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Seller fees can be an annoying expense. eBay, like other selling platforms, require the seller to pay fees when uploading items to sell. They also take a cut of the sold products. Is this necessary? What happens if you decide not to pay Ebay’s seller fees?
Not paying eBay’s seller fees is a breach of contract. Nonpayment, or overdue fees will be collected through the payment information provided by the seller. Legal action may be taken, and the account turned over to collections.
It is near impossible to avoid those seller fees. If you do, you could end up owing more. Your credit will be affected, and your ratings as a seller may be affected. Do you still think there’s a way around the seller fees? Let’s do some research and find the answers.
What Happens if You Don’t Pay eBay Seller Fees?
It is very difficult to get around paying eBay’s seller fees. The seller fees are there to help keep the marketplace running, and pay the owner for the use of their platform. When a seller chooses a marketplace, such as eBay, they agree to the terms of use and the fees associated within the contract.
When eBay is unable to collect the fees from a seller, they will continue to take the steps necessary to obtain the payment.
The bottom line is this:
- You entered a binding contract with eBay
- You are liable for the taxes and fees incurred during your contract.
- You agreed to eBay’s terms of use.
- By refusing to pay the fees, you are in violation of the contract you agreed to.
Just as you expect your buyers to pay you for the products you sell on eBay, the owners of eBay expect you to honor your agreement to their fees for service.
eBay will Collect Payment via Other Sources
Seller fees are automatically taken out of your bank account or credit card. Unless there is a stop payment in place or the account has been terminated, there is no way for you to avoid paying the fees.
If a payment method is declined, eBay will attempt to collect through any other verified payment methods used in the past by the seller. To explain this further, let’s say you have linked a couple of different credit card accounts and your bank account with your eBay account.
If the current verified payment account is blocked, eBay will move on to one of the other sources until they are able to remove the funds owed to them.
eBay will Attempt to Secure Payment through Paypal
If, after 60 days, eBay is still unable to secure a payment through other verified methods, they will contact Paypal and demand payment from your dPaypal account. Paypal will then transfer any funds you have toward the payment of your eBay account.
eBay is able to do this, even if your Paypal account isn’t linked to them. They have your email and your banking information.
Limited Use of Seller’s Account or be Blocked From Using Your Account
eBay will also limit what you are able to do with your sellers’ account. If your fees continue to go unpaid, eBay may freeze your account all together. You will not be able to sell your products, or update listings.
Your eBay Seller’s Account Will be Turned Over to a Collection Agency
eBay may seek legal counsel on your account, and your account might be turned over to collections. eBay will also charge late fees on delinquent payments due.
Once your overdue account is taken up by a collection agency you will be incurring a monthly debt from that agency on top of what you owe to eBay. This will be visible on your credit reports.
Having a poor credit rating affects many areas in your life. Try buying a cellphone or a car with poor credit. Businesses may not want to do business with you because it will be too high a risk for them.
You Can’t Avoid eBay’s Fees, But You Can Reduce Them
You chose to sell through eBay because of its reputation. There are millions of sellers on eBay and it is an online marketplace recognized and used worldwide. The whole idea of using an online marketplace is to make money, not lose it. If you find eBay’s fees are eating your profits, there are things you can do.
Choose the Correct Seller’s Package for Your Needs
There are 5 different store subscriptions offered by eBay. You must decide which package is going to be best for your selling needs. These include
- Starter Package is $7.95 per month or $4.95 per month if you are renewing yearly.
- Basic Package is $27.95 monthly, or $21.95 per month with the yearly subscription
- Premium Package is $74.95 monthly or $59.95 monthly if you have a yearly subscription.
- Anchor Package is $349 per month and $299 per month if you subscribe annually
- Enterprise only has one option, and that is $2,999.95 for the annual subscription.
Each subscription gives the seller a certain amount of free monthly listings. The more you pay for a monthly subscription, the more free listings you will be allowed on a monthly basis. It will take some effort, but you need to examine what you offer that sells well.
You are able to upgrade, or downgrade your subscription. When you do so, it will go into effect the following month. Just go to your subscriptions page and choose the change level button.
You do not want a bunch of stuff cluttering your store that won’t sell, so be choosy with what you list. Since eBay does have some penalties for established sellers, it is a good idea to stick with what does sell and keep a top rated store.
Do Not Go Overboard with Add-ons to Your Listings
As you are listing your items, eBay has a variety of tools you could use to make your ad pop. These can cost money. Choose your add-ons wisely. Only use those you know will be beneficial to what you are selling.
You should also pay close attention to the fees applied to the items you are selling. This chart shows subscriber benefits. You will be expected to pay a different percentage in different categories. Listing your products in the appropriate category will help you.
Be On Top of Your Account Transactions with Buyers
It doesn’t matter what type of eBay store you have; there is always the issue of buyer nonpayment. Once that item has been marked as sold, you are responsible for paying eBay the agreed percentage of the sold item.
If a buyer doesn’t pay you, you need to be on top of this transaction. Contact the buyer and remind them they have bought or won the bid for the item. If you have not received payment within 2 days, contact eBay and report the unpaid item.
The buyer has 4 days to pay. If they still have not paid on the 5th day:
- Go to the resolution center
- Select receive free credit
- Close the account with the buyer.
You will be able to waive the eBay final value fee and relist your item. Don’t send items before payments are verified.
Do not Avoid Paying Seller Fees
In conclusion it is within your best interest to pay the seller fees that eBay has in place. If you are having issues doing so, correspond with eBay to find a solution.
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