Ebay Question... Please Explain

[tarheelmjfan]

My DH & I are wanting to start selling some of our stuff on Ebay. We've been reading all pertaining info., but would like an explaination on how the starting fee vs. reserve fee works. Are we charged for both listing fees, if we choose to use a reserve? What's the advantage to using a reserve? Also, we have a paypal account for buying. Can we use the same account for selling? Do they deduct the fees from your account when you list an item, or are the fees deducted after the item sells? Thanks for your help in getting us started.

 

[tlbwriter]

You are charged a listing fee based on the amount you set as the lowest bid. An auction that starts at 99 cents will be charged a lower listing fee than one that starts at $9.99. You are also charged a reserve fee. Apparently the reserve fee is less than the listing fee for starting an auction at a higher bid, because the main reason people use it is to start with a lower bid but not be committed to selling at that bid. I strongly recommend you do not use it, and instead start the bidding at the lowest amount you are willing to accept for your item. Many buyers avoid auctions with reserves.

Ebay will not deduct any fees from your account. They'll send you a statement. You can pay with a credit card or a Paypal balance (there may be other ways to pay, but I don't remember, because I've never used them).

Yes, you can use the same Paypal account for buying and selling. Keep in mind that according to eBay's terms of service, if you use Paypal, you must accept all forms of Paypal, and that means credit cards. If you have not upgraded to a "premiere" account, technically, you must do that before accepting Paypal on eBay. Many buyers are ignoring this rule, but if you refuse to accept a CC payment, you can (and probably will) be turned in and get a spanking.

 

[Microcell]

So many questions!

You would get charged for both, if you choose to use reserve. It is beneficial if you want to set your price low, but don't want to part with the item for less than a set fee. If you don't use reserve for lets say an antique, and you start it for 99 cents, and you only get one bid for 99 cents, you have to give them that for the 99 cents. With reserve you don't have to sell if it does not go above the reserve price.

You can use your paypal to sell, and I think you can link it to pay your fees. I have mine with my checking, but don't remember why. Maybe someone else with a better memory will come along!

 

[tarheelmjfan]

Bracy,
Thanks for all the info. I didn't understand the terms for collecting from Paypal correctly. The way I read it I thought you only had to upgrade, if you wanted to accept credit cards. I didn't realize that you had to accept them, in order to accept Paypal. Thanks for clearing that up for me.

Microcell,
Thanks for the info. you provided, as well. Sorry, I asked too many questions at once.

 

[~Kathie]

You are charged a listing fee based on the amount you set as the lowest bid. An auction that starts at 99 cents will be charged a lower listing fee than one that starts at $9.99. You are also charged a reserve fee. Apparently the reserve fee is less than the listing fee for starting an auction at a higher bid, because the main reason people use it is to start with a lower bid but not be committed to selling at that bid. I strongly recommend you do not use it, and instead start the bidding at the lowest amount you are willing to accept for your item. Many buyers avoid auctions with reserves.

This is not entirely correct.

Your listing fee is based on the opening bid if the item does NOT have a reserve.

If the item does have a reserve, the listing fee is based on the Dollar AMOUNT of the reserve plus a additional fee that is refunded if the item sells.

Then there are a lot of options such as Gallery (people see a picture from the search function), Bold, Featured etc. It can get pretty confusing.

You can find more information right from ebay at this link.
Ebay Fees

I also find that bidders avoid reserve auctions and I hardly use them. My suggestion is to start off slow with just a few items and when you list something make your opening bid the least amount you are willing to take for the item.

Good luck!