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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.
 

Comments (389) | Leave Comment | Permalink
Readers Comments

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

by: vml

Tue Jan 26 15:47:57 2010

It's going to be a huge increase for those of us who use mostly auction format and don't have a store.  

Check this chart and you'll see what I mean:

https://docs.google.com/Doc?docid=0AZI995tTj_PQZHdqcWNzel
80MGRtcmM2d2dr&hl=en

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

by: EventHorizon1984

Tue Jan 26 15:52:02 2010

> by: David Steiner
> Tue Jan 26 12:38:51 2010
''eBay spokespersons have always been welcome in this forum to address issues''

Which is all well and good.  Except the poster has at best a reporter-type involvement with the eBay Stores section.  And no direct hands-on involvement.  In short the information he would get would not be materially different from what AuctionBytes gets.

Except where backed up by an eBay source, anything he posits should be considered speculative.  Which is more than fair as eBay Weeds use the same point against AuctionBytes.

> by: David Steiner
> Tue Jan 26 12:38:51 2010
''eBay spokespersons have always been welcome in this forum to address issues, and as long as they're identified as such, our policy hasn't changed.''

''AS LONG AS THEY'RE IDENTIFIED AS SUCH''

Um.  For quality assurance purposes had someone not familiar with eBay scroll through the posts.  The only way they could identify an eBay employee was from OTHER people saying a specific poster was an eBay employee.  Which is not proof.

Please note there was NO PUBLIC disclosure from one ''RBH'' that they are either compensated by eBay or an eBay employee.  Nor in the following posts.

An email address through eBay, is not a direct indication of compensation.  As we understand it some uncompensated volunteers do have eBay email addresses.

FTC Publishes Final Guides Governing Endorsements, Testimonials
http://www2.ftc.gov/opa/2009/10/endortest.shtm


''bloggers
who make an endorsement must disclose the material connections they share with the seller of the product or service''

http://www2.ftc.gov/os/2009/10/091005revisedendorseme
ntguides.pdf

''§
255.5 Disclosure of material connections.
When there exists a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement (i.e., the connection is not reasonably expected by the audience), such connection must be fully disclosed.''

''nor is known to a significant portion of the viewing public''


The guidelines went into effect December 2009.  Suspect the viewing public would have to wonder why a major corporation would not follow them.

Of course the big assumption here is he is who he infers himself to be and is compensated in some form.

Unless 'Richard Brewer-Hay, writer of eBay's official blog, eBay Ink' receives no compensation from eBay or it's affiliates.  In which case he doesn't need to disclose anything.

//

''And that's the way it is ...''
Walter Cronkite

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

by: Patricia

Tue Jan 26 16:02:01 2010

All you guys in the know....instead of speaking about RBH please get your information on the real truth about the fee changes together and either give it to Ina so she can pass it on to that reporter or pass it on to him yourself.  THAT is more important than wasting your time on this. ;-)  I'm still trying my best to understand it but it doesn't seem kosher to me either.

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

by: RBH

Tue Jan 26 16:03:03 2010

@ vml @Jimbo & @eBay Jack...

Yes, it's true that some sellers will see their FVFs go up with this change (even though up-front insertion fees go away and final fees are simplified greatly).

Having said that, the new total fees are considerably lower than alternative sites with equivalent traffic.

Cheers,
RBH

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

by: vml

Tue Jan 26 16:04:52 2010

Up front insertion fees only go away if you list for .99 or less - basically give your stuff away.

FVF's are simple - they are HIGHER overall.  

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

by: Sam

Tue Jan 26 16:05:28 2010

For anyone that's interested in watching the woman that started ebays decline, Meg Whitman is on Fox news NOW!!

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

by: Crystal

Tue Jan 26 16:05:34 2010

I started selling on Bonzale, no up front fees unless it sells. Guess its time to move over there full time! come join me and tell ebay to go to !!!! you know!

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

by: Mitzi

Tue Jan 26 16:05:49 2010

Maybe those sellers who run only auctions would be better off to pay the store fee, even if they don't do any fixed price listings? With the differences in FVF you also get all of your items together in one spot that you can design and market with, which is a plus...

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

by: vml

Tue Jan 26 16:11:17 2010

This is from the current fee change AB
My math shows, for $800 final sale price:

Current fees: $29.31

New fees: $50.00 (due to cap)

That's Final Value Fee only, Listing fee would depend on what start price you used.

On $500 item:

Current fees: $18.81

New fees: $45.00

On $100 item:

Current fees: $4.81

New fees: $9.00

On $10 item:

Current fees: 88¢

New fees: 90¢

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 16:15:35 2010

Ina, please ask Scott Morrison why his headline was "EBay To Cut Listing Fees In Bid To Lure Sellers". Perhaps it may have been his editor who wrote that headline but it's very misleading. Also, the headline sounds like EBay needs sellers (which it does).

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 16:20:52 2010

Received an email from the empire that looks like a typical ''sale'' email. However, it is the dreaded new raping of your wallet:

***** WARNING! *****

Be sure there's nothing on the ground near your feet, because your jaw is going to hit the floor ****

FEE CALCULATOR:

http://pages.ebay.com/sellerinformation/news/FeeIll
ustrator2010.html

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

by: Rollar-Coaster eBay

Tue Jan 26 16:22:11 2010

I think eBay is trying to push for us to sell cheap .99 Chinese junk! If I need to buy a cheap .99 item, then I'll just got to the dollar store. I think JD is trying to see how much abuse we can take. Most of my items are very nice quality collectibles items. This is going to cost me big time. OUCH

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

by: Patricia

Tue Jan 26 16:26:30 2010

@RBH

''Having said that, the new total fees are considerably lower than alternative sites with equivalent traffic.''

You're kinda wrong there (respectfully stated so there can be NO misunderstanding).  The ''competition'' that is fast pulling away from all else EARNS its fees by setting hard and fast rules for its sellers AND treating its buyers like royality!  This is still NOT the case with Ebay.  Ebay has not earned its keep and manipulation in search, special deals with diamonds, etc. has all contributed to a drop in traffic and that drop is causing most sellers to lose their shirts on Ebay!  Not the kind of atmosphere where they should align themselves with a superior competitor - they need to strive HARD just to get near those standards FIRST!  Trouble is, Ebay management cannot face that they are no longer the only game in town and that fact gets stronger every day.

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

by: Craig Clark

Tue Jan 26 16:30:01 2010

Crystal

Tell us how Bonanzle compares to what you are currently seeing on eBay. Are you getting the same traffic, are your items selling etc..

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

by: ernie128

Tue Jan 26 16:32:58 2010

So help me out here. The way I see it and the way the fee illustrator works....

I am an auction with buy it now seller.

If I list 1000 auctions a month, and I sell 250 items a month at an average cost of $200, then as long as I open an ebay basic store, I get a BIG savings on fees...and other than the store subscription fee, there is no difference in FVF for auction listings in a premium, basic and anchor store?

So if I don't use fixed price now, I don't have to use it in april.....?

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

by: ernie128

Tue Jan 26 16:37:05 2010

....And, are they raising or eliminating the buy-it-now fee and the 10-day duration fee? can't find it anywhere in the ebay announcement.....

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

by: Ken

Tue Jan 26 16:39:02 2010

if eBay doesn't want a wholesale flight of eBay store sellers, they need to adjust their basic plan, something like 10 cent fixed price listings for $25 a month or so would probably be a sweet spot that would save quite a few sellers from leaving.

the current basic is really only good if you sell high $ items or lots of auction listings, but not really worth anything for fixed price only listings, while the premium offering is too high up front cost for many fixed price sellers.

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

by: james

Tue Jan 26 16:39:37 2010

THIS IS VERY VERY SIMPLE....IT IS AN 18% INCREASE IN FEES!

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

by: 287644

Tue Jan 26 16:39:40 2010

In my opinion this is not such good news. It is just an increase in fees.

Explain the difference between requiring everyone to list by fixed price for .35 and requiring everyone to list in stores for .3 ?

Since there is no increase in exposure -everyone is there- the only thing the sellers got was raised fees-sold to you as better exposure. You think you got a good deal UNLESS you actually think about it. You were just manipulated to feel that way.

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

by: RBH

Tue Jan 26 16:44:28 2010

In the best interests of full disclosure, for those people unaware of who I am. RBH stands for Richard Brewer-Hay and I am the official blogger for eBay's corporate blog: eBay Ink.

I have been writing for almost 2 years from inside the company.

Apologies if this was not clear earlier.

Cheers,
RBH

http://ebayinkblog.com
http:/
/twitter.com/ebayinkblog
ebayink@ebay.com

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