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Tue Jan 26 2010 08:14:29

eBay Announces Fee Changes, Will Eliminate Store Format

By: Ina Steiner

Sponsored Link

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

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by: BigSissy

Fri Jan 29 17:42:05 2010

Here are some #s to demonstrate the new plan.  I have a Basic eBay Store (won't for long)I paid 15.00 for the store and 3 cents each for the 1000 listings.  Monthly cost--Just under $46.00 PER MONTH(+ sale %) Here are my 3 options:  (1)Keep Basic store and pay $15.00 + .20 x 1000 listings or $200 = $215 PER MONTH  (2) Move up to $49 store + .05 for my 1000 listings= $99 OR (3) Move up to $249 store to keep my current .03 X 1000 for $269--Some Deal!!  

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

by: mike

Fri Jan 29 20:52:17 2010

Say you have 100 items in your home you want to sell at a fixed price. Oh, anywhere from $3 to $15 each. You put up 10 items per month and sell 2 per month.

It costs you 10 x 50¢ insertion fee - $2.50.

You pay final value fees for each item.
9%.
so you sell  2 items, total of $10 add 90¢ final value fee.
Now you have payed $3.40

You then pay paypal the % for accepting your payment.
$1 paypal

$2.50 insertion fee
90¢ final value fee for two items
$1.00 final value fee

Now we are at  $4.40

LOL!!!!

I assume they want to "kill" small time fixed value selling.

Heck with this - - let the competition come on it.

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

by: Ann

Fri Jan 29 23:39:34 2010

It's an INCREASE! Ebay offers a fee illustrator so that you can insert your monthly numbers to determine the ''new'' selling option that works best for you...with 2000 items in my store, and 50 items/per week at auction my fees INCREASE a minimum of 20%.  50% if I was to continue with the basic subscription rate. The only good thing about this is better store-item exposure when, if you think about it, we should have anyway...
The $.99 or less auction starting price is a joke for those who sell in the antiques/collectibles categories. Who can risk it?  Ebay no longer has the buyers it once had and if they continue to make changes such as the most recent one, they will also no longer have the sellers.  

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by: another side of the coin

Sat Jan 30 00:11:59 2010

Where the big con is stating ''better exposure''. I wish it was true but I don't see this happening except for the mega diamond dog stores. Add to core all the influx of .99 free auctions, all the stores, fixed price listings and especially the worst Best Match with time NOT ending soonest. What do we have here? ... one big imploding mess. And your reward for all your hard work .. a whopping increase in your eBay invoice. Gee, so much to look forward too. I think we should all join together and demand reimbursement for services not rendered once we receive our first invoice after March.

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by: sickmen

Sat Jan 30 01:28:00 2010

The only solution for anyone with a brain is to start thinking about leaving ebay all together!!!!

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by: Sam

Sat Jan 30 03:00:04 2010

This is the last straw for me to!

Nobody mentioned the obscene "Subtitle" insertion increase for store items.

From .02 to $1.50

I now have 700 items to bulk edit the subtitles I relied on to improve search results. .02 was a deal but $1.50 what is that? an X Thousand % Increase.

This is too much.

I was going to start listing 1000+ in the hopes of selling 60 or 70 a month.

Now to open my own store.

Just to get this straight....

Does the 49.95 come with any listings or is that just the base fee to list anything at all?

Why even bother having a store?

Branding?

Nobody will shop the stores anymore.

Doesn't make sense.

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

by: David

Sat Jan 30 07:03:18 2010

EBAY SERFDOM
EBay Fee Changes 2010

The eBay marketplace is like the serf-based feudal system of medieval Europe. In medieval Europe there were rich land owners called lords. The lords had subjects called serfs that worked their land growing crops. The lords did not labor – except to occasionally whip the serfs to keep them working hard. The serfs were required to pay a large portion of the crops they grew to the lords as a form of rent. The big problem is that the serfs were trapped – they had no means of feeding themselves without the use the lord’s land. This problem led to abuses and near-slavery for the serfs.

EBay strives to create such a system today. EBay owns the marketplace – the eBay site. The marketplace is like the land in the feudal system. Because eBay is by-far the dominate marketplace on the Internet they can act like a lord. EBay can dictate any rules they want to the sellers. If the seller depend on eBay’s for their livelihood are required to comply or starve.

The new fee changes will cause most sellers to pay a lot more. Typical small to medium eBay store sellers will see listing fee increases from 70-150%.

EBay wants to help those sellers earn the money they need to pay the higher fees. Sellers now get all items in full search results. This should result in more sales. With the extra sales sellers will be able to pay eBay more.

These changes are like the feudal lord telling the serfs that he is generously increasing their farming area to 3 acres from 2 acres. At first this seems wonderful. It will help the serfs grow more food for their families, but it is not as it seems. Later it is revealed that the land rent has increased from the crops from just 1 acre to the crops from 2 acres. The serfs still keep the crops from 1 acre – same as before. Now the Lord gets double. The serfs just work harder – all for the lord. EBay is playing the same game.

As long as eBay is the dominate marketplace sellers should only expect the situation to get worse. Don’t allow eBay to turn you into a modern-day serf!

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by: PAT

Sat Jan 30 09:04:07 2010

Frankly....I'm delighted! As a seller at a some of the smaller auction sites I think this is just the ticket for driving both more sellers ...AND...buyers off EBay and to the other sites!

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

by: whatever.

Sat Jan 30 11:55:51 2010

Speaking only as someone who loves the concept (auctions!) and recent re-design of eBid but also speaking as someone who has listed on eBid items that have sold well for me on eBay UK--and have had zero bids, zero sales, and single digit views:

people asking for an auction site: eBid is there and has been there BUT needs traffic, needs promotion, and needs a better URL for U.S. based browsers, searchers, and potential buyers.

And so, while I wish Amazon would flip the auction switch back on (and really sink Donahoe's pathetic attempt at imitation), or Yahoo bring back auctions, or Google start up a site, or Bonanzle add auctions, we shouldn't forget that we already have eBid but it needs work to be viable in the U.S. to become what eBay used to be.

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

by: RatherRuss

Sat Jan 30 15:54:51 2010

The only way this works is if the extra exposure works.  Basic store 15, 1000 media listings 30 bucks with sales of 1000 at 12% FVF. $120..all things being equal (i.e. exposure doesn't work), Store 50, listings 50, 1000 sales at 8% 80, total of now 165, March total 180....not counting paypal skimming....the proof will be in the exposure and hopefully growth of sales.  No increased sales, no more listing on ebay....glad to see the power of the internet to do something besides drive profits down....Walmart mind rules I guess....anyhow, easy to test this in March and April....how to change it will be more interesting...RatherRuss

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

by: Ray

Sat Jan 30 16:05:38 2010

I already posted a long post that was originally slated for the ebayink blog but it was not posted as it was too long I believe.

Anyways I think medium sized sellers especially can benefit from the changes if you know how to do it.

I think we will have higher sales rates due to the better exposure.  Also I stated how if you want to mix up auctions and fixed price, have two accounts, one as a premium store subscriber or one as a basic one.

If you are a very small seller that does fixed price, the basic store is an ok deal compared to the .35 cents a listing it cost before, to list fixed price on the eBay marketplace.

A lot of you are complaining how a lot of auctions will flood the site.  Its probably true but I say we should take advantage and list auctions ourselves.  Its also a great way to get traffic for your other selling venues.  If the item is uncommon you can probably get a good selling price.

While eBay changes are never fun and as I stated in my other post, the final value fees are ridiculous for all of the work we have to do plus the store fees and paypal fees;It's still a great selling venue most of us cannot just leave.  Even if you use eBay just for the free auctions, you will come out ahead if you market your other selling venues by having a header with your company name, etc.

I hope they make top rated seller status easier to get and change the feedback system as that's what really messes up sellers right now since most do not get any discounts.

Look at the tips I posted in my last post and I think many sellers can actually come out ahead.  Of course I am not that happy about all the changes and of all the issues eBay still has as a marketplace but what really matters is it still gets a lot of traffic and if you are good at selling, you can still make a profit.  

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

by: another side of the coin

Sat Jan 30 16:48:49 2010

Let me put it another way there is NO increase in exposure. They are using ''exposure'' as a lure. It's a ruse, scam, con, whatever you want to call it to get MORE money from sellers, period. IF and this is a big IF there is any ''increase'' in exposure, it will to the anchor stores. Everything is going to be dropped into core - stores, auctions, fixed, free under $1.00 listings, old, new, media, antiques, collectibles .. all under one umbrella and one big melting pot. After March, when you do not see an increase in exposure to justify your increased fee invoice, they will blame it on YOU, the sellers. You did not jump through enough hoops, once again. Not using the right keywords, not a TRS, not a PS, low DSRs, feedback, etc.

If eBay finds they have to give too many discounts on FVFs then don't forget they are changing the requirements for Powersellers and Top Rated Sellers in April. Also they are changing the feedback that they have been testing to a 1-10 scale rating. So if you as a seller get less than a 9 or 10 as a recommendation no more discounts. See eBay will always find a way to punish us naughty sellers. eBay is turning into a concentration camp.  

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

by: nora

Sat Jan 30 20:31:02 2010

''Let me put it another way there is NO increase in exposure. They are using ''exposure'' as a lure. It's a ruse, scam, con, whatever you want to call it to get MORE money from sellers, period.''

I agree totally with your statement, the increased exposure statement is just to 'misdirect' your thinking so you don't focus on the increased fees.

The pick-pocket uses misdirection to divert your attention while they pick your pocket. (EBay says; look at the increased exposure; mean while, whoosh there goes your wallet)

Ebay are no better than thieves.  

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

by: ex silver powerseller

Sat Jan 30 20:44:39 2010

Trying to import my ebay listings to Bonanzle as usual. Usually, there are 5-10 jobs waiting. Right now, 164 jobs waiting to transfer listings OFF Ebay! Great job Donuthole

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

by: Allan Kraig

Sat Jan 30 21:08:41 2010

Something for your viewing pleasure while you wait for the other shoe to drop ..

http://www.youtube.com/watch?v=nwmKjYaf4vY

http://www.youtube.com/user/ebayink#p/c/BAB3F43440772165


http://www.youtube.com/watch?v=aiUjim34Iw4  


http://www.youtube.com/watch?v=up306ofOMMw


http://www.youtube.com/watch?v=tsmKbCdDScE

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

by: You forgot one

Sat Jan 30 22:29:22 2010

http://www.youtube.com/watch?v=Et1no20Sgj4

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

by: skeptical

Sat Jan 30 23:41:50 2010

Forgive me for repeating some of the same comments I made on the town hall meeting site, but they seem to fit here

I would like to know what eBay proposes to do after March 30th that will bring enough buyers to the site so that all of the sellers will be successful enough that their stores are worth the new price.  We all know that eBay's listings doubled in the last quarter of 09 but their sales figures were flat. The 2009 Q4 numbers reverted to 2007 Q4 which I am sure had fewer listings.  Quarter 4 is obviously a peak selling period and only had Auctions and BIN in core.

Unless they are getting in a slew of new buyers, there will be slim pickins for sellers even if store items are in core.  Of course, eBay will benefit from the 'reduction' of fees  They'll be collecting up to $300 a month from sellers who have no idea whether their items will sell.  Also higher FVFs if the items do sell.

Such a drastic fee increase indicates to me that they need the cash infusion, but are honoring the 60 day rule.  The new fees kick in at the end of the first quarter -- that quarter will have partial Skype money in it.  The 2nd quarter of 2010 will now be covered by the influx of new store fee money, before one item is sold, as will each month forward.

Even though they state that its a fee reduction, it's a drastic fee increase and that will improve their numbers even if their sales fall flat again with the huge number of items which will now be in core.  

The best to all who continue with or sign on to new 'store' plans.  I think I'll just stay as an individual and pick and choose between Auctions and Fixed Price.

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

by: Andrea B

Sun Jan 31 00:39:04 2010

Well, I have been pretty much losing money on my Ebay store for about a year and a half.  I have been hanging on, hoping I would just start selling a few items a day to start coming out ahead.  I have been contemplating dropping my store but figured I would try to at least get rid of inventory.  Ebay has made my decision easy.  I get the point Ebay... you don't want me around anymore.  I fold... you win.  

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by: bite me

Sun Jan 31 16:21:49 2010

I think they need to do this. They need to focus on auctions and not on buy it now like most stores use. The prices just aren't that good compared to other venues like amazon. Especially when you consider all the hassle.

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by: TDMee

Sun Jan 31 16:56:05 2010

It's been quite obvious for a very long time now that ebay only cares about how much they make and not their sellers.Be it the small part timers or full time power sellers.
Buyers always feel and say they are more important than the sellers.With ebay's kid glove treatment towards buyers versus their hard knuckled treatment towards sellers shows us they agree with the buyers.Yet without  sellers there could be no buyers!How hard is that to comprehend?
Because of that buyers have sellers by the short hairs.Between one way feedback,buyers remorse or any number of reasons buyers invent just to get over on sellers.They always get their money back & often even get to keep the items.So who loses 99% of the time?The sellers as usual.
Now with these new changes that are "supposed" to save us money,once again ebay believes sellers will buy the garbage their feeding us?
Myself along with two family members & a friend were all planning on going from part timers to opening stores next month.
Ebay can forget it.We're going elsewhere now.That's 4 new stores not opening and 4 separate part time sellers closing up before the new fees are implemented.Will ebay care?
No because they have not for a long time now.And regardless of what they always say and/or will continue to say,,it still will not be believed.
Actions speak much louder than words so the only things we do believe because of the consistency of fees aways going up are just that.
And buying from ebay will also take a dive because sellers will now have to raise their items to cover the loss they'll be taking in the raised fees.
Good going ebay-once again your greed shows through loud and clear.

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