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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: john
       
Thu Feb 14 07:55:44 2008
Imagine all the online auctions starting from scratch today. feebay and paypal included. After reading the terms and conditions and fee structures of both of these,  they would be LAST CHOICE to start an online business with. Trouble is, they have built themselves up to a near monopoly position, [OFF THE SELLERS BACKS]. and figure they can do anything they please, and the majority will still come back for more of the same, because they feel that they have all the sellers just where they want them, Over a barrel, or by the nuts, whichever?.   How long would they last if starting today? They would not even get started. Financial backers would look at the business plan, and show them to the door.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Steve
       
Sun Feb 17 05:08:38 2008
I've been an ebay user since '02 or so, and I've have been relatively successful, with over 1000 feedbacks, 100% positive, and they've put a little money in my pocket. Very little.
Recently, though, I had a buyer flame me with a negative for no other reason than he could. It was completely uncalled for and unjustified. In this case I fired back, sent him a negative right back, not even considering that he was likely a mental patient. Said lunatic replied with vugarity and profanity, posted right on ebay, which took them about a week to clear off, the end result being all of his accounts being tossed by ebay.
Under the new rules, I would have had no recourse, and this nut job would still be terrorizing sellers.
SELLERS MUST HAVE THE ABILITY TO DEFEND THEMSELVES AND THEIR BUSINESSES!
Now, I've never made much money at ebay, as most my stuff is fairly inexpensive, and I own other sites that sell the same stuff with a better margin, but ebay has always given me the ability to make fast capital when I need it, although the cost has always been high.
When I sell $800.00 of goods on ebay and have $50.00 left in my pocket at the end of a month, owing to cost of product and paying ebay and paypal their cuts of your sales, one begins to realize that they have essentially forced you to take them on as business partners. Sort of like the old mafia ''protection'' racket.
Ebay makes way too much money off our businesses now, it's going to get worse rather than better, and they do not appreciate us, the sellers. They prove it time and again. They don't NEED us.
WE, the PEOPLE need to make a change.
That's why I opened DealTent.com.
No listing fees EVER for the next 100 new sellers, free gallery pics to everyone, and low fees for everyone after who joins after the next 100, the average listing being about .15¢. Commissions, A.K.A Final Value Fees? They're low too, the bottom end at 3% and rising to 5% tops for sales $1000.00 and up.
Why fight it? With the shareholders  and buyers holding sway at ebay, and us sellers a dying breed, why not go where
you are appreciated?
Don't throw your money in the bay.
Come to DealTent today!
DealTent.com
List for Less.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Daddy Cool
       
Tue Feb 19 23:48:18 2008
The first real competition that comes along and 90% of ebay sellers will jump ship. Ebay treats it constituency like minimum wage workers.. No respect and no room to make a buck. I am sick of paying $1400 a month fees to FEEPAY and i am not alone. EBAY is AWFUL to the people who put them where they are. As Jimmy Durante once said "Be nice to people on the way up because you are sure gonna see them on the way down."  The govt should deregulate them like MA BELL....EBAY SUCKS
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Gina
       
Wed Feb 20 00:57:56 2008
We have been selling on Ebay for 1 1/2 years and have been a powerseller for about 6 months.  At a glance at the ''reduced fees & free gallery's'' I thought great! Finally! taking care of the sellers! Then I receive a phone call from ebaying stating that part of the changes included no fixed prices can sell for less than a $1.00.  We have a stamp business a lot of stamps sell below a $1.00 no one is going to want to pay a $1.00 for a stamp they can get somewhere else for 39 cents. So I got looking into the ''lower fees'' and for a 29 cents we would pay about 9 cents for fees. Now, because it would be a $1.00 minimum between the FVF and insertion fee it will cost me 15c so not only do my customers pay a lot for a stamp but they also have increased fees.  And I can't even begin to start on the whole feedback thing! Ebay needs to remember SELLERS ARE THEIR CUSTOMERS, Buyers are SELLERS CUSTOMERS. They both need each other but Ebay needs Both.  Our business will be looking for other ways to control our business.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: smallblock_58@yahoo.co.uk
       
Wed Feb 20 07:47:05 2008
GINA. stamps below a $1.00?  delcampe.net is the place. and the expensive material sells also. Just put a price on it. stays listed 999x  7/10 days if you want. list and forget  no listing fees! 4% fvf and if you raise the volume 2% . takes more time and work, but once establised its worth it. Listings are targeted. If you have a postcard of some small town in holland and you list it, the site sends an e.mail straight to anyone who indicates they want to know when someone lists that town. for example. I listed some 1949 berlin at £300gbp, within 5 minutes, someone in berlin bid on them because he got an email for listing in that catagory. simple listing as well. big hardware upgrade months ago. many stamp dealers listing there now. many use moneybookers for payment as well as paypal. the moneybookers fees are next to nothing
eBay Increases Fees Overall   eBay Increases Fees Overall
by: ssandee
       
Fri Feb 22 09:10:13 2008
The problem facing eBay sellers is a collective problem, and therefore requires a collective solution.

Only the eBay users themselves can truly break the eBay Inc. monopoly, rescue our auction businesses from destruction at the hands of corporate greed, and save the original eBay person-to-person trading concept as an open marketplace of equals.

The eBay users—united, in our millions—can make a new fee-free home for ourselves on the Web and simply move there en masse, replicating the traffic of the eBay.com site.

Together, we can recreate the eBay Community, beyond the reach of eBay Group, Inc. The users made eBay the first time, and we can do it again—this time to suit our needs, rather than just line the pockets of FeeBay executives and shareholders.

Visit  www.thepoint.com/campaigns/subat  

eBay Increases Fees Overall   eBay Increases Fees Overall
by: Kathy
       
Mon Feb 25 18:26:57 2008
O.K. There is a big point that I have only seen one other comment make note of...

In some instances PAYPAL WILL HOLD YOUR FUNDS UNTIL BUYER LEAVES POSITIVE FEEDBACK, GREEDBAY WILL BE GIVING BUYERS 60 DAYS TO DO SO.  

I would bet money that ebay will implement this policy more and more for different categories, final fees etc. Whatever they feel like as it will translate into HUGE interest payments for them while they hold OUR money in limbo!
WHAT IF THE BUYER LEAVES A NEGATIVE? THEY GET THIER MONEY BACK AFTER 60 DAYS? Gives them the chance to find it cheaper, change thier mind- whatever. You are totally at thier mercy.
You get back a product that is most likely no longer saleable, and for that you are CHARGED FEES.

The feedback system is a joke. Don't even get me started. I have had a few crazies in my 8 or so years as a seller. I think I have left 3 negatives in all that time.
It should have been more, but I am just not that kind of person.

Also, do you notice it's pretty much impossible to voice you opinion to anything on the site? They do not have a link in these fee increase emails for you to respond. They do not have anywhere for us to post feedback on how THEY are doing in serving the sellers!!!
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Tom
       
Thu Feb 28 18:08:20 2008
Huh? Are you people really thinking this out. FB? So what? 100% positive is still 100% positive. So be honest and don't screw people over. The fees went up $35 bucks on $1000 sold. That's not much to scream about.

The only sellers that are going to loose out are those that sell for $10.00 and ship for $79.95 or sell garbage and claim it's in good condition.

As a eBay buyer I'm glad, as a seller it doesn't effect me that much.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Free Online Auctions
       
Sat Mar 8 11:13:36 2008
Its time we all leave ebay and start using other auction site. One of the best I've seen so far is http://www.onlineauctionexchange.com No Listing Fees, No Commission or End-of-Auction Fees. List your goods and services for a fraction of what you will pay eBay. Get your own online store for .99 cents a month. Online Auction Exchange. Finally A Good Ebay Alternative.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Sellforfree
       
Tue Jun 10 01:10:33 2008
If you're a eBay seller and you're not getting the results you want and you are tired of paying fees, then it makes sense to take a look at other options.

Online classifieds are a great choice for casual eBay sellers who want a quick turnaround and profit on the goods they sell.

It's important to list your items in as many different places as possible - you just never know what website is going to be your key to success and sales. Luckily posting on classifieds website is quick and easy - if you spend a little time to post each week, you'll soon have exposure to a large number of potential customers.

If you are a small business or store or a casual eBay seller looking for free alternatives to eBay, then I encourage you to visit http://whypayfees.info for more information.

Why pay fees? Sell for free!
http://whypayfees.info
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Auction Dash
       
Sat Jun 14 16:15:25 2008
I don't think it will affect me that much. I'll just adjust margins and reserves.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: curt smith
       
Wed Aug 13 14:39:27 2008
i want more information for your sites

curt smith
CarAuctions
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Dave
       
Fri Aug 15 04:24:56 2008
I have been selling on Ebay for over 9 years and have been fed up with them for a while... but I figured as long as it brings in money it's fine. Well over the past 9 years I have seen my fees increase dramatically, at one point my fees were up to around $1,500.00 a month but I didn't complaint... I was still happy, but now it has just gotten out of hand. Not only are fees high but the rules are just getting ridiculous. I have decided to just stay away from Ebay, right now I'm selling on Offertime and my local flea market.

Check me out on http://www.offertime.net
eBay Increases Fees Overall   eBay Increases Fees Overall
by: Graham.
       
Sun Aug 24 20:46:04 2008
Hi to all, this may not be a U.K Site
but we over here are just as t'eed of with ebay as you.
I opened a shop a month ago, I will now see my insersion fees raised from 0.3p GBP to 0.20p GBP, per item, my monthly fees raised from £6.00 to £15.00, I actually hope that ebay loose as many customers as they can, the result of this insanity, will be higher prices for eveyone. P.S TRY E.BID, a lot of people are closing down,  up yours ebay die in peace !
eBay Increases Fees Overall   eBay Increases Fees Overall
by: epaid
       
Wed Sep 17 01:04:37 2008
Well to all the sellers,it is clear as to the ebay ceo attitude is clearly.
We'll trick the shareholders into thinking that the stock decline is brought about because of the economu,meanwhile the stock holders can help carry the bay company while we hold out against the dumbass sellers,as they can't afford to hold out like us.We have to stay firm and not back down like Megan did when the ebay community protested.
I sure hope one of those precious buyers stick it to him one day.
eBay Increases Fees Overall   eBay Increases Fees Overall
by: JP
       
Tue Aug 11 12:45:44 2009
eBay's days at the top are certainly numbered. Upstart companies, most notably Pricefalls.com, are chipping away at them with superior platforms, a more diverse inventory, and more user-friendly customer support. Not to mention the fact that it is absolutely free to list products on Pricefalls, which means there's no risk involved. Do away with the old and usher in an era of auction prosperity for all by making the switch to Pricefalls today!
eBay Increases Fees Overall   eBay Increases Fees Overall
by: efleaa
       
Thu Sep 3 00:12:23 2009
Hello,
Very informative article, Keep up the impressive writing.
Thanks Jerry.
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