eBay Selling Fees

[olisuds]

EBay selling fees are now free? Apart from international and business sellers I think? What am I missing? There's got to be some catch!

 

[Gadders]

EBay selling fees are now free? Apart from international and business sellers I think? What am I missing? There's got to be some catch!

I think the catch is buyers now pay a small fee instead of the seller.

 

[lejackal]

I think the catch is buyers now pay a small fee instead of the seller.

Buyers do not currently pay a fee. Private sellers will be encouraged to open a 'shop' for 20 quid a month to get to list more items for free. Once you go over a certain number of sales, or value of sales, they'll almost certainly want to recategorise you as a business.

 

[jared007]

I'm glad this is being asked - I wanted to post a similar question. From what I have seen others say (but I have not verified this myself in the T&Cs), it seems 100% free for the seller here in the UK if the item sells to another address in the UK. If it sells to the US for example, then fees apply as normal.

The next bit is that it is only free when then total combined account sales stay under £1,500 in a year (unsure if that's calendar year, or rolling 365 day period). If you go over that amount then you must enroll as a business seller to continue (you start paying fees) and also HMRC are now notified of your extra income that I presume will attract personal tax.

I am looking to sell a couple high end pieces very soon, so I am seriously considering selling on eBay again. I have not sold anything on eBay since they dropped PayPal and pay into a bank account so yet to experience that part. All considered, it looks like a good deal if you can stay under £1,500 in sales. And like it or not, great to see eBay trying new things to stay relevant. I'll be giving it a go with something small to start with!

Cheers, Jared.

 

[jared007]

The next bit is that it is only free when then total combined account sales stay under £1,500 in a year (unsure if that's calendar year, or rolling 365 day period). If you go over that amount then you must enroll as a business seller to continue (you start paying fees) and also HMRC are now notified of your extra income that I presume will attract personal tax.

Ok, so I have just read through all T&C I could find. I can't find any reference to a £1,500 limit anywhere. So all this bit I put above can be classed as fake news until otherwise proven.

I always like to understand how businesses make money, so here is my take now. eBay now charges for listing enhancements that used to be free such as reserved prices, custom listing duration, large images and a few other things, so I think they are hoping people will add that stuff on. They will still make fees if someone outside the UK buys the item. I suspect they will be banking on sellers not limiting the scope of their listing from other markets. If a foreign buyer buys, and you cancel the listing to avoid fees cause you didn't realize it was listed globally then I think you will still get stung with the final value fees. If there is even a hint of coms to do the transaction outside eBay then the final value fees are taken as an introduction fee. eBay also has an advertisers revenue stream. So by encouraging sellers to create more content on the site, there is bigger advertising potential. Free listings with no seller fees certainly encourages that.

So all considered, this is a very encouraging move from eBay and it has my attention. I'd be interested to hear how others get on with it! And do chime in if you read things differently to what I have.

Cheers, Jared.

 

[olisuds]

So latest I've heard is that eBay will be charging buyers fees in early 2025. Sellers fees will remain free apart from international fees and listing enhancements. So whilst no fees is great for a seller, you can expect that items will sell for lower prices as the buyers factor in their fees.

 

[jared007]

So latest I've heard is that eBay will be charging buyers fees in early 2025. Sellers fees will remain free apart from international fees and listing enhancements. So whilst no fees is great for a seller, you can expect that items will sell for lower prices as the buyers factor in their fees.

Really interesting move by eBay, and I wonder what has prompted this turn around of strategy for them. Where did you hear this out of interest? I wonder what percentage the buyer fee will be ...

 

[jedi_masters]

As far as I know this is how the likes of Vinted operate, all the fees and postage are paid by the buyers. So I guess to compete eBay have had to follow the same.

 

[DreadMack]

I didn't know E bay had stopped using PayPal? I've not sold anything in ages but I always liked the fact I could use PayPal as E bay were notorious for backing the scammers that said items didn't arrive or arrived damaged.
I sold a boxed ATAT and the buyer returned it, not the same box, or toy inside, repro chin guns, missing the door and swapped box, buyer denied everything, I sent photos etc and e bay sided with him, said box could have been damaged by courier!!! I had to take up with them.
I haven't sold anything since.

 

[amanaman]

They already implemented this in March 2023 here in Germany, I'll try to sum it up:

- as private seller you can list 300 items a month without any transaction fees (except cars), after that you'll 35p per listing
- if the buyer lives abroad you'll be charged 3% transaction fees
- selling within the UK: no transaction fees / provision > you get the full sales price
- highlight pictures or advertising of your listings still cost additional money but is not needed in my opinion
- make sure to list your items on ebay.co.uk and not ebay.com or something

I'm unaware of the payment process in the UK but here it works as follows: After you have won an auction you pay to Ebay using bank transfer, PayPal, CC, Klarna or whatever you wish. Ebay freezes the money for the seller. The seller ships the item and as soon as the parcel arrives the money will be withdrawn. Ebay is pretty fast with their withdrawals. I usually have the money on my bank account one day after the buyer received the item. If you send without tracking information you have to wait until the buyer confirms that the item arrived or you need to wait a certain amount of days until it gets withdrawn

 

[lejackal]

In the UK you can withdraw the fund the day after the sale, regardless of the shipping status

 

[amanaman]

Added two examples. One item was sold within Germany, one to the UK

 

[DreadMack]

To be fair the selling abroad fees are not to bad, probably equivalent to GnS on PayPal. It's certainly seller friendly.

 

[androjonny]

EBay selling fees are now free? Apart from international and business sellers I think? What am I missing? There's got to be some catch!

The catch is eBay pass all the sales data over to the UK government and anything over £1k net you'll have to pay tax on as it is now classed as income. Obviously some things like used clothes will be exempt from tax, but things like old toys and collectibles are included. When you get the bill from Mr Taxman it will then be for you to go through your individual sales for the year and provide reasons and receipts for postage or purchaes to challenge them on it if you feel some of the items should be exempt. Complete headache.

Example would be.... if you bought a new figure for £15. You sell on eBay for £15, but you pay postage of £4, so technically you've lost £4. Taxman will take this as £15 profit as that was the sale. You'd need to send them a receipt for the original purchase and the postage to prove you've actually lost money not to pay tax on it. This is how I read it.

 

[TheJabbaWookie]

They are also introducing eBay Wallet where (very much like Vinted) money will sit in an eBay bank account earning interest unless you are proactive and transfer the money to your account straight away. They are hoping lots of sellers will leave their money there in order to spend it on the site or just forget to withdraw it.

 

[jared007]

The catch is eBay pass all the sales data over to the UK government and anything over £1k net you'll have to pay tax on as it is now classed as income. Obviously some things like used clothes will be exempt from tax, but things like old toys and collectibles are included. When you get the bill from Mr Taxman it will then be for you to go through your individual sales for the year and provide reasons and receipts for postage or purchaes to challenge them on it if you feel some of the items should be exempt. Complete headache.

Example would be.... if you bought a new figure for £15. You sell on eBay for £15, but you pay postage of £4, so technically you've lost £4. Taxman will take this as £15 profit as that was the sale. You'd need to send them a receipt for the original purchase and the postage to prove you've actually lost money not to pay tax on it. This is how I read it.

I could not find any mention of this income reporting in the terms and conditions. Can you give a reference?

 

[lejackal]

I could not find any mention of this income reporting in the terms and conditions. Can you give a reference?

https://www.gov.uk/government/publi...sell goods,tell HMRC about additional income.

 

[welshwookie]

I didn't know E bay had stopped using PayPal? I've not sold anything in ages but I always liked the fact I could use PayPal as E bay were notorious for backing the scammers that said items didn't arrive or arrived damaged.
I sold a boxed ATAT and the buyer returned it, not the same box, or toy inside, repro chin guns, missing the door and swapped box, buyer denied everything, I sent photos etc and e bay sided with him, said box could have been damaged by courier!!! I had to take up with them.
I haven't sold anything since.

you can still pay via paypal, it just default`s it to your bank details, Its in the drop down options.

 

[DreadMack]

you can still pay via paypal, it just default`s it to your bank details, Its in the drop down options.

Ok thanks for clarifying, appreciated.

 

[welshwookie]

Ok thanks for clarifying, appreciated.

Although if you sell, I think you have to use their system. From memory they hold the funds until it's posted or something, it was a pain at the time as I don't sell regularly and I think I got hit with fees with postage too.

 

[Frunkstar]

I think it's down to a couple of reasons -

1 - being they are missing out, a lot of folks no longer use ebay due to various reasons, some have been stated above.

2 - lots of folks are now using other platforms for sale like marketplace/vinted &&& there are a lot of other options now which there was not a few years ago

3 - Money in the bank & the interest they earn on sitting on your funds, which was also mentioned above

4 - the new earnings cap of 1k rather than 2k, go over that figure & HMRC will be wanting to know everything & that as has been stated above can be a huge headache if you don't have everything recorded in finite detail.

5 - implementing fees on the buyer

It's certainly a step in the right direction for the occasional seller just trying to get rid of a few bits now & then

 

[welshwookie]

I think it's down to a couple of reasons -

1 - being they are missing out, a lot of folks no longer use ebay due to various reasons, some have been stated above.

2 - lots of folks are now using other platforms for sale like marketplace/vinted &&& there are a lot of other options now which there was not a few years ago

3 - Money in the bank & the interest they earn on sitting on your funds, which was also mentioned above

4 - the new earnings cap of 1k rather than 2k, go over that figure & HMRC will be wanting to know everything & that as has been stated above can be a huge headache if you don't have everything recorded in finite detail.

5 - implementing fees on the buyer

It's certainly a step in the right direction for the occasional seller just trying to get rid of a few bits now & then

Selling just 1 item could push you over the HMRC cap, fb pages and organised events are going to get more popular, plus the added cash factor, and it's a no brainer if you have a few or expensive items to sell. Ebay have probably lost a lot of sales due to other selling options for certain items as mentioned. I personally don't appreciate the HMRC implications especially if we are passing items on to the kids, which due to family loss my brother has been listing items on ebay- it's surprising how things mount up, especially items that have been up the attic for years. I must remind him of the £1000 limit, as he's always loved ebay listing.

 

[Frunkstar]

Selling just 1 item could push you over the HMRC cap, fb pages and organised events are going to get more popular, plus the added cash factor, and it's a no brainer if you have a few or expensive items to sell. Ebay have probably lost a lot of sales due to other selling options for certain items as mentioned. I personally don't appreciate the HMRC implications especially if we are passing items on to the kids, which due to family loss my brother has been listing items on ebay- it's surprising how things mount up, especially items that have been up the attic for years. I must remind him of the £1000 limit, as he's always loved ebay listing.

Indeed Wookie, just one decent MOC or multi pack could easily see you trip over that small 1k milestone, 2k was the previous cap which even that can very easily be toppled even if you are just listing a few items on their old 70/80% fee promotions, all depending what / how much you sell, funds soon tot up without you noticing, what with the cost of living these days & the value of the pound being far from what it once was I can see a lot of folks getting into hot water without even considering the implications, I mean break it down 1k over 52 weeks is just under 20 quid a week, which in the grand scheme of things is not much, were does 20 quid take you these days? not even 1 meal if you go out now, it's pitiful TBH, nobody wants you to have anything unless they are getting their slice of your pie.

EDIT: - now consider the ramifications of a cashless system

 

[fett1972]

Apologies all but it's not as straight forward as you are describing above.

If you are buying stock to resell online and you make a profit of over £1000 then HMRC consider you to be a trader.

As a Personal seller the main thing to consider especially for Vintage Star Wars is capital gains.

It's a very complex and complicated system and everones situation will be different

For example I have a 12 Back Palitoy Luke I paid £1. I sell it for £6005. Capital gains tax would be due.

On the HMRC website they is a questionnaire which will assist you with your requirements

 

[welshwookie]

Indeed Wookie, just one decent MOC or multi pack could easily see you trip over that small 1k milestone, 2k was the previous cap which even that can very easily be toppled even if you are just listing a few items on their old 70/80% fee promotions, all depending what / how much you sell, funds soon tot up without you noticing, what with the cost of living these days & the value of the pound being far from what it once was I can see a lot of folks getting into hot water without even considering the implications, I mean break it down 1k over 52 weeks is just under 20 quid a week, which in the grand scheme of things is not much, were does 20 quid take you these days? not even 1 meal if you go out now, it's pitiful TBH, nobody wants you to have anything unless they are getting their slice of your pie.

EDIT: - now consider the ramifications of a cashless system

Exactly

 

[welshwookie]

Apologies all but it's not as straight forward as you are describing above.

If you are buying stock to resell online and you make a profit of over £1000 then HMRC consider you to be a trader.

As a Personal seller the main thing to consider especially for Vintage Star Wars is capital gains.

It's a very complex and complicated system and everones situation will be different

For example I have a 12 Back Palitoy Luke I paid £1. I sell it for £6005. Capital gains tax would be due. Similarly I have the same Luke which I paid £10 for and sell it for the same price. No capital gains tax due. I know this example is exaggerated but it's just to show how complicated the process is.

On the HMRC website they is a questionnaire which will assist you with your requirements

I suppose it all depends on truth and proof, I have no invoices from years ago, regarding what I paid for items, I suppose I could make a spreadsheet up if I had to , how accurate it would be ..........and what HMRC would believe is another thing. I wonder in the future if ebay/ auction houses are having to declare sales to HMRC, will they be giving info on the buyers too, as many attend and deal in cash. Some run as businesses so again probably the hobby collector would be affected more ?

 

[fett1972]

I suppose it all depends on truth and proof, I have no invoices from years ago, regarding what I paid for items, I suppose I could make a spreadsheet up if I had to , how accurate it would be ..........and what HMRC would believe is another thing. I wonder in the future if ebay/ auction houses are having to declare sales to HMRC, will they be giving info on the buyers too, as many attend and deal in cash. Some run as businesses so again probably the hobby collector would be affected more ?

HMRC view is the onus is always in the seller to be honest. However I agree with your Truth and Proof statement.

It may be a very interesting time going forward in terms of the Government attempting to recover as much revenue as possible. HMRC have recognised the amount of revenue they can recoup from eBay and with the recent record high prices being reported widely from Auction House Collectibles sales I am sure they will recognise the potential tax they can generate

 

[welshwookie]

HMRC view is the onus is always in the seller to be honest. However I agree with your Truth and Proof statement.

It may be a very interesting time going forward in terms of the Government attempting to recover as much revenue as possible. HMRC have recognised the amount of revenue they can recoup from eBay and with the recent record high prices being reported widely from Auction House Collectibles sales I am sure they will recognise the potential tax they can generate

Didn't a guy sell.a.£250,000 stamp collection to a carer for £1 in the news today.?
I suppose there are ways around things, but cash is going to be preferred for high transactions, or anything over 1k
I've the same about our government, definitely after blood.

 

[Cazza]

I didn't know E bay had stopped using PayPal? I've not sold anything in ages but I always liked the fact I could use PayPal as E bay were notorious for backing the scammers that said items didn't arrive or arrived damaged.
I sold a boxed ATAT and the buyer returned it, not the same box, or toy inside, repro chin guns, missing the door and swapped box, buyer denied everything, I sent photos etc and e bay sided with him, said box could have been damaged by courier!!! I had to take up with them.
I haven't sold anything since.

Sorry to read this- absolutely sucks! What a scumbag. You can name and shame in Buyers to Avoid section, if you want! https://www.starwarsforum.co.uk/forums/sellers-to-avoid.24/

 

[jared007]

https://www.gov.uk/government/publi...sell goods,tell HMRC about additional income.

Thanks. I did not realize this was out there and in operation right now. I have read through it all and just done the checklist tool. I think there is a glimmer of hope for collectors selling personal possessions though. Not all collectors would be classed as this, but some of us definitely are. I ended up on this result page after answering the questions truthfully:

So this appears to be another pathway that does not have any relationship to a £1,000 yearly limit. I think the main important thing is "did you intend to buy and re-sell in order to make a profit". Most collectors could honesty say they did not. Still, I would not like to end up on any report from eBay that goes to HMRC.

You can give this a go for yourself here: https://www.gov.uk/check-additional-income-tax. Curious what others make of it ....

Cheers, Jared.