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Covering auctions, collectibles and marketplace selling.

AuctionBytes Blog The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Tue Jan 29 2008 09:29:23

eBay Increases Fees Overall

By: Ina Steiner
Sponsored Link

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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eBay Increases Fees Overall   eBay Increases Fees Overall
by: bbmilitaria
       
Wed Jan 30 18:14:22 2008
I have been a full time seller on ebay for eight years. The fee increase does not surprise me, they do it every couple of years. However, the amount of the fee increase is shocking. Maybe ebay should look into getting in the oil business, they rape us the same way. The most disturbing news to me is the change in the feedback system. I believe this will destroy my ebay business. I have 100% positive feedback and I guarantee I will not after the change takes place in May. If someone is unhappy with priority mail shipping rates, will the US Post Office receive a negative? Not a chance. Sellers are now completely screwed. I hope I remember how to write up a resume. Either that or learn HTML and try a web site. EBAY now officially SUCKS!!!
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Myztik
       
Wed Jan 30 20:02:23 2008
I'm a seller with 99.8% feedback score. I was amazed as how eBay spin-off the fee increase with a "We listen to you, we lower our fees".  I think we should make something as a group.  This is outrageous.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Mark
       
Wed Jan 30 20:37:38 2008
I left eBay in March.  This Xmas I sold $85K worth on Amazon.  I think I did $10K at my best on eBay.  The higher fees on Amazon are worth it.  Though I pay about 17% of sales to them, I don't mind.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Jim
       
Wed Jan 30 21:08:04 2008
Ebay has really done it this time.  I could not believe it when I saw the new fees.  Final value fee increases 60%.

I've discussed this more at my blog: http://www.ebayisdead.com

Stop by and leave a comment.  I see major problems ahead for ebay.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: wanda
       
Wed Jan 30 21:28:57 2008
Really, Ebay... You listened to us?  Since when?  Did we say ''Appease us with 5 cent lower fees, give us free gallery, which no-one else charges for and costs you nothing and take it out on us in the back end 67%?''...  Really? And, collectively, we asked for you to take away the only tool available to us against non-paying, fraudulent buyers -the ability to call them on their BS?  

Ebay, you may be able to fool some of the stock owners, some of the time, but get in touch with reality.  Even the stockees are figuring out all that glitters is not Ebay.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Ann
       
Thu Jan 31 03:55:28 2008
Does ebay think we're all idiots?  They roll out fee increases and frame them as some terrific ''improvement'' to selling on ebay.  They're NOT.  In my opinion, this is intentional misrepresentation.  It's like slight of hand tricks -- ''look over there, while we're taking your money over here''.  That turns me off to ebay more than the increase, or rather the series of increases, that I've experienced as a seller.  It's BAD business and, for that, I'll never be loyal to ebay.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: JWK
       
Thu Jan 31 07:52:26 2008
Ms. Dow

HONEY....looks to me like you are in violation of ebay policy.

Your ''Me'' page directs buyers off ebay to CafePress. Not your personal website.
Nor, are your buyers directed back to ebay from there. HMMMMMMMMMMMM!!!!
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Dennis
       
Thu Jan 31 08:50:31 2008
I am outraged and disgusted with the ''new'' ebay price structure and policies.  I am small time seller and have been since 1998.  I do not own a business and sell items in my home to supplement my retirement income.  My FB rating is 99.9% with over 2000 positive comments.  To save expenses I have never used Gallery and usually start all my auctions at $.99.  I decided recently to stop accepting Paypal due to their instituting fees, as this was another cost I didn't not want to incur and pass on to my buyers.  When I compare what I was charged last year in ebays fees to what the new fees will be, my cost goes up over 20%.  If sellers raise their shipping charges to cover these new fees, buyers will either stop buying or be upset, which will be reflected in their Detailed Seller Rating.  The cycle is simple-ebay raises their fees, thus causing sellers to do the same, thus raising the overall cost of items, thus causing buyers to stop buying, thus causing ebay to make less profit.  Can it be any more clear?  Did anyone at ebay ever take Economics 101????  And don't get me started on the new feedback policy.  
eBay Increases Fees Overall   eBay Increases Fees Overall
by: exit_strategy
       
Thu Jan 31 09:08:31 2008
Ebay is a crazy group of Whitman suckholes! The witch leaves, but the legacy continues.

When ebay initially annoced a fee reduction, I like many others were thinking it would be more than a F@@ing nickel??

I was actually scared they were going to change it to like 10 cents per auction? LOL, what the hell was I thinking? I guess I need not worry about that for a long time...

I think there are 2 things that really get poeple hot about the new ebay fees, and that is the misrepresentation. You got a new CEO fresh out of school (apparently) that is selling his new fee structure to a group of seasoned, experienced ebay users. And then the guy tries to sell us a box of crap! While you got honest ebay sellers, that now must allow a nutcase buyer the freedom to destroy they're good name! Ebay sellers that have shown more good will over the years than ebay will ever have.

It's sad, these same great sellers have built ebay, myself included.

Personally, I have been weening myself off of ebay for over a year now. I really only sell my closeouts now, that being not easy anymore either.

I feel the pain of other sellers. I know the pain. It's possible when looking at the metrics of ebay that dropping the feedback for buyers seems plausible to the ebay management, but I don't belive it is a viable option.

STRESS!!! The single most detrimental facet of selling on ebay that crawls up my spine is the stress of selling to idiots, scammers, and the like.

It's what I hear in every response on this page, and it's the single biggest reason I see to leave ebay. What ebay fails to realize is that great sellers have a conscience (unlike ebay execs) and that great sellers already give extraordinary service.

CASE IN POINT... I've sold on ebay since like 97' and have almost 17,000 feedbacks. In the last year or so, the cutomers have gotten more obnoxius, more belligerent, and more demanding. This is in spite of the fact that I'm a 9 year veteran seller, I pack exceptional, I ship quickly, my shipping charges are low also, (and god forbid I don't describe my items perfectly) Also, like I said I'm selling at closeout prices already. It's insane selling really...

The one point that makes me want to leave ebay the most is scam buyers. I get way to many emails 2 weeks after shipping to my customers, like... Were the ''F'' is my package?? It takes a customer all of 3 seconds to send me this email. Just to find out if ''I can prove that they got delivery.''

It takes me 15, 20 minutes to find out who they are, what they bought, when they bought it, when they paid, were it was shipped, etc. And after all that to find out they got delivery 3 days after they bought a closeout item at a giveaway price!

It's sick selling that way. This kind of un-needed stress is what the honest sellers deal with. And it affects me sometimes all day, that poeple can do this for shits and giggles.

THAT'S THE PAIN!!! Now ebay wants to give these poeple more power to harass a seller?? This is the pain that will drive sellers off of the site. Even poor sellers know this type of pain, and the stress that it causes.

If I wrote an ebay title that said ''ebay lowers fees'' when in fact they will end up making more money, I'd get a negative feedback. It's just a plain old lie! I could upsell my products, I can talk things up bigger than life, but the buyers would skin me alive for talking them into bidding.

Why does the ebay site now rot?? Why does the ebay management expect stellar sellers, and yet lie to them?
What a double standard... Could it be that the ''rot'' is coming from the top down?? Ebay has had the last 2 years to improve the site, but they instead just milked the sellers for cash.

It's a little late now I think to push poeple around. The leverage they need is not really there anymore to dictate.

THE PAIN of ebays rules, is an offense to a great sellers conscience. That is a big issue with sellers, not just the fees. The reputation of the very best sellers is at stake, and so is the pain of being lied to, yet again.

I think it's to late for a bandaid.

I think it's to late to fatten the stock on the backs of the honest.

I think it's to late to lie and get away with it.

I think it's to late.....

I feel the pain
eBay Increases Fees Overall   eBay Increases Fees Overall
by: trinketjunkie
       
Thu Jan 31 09:54:25 2008
over the years I really enjoyed going to ebay to find that certain piece I just had to have, but now knowing that most of the great sellers will be at other auction sites it's not worth even looking there anymore. It's to bad that the little guy/ or girl trying to make a buck gets hurt.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: buyer
       
Thu Jan 31 12:07:09 2008
Lots of outcry from sellers on the feedback issue... which I understand. I don't think that eliminating negative feedback on buyers is the correct solution. However, Ebay had to do something to protect the buyers. There are too many sleezy sellers out there that hide behind the threat of retaliatory feedback to protect themselves from their less-than-honest behavior. While I suspect that most sellers do not do this, I have personally had several bad experiences with sellers that deserved negative feedback, but made it clear to me that their standard policy is that they leave the buyer the same feedback that the buyer leaves for the seller.
That is not remotely fair. I live up to my side of the deal as the buyer, the seller very clearly does not, yet if I leave the feedback that the seller deserves, they will ruin my perfect feedback score that I've spend the better of the past decade building.


I don't know what the right solution is, but I do know that things were getting out of hand and something had to be done.

I know that the new policy hurts honest sellers, but it should help to put an end to the intimidation routinely practiced by some shady sellers.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: disgruntled
       
Thu Jan 31 14:01:29 2008
I have been selling on eBay since 98 but have been on hiatus since August. If I had been able to foresee these changes I would have used that last 5 months to unload all my inventory and leave eBay. As it stands, I will have to suck up these changes while I make my exit. EBay is dead to me. I will tolerate them while I look for a new alternative outlet for the things that I sell.  The feedback changes are what irk me the most.  Sure, it will cost more money to sell now, but whenever I get a bad buyer...and there have been a few...I won't be able to do anything. If I say pay in 7 days they can still take as long as they want so long as they reply to the Unpaid Item process. Meanwhile, I'm left waiting for payment instead of being able to sell my item. Then, the buyer can leave negative feedback because they didn't like that I reported them for not paying.  What can I do?  Nothing but suck it up and pay eBay for my bad experience. And, in some cases, I will have to wait 3 weeks for payment from Paypal. Insult to injury. Oh, and, of course there is the issue of having eBay try to convince me that a fee increase is actually a decrease. I just closed my store today. I will be looking at other options. Goodbye eBay.  It was fun while it lasted.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: John
       
Thu Jan 31 15:58:01 2008
Im surprised ebay doesnt charge a

$1 LOG IN FEE.  

maybe just a matter of time, or they havent thought of that one yet.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Dale
       
Thu Jan 31 16:23:33 2008
Nothing to do with Ebay's increases but their total lack of concern about the sellers. I have been a Power Seller for 10 years and was left extremely nasty feedback by a buyer who is no longer a registered user. I want to have the feedback removed as it is totally unjustified. I have e-mailed Ebay and been on Live Chat at least 6 times (what a joke--they are all robots) and not ONE soul will help me. I thought employers were supposed to protect their employees. Not Ebay--they don't give a damn about anything except $$$$$$$$$$$$.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Alex
       
Thu Jan 31 17:57:04 2008
The free gallery now being offered should be left out of any equation when we figure out "savings or increases". People who chose gallery before wanted to stand out. Now they will not stand out! So it is a wash. If you just stick to listing fee and fvf we are all paying more. Case closed.

Once again eBay sticks it to us raising fees and change the FB at the same time. We are going to either have to raise our prices or absorb it. No matter what we will all be getting those big fat red donuts from all the great "buyers" on eBay who cant possibly be wrong no matter what. I do believe that all the DSR's will no go down also as customers may have believed that leaving low ones a seller might figure out who did it, especially when they dont have or get that many FB. Watch and see!
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Alex
       
Thu Jan 31 18:03:01 2008
To buyer:

Your comments are ridiculous and just shows that our logic is sound when we condemn these new fees and FB system.

You have built in protection from eBay and Paypal. if you have a "legitimate" problem with an item either not recd or not as described then file a claim and get your money back.

It sounds to me that you are one of those customers who buys a volkswagon but expects a mercedez benz.

All of us sellers have dealt with customers like you who do nothing but whine and cry over every little detail even if you only pay $.99

Stay off eBay and go back to yard sales. Try to get your money back from those people!
eBay Increases Fees Overall   eBay Increases Fees Overall
by: the fix is in
       
Thu Jan 31 19:07:06 2008
I read many of the comments - if anyone brought this up, I missed it. Somebody mentioned Grand Design... well sure eGreed wants more money but the FB changes hinge on a more subtle agenda. eGreed wants EVERYBODY on Paypal and this is the first step. Sellers are concerned about getting unwarranted Negs? eGreed is COUNTING on that happening, so you sellers will not qualify to take cash or money orders. The idea is to get all sellers taking only Paypal...I have seen this coming a LONG time ago. They will disqualify the sellers and then later find an excuse to not allow merchant accounts either. Most sellers profits will sit in Paypal for DAYS or WEEKS because their customer service ratings are low - eGreed will rake in MORE INTEREST from your money.

That is if eGreed survives these utterly ridiculous changes because when the Sellers go so do the Buyers.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: JRK
       
Thu Jan 31 19:16:38 2008
Good point Alex! BRAVO!!!

I can't believe these buyers (if they really are or just plants) that are posting boohoo stories.

OR, that if any one buyer has one or two bad experieces with  bad sellers will seek out a blog to cry on vs. on the ebay boards.

How many buyers are really interested in what goes on...on Ebay? I doubt if many. Unless of course they are buyer/sellers.  Looks like these buyers that are posting have other agendas.  

Most people are smart enough not to buy again. Duh!! If you burn your finger once are you going to keep sticking your finger in the fire?  If in the event they have had more then two bad experiences the problem is either they can't read (feedback numbers) (listing descriptions) or they are the problem.

These are the gotta have impulse buyers or the cocktail sippers that don't read the listing description or terms and they don't believe they have to abide by what is stated in the listing.

I'd like to hear the sellers side of the story of these buyers tales of (woe) somebody done me something wrong songs.

eBay Increases Fees Overall   eBay Increases Fees Overall
by: Alex
       
Thu Jan 31 19:47:09 2008
*IMPORTANT NOTICE*

Worldwide eBay Boycott February 18th through February 25th, 2008.

We the concerned eBay buyers and sellers on eBay are protesting eBays announced new fee increases and feedback policy changes. We do not believe that these changes will have any positive affect for buyers or sellers and will result in increased prices, less choices and disharmony within the eBay community.

We also are in complete agreement that eBay's policy of allowing dogs and cats to be sold on eBay in China for slaughter purposes is both cruel and inhumane and must be stopped immediately.

We urge all people's to not shop or sell on eBay during this worldwide boycott.

Please spread the word.

Thank you.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Alex
       
Thu Jan 31 19:50:15 2008
Sorry, I left out this first part.

Copy and paste this to every chat board you can. Send as a press release also to all the media.

*IMPORTANT NOTICE*

Worldwide eBay Boycott February 18th through February 25th, 2008.

We the concerned eBay buyers and sellers on eBay are protesting eBays announced new fee increases and feedback policy changes. We do not believe that these changes will have any positive affect for buyers or sellers and will result in increased prices, less choices and disharmony within the eBay community.

We also are in complete agreement that eBay's policy of allowing dogs and cats to be sold on eBay in China for slaughter purposes is both cruel and inhumane and must be stopped immediately.

We urge all people's to not shop or sell on eBay during this worldwide boycott.

Please spread the word.

Thank you.
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