What is a resale fee? Terms and a payout example
A resale fee is a cost that reduces the money you keep from a sale. Marketplaces and payment processors usually charge them when an item sells, and sellers also pay costs, such as postage and packaging, that come out of the same amount.
Fees are the reason the amount a buyer pays differs from the amount that reaches you. Platforms name them differently, so this guide defines the common terms and works through one sale with numbers. Fee rates are left out on purpose, because they change.
What counts as a resale fee?
A fee is an amount a platform or payment service takes because of a sale. A cost is an amount you pay yourself to complete the sale, such as postage. Both reduce your result, so both belong in your records. Shipping money the buyer pays you is different, because it adds to what you receive.
eBay's help page calls its main sale charge a final value fee, and says it is charged when an item sells. Etsy's help page says its payment processing fee comes out of the total sale price, including shipping and any applicable sales tax. Etsy also charges a separate transaction fee. Check each platform's current fee page before you rely on a number, since both can change.
Fee terms and what each one covers
| Term | What it covers |
|---|---|
| Marketplace fee | The charge a marketplace takes when an item sells. eBay calls its version a final value fee. |
| Payment processing fee | The charge for handling a payment through the platform's payment system. Etsy charges it separately from its transaction fee. |
| Listing fee | A charge for creating a listing, paid whether or not the item sells. eBay charges one after a monthly free allowance, and Etsy charges one on every listing. |
| Buyer-paid shipping | Postage the buyer pays you. It adds to the money you receive and is not a cost. |
| Seller shipping | Postage you pay to send the item. It reduces your result. |
| Packaging | Materials you pay for to send the item, such as boxes and tape. It reduces your result. |
| Gross sale | The price the buyer paid, before any fee is taken out. |
| Net payout | The amount the marketplace pays you after it deducts its own fees. |
What base does a fee use?
A fee is calculated on a base amount, and the base differs by platform. eBay's help page says its base is the total sale amount, including buyer-paid delivery, with some exceptions. Etsy's help page says its payment processing fee applies to the total sale price, including shipping and any applicable sales tax. In both cases, postage the buyer pays is generally part of the base, so a fee can apply to shipping too.
FlipKeep stores each platform's rates as a fee preset. A preset holds a marketplace percentage, a marketplace fixed fee, and an optional payment percentage. FlipKeep applies the percentage to the sale amount you enter and adds the fixed fee to get the marketplace fee. The payment fee is the optional percentage of the sale amount. These numbers are yours, and FlipKeep does not check them against official fee schedules, so compare them with the statement before you save a sale.
Worked example: a net payout sale
The numbers below are made up. You bought an item for 40.00 and sold it for 120.00. The buyer also paid 9.00 for shipping, so the buyer paid 129.00 in total. The marketplace took a 14.00 marketplace fee and a 3.50 payment processing fee, then paid you a net payout of 111.50. You paid 8.00 in postage and 1.50 for packaging.
| Step | Amount |
|---|---|
| Net payout from the marketplace | 111.50 |
| Subtract seller shipping | 8.00 |
| Subtract packaging | 1.50 |
| Subtract item cost | 40.00 |
| Realized profit | 62.00 |
FlipKeep calls this result realized profit. The net payout already has both fees deducted, so they stay out of the record. Entering the 14.00 and 3.50 again would drop the result to 44.50, which is an easy mistake to make with net payouts. For this reason, FlipKeep's net payout entry asks only for the costs a payout does not already deduct, such as seller shipping, packaging, and other costs.
Recorded as a gross sale, the same sale gives the same result. Enter 120.00 as the sale price, 9.00 as buyer-paid shipping, 14.00 and 3.50 as the two fees, and the same seller costs and item cost. The realized profit is still 62.00.
How to record each fee once
- Open the sale details or payout summary from the marketplace before you enter anything.
- Note the price the buyer paid, any shipping the buyer paid, and each fee on the statement.
- Choose a gross sale to record each fee, or a net payout to enter the final amount the marketplace paid you.
- Enter each fee once. In a net payout, skip any fee the payout already deducts.
- Add the costs the marketplace did not take, such as seller shipping and packaging.
- Check the realized profit against your own arithmetic before you move on.
For refunds, returns, and fee recovery, see how to track resale fees, refunds, and returns. The formula behind the result is in how to calculate resale profit.
Fees belong to each sale, but the time an item waited belongs to the item. For that measure, see days to sell for resale inventory.
If you record fees in a spreadsheet first, reseller inventory spreadsheet template covers a layout for the same records.
Where FlipKeep helps, and where it does not
FlipKeep records each sale as a gross sale or a net payout. A gross sale can include the marketplace fee, payment fee, buyer-paid shipping, seller shipping, packaging, seller tax, and other costs as separate entries, and each entry counts once. Partial refunds and full returns are recorded against the original sale, including how much of each fee the marketplace gave back.
FlipKeep does not connect to marketplace accounts, so you enter each fee from the sale details or payout summary yourself. It does not download official fee schedules, and it does not prepare tax returns. If you are still choosing a tool, how to choose a resale profit tracker lists the questions to ask.
FlipKeep starts with a 30-day trial that gives full access, and the trial begins once you finish onboarding. When the trial ends, you can still view, search, and export your existing records. Adding purchases and sales, editing records, iCloud sync, and importing a backup need full access. Full access comes from the trial or from a one-time purchase that does not renew. The app shows the current price, and there is no subscription.
Common questions
What is the difference between a marketplace fee and a payment processing fee?
A marketplace fee is the charge for the sale itself. A payment processing fee is the charge for handling the payment. Etsy charges a payment processing fee and a separate transaction fee. Record each one as its own cost.
Is buyer-paid shipping a resale fee?
No. Buyer-paid shipping is money you receive for the sale, so it adds to your result. Postage you pay yourself is a cost, and it reduces the result.
Do I subtract the marketplace fees again when I enter a net payout?
No. A net payout already has the marketplace's fees deducted, so subtracting them again counts them twice. Add only the costs the payout did not include, such as seller shipping, packaging, or other costs.
What happens to fees when an item comes back?
When you record a return, you enter how much of each fee the marketplace gave back. FlipKeep keeps the recovered amount separate from the fees you did not recover. The original sale stays in the history, and the fees you did not recover stay on that sale.
Should I use a fee preset or the fee on the statement?
Use the fee on the marketplace's sale details or payout summary whenever you have it. A fee preset fills in the fee fields for you, but its numbers are your own, so check them before you save the sale.
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