How does eBay make money?

eBay makes money via transactions that are performed between buyers and sellers on its platform, listing fees, and marketing services. Here is a closer look at how eBay makes money:

• Transactions

  eBay makes money via transactions that are performed between buyers and sellers on its platform. eBay makes money off of transaction fees in the form of commission charges. Every time a seller on its platform completes one sale of their item or product eBay takes a 12.9% commission fee on the sale, and $0.30 per transaction.

• Listing fees

  Whenever a seller wants to post a product or item listing on eBay, they must pay the company a listing fee. eBay charges its sellers 11% of the listing price for items that are listed for up to $1,000. It also charges an additional %2.35 on any items that are over $1,000. Extra charges are accrued when a seller chooses to renew an item listing.

• Marketing services

  The company also makes money through marketing products on its website. Marketing services include classified ads, banner ads, and direct advertising partnerships with big brands. This revenue stream has become more and more profitable for the company, with growth rates of 5% to 10% each year.