GovDeals fees explained: the real cost of a bid
The number you bid is not the number you pay. On GovDeals, a winning bid picks up a buyer's premium, usually sales tax, sometimes a payment fee, and always shipping or pickup. Add them up and the "all-in" cost is routinely 15–30%+ above the hammer price — which is exactly the gap that turns a good-looking deal into a loss.
The fees, one by one
1. Buyer's premium
This is the big one. A buyer's premium is a percentage added on top of your winning bid, and it's set by the selling agency, not by GovDeals — so it varies listing to listing. In practice it commonly lands somewhere in the high single digits to low teens (think roughly 7.5%–12.5%), and some sellers cap it at a fixed dollar amount. The exact rate and any cap are spelled out in each listing's terms. Never assume; check.
2. Sales tax
Sales tax is frequently applied based on the lot's location and the applicable rules. If you're a registered reseller, you can often supply a resale / tax-exemption certificate to the seller and skip it — worth setting up if you buy regularly. Otherwise, budget for it; it's shown at checkout.
3. Payment fees & method limits
Some sellers pass through a payment-processing fee. Accepted methods (credit card, ACH, wire) and per-method limits also vary — larger wins often can't go on a card and require ACH or wire, which affects your timing and cash flow. Read the payment terms before you bid on anything expensive.
4. Shipping or pickup
Almost every lot costs something to get home — parcel shipping, LTL freight for heavy items, auto-transport for vehicles, or fuel + time for pickup-only lots. This is its own rabbit hole; see GovDeals shipping & pickup explained.
Worked example: what a "$300" win really costs
Say you win a lot at $300 hammer:
| Line item | Amount |
|---|---|
| Winning bid | $300.00 |
| Buyer's premium (10%) | $30.00 |
| Sales tax (~8% on bid + premium) | $26.40 |
| Payment fee (~2.5%, if applied) | $8.91 |
| Shipping / freight | $120.00 |
| All-in landed cost | ≈ $485 |
That's ~62% over the hammer price before you've sold a thing. If you were mentally treating it as a "$300 deal," your margin just evaporated.
How GavelGap handles this
GavelGap reads the buyer's premium from the listing and rolls it — plus estimated shipping — into a landed cost shown right in your GovDeals sidebar, next to an eBay sold-comp resale estimate and the profit gap. You see the real math before you bid instead of discovering it at checkout.
Stop doing fee math in your head. GavelGap shows landed cost, resale, and the profit gap on every GovDeals listing.
Get GavelGap free →Frequently asked questions
What is the GovDeals buyer's premium?
An extra percentage added to your winning bid, set by the selling agency — commonly high single digits to low teens, sometimes capped. It's stated in each listing's terms.
Does GovDeals charge sales tax?
Often, based on the lot's location. Registered resellers can sometimes provide a resale/exemption certificate to avoid it.
Are there payment processing fees?
Some sellers pass one through, and accepted methods/limits vary — large wins may require ACH or wire instead of a card. Check the payment terms.
What's the true cost of a bid?
Bid + buyer's premium + sales tax + any payment fee + shipping/pickup. Compare that total to resale, not the hammer price.
Related: How to flip GovDeals items for profit · GovDeals shipping & pickup explained →