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Tue Jan 29 2008 09:29:23

eBay Increases Fees Overall

By: Ina Steiner

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While wire services are lighting up with news that eBay has lowered insertion fees, the truth is that eBay has increased fees in many cases.

If you list 100 items with a starting and ending price of $9 with a 50 percent sell-through rate (50 items out of 100 actually sell), it would cost you a total of $63.63 in fees under the old structure and a total of $74.38 under the new structure. This is a fee increase of 17 percent.

This is based on the old insertion fee of 40 cents plus commission fee of 5.25%, and the new insertion fee of 35 cents plus 8.75% FVF.

If you list 100 items with a starting price of $9 and sell 50 percent of them at a selling price of $35, you would have paid $121.75 in total fees under the old pricing structure. Under the new pricing, you would pay $162. That is a 33 percent fee increase.

Despite this, John Donahoe just announced in his keynote address at the Ecommerce Forum that the majority of sellers will see a decrease in fees - let me know if this makes sense in your specific situation.

Check my math, and let us know how these changes will affect you!

Call 1-877-222-0856  and leave a 60 second message about what you think of these changes.

Update: As the first person comments below, Gallery fees make a difference.eBay is now making the Gallery feature free. Here's how the numbers work:

$9 starting and ending price with 50% sell through, with gallery: Old fees: $98.63, new fees: $74.38: A decrease by 25%

$9 starting price with $35 ending price with 50% sell through, with gallery: Old fees: $156.75, new fees: $162: An increase of 3.35%.

 

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Readers Comments

eBay Increases Fees Overall   eBay Increases Fees Overall

by: John

Tue Jan 29 19:59:22 2008

Hey, I put up a quick and dirty spreadsheet to calculate change in fee impact.

This is a test, so if you find errors, let me know. To use go to http://www.box.net/shared/dt4insuo8k

1) the red text is where you change the variables.

2) The results are in black

3) DO NOT CHANGE any black areas or it will not work any more.

John

eBay Increases Fees Overall   eBay Increases Fees Overall

by: TT

Tue Jan 29 20:28:24 2008

Here's the real kicker, taken from their announcements:

Also, for a small number of these transactions paid with PayPal, when eBay suspects the transaction may result in a dissatisfied customer, PayPal will delay release of the payment funds to the seller until the buyer has left a positive feedback or 21 days have passed without a dispute.

I'd like to put context around this last detail for our good sellers: Sellers with an established track record and more than 95 percent satisfied buyers in the last 30 days will not have funds held. And, sellers on eBay will continue to receive the vast majority of payment funds much faster than other marketplaces.


So, if you sell 15 items a month, not only are you now charged more fees, but you may not even have cash from your sales when they're due!  Not to mention, you'll be shipping all those items on your own dime.  It's also unclear what happens if you haven't sold anything in 30 days.

Seriously, that policy, if enforced as it's written, will do more damage to ebay's stock than any other.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Abe

Tue Jan 29 20:42:18 2008

Ina,

Thanks so much for your hard work!

I feel this topic-ebay masking higher fees as lower fees is vital and must be persued further; I feel alot of innocent sellers just aren't going to really do the math! Who else but only the most infrequent seller could this benefit? What good is taking away my upfront risk, if in the end, I make less money than before?

eBay Increases Fees Overall   eBay Increases Fees Overall

by: jlong10187

Tue Jan 29 20:44:29 2008

I think all sellers should band together and NEVER leave feedback for anyone again. If the sellers refuse to leave feedback, then the buyers will never gain feedback.  Or maybe ebay will make positive feedback MANDATORY for sellers.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: kevin

Tue Jan 29 21:28:46 2008

I commented on the fee hike in another board, ''they are ever changing and a good business person will develop strategies to overcome them''.

The kick in the butt is the restructuring and dismissal of the feedback system. It works now the way it is and should not be retired for the disproportionate system such as they are proposing.

Of all the changes that are going to effect everyone, none so devastating as the feed back system.

Many posting comments today are already selling  in other venues.
Who is willing to list these other online sites.
Competition will drive you to be better, not increased fees or unbalanced testimonials.

Who is willing to say to the community, that he or she has been working with, these are the sites to look at.
These are the sites that have good customer sales or reasonable fees.
These are the sites to sign up at and continue doing business.

Who?

eBay Increases Fees Overall   eBay Increases Fees Overall

by: auctionwally

Tue Jan 29 21:37:09 2008

I've been on eBay for almost 9 years, I used to promote eBay as much as possible, but I don't see the logic in this price change or the new proposed feedback scheme. I'm a Powerseller with a 99.8 FB rating, and an auctioneer with 25 years in antiques & collectibles, so I know a little bit about business, even though I'm not the smartest guy in the world.

If I get this straight, they are penalizing the seller who sells better items, and rewarding the lower end sellers by clogging up the site with a free gallery for everyone.
There is no fee decrease, overall it's an increase!

OK let me correct myself, it's a decrease if you are a poor seller with a low sell through rate, it's a huge increase if you are a seller with a very good sell through ratio.

Do they really think we're that stupid and we can't do the math?!
eBay needs some real auctioneers and sales people on their board.
For over 8 years, I've defended eBay in many ways, and I'm not jumping up and down right now screaming LEAVE eBay, but I AM quietly looking for other markets for my 300 antiques & collectible items I sell a month.
I'm doing this because I think that so many other sellers will leave because of these new changes, that there won't be enough great sellers left attract good buyers.
What a shame to  see what was once a great company go down in such a shambles.
eBay, PLEASE listen to your sellers for once!

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Auctionwally

Tue Jan 29 21:44:55 2008

Excuse my ignorance please, but you see, for the last 8 years, I've only sold at my live auctions, or almost exclusively on eBay. I sell antiques & collectibles.

From the posts here, I'm getting that people are selling on Amazon a lot more. Does this mean Amazon has a marketplace for antiques & collectibles like eBay?
Could someone please respond or email me. I'm looking to ween my market off of eBay because I think that's what a mass of sellers may be doing.
Let's face it, you can have all the buyers you want, but if there are not enough quality goods, the buyers won't stick around long.
So, I don't think I'll be outright quitting eBay, but I sure want to cover my butt.
Thanks in advance to anyone who answers.
AW

eBay Increases Fees Overall   eBay Increases Fees Overall

by: The Joke is on Us

Tue Jan 29 22:13:27 2008

Top 10 (Really 11) Reasons eBay Failed us Today!!!

~More eBay math - "Fees are Lower" - But not for sellers!!!~


1.  Reducing insertion fees

NO, we sell items for an average of about $39-$52 and use the "Value Pack", (No VALUE any more), so with our 61% success rate on listings over the past 3 months our eBay fees will effectively go UP 6%-15%.

2.  Free Gallery … on all listings!

NOT if you use "Value Pack".  Effectively this saves us almost nothing.  Thanks for the thought though - We have suggested it for many years.  Too bad the implementation was so poorly thought out.

3.  Reduced Feature Plus and Pro Pack fees

A small percentage savings on the MINUSCULE overall percentage of listings on eBay that use this feature.  Probably less than one in a thousands listings on eBay will see any results from this change but it rates #3 ???

4.  Increased listing exposure for sellers with great DSRs

Here is the BIGGEST let down.  13,000 positive feedback's and 8 complaints, 99.9% overall rating and we DO NOT get to participate because we are one TENTH of a point too low in a single DSR because eBay FAILS to recognize and address the fact that sellers with a high percentage of Cross Boarder Trade are negatively impacted on their DSR's.  A FACT eBay KNOWS and ACKNOWLEDGES but will do NOTHING to address.

5. Pricing discounts for PowerSellers with great DSRs

Again a major let down because eBay fails to address the CBT affect on DSR's even though it was brought up two YEARS ago in Voices on the very first call related to this feature and on every single Call, Board Posting and Email related to DSR's and CBT potential affects for the past TWO YEARS.  EBay knows the facts but DOES NOT CARE about the impacts.

6. Protection from chargebacks for PowerSellers

ONLY if they use the most expensive International delivery services like Priority Mail that has online delivery tracking for SOME destinations.  The requirement to use the MOST EXPENSIVE shipping options will further ERODE the DSR's of sellers with a lot of CBT.

7. All addresses are confirmed addresses for PowerSellers on their eBay listings that are paid with PayPal

The ONE AND ONLY bright spot today.  A great help for domestic shipments, but again on those CBT items either the shipping cost will kill the DSR or using First Class International will not afford any delivery confirmation and ZERO protection.

8. Unlimited PayPal protection for PowerSellers

Again, only "Unlimited" if you can show online delivery tracking which the ONLY economical CBT shipping method, First Class International, does NOT support.  Great play on words though, but far from living up to the hype.

9. Repeat Feedback credit

Great for sellers in categories like collectibles or consumable where buyers need or want to come back over and over again.  For categories like computer peripherals where buyers infrequently need items and everything is pretty much the same so price drives the market - this is pretty useless but hey many others will appreciate it.

10.  Rolling 12-month Feedback Percentage

Wow - With buyers having a total free for all and able to leave negative feedback without any need what so ever to communicate with their trading partners this is going to be adding insult to injury.  Sellers will be bombarded with negative feedback from NON-COMMUNICATING buyers and then have their credit for many past years of great service ripped away from them.  Way to kick us when we are down with this debacle eBay!!!

11.  Personalized Seller Dashboard

Too little - Too late!!!  Many of the changes affected directly by DSR's like the all important search placement will go into affect months in advance of sellers ever being able to see this data.  It will take months more of trial and error to learn to decipher and affect the data with changes to the sellers listings.  It is truly sad that this is the AFTER THOUGHT when these changes are so very important to the basic survival of many eBay sellers.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Meg Whitman

Tue Jan 29 23:50:57 2008

'' Do they really think we're that stupid and we can't do the math?!''


YES.

You sellers are stupid.  And lazy too.  That's why we can stick it to you a little at a time, and you'll stick around for more.  

You chumps will be paying 20% FVFs before I get to the governor's office, baby!

Also, in May we are introducing eBay's brand new product exclusively for sellers, eLube.
It will be mandatory for sellers to keep their eLube at their work stations.  However, sellers without their eLube will get screwed anyway.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: bonni

Wed Jan 30 00:19:44 2008

eBay Math(tm) strikes again. Last time it was an increase of "about 6%" that was actually an increase of up to 200% for some sellers. Now they've lowered fees and raised them at the same time. Amazing.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: karin

Wed Jan 30 01:04:33 2008

I am just a small seller who uses the extra money to buy other items on ebay. Because of these insane increases I will not be selling on ebay....after 5+ years and 100% positive feedback rating, so I will no longer be able to afford to BUY on ebay either. Thanks ebay, you really made a positive impact with this announcement!

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Unsatisfied Customer

Wed Jan 30 02:17:53 2008

Ebay REALLY Sucks! A huge increase in selling costs for sellers! What do we as sellers do? WE RAISE OUR PRICES BY THE SAME AMOUNT, NOT EAT THE COST. That's what large corporations do, just pass it on to the consumer. Not fair at all, but that's what they do. Ebay will see a decline in it's overall profit probably, because of the pending recession. Ebay tries to hoodwink people all of the time. Numbers don't lie, this is a FEE INCREASE!

eBay Increases Fees Overall   eBay Increases Fees Overall

by: karin

Wed Jan 30 03:42:38 2008

There is now a petition with over 4700 signatures calling for google to start an auction site for those wanting to leave ebay due to these changes, many of the signatories are power sellers. here is the link to the petition please make sure to click the view signatures link and click on a numbered link to read comment left with signature also.... very interesting!

http://www.petitiononline.com/ga05/petition.html

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Mechelle

Wed Jan 30 04:24:21 2008

The fees and the feedback piss me off, but the subtle way they constantly call ebay sellers crooked stupid trash has sent me to the end with ebay

I am not a stupid idiot - there doesn't need to be any elaborate arithmetic models to see they've raised the fees- one quick glance does that.  Why do they insist on believing that ebay is filled with nothing but (as is evident by their jovial announcement of our new decreased fee) a bunch of 4th grade dropouts that can't count, read, or think well enough to say that's it I'm out of here.

The feedback is BS  for one true reason, because it is telling you (us) that we are untrustworthy crooked garbage whom they must protect our own customers from.

Well, I don't need to pay out over a thousand a month for someone to tell me I'm a piece of crap.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Creepshow

Wed Jan 30 09:00:34 2008

So did some new guy with a new MBA take over or what? When 99.9% of companies go out with a whimper when they start micro-managing....oh, nevermind, why should EBAY be any different? There were many options for the seller to design their own way and now Ebay says they want to be the Grand Designer! It will fail, just like everything else that has too many controls. Boycott February! If not completely, sell as little as you can. Have some cajones and just hold back even a little from these guys. They came out swinging, hit them back! Don't join in on the whimpering.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: relayrecords

Wed Jan 30 10:44:07 2008

Well that realy is the end for me..I almost shut down last year its simply too expensive to sell,and with a low sell through rate not much point...I've maintained for years that people could never find what they were looking for anyway,the 'item specifics' fiasco of several years ago ended my business overnight..This is the final straw.Amazon here I come..

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Carol

Wed Jan 30 11:02:16 2008

E Bay Listers = lower cost  ???
E Bay Sellers = Much Higher Costs!!

I guess E bay's point is list more, sell less to save on the decreased listing fees?    I guess what will happen is there will be a FULL E BAY MUSEUM, with all the numerous listings.   E BAY POlICE beware, only Sellers that will be left will selling out the MUSEUM's Back Door.  



eBay Increases Fees Overall   eBay Increases Fees Overall

by: Arlene Chemnitz

Wed Jan 30 12:29:37 2008

If you are a low volume seller, if you get TWO negative feedbacks, they will restrict your selling for 14 days. So, you have a store, sell less than $1,000 per month and somebody wants you off. They have two friends buy something little and leave you negative feedback (they won't care, mind you, because you can't leave it back for them) and then Ebay TOTALLY STOPS you from selling for 14 days. Meanwhile, you continue to pay them for your store. How about that?????

If only there were an alternative....Some one of these days, somebody will actually come up with some sort of viable competition for Ebay.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: liz faust

Wed Jan 30 17:07:52 2008

I have written a grassroots email in protestation/complaint to ebay.... MS DOW SHAME ON YOU!  I am a small seller of custom boutique childrens clothing and becoming a powerseller when I hand make things.... well not so easy.  I will never buy from you that is for sure!


feel free copy, edit and send it on others.... We must be heard LOUD AND OFTEN!!

Bill Cobb
President, eBay North America

Dear Mr. Cobb,

I am writing you today to voice my dissatisification with some recent changes eBay has announced.

I am both a buyer and a seller here on ebay.  I am extremely distressed about eBay's view that sellers cannot leave negative feedback for a buyer.  Are you serious?  In the 16 months I have been selling on ebay I have only left negative feedback a handful of times and never in retailation.  So basically you are going to make possible for buyers to destroy the creditibility of ebay sellers by allowing them to leave negative feedback for us while as a seller I do not have the right to do the same if warranted, oh yes I know that ebay will allow it under certain circumstances, but really there are other reasons to leave a negative feedback besides non payment.  You are going to create an atmosphere where the buyer will be able to badger the seller and still leave negative feedback and the seller is powerless to do something about it, oh yes except to report it to eBay.  Great eBay is already buyer friendly so whose side are you really going to take???  I do wonder......  Let's see the WHOLE reason eBay exists is the sellers, without us the buyers have nothing to buy and you have nothing to charges fees on...... etsy is looking better and better.

AH yes the fees, the second part of my complaint.  Somehow you have managed to lower eBay to the "used car salesmen" class.  Trying to convince the sellers that you are lowering fees.  What a complete joke!  Sure you lowered the fees on some things.... BUT you NEGLECTED to mention in your "Ra Ra eBay" e-mail is that you signficantly increased the Final Value Fees (FVF) on the auctions and infact, because of the increase to the FVFs we will not only give back eBay any "savings" we would see from the lowered fees, BUT you will infact be collecting MORE fees overall!  You hid that fact and those are slimy business practices!

I am absolutely fuming as are many of my seller friends.  You may have finally made eBay, aka Feebay, so buyer friendly, seller unfriendly, and full of fees that eBay may not be a going concern in the long term!  Good job!  KUDOS to you!  

I read eBay's concerns about buyers leaving the ebay market.  Certainly eBay must realize that there is increased competition from other websites and with a tightening ecomony that might also be natural. But to pin on the sellers and not only increase the amount of money you collect from us, but to tie our hands to large degree when faced with a "deadbeat" or difficult buyer is crazy.  Good Luck with your new rules leaving eBay's bread and butter out in the cold---- YES sellers are eBay's bread and butter, but you must think of us like trash!  Don't worry, the trash may not be around as much-  I know that I will be curbing my ebay activity and looking at other avenues to sell my wares.

Finally just a thought--- did it ever occur to eBay to look within to control your own costs???


eBay Increases Fees Overall   eBay Increases Fees Overall

by: Katiyana

Wed Jan 30 17:41:10 2008

So far I have gone back and recalculated November, December, and January's fees under the new system to compare with my fees under the old system.

I come up with 2% decrease, 10% decrease, 4% decrease in those 3 months.  ASSUMING my sales levels stay about the same, the fees are a non-issue, and actually work to my benefit.

I am far more concerned with the introduction of Best Match and how that will impact how (or if) my products show up in search.  As my items have been in eBay Express for ages and generated virtually no sales for me there, I have significant concerns about whether my items will ever be visible under the Best Match search system.

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