Guide

Selling on eBay: the benefits, the costs and what it means for sales tax

For many Chicago resellers, eBay is where the first sales happen. It is worth knowing what you get and what it costs.

General information only, not legal or tax advice. I am not a CPA or an attorney.

What eBay does well

• Visibility. You reach a large audience of people already searching to buy. A new website has to build that traffic.
• Payments and buyer trust. eBay handles checkout and payouts, and buyers recognize the platform.
• Shipping tools. You can buy and print shipping labels in the platform. You still pack and ship everything yourself, so plan space and time for it. Some sellers also compare third-party label tools; see the SKU and fulfillment guide.
• Sales tax on marketplace orders. eBay collects and remits it for most orders. See sales tax across state lines for how Illinois treats marketplace sellers.
• Low startup effort. You can list items quickly and test what sells.

What it costs

For most categories eBay charges a final value fee of roughly 13.6% of the sale, with shipping and tax included, plus a small per-order fee. The first 250 listings a month are free, and Promoted Listings are optional. Rates vary by category and change, so check eBay's fee page. The side-by-side comparison has the numbers next to Poshmark and Depop.

On a $50 item that is roughly $7 or more before shipping supplies, your cost to buy the item, and your time. Price with fees in mind.

The downsides

• Fees take a meaningful slice of every sale.
• You compete with many sellers, often on price.
• The platform sets the rules. Account problems or policy changes can affect your income.
• Returns and disputes can cost you the item and the fees.
• You do not own the customer relationship, so it is harder to build repeat business.

What does not go away

• Your sales are still income. See Form 1099-K and hobby or business.
• You may still need an Illinois sales tax registration and a resale certificate. See sales tax registration.

A common approach

Many sellers use eBay to find out what sells, then add their own site or local sales over time. Which mix is right is your decision. See also eBay vs Poshmark vs Depop.

I am not a CPA or an attorney

This page is general information, not legal or tax advice. Rules, fees and forms change, so confirm with the agency. For advice about your situation, talk to a CPA or an attorney.

Sources: eBay seller fee summary (secondary); IDOR informational bulletin FY 2024-08. Checked Oct 27, 2026.