your products on two major marketplaces, eBay & Amazon.
In next week's article, we will taking a look at the fees involved in starting up a web store on two platforms, Magento & BigCommerce.
eBay & Amazon
As a reasonably priced eCommerce software solution for start-up and existing online retailers, we are in constant communication with e-tailers of all sizes with varied business requirements. Quite regularly we are questioned on various platforms,
“What marketplace would you recommend?”
We specialise in Order Management & Software Solutions, so unfortunately we are not qualified to answer such a request. The best option depends on your business, your target market(s), and your plans for growth. However we can certainly inform customers of what platforms we are able to integrate with – you can also find out for yourself by viewing our selling channels integration page. Using LinnLive 2, Linnworks customers can list onto eBay & Amazon marketplaces, giving them even more control over their online presence, and reducing workload and potential errors.
There are many factors to take into consideration. Taking some time to brainstorm and evaluate your most compatible marketplace is always recommended. Your products and target markets may be so niche that leading marketplaces such as eBay & Amazon may not be as advantageous as targeted platforms.
If you are considering moving onto either the eBay or Amazon platforms it may be wise to do your homework. What products do you sell? What fees are involved? Are you able to account for these fees in your margins?
When listing your product on eBay, there are various fees that can be applied that you need to take into consideration. First and foremost there are ‘Insertion Fees’ which range from £0.10 to £1.30 dependent on the type of listing (Auction or Fixed) and the starting price of that listing.
On top of insertion fees you also have the ‘Final Value’ fees that are applicable to both styles of listing. These fees are percentage based. This is generally a 10% commission to eBay on most categories – but varies from 5-12% on specific categories such as Tech, Parts, Media, Collectables and Clothes, Shoes & Accessories, the latter being the most costly category.However if your item doesn’t sell, you won’t pay a final value fee and could be eligible for credit on the insertion fee if your item sells upon the re-listing of your product.
eBay also charge for listing upgrades such as Listing Designer and an Item Subtitle. Calculate the estimated fees you will be charged for listing your item on the eBay Seller Fees’ page.
Amazon structure their pricing scheme a lot differently. Primarily they offer two pricing plans. ‘Sell a little basic’ & ‘Sell a lot PRO’. If you are selling fewer than 35 items a month then the basic plan is for you, above 35 and you will be categorised under a Pro account. You are also limited to the amount of categories you can list in. So consider this when choosing a plan. Unlike eBay you only have to pay Amazon when you sell something, there are no listing fees involved.
Pricing for ‘Sell a Little’ consists of three different fees;
- Referral Fee – this a fee Amazon charge for referring the buyer of the item to your business. This fee is variable on the category that you list too and generally ranges from 7%-15%.
- Fixed Closing Fee – This is the equivalent of eBay’s Final Value fee. As a ‘Sell a Little’ customer, you pay £0.75 per item sold.
- Variable Closing Fee – This is a fee that Amazon charge for the administration of the transaction – again this is variable on the category and also the destination of the order. This is capped at £1.32 per item.
‘Sell a Lot Pro’ enable you to list in more categories, the fees involved are basically the same, except instead of a Fixed Closing Fee of £0.75 per item, you pay a subscription fee of £25 per month. However the Referral Fee & the Variable Closing Fee are still the same. Amazon provide examples of how each plan affects the Amazon charges on 2 different listings, you can view this for yourself on the Amazon Plans & Pricing page.
Thank-you for reading this article. We hope that this was a beneficial read for you. Stay tuned for next weeks article discussing Magento & BigCommerce, and our conclusion.