5 Methods Sellers Use to Lower Their PayPal and eBay Fees

The fee structure for sellers at eBay continues to remain one of the top complaints. The following article includes some ways that can be easily implemented to lower these costs, thereby improving the profitability of the business.

1. PayPal Merchant Discount

Those who sell a high volume on eBay are most likely to get some merchant discount on PayPal fees. To see if you qualify for this, log onto your PayPal account and apply. You can do this from the PayPal’s fees page. Merchant discounts typically offer savings of up to 2 percent on every transaction.

If you are processing quite a good amount, as much as $3,000 or $5,000 per month via PayPal, you can reduce the Paypal fees against your account considerably. PayPal merchant rates, however, vary between countries

To Apply for Merchant Rates with Paypal

  1. Log in to your PayPal account
  2. Go to your Profile
  3. Click on Merchant Fees
  4. Click the Apply button

2. Reclaim Non-Paying Bidder Fees

If a buyer does not make the payment for any item he or she has ordered, the seller can claim back the eBay final value fee for that item via eBay’s unpaid item process. This can be done up to 45 days after an item closes.

When any case gets opened for an unpaid item, the buyer is given four days to pay. After the payment is complete, the case closes automatically.

If the buyer doesn’t pay the bill after four days, the unpaid item gets recorded in the buyer’s account. The item can then be relisted. The seller and the buyer may mutually agree to cancel the transaction as well.

If the seller wishes to the fees refunded, they just begin the process and forget about it. eBay will credit the canceled final value fees back to the seller automatically.

3. Tweak the Starting Price

A small tweak in the starting price can drastically decrease listing fees. For example, a starting price of $49.99 incurs a fee of $1.20, and a starting price of $50.00 would cost $2.40. As you can see, adjusting the start price can save quite a lot in fees, especially when you have a bulk to sell.

4. Pay Suppliers with “Mass Payment”

In some countries, PayPal has a payment method known as mass payment, which is not widely advertised, and the merchants are not made aware of. This allows merchants to send money to the suppliers for a set fee, while the recipient doesn’t have to pay any fee at all. This is an effective way to reduce PayPal fees. A fixed fee of approx $0.30 is charged to the merchant. However, the charge varies according to the transaction volume and the country of registration.

5. Avoid eBay listing fees

eBay’s inbuilt “Listing Designer” adds themes to your eBay listing and costs $0.30 per listing. However, it doesn’t allow optimization for listing and sales. Though statistics show that custom designed eBay listings sell more, it is advisable to invest resources in the seller’s online presence as well as the eBay listing designs. CrewMachine can help the sellers with an effective listing process that’s professional and mobile optimized.

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