EcommerceBytes-NewsFlash, Number 1715 - January 29, 2008     5 of 8

eBay Lowers Insertion Fees, Raises Commission Fees

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eBay will announce today new lower insertion fees and higher commission fees on auction, fixed-price and Store listings that go into effect on February 20, 2008. In addition, eBay will begin giving US and Canadian sellers up to a 15 percent discount on Final Value Fees based on Detailed Seller Ratings (DSRs) beginning in April 2008.

While auctions listed with a starting price of less than $1 will cost 15 cents in Insertion fees (down from the current 20 cents), eBay will no longer allow sellers to list items in fixed-price format for under $1.

At the same time, eBay is increasing Final Value Fees (FVFs). Items that sell for under $25 are currently charged 5.25% of the closing value - this will be increased to 8.75%. The FVF for items that sell for between $25.01 - $1,000 are currently 5.25% of the initial $24, plus 3.25% of the remaining closing value balance; this will change to 8.75% and 3.5%, respectively.

FVFs for Store Inventory listings will rise from 10% to 12% for items that sell for $25 and less. For items that sell for between $25 and $1,000, the fees will be 12.00% of the initial $25.00, plus 8.00% of the remaining closing value balance.

Reserve fees will no longer be refundable if the item sells.

eBay will also announce today that it will begin giving US and Canadian PowerSellers up to a 15 percent discount on Final Value Fees based on Detailed Seller Ratings (DSRs) beginning in April 2008. (See related story.)

To see new Fee tables and to comment, visit the AuctionBytes Blog:
http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2008/1/1201610871.html

Updated to fix error - new insertion fees are the same for auction and fixed-price listings.


About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.


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