The information I'm about to post might have been posted by admin already but anyway, here I go:
Recently, ebay introduces its FREE 5 listing for every 30 days. Free insertion free for listing on ebaY? Sound great hhuh...not until I find it out the hard way!
The trick is that normal listing - you pay the insertion fee according to your starting price + $2.19 for first 25$ + 3.5% of the FV - $25. That might sound like a lot of fee you gotta pay!
But Free listing? you pay flat 8.75% of FV or $20 which ever is less!
Let's do some number:
If you auction an ipod touch starting at $0.99 - sold for $176.50
insertion fee = $0.35 ($0.01-0.99 starting price)
Fee for first $25 = $2.19
FV fee = ($176.50 - $25)*3.5% = 5.30
Total Fee = $7.84
Insertion fee = $0.00
FV fee = $176.50*8.75% = $15.00
Total = $15.00
That's almost double your original fee! UNLESS....
You sell an item for more than $500 ... then you will benefit from the free listing because you total fee for original listing would exceed $20.
If any mistake or type in number, please correct but don't criticize!