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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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Readers Comments

Perminate Link for eBay Announces Fee Changes, Will Eliminate Store Format   eBay Announces Fee Changes, Will Eliminate Store Format

by: ma

Thu Jan 28 01:21:20 2010

I wasnt quite thru I guess. lol I used to be a power seller... then with the economy and the changes in search I became a small seller.. even with 4.9 on all DSR Im not a TRS. still just an ASS

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by: David P. Hollingsworth

Thu Jan 28 01:24:58 2010

Hey, MA, I hear what you're saying. I don't know if we will use the 99c format much except for some misc stuff to get rid of that we KNOW will sell much higher. And it could also be used to attract customers just as the coner store sells milk at cost just to compete AND get the customer in the door.

I reallly think you need to have a better market and/or product line to sell on sites like eBay and the others that have been mentioned. o/w you'd be better off buying a stand alone e-commerce pkg and running your own store with PayPal - unless you can get a really good cc merchant acct from a friendly banker.

And diversification of product lines is probably going to be something you'll need to research. As I said B4 i think that some of the seller's in the electronic/media markets are not going to be happy. Regardless of the changes, the product line you carry may not be suitable for eBay... just as our product line is next to VOID on Amazon. Sure they're a great company & have some smarts... but if they don't/can't accomodate a decent collectibles/antiques specialty, there's no way we're going to even try and break ground there. That would be suicide for us.

Check out the feedback from sites like SkipMcGrath.com for their take on it. I agree with the comment about CHASE getting involved... Once they took over Mellon Bank years (decades) ago, I don't trust them either!

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by: Mike

Thu Jan 28 01:33:35 2010

I need one of those graphing, hi-tech, calculus, trigonometry, chaos theory calculators to figure this all out vis a vis how it affects my business.

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by: s hall

Thu Jan 28 01:43:45 2010

I was just over on the other auctionbytes blog & saw this little diddy & I think its an idea whose time has come so I copied it to share & I think I will post it a few places, I think like this guy if another auction site opens that now is the time it would run like wild fire, auctions do build excitement & BONANLE is such a friendly site they would explode there. Here is this guys blog.

''Look, it is pretty simple, we need a new venue that offers auctions to fill the void that eBay is now creating .. I have told the BONANZLE TEAM several times that I would move in and list there tomorrow 50-100 items a week or more .. I was a powerseller on eBay for 10 years under 2 IDs , I am limited by space so I can't list a 1000 items on any site just to park them there till they sell, one thing for sure at the end of a week long auction many will be gone & it will stir up some activity .. I had a sell through rate of 98% on Ebay before Donahoe & best match came along & immediately after dropped to 25%-30% after .. My listing fees were higher than my total sales .. They thought that there just wasn't enough interest in auctions to bother .. I would ask you to please send your cards & letters to the Bonanle Development team to re-consider offering the auction format on their site :) Please tell your friends & relatives too & maybe we can get a whole new beginning for auctions on a friendly site .. Thank You, Allan Kraig''

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by: David P. Hollingsworth

Thu Jan 28 01:45:28 2010

Hey, MA:

We didn't fair well thru the 2008 fallout. We closed our last retail store in Western New York in Feb.'09. 10 years ago we had 7 stores across the country. I miss them but I can't argue the fact that on eBay we sell stuff that has been in our stores for years AND at prices 2-4 or more times than what our sticker price was. Not always, but more often than not. There is NO WAY we could've increased our revenue with walk-in trade like what we have done on eBay.

The only draw back is that it is very time consuming to properly list items for e-commerce. You just can't unpack an item, sticker it and stick it on the shelf for a customer to find it. Since almost all of our 270,000 item warehouse inventory is one of items, or of limited quanities, we try and group similar items together which makes listing much easier once a basic listing has been formed. We have about 109 diff templates to cover our inventory too. Our eBay store is closing in on 2,000 items and we have the same pursuit there as we have when we do shows: Take everything & you're bound to sell something! So the more we can get that 270,000 item inventory listed in our basic store, the better.

After 30 years as a retail specialty antique dealer, we're looking quite favorably at finishing with eBay reducing our inventory. We've started playing around with eBay in  Oct. 1999 but it wasn't until July 2007 that we serious changed from retail to e-commerce. My retail store costs each were $1-5K/mon. depending on size, location and number of staff. My eBay store hovers about $150-175/mon. Clearly eBay was the better choice as far as overhead is concerned and esp. my ROI.

So, friends... if you're still thinking you in trouble... (1) get your own e-commerce site (2) diversify your inventory - maybe open another account! (3) get busy and work eBay - or (4) get out. The grass is always greener on the other side of the fence. Sometimes.

Do I make any sense to anyone?

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by: David P. Hollingsworth

Thu Jan 28 01:50:19 2010

Hey mike... no worries. If you check your messages from eBay they provide one of those charts to figure out how it's going to affect you. And it's not complicated either. You just need to input some info you will need like your average monthly sales, price per items, number of items sold, etc... and click the CALCULATE button and wowie! It's done!

We even used it to adjust our figures to find break even points and do future sales projections.

Check it out!!!!

Perminate Link for eBay Announces Fee Changes, Will Eliminate Store Format   eBay Announces Fee Changes, Will Eliminate Store Format

by: connie tobieski

Thu Jan 28 02:07:56 2010

I will close my store on march 30. i only opened it in september to sell items i have and i do not devote full time to it nor do i want to. yet the search results for my items are almost non existent and i can often never even find my items in search. if your search is not perfect you will not show up. so let's say you have a thousand items you want to sell. you list on ebay at 3 cents total of your fees for a month are 15.95 plus the listing costs of 30. your search yields no results and you have sales of 15 to 25 items a month sell. you have nearly no margin unless you pay nothing for an item. if you now go to the new store format you pay 235.95 a month in fees just to list versus the original 45.95 and it is a clear choice. you need to go somewhere else to sell or you close. as far as i am concerned and this is most likely thousands of small sellers stores they will close. And finally look at the timing of this fee increase from these b&stards. just enough time to go thru february 28. February is the short month so most sellers will look to get their listing up thru the end of the store. Then cancel the store format and say bye to these thieves. One thing is a surprise here. Either they have amazing pricing power in being able to raise their fees by a factor of over 6 ir they are showing no financial results and want to just milk the thing. I am not sure here as I would need to look at their financials. but i for sure will pack up my small store and be done wtih the ebay.

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by: fruity

Thu Jan 28 03:06:48 2010

I think those big sellers who see this as competition for Amazon might not realize that the majority of them sell the ordinary and I highly doubt you want Amazon deciding to go buy your competing product because they will price you out of the market. Do you really think for one minute that Amazon is going to give up their market to Ebay?  What do you think BUY is doing right now. They've been buying up all your SKUs. I see a ton of mega sellers not wanting to put SKUs in on Amazon, because you guard your mfgs. You try to pass it off as your store name.

Careful what you ask for because it seems to me that you are more disposable in the world of retail than any of us lowlies. All you have is a SKU. A SKU that your competition has. You have no personality because you dont want to bother yourself with buyers, it's not worth you time. And let's not forget that before ebay redid the feedback system for you, you all looked pretty sucky from our tore up lawn chairs. Reality is, you're threatened by us and if I recall it was the mega sellers who were crying to Bill Cobb and who were the sames ones flooding the site with 10 pages of .99 identical listings with per additional item surcharges and padded shipping. Because ebay catered to you, you guys did more damage to the buyer experience than any of us small potatoes.

We might be a bunch of refugees but one day we will have our home, and we won't let in you fat cats because you clutter up the site with boring just get it at walmart stuff and your constant dissing of buyers who can't read your 2 pages of policies. It takes someone with a real stuck on themselves 'tude to want to hog up a place just for themselves when the majority of us are so small we only need to sell 50 to 100 items a month to make our way.

The problem with the elite sellers is they actually think they're going to stick around. You might be 1 up on me your seller of priviledge, but you're not that far away from the trailers like the rest of us. You're successful because you compare yourselves against us. I highly doubt you're successful when compared to the "real retailers", the internet top 500. I'm sure they look at you like umm unprofessional inefficient ebay seller. I hope that this happens. I hope that Amazon and Buy.com grab all your inventories and we'll see how successful you are in a few years when your margins decrease. Please, you're the token competition, that's all and When you support diminished competition, then you can expect that to happen to you. Will you complain like all of us or will you cry in private. Only time will tell

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by: Allan Kraig

Thu Jan 28 03:11:51 2010

Thank You S Hall for posting my desire to have BOANZLE Open their format to host auctions there finally, I will be there in a New York Second when & if they do & the climate has not been better for the change there .. Allan Kraig

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by: tev

Thu Jan 28 04:23:52 2010

Ina, could you? would you? do a basic poll for the general public.

Poll Q.
Do you like the new ebay fee structure?

Yes
No
Undecided

Thanks.

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by: Allan Kraig

Thu Jan 28 05:36:05 2010

What I would like to see is a man on the street survey .. Go to local post offices & check in, Check & see how much the volume has gone up or down in the last 2 years (I know how it's gone here in upstate ny, less than 1/2 it used to be).. go to some malls or what not and walk up to people and see their reaction is to the chanes & the elimination of the seller community and answers from their gut on ebay .. it would be very telling done right .. I'd bet the powers that be would be surprised to see the results .. just in brief conversations many people will pour their heart out about either themselves, a relative or friend getting beat up on eBay in either a scam or the higher fees .. geez, The thing to do would to organize a group in different towns to film it with a set of questions that are all the same for each interviewer & then collect them at one premise to cut them & make 1 long tape & evaluate the results .. Whose in? Allan Kraig ..

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by: Allan Kraig

Thu Jan 28 05:38:18 2010

forgot to leave my email if somebody is interested .. I think you click my name it will come up now .. Allan

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by: Jeff

Thu Jan 28 06:12:47 2010

The most galling thing is that eBay portrayed this as a decrease and the media bought into it.  When eBay has made changes in the past, they usually only affected a segment of the sellers (ie only stores, not conventional auction sellers).  This time they have raised fees on virtually every seller and I wonder if the sellers will really leave.  Also, it seems counter intuitive that they want to put store listings into core search, but are now going to flood the marketplace with 100 .99 listings each month.  The real test for me will be a few months from now when all of the sellers that are leaving will have liquidated their .99 items.  It appears that for my business model, my biggest increase is in the monthly store subscription that will go from $15.95 to $49.95 each month.  I really don't expect to fully recoup this increase even with better sales.
I have sold on eBay since 1997, I am a PS and TRS, and it has been a long time since I had any good feelings about being a member.  I love Amazon (as a buyer) but I can't sell my items (vintage sports memorabilia) on it.  If there was viable competitor to eBay I would be gone in a minute.

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by: Too fat to fish

Thu Jan 28 06:24:48 2010

So big fat cats right wing wackos - in other words ... China Junk sellers are welcome and encourgaged. BUT YOU--regular sellers - ebay does not want you, they don't like you, and they don't like the "noise".

Perminate Link for eBay Announces Fee Changes, Will Eliminate Store Format   eBay Announces Fee Changes, Will Eliminate Store Format

by: Jim McFiver

Thu Jan 28 08:53:38 2010

This new round of 'changes' is a very clumsy way for eBay to do a snake dance with Amazon and jack some more increases into the fee structure.

It feels as if the morons creating these changes are kids fresh out of graduate school trying to impress the boss with seemingly complicated fee formulas, without any inkling of eBay's history or of the seller's who make history for them.

The very core of eBay is auction-style listings. Period.

The joy of eBay is finding that odd, rare or unique collectible at a great price. It is NOT finding 50 copies of the same CD or DVD. That is what Amazon is for...and does it better than any outlet online or brick & mortar in the history of retail.

eBay's entire store concept has been a distant cousin to Amazon from day one. Get over it.

There is no question that almost any eBay clone at this point, with a focus on auctions and a reasonable fee structure, will become outrageously successful...because I for one am so sick of eBay's meddling, fee increases and mandatory use of PayPal that I'd be gone in a flash. In a flash.

And for you numbjobs in eBay management, here's the formula to post on your desk cubicle: K.I.S.S. (Keep It Simple STUPID).

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by: starshots

Thu Jan 28 09:21:59 2010

Once again e-bay is giving-little-with one
hand and taking-a great deal-with the
other. They forget that without sellers
selling via e-bay due to their outrageous
price increases/changes in terms, buyers
will be fleeing-going elsewhere to spend
their money. Hardly a wise approach to
coping with a down-economy. How sad.

Perminate Link for eBay Announces Fee Changes, Will Eliminate Store Format   eBay Announces Fee Changes, Will Eliminate Store Format

by: Bruce Hershenson

Thu Jan 28 09:33:44 2010

I think eBay's logic is to get rid of the weaker sellers, and then the strong will make more money because they have less competition, and therefore can pay the higher fees.

And eBay will be able to get rid of 90% of their support and infrastructure, because they will have so many fewer sellers.

They see it as a win/win for themselves and the giant sellers, and they don't care if they destroy tens of thousands of small businesses in the process.

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by: My Own Website Not Quite Paying My Bills Yet

Thu Jan 28 09:39:30 2010


People should realize that there will be more fee structure changes in the future. I'm just waiting to hear that listings will be free but the store subscription will go much higher.

The best thing to do is to have your own website and then promote the heck out of it. Traffic will be slow at first but if you structure your site properly with proper keywords and then promote your site effectively, your traffic will build.

Please take the time to learn these.    

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by: My Own Website Not Quite Paying My Bills Yet

Thu Jan 28 09:43:22 2010

"I think eBay's logic is to get rid of the weaker sellers, and then the strong will make more money because they have less competition".

That's probably EBay's big mistake. They don't realize that the competition now comes from other venues such as Amazon and from people's own websites.

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by: sheri826

Thu Jan 28 09:53:39 2010

In so  many articles I've seen writers touting "reduced listing fees" but they don't write much about the new final value fees. Right now, I make about 10% per item after selling. With the new system, I'll be lucky to make 5% since all my items sell for between 100 and 300 dollars. It appears e-bay doesn't care for the little seller. Looks like I'll be done by the end of March unless e-bay rethinks this. They are going to loose a lot of sellers over this decision.

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