Why Are My eBay Fees So High? Common Overlooks
Definition
eBay fees can appear higher than expected due to several factors: fees are calculated on the total transaction amount (including shipping and tax), additional charges like Regulatory Operating Fees and International Fees, promoted listing ad fees, and category-specific rates that may be higher than the standard rate.
How It Works
Scope: This guide identifies common reasons for higher-than-expected eBay fees. Last updated: 2026-01-05. Rule: Total fees often exceed the base percentage due to sales tax inclusion, promoted listing ad fees, and additional percentage-based charges.
Follow these steps to identify why your fees are higher than expected:
Check if fees include shipping and tax: eBay calculates Final Value Fees on the total transaction amount (sold price + shipping + tax), not just the item price. A $100 item with $10 shipping and $8 tax results in fees on $118, not $100.
Verify category-specific rates: Some categories have higher rates (e.g., Books, Movies & Music at 15.3% vs. 13.6% standard). Check if your item is in a special category.
Account for Regulatory Operating Fees: These are separate charges (0.35% US, 0.42% UK, 0.4% CA) added to the total sale amount. In the US and CA, they're included in the base rate; in the UK, they're separate.
Check for International Fees: If selling to buyers abroad, additional International Fees may apply (e.g., 1.1% in Australia). Verify if your sale was cross-border.
Review promoted listing fees: If you used promoted listings, additional ad fees apply on top of Final Value Fees. These can significantly increase total costs.
Verify fixed per-order fees: Every order pays a fixed fee ($0.30/$0.40 in US/CA/AU, £0.30 in UK) unless waived for specific categories like Athletic Shoes above thresholds.
Check for Store subscription benefits: If you have a Store subscription, verify you're receiving the lower rates. Non-Store sellers pay higher percentages in most categories.
Examples
Example 1: Fees on Shipping and Tax
- Item sold: $100
- Shipping: $15
- Sales tax: $8
- Total: $123
- Expected fee (on $100): $13.60
- Actual fee (on $123): $16.73
- Difference: $3.13 higher
Example 2: Category-Specific Rate
- Item sold: $100 (Books category)
- Shipping: $10
- Sales tax: $8
- Total: $118
- Standard rate fee: $16.05 (13.6%)
- Books category fee: $18.05 (15.3%)
- Difference: $2.00 higher
Example 3: Promoted Listing Fees
- Item sold: $200
- Shipping: $20
- Sales tax: $16
- Total: $236
- Final Value Fee: $32.10
- Promoted listing fee (5% ad rate): $11.80
- Total fees: $43.90
For more information, visit the FeeWise hub or read our eBay Store subscription calculator guide.
FAQ
Q: Why are my fees calculated on shipping and tax?
A: eBay calculates Final Value Fees on the total transaction amount (sold price + shipping + tax) to cover all aspects of the sale, not just the item price.
Q: What is the Regulatory Operating Fee?
A: It's a separate percentage fee (0.35% US, 0.42% UK, 0.4% CA) added to cover compliance costs. In the US and CA, it's included in the base rate; in the UK, it's separate.
Q: Do promoted listings increase fees?
A: Yes, promoted listings add additional ad fees (typically 1-15% of the sale price) on top of Final Value Fees, significantly increasing total costs.
Q: Can I avoid International Fees?
A: International Fees apply automatically to cross-border sales. You cannot opt out when selling to international buyers.
Q: How can I reduce my fees?
A: Consider upgrading to a Store subscription for lower rates, use categories with special rates (e.g., Athletic Shoes ≥$150), avoid promoted listings if not needed, and ensure you're using the correct category.
Download
Identify all fee components and calculate your exact costs with FeeWise: eBay Profit Calc 2026. Get detailed breakdowns including shipping, tax, regulatory fees, and promoted listing costs for all your listings.