StubHub Fees Explained: Buyer & Seller Costs in 2024
Understanding StubHub Fees
StubHub, a prominent ticket resale marketplace, charges fees to both buyers and sellers. These fees vary based on several factors, such as the event type and the ticket price. Knowing these fees helps users make informed decisions, whether they are purchasing or selling tickets.
Buyer Fees
When buying tickets on StubHub, you will encounter service fees. These fees generally range from 10% to 15% of the ticket price and are added at checkout. This can be frustrating, especially if you’re not expecting it. Additionally, buyers might have to pay delivery fees, which can differ based on the chosen delivery method—be it electronic delivery, UPS, or mobile transfer.
Service Fees
Service fees cover the operational costs of running the StubHub platform, including customer support and technology infrastructure. For example, if you purchase a ticket priced at $100, the service fee might add an additional $10 to $15 to your total cost.
Delivery Fees
Delivery fees depend on the method chosen. Electronic tickets might have a lower fee, while physical tickets shipped via UPS can incur higher costs. It’s essential to review these fees during the checkout process to avoid surprises.
Seller Fees
Sellers on StubHub are also subject to fees. StubHub charges approximately 15% of the ticket’s selling price. This means if you sell a ticket for $100, you will receive $85 after StubHub takes its cut.
Listing Tickets
Listing tickets on StubHub is free. You only pay a fee when your ticket sells. This no-cost listing can be an advantage if you’re unsure about the demand for your tickets.
Payment Process
StubHub pays sellers after the event has taken place and the buyer has received their tickets. This ensures the buyer’s satisfaction but means sellers must wait for payment, which can take up to 5 business days post-event.
Calculating Fees
Understanding the total cost or earnings after fees can be challenging. StubHub provides a fee calculator to assist with this. Sellers can input their ticket price and get an estimated breakdown of fees and their net earnings. This tool is invaluable for setting prices competitively while accounting for the platform’s fees.
Using the Fee Calculator
- Access the Calculator: Locate a StubHub fee calculator online.
- Enter Ticket Details: Input the ticket price and other necessary details.
- Calculate Fees: The calculator computes the service fee and any additional charges.
- Review Results: Understand the total fees and net amount after deductions.
- Adjust Price if Necessary: If the net amount isn’t satisfactory, adjust the ticket price and recalculate.
Applicable Taxes
In addition to fees, sales tax may apply based on the event location. StubHub automatically calculates and collects this tax at checkout. Sellers need to be aware that StubHub will report gross payments exceeding $600 to the IRS, requiring careful record-keeping for tax purposes.
Sales Tax for Buyers
Sales tax rates vary by state and are added to the purchase amount. This tax collection is managed by StubHub, simplifying the process for buyers.
Tax Reporting for Sellers
Sellers must track their sales carefully. StubHub issues a 1099-K form for gross payments over $600, which must be reported to the IRS. Deducting StubHub’s seller fees from gross sales is essential for accurate tax reporting.
Controversies and Lawsuits
StubHub has faced criticism and legal action over its fee structure. In 2022, a lawsuit alleged that StubHub systematically overcharges users by underestimating fees initially, only to reveal higher fees at the final checkout. This “bait and switch” tactic has led to claims of deceptive practices.
The Lawsuit
The lawsuit, filed by Lisa Alcarez and Brian Hong, claims StubHub misrepresents ticket prices. The plaintiffs conducted experiments showing consistent underestimation of fees, which increased only at the final purchase stage. This legal action highlights the importance of transparency in fee disclosures.
Comparison with Competitors
StubHub’s fee structure is similar to other ticket marketplaces like Ticketmaster and Vivid Seats, which also charge significant fees. Comparing total costs across platforms before making a purchase or listing tickets can be beneficial.
Ticketmaster Fees
Ticketmaster, another major player, charges both service and delivery fees. These fees can be comparable to StubHub’s, emphasizing the need for comparison shopping.
Vivid Seats Fees
Vivid Seats also imposes service and delivery fees, which can vary. Buyers and sellers should review these costs to find the best deal.
Tips for Managing Fees
Managing StubHub fees effectively can help maximize savings and profits.
For Buyers
- Check Total Price: Always review the total cost, including fees, before finalizing a purchase.
- Use the App: The StubHub app can help track fee changes and notify you of deals.
For Sellers
- Use Fee Calculators: These tools help price tickets competitively while accounting for fees.
- Track Sales: Keep detailed records for tax purposes and to ensure accurate financial reporting.
- Price Competitively: Compare similar listings to price your tickets effectively, ensuring they sell without excessive losses due to fees.
Additional Considerations
Beyond fees, there are other factors to consider when using StubHub.
StubHub’s FanProtect Guarantee
StubHub’s FanProtect Guarantee provides peace of mind to both buyers and sellers. It ensures buyers receive valid tickets in time for the event and guarantees sellers will be paid for tickets delivered as promised. This protection is a significant advantage of using StubHub, despite the fees.
Customer Support
StubHub offers robust customer support to handle issues related to transactions. Whether you encounter problems with ticket delivery or need assistance with a sale, StubHub’s support team is available to help.
Market Reach
With over 100 million visitors per year, StubHub provides a vast audience for sellers. This extensive reach increases the likelihood of selling tickets, justifying the fees to some extent.
Flexibility in Pricing
Sellers can set their prices and change them as needed until the tickets sell. This flexibility allows for adjustments based on market demand and competition.
Conclusion
Understanding StubHub’s fee structure is crucial for both buyers and sellers. While the fees can seem high, the platform’s extensive reach, customer protection policies, and support services provide significant value. By using fee calculators, keeping track of taxes, and comparing prices across different platforms, users can navigate StubHub effectively, maximizing their savings or profits.
Making informed decisions about ticket purchases and sales on StubHub helps avoid unexpected costs and ensures a smoother, more satisfying experience. Whether you’re attending a concert, a sports event, or any live performance, knowing what to expect in fees will help you plan better and enjoy the event more.
