Does anyone know a simple formula to figure eBay and reverb fees for selling? I thought it used to be about 3 1/2% of final sale price. But now with sales tax and the rise in rates, I can't for the life of me figure out either of their formulas. Help!
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Reverb and eBay
- Thread starter Charliewayne
- Start date
Not musical instruments, but for other stuff I sell on eBay I usually rough figure 15% if the buyer is paying shipping. I don't factor tax because the buyer pays it and it is automatically deducted. I recently sold an item for $250 and took home $221. I think there is a break at higher amounts as described above. It is hard to be exact because there are variables. For eBay the fees are based on the ENTIRE sale amount including shipping which can change. That is why I guess a little high.
There is a significant difference in selling costs on Reverb vs Talkbass. Reverb is way over priced in my opinion but they do reach a significantly larger market space so there are more opportunities to find the right buyer. I usually offer a lower price when selling on TB. While I"m tempted to tell a potential Reverb buyer to buy it from the TB ad so both buyer and seller benefit. However, while it's tempting to make the buyer aware that they can save if they buy my thing on TB but that's wrong and strictly against Reverb's policy so I don't do that. I see many people listing an item on both TB and Reverb at the same price. I stopped doing that. But in defense of Reverb they do have one of the safest online sites for buying used gear.
I suggest doing a search on TB Classifieds before going to the "Verb". If you find what you're looking for you'll likely get a better deal.
I suggest doing a search on TB Classifieds before going to the "Verb". If you find what you're looking for you'll likely get a better deal.
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Basic rule of thumb when selling on Reverb is subtract 8% from your final selling price. It is not dead accurate but will give you a very close estimate of what you will clear. Remember, if you sell more than $600 this year, you will receive a 1099 from Reverb, PayPal, eBay ect. Keep that in mind when choosing a selling platform.
Basic rule of thumb when selling on Reverb is subtract 8% from your final selling price. It is not dead accurate but will give you a very close estimate of what you will clear. Remember, if you sell more than $600 this year, you will receive a 1099 from Reverb, PayPal, eBay ect. Keep that in mind when choosing a selling platform.
yup..
it's usually around the 10% mark. maybe 8, maybe 12, but 10 is a fair estimate.
until that 1099 hits, then... you're better off selling locally for cash in almost any scenario
I usually project an 8.5% cost for doing business on Reverb. As said above, bigger audience than TB. In addition, you get a shipping discount. Also note, Reverb fees are applied against the shipping cost. Don't know why, and maybe I'm wrong, but it seems that way to me.
Don't forget Craigslist as an option.
Don't forget Craigslist as an option.
I’ve been using this one for years and it’s always in the ballpark.
I just figure 10% for Reverb which gets me close.
I consider this fair for the platform and audience it gives you.
You are only taxed on any GAINs that you report for the sale.
I consider this fair for the platform and audience it gives you.
The 2025 threshold (at this time} is $2,500Remember, if you sell more than $600 this year, you will receive a 1099 from Reverb, PayPal, eBay ect. Keep that in mind when choosing a selling platform.
You are only taxed on any GAINs that you report for the sale.
On Ebay, it is usually around 12%. On Reverb, it depends on if you buy bumps. The bump fees can add up. So, on Reverb, around 10%+.
Those AI answers are not accurate because they don't account for what you'll pay in the payment processing fees. If you use Reverb payments it's another 2.5% (PayPal has its own similar fees). Plus there are any bump fees you incurred, and if it's an overseas transaction there are additional fees.
But then you have to subtract what your share of the packaging, shipping, and insurance costs are to figure your net proceeds. Buyers sometimes balk at paying for shipping and expect additional discount on the selling price for it, so this may have to be factored in. (I think some buyers won't pay shipping at all or skip those listings that don't have free shipping, so it's better to mark it free and factor the cost in) I estimate for shipping a typical Fender bass with packaging I already have, it's going to cost a minimum of $75 to ship.
This is why my estimate for Reverb or Ebay is that I will take home 90% of the selling price minus $75. (On a $1,500 bass, I'm going to get $1,275 unless the buyer pays shipping)
So I could discount that bass to $1300 on FB or CL and be no worse off, actually better because it's in cash and there is no chance of a return. So I am loathe to sell on Reverb when I could do better locally almost always. The only reason to use those sites is if you have something that you can't sell locally at all or you need it gone fast.
But then you have to subtract what your share of the packaging, shipping, and insurance costs are to figure your net proceeds. Buyers sometimes balk at paying for shipping and expect additional discount on the selling price for it, so this may have to be factored in. (I think some buyers won't pay shipping at all or skip those listings that don't have free shipping, so it's better to mark it free and factor the cost in) I estimate for shipping a typical Fender bass with packaging I already have, it's going to cost a minimum of $75 to ship.
This is why my estimate for Reverb or Ebay is that I will take home 90% of the selling price minus $75. (On a $1,500 bass, I'm going to get $1,275 unless the buyer pays shipping)
So I could discount that bass to $1300 on FB or CL and be no worse off, actually better because it's in cash and there is no chance of a return. So I am loathe to sell on Reverb when I could do better locally almost always. The only reason to use those sites is if you have something that you can't sell locally at all or you need it gone fast.
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yes, as mentioned above, only gains are to be taxed, it's up to you to show you lost money on the sale though
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I estimate a 10% cost of doing business on Reverb, but you can usually get a better price there than on TB which will offset the higher cost. TB isn't free though since you are required to use Goods and Services (about 3-4%) and TB usually wants shipping included in anything that sells.
Figure 15% including listing fees and payment processing fees. Keep in mind both are assessed on the total cost. If you sell something for $100 plus $50 shipping, you will pay fees on the $150. Shipping estimates are rarely accurate on eBay and if you charge "actual shipping", you'll eat whatever difference it is if the label ends up costing more than the estimate, and your buyer can dispute it if the cost is less than the estimate (ask why I no longer sell on eBay). Trust me, eBay doesn't give a rip about your costs to package-up and drop off the box.
Pirate Ship will save you a great deal on money on shipping and it gives you costs from UPS and USPS, and you can play around with insurance amounts, etc.
Pirate Ship will save you a great deal on money on shipping and it gives you costs from UPS and USPS, and you can play around with insurance amounts, etc.
I used 11.2% in fees (so multiply final sales amount by 0.888) and that was pretty close to what I got paid.
one note about shipping on both reverb and eBay - I have compared prices with UPS, Fedex and USPS and find Reverb always overcharges on small ground advantage shipping on USPS (free insurance up to $100) adding several dollars to those fees and sometimes also charges more for UPS and Fedex as well so you have to do your homework so you don't pay extra. Ebay seems to offer decent discounts to fedex and ups though.
