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Tue Jan 26 2010 08:14:29

eBay Announces Fee Changes, Will Eliminate Store Format

By: Ina Steiner

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As anticipated, eBay will eliminate its Store Inventory format and has introduced a new pricing structure effective March 30, 2010. There will be one Fixed Price format on eBay - listings in the current Stores Inventory Format will automatically become regular Fixed Price listings with the same duration and appear with all other Fixed Price listings in eBay search results.

eBay will also extend the multi-variation listing feature to more categories - this allows sellers to list multiple variations of a product, including color and size, in one listing.

Sellers may no longer use the PowerSeller icon or references to the PowerSeller designation in listing templates, listing descriptions, About Me pages, or Stores pages.

Some initial thoughts:
With the new eBay Stores pricing, it's much more expensive to list in Stores format for low-volume sellers - you pay the same $15.95/month subscription fee, but rather than paying as low as 3 cents to list, you must pay a 20-cent insertion fee. However, your listings appear in Core search results.

An option would be to pay a higher monthly subscription fee - almost $50, and get insertion fees of 5 cents. eBay says this works for sellers who list over 250 items per month.

A lot of news to digest here, let's hear your comments!

Fee Changes
- No Insertion Fees for Auction-style listings when you list your item with a start price under $1—up to 100 listings per month. Pay only if your item sells.

- New low Insertion Fees when you list your item with a start price of $1 or more

- One easy Final Value Fee of 9% of the winning bid—and never more than $50—regardless of your start price or final selling price.

- 50-cent Insertion Fee for Fixed Price with Final Value Fees for the most part staying the same.



eBay will also introduce new fees for its Stores.
BASIC: 20¢ Fixed Price Insertion Fees, $15.95/month - Consider a Basic Store if you list more than 50 Fixed Price or Auction-style items a month. It's a great starter package if you plan to start an eBay business or ramp up your selling.

PREMIUM: 5¢ Fixed Price Insertion Fees, $49.95/month - Great choice for higher volume sellers (more than 250 items per month) and sellers listing in both Auction-style and Fixed Price formats.

ANCHOR: 3¢ Fixed Price Insertion Fees, $299.95/month - Get the same great deal as the old Store Inventory format-now with full exposure in search results! With an Anchor Store subscription, higher volume sellers get top savings and the lowest package rates on eBay.



NOTE: Starting in March, meeting the new minimum performance standard for all sellers will be a requirement for Premium and Anchor subscribers. ("Above Standard.")



- Insertion Fees as low as 3¢ for Fixed Price listings with full exposure in search results

- Fixed Price Final Value Fees for the most part staying the same

- New low Auction-style Insertion Fees

- Auction-style Final Value Fees significantly reduced over the new standard rate

- FREE pictures—up to 12 per listing

- FREE Selling Manager Pro with Premium and Anchor subscriptions
 
- Plus all the other great marketing tools you get with an eBay Stores subscription, including your own customizable store front and Markdown Manager.



New PowerSeller discounts and seller requirements coming in mid-April - the new PowerSeller requirements (originally announced in July 2009) will be in effect for all PowerSellers, not just Top-rated sellers. And with the new PowerSeller discount schedule (also announced in July), only eBay Top-rated sellers will receive 20% fee discounts. All other PowerSellers will receive 5% discounts. PowerSellers will see this change reflected on their statements starting May 1, 2010.

Here's a link to eBay's overview page.
 

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by: Skeptical

Tue Jan 26 20:01:17 2010

Funny they should announce the end of Stores as we knew them, as I decided that my Basic store was a waste of time and money and ended it recently.  There was NO traffic.  I don't mean not much, I mean NO.  So I thought, for $15.95, I could list 45 items for 30 days and get better exposure on Fixed Price.  Obviously with fixed price going to 50 cents I can now list 32 for the same amount that previously bought 45. That doesn't feel like a fee reduction to me.

EBay has strutted out with this new pricing structure as if the eBay of 2010 is the eBay of 2007. Sorry, but it isn't.  They are going to add all of the store listings to a core that was just holding its own in the last quarter. Of course, in its financial statement the other day, eBay never gave us the numbers on eBay.com, so we are in the dark about YOY and 3rd-4th quarter 2009, but I believe sales were generally slow on eBay itself. It seems that adding store listings will dilute those sales even more.  Two years ago, I would have said Go for it, but now, it's a questionable decision. I'm concerned that the buyers are not there in as large a mass as they used to be.  Throw in Best Match and the TRS badge into the search and who knows what the placements will be.

But, it's worth a try, and best of luck to all who take the step.



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by: summer in the city

Tue Jan 26 20:06:43 2010



mmmmmkay...so why would I, as a low-volume seller of high-dollar items, want to resume selling on Ebay?

Sounds like a good deal for the chinese crap flooders, though.
For someone who doesn't like flea markets, JD has done a great job of turning Ebay into one.

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by: Ebay's Slow Death

Tue Jan 26 20:08:22 2010

Interesting that there are two groups here today:

One group is proclaiming, ''Hey, this will be great for me!'', or ''I can make this work!', or ''Here is what you need to do.''  I think Ebay's PR team is Power Listing today.  Their names are usually a simple, John, Mary, Joe.

Then there are the rest of us, who have just gotten punched in the face, and we are saying, ''Hey, that didn't feel so good'', and we are angry.

I've just spent months listing about 1000 items in a new store. (Been on Ebay since 1997.)  I got a TSR badge last week, and my sales have declined (go figure).  I was paying about $46.00 a month. Now those 1000 listings will cost me $100 for a Premium Store.  This is every month before I even sell anything.

For this I'm suppose to get better exposure in core? Not likely. Core is going to be so full, that my listings will never make it to the first page, ever.

I am so tired of putting the work into Ebay, and then having them suddenly pull the rug out from under me, with new changes. (I know, I just asked for it! I know better.)

The sell-through rate there is dismal. I hardly get any views, and when I do sell something, then I have to wonder if the Buyer is going be a psycho jerk.

For those people who honestly think these changes are going to work for them, I hope they do.

Personally, I'm tired of swimming in Ebay's cesspool!

**For those people closing their Ebay listings, and planning to move to eCrater and Bonanzle, check out their systems for moving your listings to their platforms, before you close your Ebay listings. I think they need to be live, so they can be moved.

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by: William Bucker

Tue Jan 26 20:08:34 2010

Since about 2003 EBay has increasingly shown that it does not care about sellers, buyers or the very unfortunate people who invested so much in EBay's Partner Network scam. It has now put it self in a prime position for a new competitor to destroy. Kind of like Google did with Yahoo, but ten times worst. When EBay gets wiped out by a new auction service no one will care. The sellers are sick of getting a raw deal, and would be more than happy to jump ship. The founders of EBay have long since cashed in and are living the good life with the woman (Meg Whitman) they hired to squeeze every penny out of EBay's sellers. Mark my words, EBay like Yahoo will soon face it's own Google Monster.

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by: Jim

Tue Jan 26 20:09:12 2010

Screwballs -- calling a fee increase  a decrease   WHAT ????

Ebay calls their fee increase from 3 cents (the monthly store base listing fee) to 20 cents a decrease ?? What language do they speak ? - the language of greed and contempt.

According to my math, if the price of a product goes from 3 cents to 20 cents that is a 667 percent incease in the price.  That would be like paying $6.67 for a loaf of bread that today only costs $1.00.

Some would call it greed. Some would call it price gouging. Some would call it contempt for the customer.

In this case, numbers don't lie. people do. In calling a six time increse a decrease, John Donahoe insults us, laughs at us and calls us stupid.

To my mind, 10 percent of a listed item is far more profitable than 0 percent of a non listed item.  In other words, EBAY is penny wise an pound foolish.  They should do everything and anything to encougage and promote tons and tons of listings and sellers for greater profit not discourage listings and sellers as they are with this stupid move!    





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by: ZZTopshlf

Tue Jan 26 20:25:36 2010

@ William Bucker

There are two places that could be that monster immediately if they decided to jump in.

Craigslist, and the Google Monster.

If either of those big boys were to announce tomorrow that they were going to offer auctions and a third party selling platform, Ebay's stock would tank.

If those auctions were Free to list with only FVF's if the item sold, good night Irene!

I'd love to see it happen. Competition is needed....

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by: Ebay's Slow Death

Tue Jan 26 20:35:33 2010

@ZZTopshlf-

For some reason, no other big internet business will take on the Monster, and offer auctions. People like Amazon, Google, Craigslist or Microsoft won't touch them.

I've always wondered why. Must be a reason there someplace.

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by: shjames

Tue Jan 26 20:39:13 2010

Sellers need to keep in mind that liike ebay Wall Street doesn't care whether your business succeeds or fails. What they are about isn't what sellers OR buyers care about.

What Wall Street cares about is whether Ebay will achieve its current market cap and whether ebay stock will be worth more three months from now than it is today.

Wall Street has never understood and still doesn't that ebay customers (both buyers and sellers) create a marketplace dynamic that differs greatly from most.

Wall Street loves price increases because they normally mean greater profitability and therefore higher stock prices. Ebay stock up went up today in spite of ebay's duplicitous announcement of "fee decreases" because ebay's announcement fooled no one except possibly a few sellers with unusual business models.

Further Wall Street rewards staff reductions. Labor and labor related expenses are most expensive costs a company has so when staff is reduced, profits increase all things being equal.

Wall Street harbors the illusion that more site listings mean more sales. Not so on ebay. In the last year, the number of ebay listings is way up while sekll through rates are way down.

Ebay has also convinced Wall Street that mega sellers can more than replace medium and smaller sellers. I suppose this is true if Wall Street also believes that what buyers want are page after page of the same 99 cent cheap Chinese widgets with sky high shipping charges. They don't understand that the Chinese overstocked widget mentality, ebay's encouragement of illegal counterfeits, and widespread dissatisfaction with PayPal is what drove buyers elsewhere.

All Wall Street cares about is what makes money for ebay.

Rolling reserves and 21 day holds? Great! They generate revenue for ebay (at the expense of their customers) and will replace the big Q1 earnings hole now that Skype revenues and sale are gone.

Counterfeits? Great! But only if the fees generated supercede the cost of litigation(s).

Scamster buyers? Great! Ebay would lose a lot of fee revenue by getting rid of them.

When most sellers finally understand that ebay doesn't give whit whether a seller makes money or not will be the day the music stops.

The Wall Street banksters and their corporate toadies and the business media who enable them are the same people who brought us the bailouts, the ongoing mortgage crises which has only just begun, phony derivatives, and widespread unemployment.

Wall Street merits as much trust from any of us as we have in John Donahoe.



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by: Rich

Tue Jan 26 20:40:49 2010

To Ina, you said some business/investor writers were looking for some real numbers and actual number comparisons of Ebay and Amazon.  For me; I have store with 2,000 music items(records and cd's); so here is Ebay versus Amazon for media/music items and also the cost increase for stores with 2,000 items.  Currently I pay 2,000 times 3 cents/month per item which is $60;plus the $16/month subscription fee for a total of $76 in upfront fees.  For the premium "upgrade" I would pay 2,000 times 5 cents/month per item which is $100; plus the new $50/month subscription fee for a total of $150 in upfront fees. So what Ebay calls a fee reduction is a doubling of upfront fees from $76 up to $150.  With Amazon, a store with 2,000 items is only $39(Amazon charges just a $39 monthly subscription fee with no per item fees).  So the upfront fees for me will be $111/month after I get done transferring my items from Ebay to Paypal.  With Ebay; I now will also see an increase in final value fees or commisions because they are rainsing the commission on media/music items from 12% up to 15%.  So I'll pay 15% plus the added Paypal fees which is 30 cents per item sold plus 2.9% of all total sales including the shipping paid by customers.  With Amazon I'll also pay 15% commision, but again Amazon is much better as there are no Paypal fees.  My numbers are accurate and I would guess the media/music category sees at least 40% or more of the total listings; disappear by April. I'm just 1 opinion here but if analysts describe Ebay as a "growth company"; I would strongly suggest to analysts to begin selling their Ebay stock and begin buying Amazon stock.  I'd estimate Ebay will see a minimum of 25-35% of their total listings disappear by April

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by: Jimbo

Tue Jan 26 20:56:47 2010

RBH said ...

"Yes, it's true that some sellers will see their FVFs go up with this change (even though up-front insertion fees go away and final fees are simplified greatly).

Having said that, the new total fees are considerably lower than alternative sites with equivalent traffic. "

It's more than "some" sellers and it isn't just a little fee increase. The increase is huge, up to double in many circumstances.

And what are we getting for this fee increase? Fewer buyers, lower prices and more hoops to jump through. What is eBay going to do to justify this huge fee increase? Their CS is an absolute joke. The worst I have ever seen. Buyers are frustrated by the ridiculous search that finds nothing. And how long before PayPal fees go up? We're sick of it.

The only site that has equivalent traffic is Amazon and my type of items do not sell there.

Richard, maybe if you had to try to make a living selling on eBay you would understand better.

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by: fruity

Tue Jan 26 21:24:19 2010

you know I was just thinking that I don't see how ebay is going to expect to control the flood of listings, trimming the US small businesses does not solve the problem on ebay, in fact it just amplifies it because.. well right now if I wanted to open up a store in Australia I can and pay the AU version of fees. In Hong Kong and Malaysia and Thailand, they can do that as well for US and it will show up here. So what happens when a country that already is able to compete more than strongly, that has a limitless inventory that has been buried in stores, now has the ability to push that all up into core.

I think the amount of relisting is where its going to each up seller costs.

Ebays troubles is not having a site that can service their customers that they have to diminish their own service to keep them all. It's like having 1 lightbulb in a mansion

plus that little glitch that allows you to swap your location and game the US (or other country) site I have a feeling is recorded as a US seller in their number crunching.

This is sorta funny and pitiful that they are going back to 2005. They'll bring in the SKUs and the selection, but one thing ebay can't do, is balance anything

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by: Iam Tortured

Tue Jan 26 21:56:37 2010

I have sold on ebay for over 5 years.  I have never hated a company more than I hate ebay.  Ebay forces sellers into free shipping with its torturous DSR ratings while shipping rates climb higher, and NOW THE NERVE of ebay to RAISE FEES to immitate Amazon!  Donahoe is a fool, and this LIE the ebay PR machine is spinning should be illegal!

I hate ebay, their abuse and disrespect of the customers who have paid their ridiculous fees for years.  As a seller, you never know when they will screw up the selling environment with their arrogance that sellers are expendible.  Sellers are quitting, and taking buyers with them.

John Donahoe, you deserve to be fired for all the abuse you've dealt to your customers!  Selling on ebay leads to depression and anger once you realize how much ebay hates its members.

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This user has validated their user name. by: Bill

Tue Jan 26 22:05:36 2010

I just cancelled all my store items - over 1000. I have subtitle on all of them so when they renew after the changes take place I will be screwed bigtime at $1.50 a subtitle.

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by: skeptical

Tue Jan 26 22:12:04 2010

RHB said that ''the new total fees are considerably lower than alternative sites with equivalent traffic.''  

Gosh, I wonder who he could have meant. There's only ONE and it's really infuriating that he was equating eBay with Amazon. Amazon is NOT considered to be an 'alternative' to anyone, particularly eBay.  It stands alone, and eBay is the site that is trying to BE another Amazon.  Alternative sites are eCrater, Bonanzle, OLA, etc.  And comparing the fees, yes, Amazon is high at 15%, but now in media, eBay is at 15% FVF plus listing, plus Paypal's forced cut of the deal.  But Amazon listings are FREE, really FREE, not FREE with a hitch.  Amazon takes care of the payment.  If you don't have payment you don't have an order.  Who takes care of the eBay payment?  On Amazon, there are no UPI claims.

There's another big difference.  In the 4th quarter of 2009, Amazon had TRAFFIC!  Amazing traffic. And I was able to earn the income I was not able to earn on eBay this past holiday season.

'Cheers' is an inappropriate ending when your message is alot less than cheerful.

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by: Patricia

Tue Jan 26 22:15:53 2010

@ Ebay's Slow Death

"For some reason, no other big internet business will take on the Monster, and offer auctions. People like Amazon, Google, Craigslist or Microsoft won't touch them."

Just for the record both Amazon and Microsoft had auctions at one time.  In fact, Microsoft's included three auctions sites and you showed up on all three but paid for only one - I guess you're fairly new? ;-)

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by: thumper

Tue Jan 26 22:17:43 2010

Hello everyone pay attention the only store that guarantees full exposure is the $300 dollar store.This is about visibility

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by: Ammar

Tue Jan 26 22:35:37 2010


This will be good for the big guys, and worse for the small sellers.

http://www.OnlyJust.net

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by: *sigh*

Tue Jan 26 22:47:52 2010


If only Yahoo would flip the switch back to ON for their auction site.


Too bad ebay made a back door deal with them several years ago to slither between the sheets together and turn their auctions off... yeah, ebay doesn't like REAL competition.


A seriously dumb move for the now failing Yahoo. Talk about romance gone bad.

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This user has validated their user name. by: Basset

Tue Jan 26 22:49:27 2010

Here is a snapshot of how a family’s eBay buying / selling habits have changed over the past 6 months, and initial reaction to these changes.

SELLER STANDPOINT: January 1st found me newly open for business on eCrater. Why??? Because my eBay sales took a steep nose dive beginning last Fall. Many others on this blog describe the same experience in the same time frame – coincidence? I think not. In 2008, same fall/winter season, same perilous economy, I was doing MUCH better.

Then last Fall, TRS came out. With 99.9-100% feedback and high DSR’s, eBay was taking my money but treating me as less than equal to someone with the orange dot. They were even trying to get buyers to ignore me completely with the Purple search box – while taking my money! So I began to explore other options. eCrater is still new for me, but interestingly enough with cross-promotion, my first sale on eCrater led to a sale from my eBay store! Since January 1st, I’ve listed more inventory on eCrater, purchased domain names for a future website (learning curve, or I’d be there already), and my next venue will be Bonanzle. Three venues will be enough for me to deal with until I do the website thing.
 
Currently, I am an (almost) 3 year basic store “Powerseller” with 100% positive Feedback, recent orange dot (oops, TRS), my eBay store has a lot LESS inventory than it would have had before 2009’s changes. I would have 250 – 300 inventory items in the past, with fairly good sell-through. Now I keep less than 100 items listed among all formats. Why? 1) The sell through rate has been greatly diminished, to keep re-listing items is like throwing money in a giant slot machine for a small payout now & then. 2) So I can keep up with all the Freaking Changes!!!!
 
These new changes have not affected my plans at this point. While continuing to invest time and inventory in eCrater and Bonanzle, I will probably remain an eBay basic store subscriber while I see how this pans out (most of my sales are still coming from there, at this time), but I currently have no plans to greatly increase my eBay inventory. Why would I if it just costs more? I will be watching to see if sales increase with the supposed visibility of store listings in search – and I’ve always used auctions to get visibility for my store. (eBay, could you POSSIBLY make the item page’s “sellers other items” link to the STORES we pay you for a little more visible??? More sales are a good thing, right?)

One upcoming change I DO like is the free photos. Start that ASAP! Should have been doing that all along! My category is “clothing, shoes & accessories”. I have held back on additional photos due to the overall monthly cost. Now I can add photos – close-ups of fabric, etc... Many of my store listings already have one extra photo at 18 cents total cost, so I’ll actually be paying 2 cents more to list it in store fixed price, from what I understand. I sure hope that is correct! With my luck, I read it wrong.

BUYER STANDPOINT: My family buys almost everything but groceries online. In the past we’ve looked at eBay first. After they messed up their search feature we could not always find what we wanted. I do NOT like the way SEARCH is currently set up. Last fall, we did start searching other venues more often. We can’t always find the item we want on smaller venues, but usually do find what we need on Amazon, retail sites, & sometimes eBay (those not familiar with eBay searching may give up!). Also, we have less to spend, partly because of lower sales in my eBay store!

For whatever reason, I am finding less and less of what I am looking for on eBay these days. Perhaps it is because the small to medium sellers have gone, and they have taken my would-be purchases with them!

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by: vipers

Tue Jan 26 23:01:37 2010

Both of my accounts do not qualify for the premier store according to my low dsr ratings. I am a pretty high volume seller and my past 3 month ratings are all under 1%. One of my 1 year ratings is slightly over 1%. I thought for volume sellers it goes by 3 months?

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