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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: Go to The Press

Mon Feb 1 10:26:01 2010

Since eBay gets to go to the press and LIE why don't we go to the press with their fee schedule in hand, and call them on the carpet?  Then they'll have to spin it again. Was at a dinner party last night and anyone who now SELLS on eBay already know it's a sham. eBay does nothing for their customers.  Present management better work hard to keep their jobs.  No company in their right mind will hire any of them once this balloon pops.

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by: Ace

Tue Feb 2 15:32:07 2010

I was on Ebay last night trying to find Craft Sewing Pattern, did a search and got 7, 600 items to search thru, the Best match didn't show but a variety of prices and auction or buy now's.  On the Left side it was broken down into sub catagories, but Sewing Pattern was 7,000 still. as I switched from lowest price geeze.... switched it to highest  geeze... I still couldn't find what group I was looking for. and THIS is BEFORE they add all the STORE inventory that will be changed in March.  And now there is a Fixed Price Sale till March 30,,, Oh MY it will be Flooded.....

I figured with the Premium Store I would have to upgrade, 15.95 divided into 49.95 = 3.13 times,  so If I signed up for Premium, that is 1 -  15.95 for me, then I would be paying for 2.13 Stores for Sellers That Leave Ebay...... WoW!!! They Suck the money out of the ones that stay and they Have to Drop inventory about 60% to break even where they are now......

 Well we fuss over having no customers, but Ebay doesn't care, they get their money Monthly from Sellers for Store, Store Listings and the extras that people add to their Listings, so Changing the Store Format they covered their ASS if people want to leave.  

And what is this about this format (or similar format) is used in UK? not sure of the other site, and they are doing well with it, Well when you have NO Say IN THE matter you either tuck your tail under and follow the Theif or Run like mad away....... but where do you go???????

It was one thing to raise the Store from 9.99 to 15.95 that was not good but greedy, but to make us go to 49.99, there is no Actual Reason for this, Look at the Millions of Profit they Make.  

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by: fruity

Tue Feb 2 18:16:46 2010

Revenge is a dish best served cold

I found a new way to fight back, I hang out on SFGate and the political blogs. So everytime they say something about Meg Whitmans leadership I give them a mouthful.

lol Ebay, you want your leader to get into the Governors seat? Then you best start repenting for what you've done

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by: buck efay

Tue Feb 2 18:43:03 2010

Ebay just pulled the message boards. The drop down now reads workshops message forums. The old boards are gone.

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by: buck efay

Tue Feb 2 18:46:04 2010

Boards back up, but they have shown their hand now, something is up. They have been pulling tons of posts today.

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by: lb

Wed Feb 3 11:53:40 2010

This is just another instance where ebay is hiding rate hikes as savings.  Up front costs for a huge number of seller will actually go up.  I normally have around 4000 items in my ebay store and pay approximately $135 up front per month.  My new rate up front for the same thing is going to be around $250.  That is quite a significant increase, but they are listing this as a decrease.  What surprises me is how many people actually think this is a good thing.  It is definitely a good thing for ebay's pockets, but not so sure about the sellers.

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

by: JSGeare

Wed Feb 3 15:23:17 2010

The answer to the question about selling expenses being greater or lesser under the new fee structure is the same as the answer to most questions about Ebay fees and policies: IT DEPENDS!

That said, there is no question that a 9% FVF is more than the predcessor fees, and the $50 cap therefore applies only to sales in execss of $555.50. I honestly don't know how many items on Ebay sell for less than $555.00, but the number is no doubt significant, and a 9% FVF would, seemingly, quickly make up for any revenue lost to lower listing fees.

All of this, on the numbers alone, introduces an element of risk and uncertainty for sellers. The perceived risk is even greater with starting prices of under $1.00, if items so listed would normally take a price closer to the seller's cost or target selling price. Given an economy which presently is defined by uncertainty, the reasoning behind Ebay's new fees seems counter-inuitive, to say the least. Perhaps the most certain logical conclusion is that Ebay hopes to enhance profits from the new approach. While we are accustomed to thinking about this in terms of the negative possible impact on sellers, it is the buyers who are the ultimate hostages, for it is they who shall pay for Ebay's profitability no matter what patchwork of sellers is offering the goods.

Even if some convincingly pro-forma statistics would suggest that over-all seller cost will go down, on the average, this leaves open another certainty -the very same certainty that applies to the weather. If you don't like the weather NOW, don't worry, because it will change. Likewise, whether the current pricing is good or bad, Ebay will be changing pricing format in one way or another.

Given what has happened so far and seems bound to continue in the forseeable future, seller fatigue from keeping up must at some point become a factor.

Meanwhile, the Ebay leadership and many committed sellers dismiss the reasoning of those who are taking their leave, or even just complaining, as the view of the minority.

The logic of that assessment is to my mind unasssailable; indeed, the sellers who are now floating their boats elsewhere area minority. This fact, however, has no bearing on the merits of their logic for so doing, nor their experience as sellers.

One might argue with complete credibility that the first people to abandon a burning ship at sea are a minority; yet few would question the logic or motives for making an escape, especially when the captain and officers are pouring more gasoline on the fire while charging passengers extra for the added excitement.

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by: Angel

Thu Feb 4 12:05:01 2010

As Quickly as POSSIBLE...it is VERY IMPORTANT that EACH and EVERY ebay STORE Seller MUST do their own personal new MATH for calculating the REAL COSTS of the new pricing to YOUR ebay Store

ALERT !! Sellers!!....You must Pull out a calculator, Compare the two sets of Store pricing for Basic and Premium Store flat monthly fee and you MUST price out the QUANTITY of items listed right now in your Store Per listing fees...and you must include the new cost for extra photos and listing SUBTITLE fees...

And....Your must ASK ebay what the price for extra photos will be...

And -- if you look --  the bay pricing Charts re: new Fees to Store Sellers do NOT show the visible pricing for a listing SUBTITLE ...as of 3-30-2010...
So, what is the new price??????

SELLERS with STORES must ASK ASK ASK ASK....do not ASSUME...

ebay SELLERS MUST DO their personal MATH on the new and very SPECIFIC costs to their MONTHLY ebay INVOICE to KNOW what the financial DETAILS for your STORE will 'become' with the new pricing changes....

SELLERS MUST do this SOONER rather than later.
Don't wait until the last minute -- don't wait until the end of March to look at the details.....Otherwise, any Seller Can -- and many Will-- end up owing ebay a HUGE SURPRISE BILL after the 3-30-2010 Store and PER ITEM Pricing changes go into effect.

ALERT !! ebay Sellers MUsT look at each and every item in their STORE that has SUBTITLE text -- (look at your details on a recent ebay INVOICE to see which listings have subtitle fees now) and ASK ebay IMMEDIATELY because YOU MUST find out if the 'new' pricing for any Subtitle is 2 cents or is it 1.50? or what price??

ebay Sellers MUST ask if a listing shows 5 items available, does ebay count that as Listing Price x 5?

As of April 2010, thousands of ebay Store sellers are at risk of suddenly getting a huge 'new bill' because of the changes to pricing that went into effect. the shock of a huge new bill will happen ----because Store Sellers did not pay attention in a timely MANNER to each and every detail of the new price changes.

As for myself, my 650 listings in the STore means that my flat monthly fee would increase from about 68 dollars a month to about 110 dollars a month, before paying any Final value fees. I'll need to remove about 150 items from my store inventory...I'm in the process of removing most if not all of my Subtitle Text...and, I need to do this because in the past year, my ebay statistics for 'site traffic' to my store has decreased 75% due to the 'search methods' and the 'wall' up around ebay Stores in the Search process.

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by: RANDY JOHNSON

Thu Feb 4 22:02:31 2010

DOES ANYONE ELSE EVER WONDER IF JOHN DONAHOE IS AN IDIOT AND HAS NO BUSINESS OR CLUE ON HOW TO RUN EBAY. THIS LATEST FIASCO JUST PROVES ONE MORE TIME HOW SCREWED UP THIS COMPANY IS. THEY SWEET TALK WHAT A GREAT DEAL YOU ARE GETTING ALL THE WHILE STICKING THE KNIFE DEEPER INTO THE SELLERS BACK. THE NEW STORE SCREW UP ADDS 20 CENT LISTINGS TO WHAT WAS A 3 CENT LISTING RAISING THE FEES ALMOST 700%. WHAT A GREAT DEAL AND THANK GOD JOHN IS LOOKING OUT FOR HIS POWERSELLERS. I TO HAVE ALMOST 500 ITEMS TOTALING OVER $25,000.00 LISTED AS I WRITE THIS AND I WILL GUARANTEE I WILL BE CLOSING MY STORE AS OF THE END OF MARCH. IF YOU LIST ON MARCH 29TH YOU ARE GOOD ON THE FEES UNTIL YOU LIST AGAIN. AFTER THAT I WILL HAVE ALL MY ITEMS ON BONANZLE WHICH WILL IMPORT ALL OF MY STORE INVENTORY TO THEIR SITE FOR FREE. ALSO ECRATER HAS A FREE STORE AND FREE LISTINGS AND NO SELLERS FEES AND BOTH SITES ARE GROWING LEAPS AND BOUNDS. I TO GROW TIRED OF FIGHTING THE 800 POUND GORILLA AND WILL BE LEAVING EBAY HOPEFULLY FOR GOOD. I HOPE THE GREEDY SOBS IMPLODE.RANDY

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by: pat

Fri Feb 5 13:11:42 2010

Makes me really glad I closed my store several years ago when eBay did their first big store listing fee hike.  I don't even buy much there any more.  Too bad, I used to be one of eBay's biggest fans.

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by: FVF X 5?

Fri Feb 5 20:21:41 2010


@Angel brought up a point. Does anyone know the answer to this?

ebay Sellers MUST ask if a listing shows 5 items available, does ebay count that as Listing Price x 5?

I can't imagine they would be dumb enough to even think of charging you for multiple items before they are sold, but... this is eBay and dumb is what they do best!

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

by: PAUL

Sun Feb 7 09:04:06 2010

EBay, has pulled another trick out of the woodwork. Screw the little sellers.. Well Ebay screw you.. All this will come back to hurt big time.
After 11 years of broken promises of lower fees this is the biggest increase ever... People wise up... Factor in your paypal fees with the new listing fees... Wise up, it's time to leave GREEDBAY

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by: HappyToBeGone

Sun Feb 7 11:42:46 2010

Why biotch and complain about this? At least they went a whole year (2009) without raising the fee and NOW to more than make-up for in 2010! I left fleeceBay after the THIRD increase in 2008 - and though it took a while, I'm finally established on other venues (eCrater, Bonanzle, Buyitsellit), I'm selling more now than ever before on the bay. Was I scared to leave fleeceBay? you Betcha! Am I glad I did leave, despite going through a down period in sales? You BETCHA!

Oh! Want a personalized reply to email to support? Not a problem at any of the three I mentioned - but then if you like the high fees and canned emails that doesn't even remotely pertain to your question/whatever, stick with the bay!

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

by: rils99

Mon Feb 8 20:42:32 2010

Well, after 11 years with eBay I must say good bye. It's been a good run for the money but with the new fees I will not be able to keep my business with eBay. eBay's management runs the business like liberals run the government. If they need more money they just increase the fees ( TAXES ). Heaven help eBay if they ever cut the number of employees, find cheaper advertising, lower insertion fees to attract more ( new ) users. Turn the negative thoughts of eBay to positive ones. If eBay can keep the seller they will make big money next year. If they lose the seller they will go by the wayside. eBay will lose the smaller sellers who are cleaning out the garage and list that one item many collectors have been looking for. When these great finds are gone the collectors will also be gone as I am. rils99 started with eBay November, 1998  GOOD BYE

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by: איביי

Mon Mar 1 10:21:10 2010

E-bay is tring very hard to kick start sales after the 2009 downfall using the wrong tools.

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by: Jerry

Thu Mar 4 00:41:31 2010

I am closing my store and moving to etsy and onlineauction and webstore. ebay will loose $500 per month from me

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by: RA

Tue Mar 16 17:28:53 2010

As a picker who buys on eBay... I too am disappointed. My income is generated from purchases on eBay and every time eBay cuts into seller profits the selection of products diminishes even more. I fear one day they will be nothing more then a pimp for cheap and sometimes dangerous products originating from China.

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by: Troy alexander

Sat Mar 20 08:02:51 2010

Don’t be mad at Ebay

The fact that ebay sellers are by and large disgruntled as a result of the recent fee hikes and changes really is nothing new.  Every year—sometimes more than once—ebay decides it needs more and more money to satisfy themselves and their shareholders.   I suppose it was simply a matter of when-- not if—fees would be going up.  After all, it had been a year since the previous rate increase,  and,  ebay’s business model has been consistent in this regard if nothing else.  Their philosophy of “charge people more for less support,” has one they have ran with.  

The previous rate increase was generally not received well, especially with the news that sellers could not leave negative feedback for the buyers anymore.  This announcement regarding feedback ushered in a new type of ebay buyer, one who was determined to get something for nothing without fear of consequences.  By threatening to leave negative feedback , buyers have able to get partial discounts      

For items, free items, sales terms exceptions and the like.
Similarly, buyers were now free to bid on items and Not pay without fear of being tagged a non-paying bidder.  Not only is this extremely frustrating, it is expensive for sellers to have to list it again. Due to the fact that sellers do not get their listing fee back no matter what, each non paying buyer costs sellers money.    While many shrug off listing fees, expensive items like laptops can cost $3.00-$5.00 to list each time.   Perhaps, then, the change in feedback policy noted above borne from a financial motive like so many other ebay innovations.

Yes, the fact that ebay was again attempting to milk even more out of sellers wasn’t a huge surprise for this author.  Additionally, the fact that they were attempting to put a positive spin on it was very “ebayian,” as ebay has been fooling many with their “we are trying to make ebay safer for the community,” propaganda for several years.  What was a bit surprising—albeit only mildly—was the new level they had reached in this regard.  With great fanfare it was announced that ebay would now have “lower listing fees” for just about all categories.   They also announced very quietly that Final Value Fees would  “for the most part stay the same.”  Huh?   You know what would happen if I returned home from a business  trip/conference and told my wife that I was faithful to her  for the most part?  Wow.

While it has been clear that ebay did not care a bit about its sellers (or buyers for that matter) , what I did not know is  how stupid they all think we are.  Now, I admit I did attend California public schools, but I did manage to learn basic math.   It does not take most to realize that the nickels and dimes saved from the listing  “discount” really  doesn’t mean a whole lost when FVFs will be rising substantially—in some cases 190%.    However, Ebay has been telling lies and ½ truths for so long, they simply repeat the same thing over and over and eventually believe their  own lies.  And, if we don’t believe them, it really doesn’t matter in their eyes--they don’t care.      They know you will be back—and if you are not? Who cares?   Their reasoning is that even if sellers don’t return, there will always be new sellers on the horizon filled with illusions of making millions of dollars quickly and effortlessly  as an ebay seller.    



Buyers should be greatly concerned about this as well.  Obviously, sellers will need to raise prices in order to compensate for the increase in fees.  However, the other issue is that buyers will find it harder and harder to find what they want—at a good price.   The last two rate hikes drove many legitimate sellers either out of business or to other venues.  As rates continue to go up, those who have legitimate operations will not be able to turn a profit and will leave.  Between Ebay and Pay pal, rates and fees will now approach 20% for most transactions.  For Most legitimate retailers who buy from company distributors, this is more than their profit margin.   Ebay will survive  though.  It will survive in part via new inexperienced vendors replacing the longtime sellers.  It will survive as a place for less than honest buyers to sell their knockoffs, defective products, and otherwise mis-described items.   However, this will not  happen overnight, as many will still try to make things work for a while.

Maybe we shouldn’t blame them.  The basic rule of supply is that sellers want to supply more of a product at a high price all other things being equal.  Translation:  if people are willing to continue to buy your product as you raise the price. . . KEEP DOING IT.   Eventually, at a certain price, people will stop buying it, and that is when price evens out.

However, what is truly puzzling from an economic perspective is the fact that there are so many competitors who over the exact same service as ebay for a tiny fraction of the cost, but fail to grab even a small slice of the e-commerce pie.   The reason?  Buyers still are shopping at ebay, despite the fact that they could get the same item for less money somewhere else.    For example, ebid takes pay pal, it has auctions, buy it now, etc.  Our prices there (and our site)  are lower than those on ebay because off all the fees.  

A visitor from a different planet would likely ask, “Why on earth (NPI) would someone do that?”  Simple:
Ebay has convinced the world that their site is the only safe e-commerce site out there.  This simply isn’t true.  The fact is that it is Pay Pal who provides the buyer protection for transactions on ebay.  And, while pay pal is owned by ebay, they provide this service on other sites as well as private stores.  Basically, it is the buyers and sellers who should be telling ebay what to do—not the other way around.  Ebay is a middle man, a go-between, a parasite, a cockroach.  And they will continue to raise fees for sellers—and prices for buyers—until we stop putting up with this non-sense.  All they are is a provider of an internet commerce venue for buyers to buy things and sellers to sell them.  We keep hoping ebay will change, but it is not going to happen.    

One thing is for sure, you will not find me working my rear off for a $400-500 profit while  ebay  earns $2500/mo—especially since they think that I am too stupid to figure out basic math.  Wake up people—this isn’t a savings or a reduced rate.  To call it an increase would be an understatement.   This is an insult to both buyers and sellers alike.   I am posting more and more items for my business on ebid as well as my own site.

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by: Just Another Ticked Off eBayer

Tue Mar 30 04:38:09 2010

Ebay is going to crash and burn at some point soon here.
12 years of selling with them and all the money they've gotten from me no more enough is enough.
There's better ways to sell thee days Bonanzle and yes your own website as well.

I'm not giving shit away for .99 and only to be told my $1 packing fee for supplies is too high

Ebay if it was not for the small guys you'd be no where
Treat others fair or the people will turn against you and they will
March 30 should be anti eBay day!!!

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by: J

Thu Apr 1 07:22:29 2010

It looks like I am going out of business.  I am sure I am not alone.  When small sellers add up the new fees they will be shocked.  I have had a basic level store for almost 4 years now.  I have listed up to 1000 items per month.  All low in cost.  Most items are under $10.00.  I sell maybe 30 to 60 items a month.  I make maybe $200 to $300.  A wide range of items.  Differenet items will sell at different times.
I was paying $16 for the store and $.03 per item =$30.  That is $46 per month just to sell on eBay.  Now with the new fees at $.20 per item.  I would be paying $216 per month.  That is one hell of an increase.  Even if I got a Premium at $50 + $.05 per item a month would be $100.  I can not get a high store level right now.
All I can do is hope I am not alone in this problem.  That eBay ends up losing a ton of sellers to the new fees.  .03 to .20 I mean wow really???
 It is getting harder and harder to sell.  The shipping keeps going up.  By the time you add up the cost of the items+store cost+listing fees+selling fees+paypal fees+shipping costs.  Add to that any lose of items due to unhappy buyer or damage.  You end up making very little for all the time and effort.
eBay is no friend to sellers.  The feedback system gives no appeals for poor replies.  I have had a good deal of unfair feedback.  One buyer claimed I charged him 3 times for an item. I don't control that, Paypal does.  I only got paid for the 2 items he ordered.  Later said he only wanted to order 1.  But yet paid me for 2 and never told me not to ship 2.  eBay could careless.  I could not get the negative feedback removed.
I think eBay might have jacked up the listing fees for stores too much this time with.  It would be like gas going from $1 a gallon to $6 a gallon in one day.  I will be looking for other places to sell.  Small sellers do the math for yourself.

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