Seller fees
Separate selling costs from marketplace fees
A marketplace fee and a cost you pay are different subtractions. The fee comes from the platform’s schedule. The cost is money you spend on the item, the postage, the mailer, or the labor.
Buyer shipping is money the buyer paid. Seller postage is money you spend to ship. They can both be $5 and still belong on opposite sides of the profit line.
| Line | Amount |
|---|---|
| Item price | $50.00 |
| Buyer shipping, included in revenue | $5.00 |
| Revenue before tax | $55.00 |
| Product cost | $20.00 |
| Seller postage | $5.00 |
| Packaging | $1.00 |
| Profit before marketplace fees | $29.00 |
| If seller postage is subtracted again | $24.00 |
Where people subtract the same dollars twice
Revenue in that table is $55. Costs are $26, so $29 remains before any platform fee. If the shipping label was already included in the $5 seller postage, subtracting another $5 for “the label” leaves $24. The extra $5 is the same postage.
Sales tax has its own problem. On the reviewed US eBay and Etsy cases, remitted tax is not seller revenue, but it can still sit inside a fee base. Depop’s reviewed US processing fee also uses price plus shipping plus tax, while the boost fee uses price plus seller-arranged shipping and leaves tax out. The fee calculator for that marketplace is the place to apply the matching base.
What to enter
Enter the platform fee from the tool that names the marketplace, region, and date. Enter product cost, packaging, and the postage you pay in the cost fields. Enter 0 for a cost that is actually zero. Labor belongs in the cost once: hours times the hourly rate, not hours plus the rate plus another labor line.
- eBay, Depop, and Etsy tools estimate supported US fees.
- The margin tool applies costs you type. It does not look up a marketplace rate.
Sources and tools
Related guides
Common questions
Is payout the same as profit?
No. Payout can be what remains after marketplace fees. Profit also subtracts product cost, postage, packaging, and any other cost you enter.
Should buyer shipping and my postage both be in the calculation?
Yes, on their own lines. Buyer shipping can increase what you collect. Your postage is a cost. Using the same $5 for both roles, once each, is the ordinary case.