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

by: My Own Website Not Quite Paying My Bills Yet

Tue Jan 26 09:34:46 2010



@anonymous regarding the Marx Brothers--don't forget, there's no Sanity Claus.  

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

by: Lee

Tue Jan 26 09:35:27 2010

After reading all the so called changes.I have a Headache already.More and more confusion.That's the way E-bay likes it.

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

by: WTF

Tue Jan 26 09:41:11 2010

Hey, I'll list some really cheap azz items for a penny each! 100 a month huh...hmmm that would be 23 items a week x 52 weeks in the year. End them all on Thursday Night.  I use to sell 2000 items a month on eBay, all that started at a penny and ended up with really good ending bids, high feedback scores and very happy customers.  Geee, you think I can make a living off that?
WTF?   Please....  sounds like another eBay Con.

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

by: Doesn't matter

Tue Jan 26 09:41:48 2010

Remember the axiom. If Ebay makes a change, they announce it is for their customers' benefit, but that is not true - it is for Ebay's benefit.

Ebay is closing the barn door...

The proof of the pudding will be in the eating - we'll see how the customers respond (or not).

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

by: eBay seller

Tue Jan 26 09:41:49 2010

There is a lot to digest here and it will take some more time.  But here are some of my initial thoughts.  I am sorry that this is a fairly long post.

INITIAL REACTION/PLAN FOR MY STORE:

To keep my store at the current level of inventory, the total of insertion fees plus store subscription will be jumping.  If I keep the Basic Store, my combined Sub/Insert Fees will INCREASE by 337% ($38 to $166 per month).  If I upgrade to the Premium Store, my fees ONLY INCREASE by 129% ($38 to $87).  The net cost per year would either be $588 or $1536.

Now my first gut reaction is BS!  BUT, the trade off MAY be with increased sales through increased exposure of my listings in core.  IF my sales increase as a result of moving store inventory format to fixed price format, the cost MAY be worth it.  That is a BIG IF however.

At this early stage, I am considering upgrading to the Premium Store level which would increase my basic listing costs by $49 per month (I think, if I have a full grasp on the changes).  Then I may give eBay a couple of months to see if my sales are favorably increased or not.  If my sales increase substantially due to my items being found by buyers, then I'll consider continuing and making adjustments.  If sales do not materialize, then I'd plan to downgrade to the Basic Store and CHOP my inventory listings by 70-80%.

Perhaps the biggest concern I have with this plan is whether or not sales will increase and that depends on whether or not potential buyers can find my items.  And the greatest problem with the exposure is how all of the changes will be reflected in Best Match.  I have not been a fan of BM since it was created and I believe it tended to bury my listings.  With the sudden increase in the listing base including store inventory, I do not know what the result will be.

THINGS I KNOW I DO NOT LIKE ABOUT THE CHANGES:

1. Push for auctions under $1 at zero listing fees for non-store sellers.  I may understand that eBay is trying to give the small, occasional seller an incentive.  But I am concerned that this has the potential of flooding the site with cheap listings that will greatly impact Best Match and may actually further decrease my items' exposure.

2. Elimination of the 5 free auctions per month.  It was a small tool I used to help my exposure.

3. I am still unclear if auctions will get preferential treatment over fixed price in searches.  If so, and the under $1 auctions flood the site, well, I don't see any way my exposure improves.

4. Elimination of Store Referral Credits.  Yes, it wasn't much, but I did get some small relief to fees from the program.

5. eBay's recommendation is that if a seller does not want to continue his/her higher inventory levels after March 30, that the seller should "liquidate" their inventory on eBay before march 30.  In my opinion, that's a pretty arrogant, self-serving stance (something we all see with eBay anymore).  If a seller decides not to list inventory on eBay, I believe the best thing would be to MOVE that inventory to another venue.  I would rather make a reasonable profit at a slower turnover than burn everything and give eBay an even bigger portion of my reduced revenue.  Yes, that kind of position by eBay tends to really raise my hackles.  But I try to keep my personal distaste for the management away from my business response.

BOTTOM LINE:

I do not have a clear vision of how this will all play out for me on eBay.  But I do know one thing: In 2010 I will proceed with my basic strategy of spending my time and effort on building my OTHER SALES VENUES including my own web site.  I believe that eBay continues to tell small sellers that we are not wanted.  As a result, my long range plans to move further away from eBay have not changed.  My eBay focus will become an advertising venue to find new customers for my other sites.  I gave eBay my full efforts for too many years and have the scars top prove it.

I will give the new eBay format a chance to prove itself.  But if the results in sales do not materialize in a fairly short period after March 30, I know I will take the money I would have spent on the increased eBay fees and divert them to funding my other activities in a heartbeat.  And, frankly, if my sales on eBay do jump enough to make the additional fees worthwhile, I will still use most of the increase in profits to build my business outside of eBay.

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

by: Omar the Tentmaker

Tue Jan 26 09:43:39 2010

@WTF

I like that

EBAY.CON ......

Let's see if ICAHN [did I spell it right?] can issue it.

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

by: sue

Tue Jan 26 09:45:52 2010

well this 12 year veteran like the one before thinks this sucks. I closed my store last year when sales fell to the point it was pointless, was thinking of reopening it this summer, not now !!!

I sell on other sites Etsy and Bonanzle especially with sales like they are ( hard to come by , because people don't need what I sell) these sites and ecrater look to be my best bests for the future, so long ebay, I might take you up on a few free ads but from experience most of the time they aren't worth it if you really want to make a profit.  Someone at ebay forgot to check out the year and take a long hard look at the competition, the sellers will go elsewhere ( and to some degree we already have)

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

by: LOL

Tue Jan 26 09:47:56 2010

One has to wonder where they get the stuff they come up with! I left that place and sell on Amazon, where they actually listen and talk to the seller! Yes, they have humans over at Amazon that can talk on the phone!
I actually sell moer on Amazon that I ever did on ebay AND they dont bastardize the market there! Ebay, everytime you turn around some nube seller is dropping their pants.
Let's face it, the auctions bring ZIP for bids anymore, so why are they pushing the 99 cents listing? WELL, the sell through rate will go up and YOU will lose money!
I would never start an auction at 99 cents, please ebay, give me a break! Let ebay sell their stuff at 99 cents plus PP fees and a cap on postage!
Thank you Amazon for a great place to sell!

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

by: Blitbot

Tue Jan 26 09:48:09 2010

Two quick observations:

Still no shopping cart (how 1990's of eBay)

9% flat FVF plus Paypal fees sounds a lot like Amazon's fee structure for most ProMerchant accounts.

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

by: China

Tue Jan 26 09:58:13 2010

most of the Chinese sellers start their items at .99 with $50.00 shipping.

This will be a great deal for them, free listings!!!!
Lets flood the site (or should I say, let continue to flood the site).

this change will be a bonanza for the Chinese cheapy market crap.
Just like JD was boasting in the earnings meeting how much the Chinese listings were up (14 million, I think he said).

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

by: Can't Take This

Tue Jan 26 10:00:45 2010

AGGGGHHH

*Pulls On Hair*

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

by: Wake-Up!

Tue Jan 26 10:05:08 2010

Once again this evil empire is juggling the numbers around in a way that at first may appear appealing to some, but in the long run it always and only benefits eBay.

They want you to believe they have to charge these exorbitant fees to stay afloat. Nothing could be further from the truth. YOU who sell on eBay are SLAVES to the new world corporation and only nibble on the scraps this evil empire has dropped on the floor for you to scavenge.

CLOSE YOUR ACCOUNT with eBay and put your money back where it belongs, in YOUR pocket!

Open an eCrater store where it's FREE to list FREE to sell. If you sheeple would only unite and discard eBay as the only selling venue, buyers would have no choice but to shop where the products are - where YOU sell!

Death to eBay corporation in 2010!

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

by: pete

Tue Jan 26 10:14:12 2010

Put a frog in water, he will stay there. Put a frog in hot water, he will jump out. Put a frog in water and heat it up, and the frog will enjoy the warmth until he dies a cooked frog.
You eBay frogs beware: The water gets hotter with each 'change cycle'

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

by: Gailete

Tue Jan 26 10:14:34 2010

Remember last time Store inventory was in 'core'? Six weeks later they pulled the rug out from under us as we were doing so well selling that buyers were confused? HA! All this sounds like more ways for ebay to grab your money and not return anything. I used to get a nice discount every month with store referral fees, instead for the past year, other than PP or GCO fees, I get to keep all my income from sales over at ecrater and no listing fees either. Ebay bosses seem to think everyone is dumb and will fall for their latest schemes whatever they are. Ebay keeps shooting themselves in the foot and eventually their feet and most of their legs will be gone and they will fall flat on their face.

For the amount of inventory I have listed on ecrater currently and what I sell their currently, it would cost me at minimum around $600 for what I sell for free now. Doesn't add up in my books at all.

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

This user has validated their user name. by: Ed Gadfly

Tue Jan 26 10:22:59 2010

Seems complicated.

Will the items show up on Google?

Lower start prices WILL result in more page views, to watch the train wrecks if nothing else.

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

by: Lisa

Tue Jan 26 10:30:57 2010

Watch for thousands of new sellers from HK selling hundreds of thousands of brand new items for .01 with S&H fees of $50 to $100.  I thought eBay was eliminating .01 auctions but instead they're opening the floodgates. Typically these sellers have dozens of accounts to get around the 100-per-month max, and with the new free to list structure, the search pages will be flooded with brand new crap listed as vintage, antique or anything other than what it actually is. I guess that's a boon for eBay with the FVF of 9%, or it would be a boon for eBay if they took that 9% from the S&H.  I suppose 9% of .01 is better than 9% of nothing.  When you factor in the hundreds of thousands of new listings that will obliterate the small niche sellers who honestly list at a realistic price and low shipping.  And since it's free to list, they'll spam their junk in as many categories as possible including home decor, pgp, antiques, etc.  Just another reason to find another place to be.  

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

by: Theresa

Tue Jan 26 10:31:22 2010

I can't believe I am saying this, but at first glance, I like the store changes.  With free pictures and free selling manager pro, it should be well worth it for me to pay the $49.99 fee a month to get exposure in core.  

I think it totally sucks that we can no longer use the PowerSeller logo in our listings - why not?  I am a powerseller.  Thousands of listings to change yet again........

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

by: anonymous

Tue Jan 26 10:38:04 2010

@ by: My Own Website Not Quite Paying My Bills Yet

no sanity clause

Perfect.

Makes me wonder if they truly ARE Marx Brothers fans.

Can't you just hear them spinning this increase and laughing over a Corona on Friday at 5 pm??

.."yeah, and then we'll tell these low-life trailer-trash sellers their fees are going down... (yukk-yukk) and then we'll make is too hard for the morons to figure it out... they don't have any degrees, you know..." (smarmy snotty glazed over sneer)  (ha ha harr harr hee hee)

If you aren't using this venue to build traffic to your other site, you will be looking for a job with 10% of the US population soon.

Just an opinion.

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

by: Paul

Tue Jan 26 10:39:42 2010

The only part of the changes that I really dislike are the 100 free auction listings per month per non-store seller.  If eBay thought Stores in Core was confusing to buyers, just wait for 100 million 99-cent auctions to clutter up the place.

BTW, one 99-cent item sold at auction with free shipping, assuming 44c postage and a PayPal payment, will net you 13 cents.

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

by: Another Wronged Seller

Tue Jan 26 10:41:13 2010

My initial look at this is a mixed bag. Time will tell on these changes. Initially for me it still looks like an increase in fees especially in store.

Right now my basic store is 15.99 with .03 to list. When the changes happen it will be $15.99 plus .20 to list. With the changes to FVF in the catagories I list it remains to be seen if this is a plus or a minus.

So .03 to .20 with the major plus being exposure in core? HELUVA jump! The question I ask myself will it be EQUAL exposure in core? In other words will auction, store listings and fixed price all be treated exactly the same? With the horrendous best match calling the shots will store listings be exposed in core but truly dissadvantaged in search? Technically they could say store listings are in core but WHERE? If it's exposed on page 50, having store listings in core is NO advantage at all...

the changes to auction style fees all seem to be good with the most likely intent to boost listing counts. They are also likely trying to attract some new sellers (fresh meat)to replace the ones that jumped ship over the last few years.

Like I said, a mixed bag. I still think it will turn out to be a fee increase but will increased sales because of exposure in core make it pallatable?

On a side note, my ecrater and bonanzle sales continue to improve EVERY month. A larger and larger percentage of my total sales come from off ebay. And I expect the trend to continue.

IMO ebay made a huge mistake locking horns with google a few years back. My Ebay listings ALWAYS appear lower in search than the same listings on ecrater and bonanzle. Just like best match buries listings on ebay, google is lowering ebays exposure. What goes around, comes around....

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