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 issued by payment processors (including marketplace platforms) to sellers who exceed $600 in gross sales 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 US/UK, Vinted) to 20% (Poshmark on items over $15).
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 charged when a sale involves a currency conversion (e.g., a US buyer purchasing from a UK seller). Typically 2.5–3.5% of the converted amount. Common on international platforms like eBay, Etsy, and Vestiaire Collective.
A fee charged to sellers when a buyer opens a dispute or claim that is resolved in the buyer's favor. eBay charges a $20 dispute fee when a case is closed without seller resolution.
eBay's term for their commission — the percentage taken from the total sale amount (item price + shipping). Currently 13.6% for most categories, with lower rates for eBay Store subscribers.
See eBay fee breakdown →StockX's alternative to standard fulfillment where sellers ship directly to buyers instead of through StockX's authentication center. Flex sellers pay a different (typically higher) commission rate but avoid shipping to StockX first.
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% for shops with $10K+ annual sales). Mandatory for shops earning over $10K/year.
See Etsy fee breakdown →The fee for handling the financial transaction — credit card processing, fraud protection, and payout to your bank. Typically 2.9% + $0.30 per transaction. 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 fee charged on each individual sale, regardless of the sale amount. Amazon charges a $0.99 per-order fee for Individual seller plan users. eBay charges a $0.30 per-order fee on most transactions.
A paid advertising feature that boosts your item's visibility in marketplace search results. eBay's Promoted Listings Standard charges 2–15% of the sale price. You only pay when the item sells after a buyer interacts with the ad.
See eBay promoted listing fees →eBay's additional fee that covers regulatory compliance costs. Currently about 0.35% of the total sale amount. It's a small fee, but it stacks on top of the final value fee and per-order fee.
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 from 8% to 10%. eBay has Top Rated Seller status with fee discounts.
A fee charged when the actual package weight or dimensions exceed what you declared. Mercari charges an 8% shipping correction fee. 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) to $2,999.95/month (Enterprise). 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 shows you the true take rate.
eBay's highest seller status, earned by meeting performance benchmarks (fast shipping, low defect rate, high volume). Benefits include a 10% discount on final value fees when you offer 30-day returns and same/1-day handling.
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.