Free postage or charge postage on eBay? Many UK sellers assume free postage costs them more in fees. It usually does not. What costs you money is charging less postage than the parcel really costs. Here is a worked example.
The short answer
- eBay business sellers pay fees on the total the buyer pays, including postage. So free postage built into the price gives the same fees as charging postage separately, if the total is the same.
- Private sellers pay no final value fee on most categories either way.
- The expensive mistake is charging less postage than the real cost.
How eBay fees treat postage
As a business seller you pay a category fee (12.9% in Everything Else, lower in some categories), a 0.35% regulatory fee and a per-order fee of £0.40 on orders over £10. All of it is worked out on the total sale including postage. Rates were checked on 5 November 2026.
Worked example: same item, three postage choices
You sell an item for £20, and sending it costs you £3.75 (a small parcel, Royal Mail Tracked 48, online price from 5 October 2026). Business seller fees, before the cost of the item:
- Charge £3.75 postage: buyer pays £23.75. Fees are £3.55 (13.25% of £23.75 is £3.15, plus £0.40). After paying £3.75 postage you keep £16.45.
- Free postage, priced at £23.75: the buyer pays the same £23.75, so the fees are the same £3.55 and you keep the same £16.45.
- Charge only £2.99 postage: buyer pays £22.99. Fees are £3.45. You keep £15.79, which is £0.66 less than the other two.
The shortfall in postage cost you more than the small saving in fees.
To check whether free postage pays off across your own sales, our eBay profit tracker spreadsheet shows postage, fees and profit per sale.
When free postage can make sense
- It gives buyers one all-in price, which can make your listing easier to compare.
- It avoids guessing postage for items that vary in weight, as long as you price for the heavier case.
- Check what similar items sell for before you decide.
How to pick your postage price
- Weigh and measure the packed item, and choose the cheapest service that still suits the value of the item. Our postage guide has Royal Mail’s online prices.
- Add the postage cost to your sums every time. The free eBay fee calculator includes postage.
- Record what you really paid in your sales spreadsheet.
- For help with item prices, read how to price used items on eBay UK.
Official sources
eBay fee rates and categories change, so treat all figures as estimates. eBay rates checked on 5 November 2026, Royal Mail prices on 9 November 2026. General information, not tax or financial advice.
Get the free eBay profit tracker (lite)
A one-tab spreadsheet that shows what you really earn on each sale, after fees, postage and costs. Enter your email and we will send it to you, plus the occasional seller tip.