Martin Lewis, the renowned finance expert, has issued a warning to anyone with an eBay account: sell your items now or prepare for a significant price increase. This announcement comes as eBay prepares to raise its selling charges, and Lewis wants to ensure that nobody is caught off guard.
Avoid the Price Hike
Lewis took to the Money Saving Expert Twitter account to spread the news. According to the post, eBay’s selling charges will rise starting from Monday, April 8th. To avoid paying more, it’s advisable to sell what you can before the hike takes effect. For example, if you currently sell an item for £20 with £5 for postage, you would pay £3.50 in fees. However, after the increase, you would be charged £3.60 instead.
eBay’s Rising Regulatory Operating Costs
Lewis, a trusted voice in personal finance matters, attributes the fee hike to eBay’s “rising regulatory operating costs.” This change will see fees rise from 12.8% of the sold price plus postage to 13.22% (with an additional 30p per transaction). The Money Saving Expert team has provided a detailed breakdown of how eBay’s fees work, which you can find in their article.
Act Fast and Claim Free Cash
In addition to the eBay warning, Lewis has also highlighted an opportunity for first-time buyers to claim £1,000 of free cash. By utilizing a Lifetime ISA (LISA), individuals looking to step onto the property ladder can benefit from this powerful savings tool. The state will add 25% to the amount saved, resulting in potential annual free cash of up to £1,000. However, this offer is time-sensitive, and action must be taken before April 5th, the end of the current tax year.
How eBay’s Fees Work
The Money Saving Expert team has provided the following breakdown of eBay’s fee structure:
- When your item sells, you pay fees. eBay charges a final value fee of 12.8% (13.22% from April 8th), including postage, as well as 30p per order.
- Payment for your item goes directly into your bank account, typically taking four working days. This means you may need to dispatch items and pay for postage before the funds are available.
- eBay automatically deducts fees from your sales, with the remaining amount paid out to your bank account. This process eliminates any surprise invoices at the end of the month, which many sellers appreciate.
- Even if you accept cash for an item, eBay still charges fees by debiting them from your “preferred” account listed on their records.
Act Now to Secure Your Finances
It’s evident that time is of the essence for anyone with an eBay account. To avoid the impending fee increase, take Martin Lewis’ advice and sell your items before April 8th. Additionally, if you’re a first-time homebuyer and want to secure £1,000 of free cash through a Lifetime ISA, act before April 5th.
For more information on saving money and personal finance tips, visit the Money Saving Expert website.
Source: The Sun