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AuctionBytes Blog
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: Alex
       
Thu Jan 31 19:55:51 2008
I am really surprised that google has not filed an anti-trust suit and maybe fair trade suit against eBay.

Google now has a proven track record and are being held to much higher standards then the merchants eBay allows.

Google needs to bring eBay down. If they opened an auction site do you think that eBay would pull all of their ad dollars? I dont think so, because where else would eBay get any search results of that magnitude? Yahoo, MSN, where?

eBay would maybe have to spend even more to compete and they would lose.

And even if eBay did yank all their google money, google would make it up in what they would make on the auctions and google checkout.

eBay Increases Fees Overall   eBay Increases Fees Overall
by: Mark
       
Thu Jan 31 22:47:02 2008
Ok, I think you all just like to hear yourselves complain. You do not like a company's policy, Start your own Auction company and charge the fees that you think can compete with ebay. Its that easy. Stop complaining and get into your own auction business, at least by all this trash talk on here I am sure there is about 1,000 of you that can pool your money and start to compete with ebay. So get off your butt and DO IT !
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Catherine Walker
       
Fri Feb 1 01:27:02 2008
I am pulling out of E-Bay. I am a power seller on two sites and make between 6 to 7 thousand on each one before costs.These fees will cripple me since my margin of profit is so small. I will sell my existing stock then move on to different e-commerce business. E-Bay is shooting itself in the foot.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Alternatives To eBay
       
Fri Feb 1 02:45:03 2008
I'm sick, eBay is killing us sellers :(.

I now list on alternatives like eBid, Find out more at ukebid.com
eBay Increases Fees Overall   eBay Increases Fees Overall
by: RW
       
Fri Feb 1 07:51:59 2008
What a bunch of morons at ebay. They've actually taken all the guns away from the legit sellers and given them to deadbeat bidders. What kind of system is that? I'm hoping a mass exodus occurs and their pocketbook and stock takes a big hit. Looks like I'm going to migrate more and more to Craigs List and other auction sites. This would be a great time for Google to come up with a competing site. Yahoo failed in their attempt but at the time ebayers were pretty satisfied. Not so now. Anyone starting a national boycott? I'M IN!
eBay Increases Fees Overall   eBay Increases Fees Overall
by: john
       
Fri Feb 1 17:12:19 2008
It now appears that ebay is sliding into a diminishing returns cycle. I boycotted ebay 1 year ago, I was paying a monthly mortgage payment to them to the tune of £1000 a month.
dealers in my field are all leaving in droves to Delcampe.net and stampwants and 1 or 2 other specialist collecting sites.
simple economics says that if you put the price up and lose more  customers than you thought you were going to lose, then you have to put the price up further to compensate.
this means that the £1000 a month they are not getting from me and people like me, has to come from you that are left, Thats you! if your still selling on there.
Add into the equation the poorer servive levels and the stupid new feedback system they are planning to adopt, just to mention a few of the idiotic practices of this company, then I suspect far more leaving than ever. back to the diminishing returns here. next time round you will most likely see even more price rises,
To me, I suspected all this a year ago and nothing surprises me whatsover with this company.
This was just reading the writing on the wall and the writing is clear and still is clear if not clearer. My advice is to seek alternatives now, although I appreciate it will not be easy for some businesses and online sellers.
As the old saying goes, as one door closes another one opens.
sometimes you just got to go and look for the open door before the other one shuts. Fortunately the sites where I now sell are expanding rapidly and many EX ebayers are finding them by word of mouth and internet searches.
Pity there are not far more specialist sites, buy and sell your new or used lawnmower here site for example. I know there are pop memorobilia sites and book sites. many of which are beginning to leave ebay in the dust. JUST NEED MORE OF THEM !
eBay Increases Fees Overall   eBay Increases Fees Overall
by: wendy thorn
       
Sun Feb 3 01:51:29 2008
If Ebay honchos have a wit of sense they will realize, by monitoring FEEDBACK on Auction Bytes site. The overwhelming 'exit' comments are not just angry thoughts - it really will be a mass exodus from Ebay. As for the one seller who expressed that whiners will leave Ebay so she can clean up - she will end up whining in the end. The sellers have spoken loud and clear. Ina please tally a total of negative posts as to the positive and send to the new Prez.  
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Stuart
       
Sun Feb 3 02:24:35 2008
For items lower price than e-bay you may look into auctions.  Recent developments in the real estate industry have made this the best possible time to look into foreclosed and auctioned properties.
Full details at:  http://www.thehomeauction.org

There is a tremendous amount of profit that can be made by becoming a person who goes to government auctions.  By becoming a purchaser at these auctions, you can save money when you buy the house, car, or many other items of great value that the government must sell, typically far below the retail prices as they must get rid of the items.

A nationwide comprehensive list of these auctions can be obtained at: http://www.thehomeauction.org

You will have access to an extensive database of federal, state, and local government auctions in your state and city, specially organized for ease of use.  The wealth of information available in this database was derived from extensive experience and with countless hours of research.  
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Eric
       
Sun Feb 3 11:30:34 2008
I did a detailed analysis of the new payment structure and when figuring in that I used to pay for gallery on all listings and sold roughly 50% of items listed the new structure is bad but not quite as bad as it looks.  The way to beat it is to charge a $10 (or more) handling fee on all items.  (Of course eBay will probably start charging fees on shipping and handling too).  Unfortunately, I'm not sure buyers are capable of doing the math and realize that paying $40 for an item and $20 shipping and handling is the same as paying $60 and having free shipping.  They will probably still complain.  Which leads to the real problem: the new feedback system.  eBay is basically listening to the few complaining buyers who really should not be buying online.  The really troubling part is the holding money until positive feedback is given or 21 days have passed. I buy on credit cards and try to sell before the bill is due; so much for that plan!  I might continue to sell a few items as long as I can stop taking paypal (also makes up for increased fees) but if they start forcing paypal, I'm out completely. And now the old paypal scam is just going to get more common without sellers being able to report these people.  I have a $3-4000 item that I would like to sell but you think I'm going to take paypal and risk being out my item and money.  NO WAY!     I agree, a new auction site is needed.  Capitalism to the rescue!  eBay has had a monopoly for too long and it really shows.  
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Joey
       
Sun Feb 3 17:51:59 2008
Well i have to say Goodbye to Ebay! I have sold about 20items on the site and I was thinking about selling a few more.  What a joke the fee's are, somethings have gone down but the majority of them have increased.  Im pulling the plug on my account and going somewhere else.  This is crazy.  
eBay Increases Fees Overall   eBay Increases Fees Overall
by: amodernguy
       
Sun Feb 3 19:14:17 2008
As a small Powerseller I have grave concerns regarding the new fee schedule and the changes to the feedback system.

I have detailed my concerns in an  An Open Letter to eBay  on my blog.

http://amodernguy.wordpress.com
eBay Increases Fees Overall   eBay Increases Fees Overall
by: "Doc" Henry
       
Tue Feb 5 23:01:02 2008
I am very disappointed with the new changes eBay is going to implement on 20 FEB '08.

Reducing my listing cost by $.05 is great but raising my Final Value Fee by 3.5% is too much.

Ebay's Reply: It is true that we have raised some of the Final Value fees, but this is only to balance the changes we made to the Insertion fee schedule and also offering free
Gallery.

Ebay is giving new meaning the word "FREE" = read the fine print for the hidden costs.

Ebay now faces the loss of its fountain sellers.

I wonder if this is "The beginning of the end." for eBay?

"Doc" Henry
eBay Increases Fees Overall   eBay Increases Fees Overall
by: fr8rain
       
Wed Feb 6 03:06:47 2008
Ebay is violating it's own policies
http://pages.ebay.com/securitycenter/rules_policies.htmlR>
To
promote a safe trading environment for all members, eBay has rules and policies that are enforced. eBay's policies are intended to:


Support government laws and regulations - RISDIC anyone?

***Minimize risks to both buyers and sellers - Feb. 20th will be increasing a sellers risk while eliminating buyers risk.

***Provide equal opportunity to all buyers and sellers - Will be changing this on Feb. 20th -  we sellers will no longer have the opportunity to leave neg. feedback for buyers. Where is our opportunity?

Protect intellectual property rights
Provide an enjoyable buying experience - Sellers not entitled to an enjoyable selling experience?

Support the values of the eBay Community - What are these values?  Greed?  Discrimination? Buyer bias?
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Steven
       
Wed Feb 6 10:18:18 2008
I am now looking seriously at UBID and onlineauction.com
Its time to break free its going to be hard but I have to try these other sites.
Have any of you tried these auction sites?
Please all don’t forget to support the EBAY boycott 18 – 24 FEB.
Use vacation settings and if EBAY offers free listings use the date option to post Auctions after the boycott 10c extra.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Stans Gifts
       
Wed Feb 6 11:16:52 2008
Ebay is so smart that they should loose there customers. I am looking for new outlets to sell. Hope every else does too.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: MikeB
       
Wed Feb 6 19:32:22 2008
I'm glad, as a buyer (mostly), I don't like that I can't write negative feedback without fear of retaliation from the seller.  I once bought an item that turned out not to be anything like what was shown, I emailed the seller who ignored me.  I left neutral feedback and then received neutral feedback.  The feedback is protect the buyers, not the sellers.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: undead
       
Thu Feb 7 11:23:47 2008
I've been selling part-time on ebay since 4/99 and my All PF number is double my FS. Now my one month on one month off is worthless if all that is lost if I have a bad month or two.

I've been supplementing my $500-$1000 items with lots of lower priced ($9.99-$30) items just to cover the fees for the big items that don't sell.

With the new FVF it doesn't make sense or profit for sellers to list anything under $25.  In the past 8 months I've paid ebay over $3500 and apparently that's not enough. Now I have to worry about somebody leaving me negative feedback because they didn't want to pay $1-2 extra for the museum grade archival packing supplies and presentation materials I ship all my items in.

To add to the insult, I'm going to be punished and put to the bottom of the search lists simply because I don't have high caliber inventory to have consistantly high volume sales.

I'm no business scholar, but I'd take a million nickels every day than wait 20 years for a million dollar sale. I guess there are enough big ticket sellers and buyers for eBay to risk losing sellers.

On the other side, I think buyers like myself spending $200-$300 a month will look elsewhere when we can no longer ''score'' $.99 deals with combined shipping.



A boycott sounds good if we could really believe they might listen, but I'm looking elsewhere real soon.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: CAROLINE
       
Thu Feb 7 11:53:09 2008
I am a small home-based business. I have collected over 300 positive feedbacks from buyers, I will continue to use this as a database for my future business, I want to continue to meet and exceed expectations for my buyers.I will continue to build up from what I feel are bonafide satisfied customers. With the new feedback system or non-system I feel the feedbacks may be less of a reliable pulse on actual satisfaction of buyers as well as sellers.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Terry Gibbs
       
Thu Feb 7 21:59:04 2008
The sky is falling. With few exceptions these comments sound like Al Gore and his global cooling/global warming/climate change crap.

This the yearly ordeal. Changes are made, and rather than examining how they effect you, start screaming the sky is falling.

I ran my numbers for the past three months, and found my eBay fees will go up by about $50 a month before savings on featured plus listings.

I'll save $10 for each featured plus listing - I do 3-5 FP listings a month meaning a total net increase in eBay fees of $0-20 a month.

The changes in feedback will have no effect on me. I think I'll go from 1 neg per 300 transactions to 1 per 200 under the new rules. About a third of my sales are to repeat buyers so my feedback percentage might even go UP.

Someone said eBay will be throwing out old feedback. No. That number will not change. The new deal is only feedback from the prior 12 months is figured in the percentages. That means my feedback percentage will go from 99.5% positive to 100% immediately when the new way of figuring comes online.

Best match also means nothing to me because the majority of my buyers are category browsers not searchers. A portion of my buyers about 35% are people who just like to buy from me. Again no difference under best match.

The small number of buyers who come from search are looking for thinly traded items. Where I am at in a list of 10-15 search results will have no effect on my ability to attract buyers.

I've surveyed about 100 of my students, and the effect on their eBay costs is similar for over 90 percent of them.

I know you don't like hearing this, but the calls for boycotts and the whining aren't helping you. Your time would be better spent working on improving your selling practices and product souring, than carping about something that really has little effect on you.

Terry Gibbs
www.news.iwantcollectibles.com/

eBay Increases Fees Overall   eBay Increases Fees Overall
by: Molly
       
Fri Feb 8 04:26:04 2008
All buyers please note after this my last auction ~~ Ebay just up there fees so high that its very hard to offer the great values that we have for the last 9 years!!! These new ebay rate hikes will COST YOU THE BUYER. Someone has to pick them up.Also the new star rating is really not right for i charge $2.95 shipping flat fee total for 1 item or 100 and i lose on every package i ship and my star rate on shipping charge is 4.7 and since it is below 4.8 i will have to pay 15% more fees.What a joke.Again i have asked ebay how this is fair and again they cant answer me.There are over 1 million BUYERS AND SELLERS going on strike from the 18th till the 25th.We are going on strike from the end of this auction till ebay treats people like people.We want to thank all our buyers for there business for we do care about you.I wish ebay cared more about the BUYERS AND SELLERS as much as the greed they have for profits only.Ebay use to be a fun place but now it has been to much work to try and make a profit with the HIGH FEES EBAY CHARGES.Please all BUYERS and sellers join us and together we can have a voice. Together we stand, divided we fall.

Ebay is counting on us not standing together. PROVE THEM WRONG!

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