Listing fees, or insertion fees, is a nominal fee that sellers have to pay to eCommerce platforms or online retail portals to list or post their products and services on the website. Popular online retail portals like eBay, Etsy, and Amazon charge a certain fee from the sellers for maintaining the portal and different services they offer so sellers can market their products and services and conduct business successfully.
The amount eCommerce portals charge for showcasing and promoting the products and services on their platform depends on the value of a product a seller intends to display on the website–the higher the price of a product, the higher the listing fees will be. The listing fee is also determined based on the size or quantity of the product and the duration for which a seller wants to showcase the product on the platform.
Amazon and eBay have fee calculators that allow sellers to calculate listing charges, shipping costs, and fulfillment fees.
For e.g., the Amazon fee calculator is categorized into four parts.
- A fulfillment fee is charged for the weight and size of the products, packing, shipping and handling, customer care service, delivery through a third-party carrier, and returns
- A monthly storage fee is charged for storing the products in the Amazon Fulfillment Center and the amount of space they take
- A referral fee is a fee paid by a seller to Amazon for each item sold. It is calculated based on the product category and charges predefined by Amazon
- A closing fee is charged by Amazon from a seller every time an item is sold. It also takes into account the fulfillment channel a seller is using to deliver a product