For any online seller, understanding the fee structures of major marketplaces is key to maintaining profitability. With different platforms charging a range of fees — such as listing, transaction, and subscription costs — it’s essential to know exactly how much you’ll be paying to keep your business competitive. Whether you’re selling on Amazon, eBay, Walmart, or Etsy, this guide will help you decode marketplace fees and make smarter choices for your e-commerce strategy.
Marketplace fees are the costs sellers pay to list products, make sales, and use platform services. These fees vary significantly between platforms and can have a major impact on your profit margins. For online sellers, especially those with slim profit margins, understanding these fees is critical to maintaining profitability. Each marketplace has its own structure, with fees that may include listing costs, transaction percentages, payment processing charges, and optional services like fulfillment or advertising.
In this guide, we’ll break down the fees for four major marketplaces — Amazon, eBay, Walmart, and Etsy — and help you figure out which one works best for your business.
When selling on marketplaces, you’ll typically encounter these common types of fees:
Each marketplace balances these fees differently, and understanding which ones apply to your business will help you manage costs effectively.
Amazon offers two selling plans: the Individual Plan and the Professional Plan. The Individual Plan costs $0.99 per item sold, while the Professional Plan costs $39.99 per month, making it better suited for high-volume sellers.
Referral fees on Amazon vary by category, typically ranging from 6% to 45% of the sale price. Most standard product categories, like Home & Garden and Kitchen, have a referral fee of 15%.
If you’re using Fulfilled by Amazon (FBA), there are additional storage and shipping fees to consider. FBA fees are determined by the size, weight, and duration your products stay in Amazon’s fulfillment centers. While FBA can increase efficiency, it’s important to consider the cost of long-term storage for slow-moving items.
Advertising fees are another major consideration for Amazon sellers. Sellers often spend around 30% of their sales revenue on advertising, particularly for Sponsored Products to gain visibility in search results. Carefully managing your ad budget is essential to maintaining profitability on Amazon.
eBay’s fee structure is relatively simple but requires careful monitoring. Sellers can choose between different subscription tiers, such as Starter Store, Basic Store, Premium Store, Anchor Store, or Enterprise Store. These tiers range from free accounts to $2,999.95 per month for an Enterprise Store, with each tier offering a different number of free listings.
Once you exceed your free listing allowance, insertion fees apply, ranging from $0.30 to $0.35 per listing. eBay also charges a final value fee of 12.55% to 15% on the total sale price (including shipping and sales tax). This can be a surprise for sellers who don’t expect to see sales tax as a part of final fee calculation.
To reduce costs, sellers should optimize their listings and monitor their subscription levels to prevent unnecessary chargings.
Walmart is different from other marketplaces because it does not charge a monthly subscription fee. This makes it an attractive option for sellers who want to avoid upfront costs. However, Walmart charges referral fees that range from 6% to 20%, depending on the product category.
One of Walmart’s most notable features is its pay-as-you-go model, meaning you only incur fees when you make a sale. This structure is perfect for sellers looking to avoid the financial burden of monthly subscriptions, but the higher referral fees in some categories can cut into your profit margins, especially for higher-priced items.
Sellers should also keep in mind that Walmart has strict performance standards. Failing to meet these standards could result in account restrictions or suspension, which makes it important to monitor your performance metrics regularly.
Etsy is a popular marketplace for independent sellers, particularly those selling handmade, vintage, or unique products. Etsy charges a $0.20 listing fee per item, which is valid for four months or until the item sells. Additionally, Etsy takes a 6.5% referral fee on the sale price, which includes the cost of shipping.
Etsy’s payment processing fees vary by country. In the U.S., the fee is 3% + $0.25 per transaction, but international rates may differ. For example, payment processing fees in the UK are 4% + £0.20.
The platform also charges Offsite Ads fees. If Etsy advertises your listing on external websites (like Google or Facebook) and it results in a sale, you’ll be charged an additional 12% fee (for sellers making more than $10,000 annually) or 15% (for those making less).
Etsy offers Etsy Ads for promoting listings within the platform. Advertising costs vary based on the seller’s budget, and it’s important to track ad spend to ensure it provides a good return on investment.
While Etsy’s fees are generally lower than platforms like Amazon or eBay, competition in popular categories can be fierce. Sellers who succeed on Etsy often rely on high-quality product photography, detailed descriptions, and personalized branding to differentiate themselves in a crowded marketplace.
When comparing marketplace fees, it’s clear that the best platform depends on your business model. So, such a detailed table will help sellers quickly assess which one aligns best with their business goals and budget.
| Platform | Subscription Fees | Referral Fees | Listing Fees | Advertising Costs |
| Amazon | Individual: $0.99/item Pro: $39.99/month | 6% to 45% (most categories: 15%) | No listing fees | Sponsored Products (pay-per-click) |
| eBay | $4.95 to $2,999.95/month (5 tiers) | 12.55% to 15% (based on category) | $0.30 to $0.35 per listing | Promoted Listings (pay-per-sale) |
| Walmart | No subscription fees | 6% to 20% (varies by category) | No listing fees | Sponsored Products (pay-per-click) |
| Etsy | No subscription fees Plus: $10/month | 6.5% (+3% + $0.25) on sale price (including shipping) | $0.20 per listing | Etsy Ads Offsite Ads (12% or 15%) |
While sites like Amazon, eBay, and Walmart are transparent about their main selling fees, many sellers often ignore smaller, hidden fees that can show up over time. These hidden charges can eat into profits and leave sellers wondering why their margins are lower than expected.
For instance, sellers on Amazon who use Fulfilled by Amazon (FBA) often deal with long-term storage fees. Amazon charges extra storage costs for things that stay in its warehouses for longer than a certain number of days, which drives up the price of selling slow-moving products. Similarly, sellers who want to remove unsold goods from Amazon’s warehouses may have to pay inventory removal fees, which would be an additional unanticipated expense.
Currency conversion fees are an additional hidden expense for traders who carry out international operations. When converting payments into your local currency, marketplaces such as Etsy and eBay can charge additional fees, which can amount to 2-3% of the sale price.
Moreover, eBay may charge higher referral fees if you fail to meet certain seller performance standards, particularly if your Item Not as Described rate is too high.
Last but not least, optional promotional services like advertising fees (such as Amazon’s Sponsored Products or eBay Promoted Listings) can also impact profitability. Although these services boost the visibility of the product, sellers should compare the expenses of these services to the possible increase in sales to make sure they are not overpaying for promotional offerings that don’t provide a considerable return.
To reduce marketplace fees, sellers can employ several strategies:
By keeping these strategies in mind, sellers can minimize costs while still maintaining strong sales performance across different platforms.
Managing marketplace fees across multiple platforms can be daunting, but tools like Sellercloud, Mysellerhub, and Skubana offer multi-channel solutions that track fees in real time. These platforms provide analytics to help sellers identify areas where costs can be optimized and profits increased. Using automation to track fees across different marketplaces ensures you’re always in control of your expenses.
Mysellerhub: A Comprehensive Solution
This powerful software offers a wide range of features to help you manage your marketplace expenses effectively:
In the world of e-commerce, fees are a necessary part of doing business, but understanding them is crucial to your success. Whether you’re selling on Amazon, eBay, Walmart, or Etsy, knowing the ins and outs of marketplace fees will help you make informed decisions that keep your profits intact. By carefully weighing your options, leveraging tools to manage expenses, and optimizing your listings, you can navigate these fees and make your business thrive.
Remember, the key to e-commerce success isn’t just about making sales — it’s about keeping your costs under control to maximize profitability.
