If you’re a merchant looking to sell digital goods on the OpenSea platform, you’ll need to be aware of our fees. In this article, we explain what fees apply when selling digital goods on OpenSea, and how you can minimize them. Read on to learn more!
The model of OpenSea is quite simple: they charge you 2.5% of each transaction made. So, most people are confused if they have to pay to create an account or list the NFT. The answer is No. The portal is completely free to create an account or list any of your NFTs.
You can create an NFT any time of the day and that too for free. But you will have to pay 2.5% of the selling fees to the portal. They only charge you when you sell an NFT on the portal.
Moreover, you will be able to set creator earnings also. The maximum limit for the same is only 10%. So, every time you or anybody else sells your NFT on OpenSea, you will earn money for the same. To know more about OpenSea fees, keep reading the post.
OpenSea Initialization Fee
You will not have to pay any fees when you create an account. Moreover, if you choose to list any digital assets, you can do that completely free on OpenSea.
Moreover, OpenSea will charge you at least 2.5% every time a new successful transaction is made in the account. In this way, the company also makes money.
You may have to pay additional fees for gas as a purchaser as it is mandatory to carry out all the transactions on Ethereum. When it comes to the seller, he will receive ETH in his wallet.
Moreover, overall revenue is then distributed in a month to the specified address by the seller. To know more about OpenSea fees, keep reading the post.
OpenSea One Time Fee
OpenSea one time fee applies to OpenSea consists of initializing a new account on a new wallet address and verifying a transaction for a smart contract or a token. You will have to bear the OpenSea one-time fee only in 2 cases.
When you choose to use your wallet to list any NFT on the platform for the very first time, you will have to pay the fee.
This needs to be done to enable OpenSea to make transactions using the wallet as a seller. It will then complete the sale when it will be required.
Here, one thing that you will have to keep in mind is that you need to pay this fee only if you are listing anything. If you are buying anything, it will not be listed.
Another case where you will have to pay the one-time fee is while listing the specific token or the contract for the very first time. But, you need to know that you will have to pay the fees every time you list a new project.
Let’s understand this with an example: If you want to list 3 NFTS that you own of a similar project, you will have to pay the fees only for the initial one. You will not be charged for the other two. But if you choose to list 3 different ones, you will be charged for all three.
What Happens If I Don’t Pay The Initialization Fee On OpenSea?
If you fail to pay the initialization fee within 7 days of receiving the invoice, your account will be suspended until the fee is paid. Your orders will still be active but cannot be executed until the fee is settled.
If you still want to proceed with placing an order, please contact [email protected]. Here the support team will review your case and provide you with instructions on how to complete your order.
Also Read: How To Promote NFT On OpenSea?
Can I Cancel My Order Before It’s Executed On OpenSea?
Yes, you can cancel your order at any time before it’s executed by contacting [email protected]. Please note that canceling an order does not affect its execution status.
OpenSea Minting Fee
OpenSea marketplace enables different new creators to list the digital assets for free. But as compensation, they charge you 2.5% as the mining fees. It will take 2.5% for every successful transaction in your account.
When it comes to calculating the minting NFT, the whole process becomes quite complicated. Usually, marketplaces are quite clear about the minting fees and will specify the same at the time of the procedure. OpenSea does not charge any direct minting fees but will charge you 2.5% of the transaction.
The OpenSea commission is a percentage of the transaction value that is charged to buyers. For example, if you buy 1 token worth $10, the buyer pays 10% ($1) of the transaction value to the seller.
If you sell 1 token worth $100, then you get 100% ($100) of the transaction value from the buyer.
Commission rates vary according to the type of trade:
- Buyers who use fiat currency to pay for their purchases receive a flat 3% commission.
- Buyers who pay with cryptocurrencies receive a variable commission rate depending on the exchange used to execute the trade.
- Sellers who accept payment in cryptocurrency receive a fixed 2% commission.
- Sellers who accept payment in fiat currency or another crypto-currency receive a variable commission rate between 5% and 15%.
What Are The Costs Involved In OpenSea?
There are two types of commissions:
- A fixed 3% commission is charged to buyers regardless of whether they use fiat currency or another cryptocurrency to pay for their orders.
- A variable commission rate depends on whether the buyer uses fiat currency or another crypto coin to pay for his order.
This means that there are no additional costs associated with using fiat currencies or other crypto coins as opposed to paying with cryptocurrencies directly.
OpenSea Royalties or say NFT royalty fees is defined as the percentage of the selling price which the seller receives after selling his project or NFT. These royalties can change based on different factors and a creator can set the royalty on their own.
Usually, a creator will have to pay up to 10% on OpenSea. As a seller, you will have to pay this amount to OpenSea.
A creator will initially mint an NFT project. When you will list it and sell it on the platform, you will have received the amount that you have quoted for the NFT, After this, when the NFT will be traded, the creator will get the specified percentage on trade.
One best thing about NFTs is that, unlike traditional art forms, the creator of the NFT will receive a royalty fee depending upon their requirements. It depends upon the creator how much they wish to charge the royalty. Moreover, in OpenSea, you can set a maximum of 10% royalties on the NFTS.
Some creators have also asked if they can split these royalties among different addresses. This may seem theoretically correct but the option is yet not available in OpenSea.
OpenSea Secondary Fees
One feature that we love most about OpenSea is that allows the user to get revenues from the secondary sales as well. Whenever you sell an item on OpenSea, you can ask for the percentage of that sale as your revenue.
This simply means you can also earn from the reselling of the item on the platform apart from the revenue generated while selling the initial item to your customer.
You can simply set the secondary sale fees by clicking on the collection option. Now, tap on the editor option and then adjust the percentage fee entered under the Royalty section. When done, also type the payout address on which you wish to receive the money.
Also Read: How to Delete An NFT Collection on OpenSea?
OpenSea Selling Fees
Well, most people ask if they have to pay any additional fees while selling NFTs on OpenSea. Though everyone must be aware that they will have to pay a fee of 2.5% on each sale but you will also have to spend on the initialization.
This will be used in the smart contract that you will create. This money is not provided to OpenSea but it will be used as the Ethereum network fees. The cost will depend upon the load on the network and will fall between 50 to 100 dollars.
In conclusion, OpenSea offers a unique opportunity for everyone interested in making money through the blockchain. Sellers can benefit from a stable income while buyers enjoy a low cost of entry.