25 key terms every online seller should know
Marketplace fees come with their own vocabulary. Here's a plain-English guide to every term you'll encounter as a seller.
A tax form payment platforms (including marketplaces) file with the IRS. Under federal rules a platform must file one when your gross sales exceed $20,000 and you have more than 200 transactions in a calendar year. It reports your total sales — not your profit — to the IRS. You're responsible for deducting expenses when you file your taxes.
When a buyer disputes a charge with their credit card company and the payment is reversed. Chargebacks can result in the seller losing the item and the payment. Most platforms have seller protection policies, but they don't cover every situation.
What you paid to acquire the item you're selling. This includes the purchase price, sales tax paid, and any restoration or repair costs. Subtract COGS from your payout to calculate true profit.
Calculate profit after COGS →The percentage of a sale that the marketplace takes as its fee. Also called a "selling fee" or "marketplace fee." Ranges from 0% (Depop for US, UK and Australia sellers; Vinted) to 20% (Poshmark on items of $15 or more) — GOAT's runs 9.5–25% by seller rating.
Learn how commissions work →A fee charged when a platform sells items on your behalf (you ship them your inventory, they handle listing, storage, and shipping). ThredUp and The RealReal use consignment models. Consignment fees are typically higher than standard marketplace fees because the platform does more work.
A fee for converting your sale into your payout currency — e.g. a US seller listing on eBay.de in euros, or an Etsy shop whose listing currency differs from its bank account's. eBay charges 3.25%; Etsy charges its own conversion fee (not in FeePilot's calculator).
A fee charged when a payment dispute (such as a chargeback) is decided against you. eBay charges $20 for each dispute you're found responsible for.
eBay's term for their commission — the percentage taken from the total sale amount (item price + shipping + the sales tax the buyer pays). Currently 13.6% for most categories, with lower rates for Basic-and-up eBay Store subscribers.
See eBay fee breakdown →StockX's program where sellers send items to StockX ahead of a sale. StockX verifies and stores them, then ships straight to the buyer when one sells, so you don't ship each order yourself.
See StockX Flex fees →eBay's term for a listing fee — the charge for creating a new listing. eBay gives 250 free insertions per month; additional listings cost $0.35 each (or less with a Store subscription).
A fee charged when you create a new listing, regardless of whether it sells. Etsy charges $0.20 per listing. Most platforms (Poshmark, Mercari, Depop) charge no listing fee.
Learn about fee types →A legal designation meaning the marketplace collects and remits sales tax on behalf of sellers. In most US states, platforms like eBay, Mercari, and Poshmark handle sales tax automatically — you don't need to charge or remit it yourself.
What you actually keep after subtracting all costs: COGS + marketplace fees + shipping + packaging supplies. This is the number that matters. A $100 sale with $15 in fees, $8 in shipping, and $40 in COGS leaves you with $37 net profit.
Calculate your net profit →Etsy's advertising program that promotes your listings on Google, Facebook, Instagram, and other sites. If a buyer clicks an offsite ad and purchases within 30 days, Etsy charges 15% (or 12% once your shop has made $10K+ in any 365-day period), never more than $100 per order. Mandatory once you reach $10K in any 365-day period.
See Etsy fee breakdown →The fee for handling the financial transaction — credit card processing, fraud protection, and payout to your bank. Usually a percentage plus a small fixed fee — Etsy charges 3% + $0.25, Depop 3.3% + $0.45 (US). Some platforms bundle this into the commission; others charge it separately.
The amount deposited into your bank account after all fees and deductions. Also called "earnings," "net proceeds," or "your cut." This is what FeePilot calculates for you.
A flat amount charged on each order rather than a percentage. Amazon charges $0.99 per item sold for Individual seller plan users. eBay charges a $0.40 per-order fee on orders over $10 ($0.30 on orders of $10 or less).
A paid advertising feature that boosts your item's visibility in marketplace search results. eBay's Promoted Listings charge the ad rate you set — 2%–100% of the sale — when the item sells within 30 days of a click on its ad.
See eBay promoted listing fees →An extra eBay fee, charged when an item sells, to cover regulatory costs. eBay.co.uk charges it to business sellers; US sellers on eBay.com don't pay it, and FeePilot doesn't include it.
A ranking system used by platforms to reward high-volume or high-quality sellers with lower fees or better visibility. StockX has 5 seller levels with commission rates of 7–9%. eBay gives 10% off final value fees on Top Rated Plus listings.
A fee charged when the actual package weight or dimensions exceed what you declared. Mercari charges the difference plus an 8% penalty on the adjusted shipping total. To avoid this, always weigh your packed item before shipping.
Learn shipping basics →A monthly fee paid to the marketplace for benefits like lower commission rates, more free listings, or marketing tools. eBay Store plans range from $4.95/month (Starter, billed yearly; $7.95 month-to-month) to $2,999.95/month (Enterprise, yearly only). Amazon's Professional plan is $39.99/month.
The total percentage of a transaction that a marketplace keeps across all fees combined. A platform might advertise a 10% commission, but the true take rate (including processing, per-order fees, etc.) could be 13–15%. FeePilot adds up every fee so you see the true total.
eBay's highest seller status, earned by meeting performance benchmarks (fast shipping, low defect rate, high volume). Benefits include 10% off final value fees on Top Rated Plus listings — ones with same- or 1-business-day handling and 30-day (or longer) free returns.
Etsy's term for their commission — currently 6.5% of the item price plus shipping. Charged on every sale in addition to the listing fee and payment processing fee. Not to be confused with "payment processing fee," which is a separate charge.
See Etsy fee breakdown →We'll email you when any marketplace updates their seller fees. No spam, unsubscribe anytime.