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Tue Jan 26 2010 08:14:29

eBay Announces Fee Changes, Will Eliminate Store Format

By: Ina Steiner

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

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

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

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

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

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

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

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

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

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



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

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

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



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



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

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

- New low Auction-style Insertion Fees

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

- FREE pictures—up to 12 per listing

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



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

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

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by: brainiacjones

Tue Jan 26 12:50:32 2010

I'm an eBay store seller--have been for the past five years or so. This eBay change is one of the first...in a long time where I'm actually...mildly hopeful that it's 'good'.

A fee increase? Well with hindsight and awareness of what went down on the UK shops some time back, this isn't a major surprise.

Given that I have over 4600 items in my store, the sensible thing is to upgrade to Premium for $50. It means that my (roughly) current monthly fees before FVFs are figured will get raised from about $155 to $280, but one can only then hope that the increased exposure in core will make up the difference.

I'm not really as bummed by this change as I'd anticipated. I know it's not going to be a happy thing for the smaller sellers out there.

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

by: Patricia

Tue Jan 26 12:57:17 2010

Hey RBH - bet it really annoys you to come here and not be able to delete some of our posts as you do on the "antiseptic" ink blog ;-)  Gotta keep management happy and reading only what they want to hear LOL

Cheers,

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

by: Jimbo

Tue Jan 26 13:01:51 2010

To RBH

Please tell me how a 40% to 50% fee increase is helping my profitability?

I see fewer views, lower prices and now heinously higher fees. How does that make me more profitable?

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

by: ebay mind games

Tue Jan 26 13:01:57 2010

More ebay mind games. Go watch video by that name on you tube. Classic.
And silly me without my secret ebay changes decoder ring.  Ebay is so freakin' weird anymore you can't take them serious. The only thing left to do is laugh and make the world laugh at them.

Maybe ebay will give out some purple cloaks, Nike tennis shoes, and jello slurpees for all those who stick around.

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by: ZZTopshlf

Tue Jan 26 13:08:05 2010

@Jimbo

You're right about that. They are trying to phase out auctions by raising the price. This is being done to counter balance what they expect to be a huge increase in the fixed price listings. The free below $1.00 auctions is just for them to say they are lowering fees. Good PR. No one wants to list anything good at that price. If you try to make up for it with shipping, the buyers will hack away at your DSR's.

I too was disappointed to see that they raised auction fees. It's the Amazonification of Ebay. They should just split the two and get it over with.

When someone see ebay's homepage there ought to be two big choices. Get it via auction, or Get it now.

Split the two, and let the buyer decide what direction they want to go.

Create a subscription price for those who want to sell via auction as well. If they do that along with what they are doing now, they will see things improve drastically.

Freedom of choice. I don't need an MBA to know that.

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: David Steiner

Tue Jan 26 13:08:17 2010

OK obviously this is a heated discussion, but you're going to have to keep the invectives out of the conversation. There are relatively few rules in this blog, but personal attacks against other posters is one of them.

You've raised a lot of great points here and Ina will be asking many of your questions to eBay's Todd Lutwak soon. If you have questions that RBH can answer, ask them civilly.

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by: My Own Website Not Quite Paying My Bills Yet

Tue Jan 26 13:09:06 2010


For anybody who thinks that these changes aren't that bad, what do you think will change in the next set of changes? How about next years changes and the next. Change is good when it benefits both parties but when Ebay changes something it's always to their benefit, never the sellers.

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

by: Carl G.

Tue Jan 26 13:17:01 2010

OK RBH...two questions:

A) what are you going to do to control sellers from gaming the system with multiple accounts when it comes to the 100 lisings per month cap and free insertion fees

and,

B)  has ebay restrengthened their relationship with google that other sites now enjoy?  You have to admit that traffic is way down on ebay..

I have also sent you a private email on another issue and commend you for addressing ebay issues outside the antiseptic environment there and without a flak jacket...

Regards,

Carl G.

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

by: fruity

Tue Jan 26 13:17:45 2010

What is always the case is that there will be some who benefit and others who will not. To the real casual ones and the new entries I think they will be OK. I mean they dont really know what this company is like. But when you start being a seasoned seller and remain small business.. maybe 1K or 2K a month, then you become the basement stepchildren. What it shows more than anything is ebays willingness to squash small business growth. Emerging small business and big business they like, but they in particular dont like the middle of the road sellers

and that is ANTI-AMERICAN, especially with struggling families. And any slice you make takes away from homemakers, minorities, women, caregivers, disable, seniors and veterans.

Ebay and John Donahoe with his inflated executive compensation are an anti American small business corporation. Say whatever you want, Ebay. You are an enemy to small business

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by: RBH

Tue Jan 26 13:19:28 2010

@Judy

Sorry to hear about your issues. Happy to have a conversation with you about what this means to your business.

Please feel free to use "contact us" on the eBay.com home page to call in or you can message us on Facebook.com/ebay or Twitter.com/eBay with your User ID and we will be glad to have someone reach out to you.

You can always email me too if you wish.
ebayink@ebay.com

-RBH

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by: ZZTopshlf

Tue Jan 26 13:23:14 2010

@My Own Website Not Quite Paying My Bills Yet

Agreed. That's why dragging this thing out over 3+ years is wrong. They needed to get this done in a year.

Now they have their true customers (us sellers) off balance for 3 years, which has seen many leave to create their own sites or go to amazon. Dumb, dumb, dumb.

I look forward to when all these changes are finally implemented and I can actually concentrate on how to make money on Ebay and not have to worry about Ebay getting in my way every couple of months.

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

by: Digmen1

Tue Jan 26 13:31:51 2010

Gee,
The fee structure is very complicated.
I cant be bothered with this and all these changes all the time.
And I can see ebay being flooded with more cheap (Chinese) listings.
The sooner more of the good sellers leave ebay for good the better.

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

by: D'oh!

Tue Jan 26 13:32:07 2010

ebay would've been better off shutting down completely for a couple months or however long, fixing everything including policies and site functionality/redesign, rather than the way they've gone about it.
It's like trying to rebuilt a running engine. It simply can't be done.
All they've accomplished is to have tarnished, strike that, DESTROYED their own name and bred hatred and contempt. Ebay, and especially PayPal really is a bad word these days.
Trying to paint everything as concern for the users blah blah blah is getting old too, when every last action they take speaks otherwise

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

by: Elizabeth

Tue Jan 26 13:34:05 2010

@RBH

1. When are these changes coming into effect for e-Bay.ca ? Same time?

2. What will happen with my store listings at this time? Will they just be ended automatically?

3. I've got over 600 items in my e-Bay store--when the changes are in effect and they are all Fixed Price items...what will happen at the end of 30 days? Will they automatically all be re-newed? Or is that something the seller has to do manually for each one?

Thanks in advance,
Elizabeth

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by: Mike

Tue Jan 26 13:49:09 2010

After running the numbers this morning... This effectively kills my business model, and forces me to relocate the store.  I maintain 700 listings as a silver power seller with every DSR as 4.9 or 5.0.

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by: Skeptical

Tue Jan 26 14:02:15 2010

I am waiting for the other shoe to drop....the new algorithms for Search and the number of "impressions" (the number of times the item is actually buried somewhere in the Search results).

All of this futzing around with fees and structures isn't the whole story from eBay. Whatever they do anymore seems to have a corresponding change to Search.  

And, Search is the fundamental on eBay. If the buyer can't find the item it won't sell, and eBay can now further decide what shows up in Search or not,  and how many times.

I am going to wait until eBay announces all of the changes that will go with this current round of fee restructuring before I decide if it will helpful or not.

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

by: David

Tue Jan 26 14:06:15 2010

These changes were implemented in the UK last year.  They worked well until eBay introduced the FREE listings - with no limits. So some sellers (including many Americans and Chinese) list tens of thousands of items per day, on 1-day listings, with automatic relists (i.e. 1 MILLION+ FREE LISTINGS PER MONTH). With the Time Ending Soonest component of Best Match, this had the effect of pushing all our ''Full Visibility'' GTC listings to the bottom of the pile (i.e. invisible again).

The 100-cap limit WILL stop this flood on eBay.com to some extent.

Or to put it another way, this new pricing structure is a good thing and will work well for many sellers. I will certainly shut my eBay UK Store (suffering from the unlimited free listings policy) and move it lock, stock and barrel to eBay.com (with only 100 free listings).

The only danger I can see is that eBay.com gets flooded with sellers such as myself, moving from other international eBay sites, who are currently being forced out of business by even worse eBay mis-management. This deal is 10 times better than the UK gets.  So move over and let me in!

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 14:10:50 2010

Not impressed RBH.

Lose your job the way eBay cost me mine, and I'll send ''Cheers'' your way when you can't feed your kid.

Your company is run by lying sociopaths who look out for shareholders who happen to be themselves. How convenient.

We're the dolphins in the nets who were joked about by Usher LIEberman.

eBay is a despicable company that ought to practice the Customer Satisfaction they demand of their sellers.

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

by: RBH

Tue Jan 26 14:15:27 2010

@Elizabeth

Q. When are these changes coming into effect for e-Bay.ca ? Same time?

A. Yes. Same time.

Q. What will happen with my store listings at this time? Will they just be ended automatically?

A. They will not be ended. After that date, they will be charged the new rates as they renew.

Q. I've got over 600 items in my e-Bay store--when the changes are in effect and they are all Fixed Price items...what will happen at the end of 30 days? Will they automatically all be re-newed? Or is that something the seller has to do manually for each one?

A. If they are GTC they will automatically renew after every 30 days.

Hope this helps.

Cheers,
RBH

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

by: Dizzy Ness

Tue Jan 26 14:26:00 2010

Store inventory in core will FLOOD eBay with even more useless junk, confuse buyers, frustrate and starve the sellers.  Once again eBay has demonstrated that they hate their members and have created another seller genocide.  Karma's gonna come back to bite eBay, as the universal laws of screwing people boomerangs right back at eBay.  EBay wants job insecurity for its sellers to destroy our minds and spirit because eBay hates its members.

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