eBay Announces Fee Changes, Will Eliminate Store Format

by: Rich

SHJames; you wrote a lot about Wall Street, but here's some actual numbers.  In 2005; Ebay and Amazon were both $40/share stocks.  5 years later Amazon(AMZN) is about $120/share; a 300% increase and Ebay is a $24 stock; a 40% decrease. These are 2 growth stocks that are going in opposite directions and it's because with each Ebay change a flood of Ebay sellers quit Ebay for Amazon.  And Amazon laughs all the way to the bank as they don't make changes that drive sellers to Ebay.  Amazon's seller stay with Amazon and enjoy the even ride which features NO changes. It was 5 years ago when Ebay made their first huge mistake which was to raise store fees from 2 cents up to 5 cents.  Tens of thousands of store owners quit and millions of items switched from Ebay to Amazon--that was the Ebay change that began Ebay's slide and Amazon's rise.  A few years later Ebay lowered store fees from 5 cents back down to 3 cents but it was too late; the damage was done and Amazon had exploded with growth.  This led to more Ebay changes as Ebay panicked after Amazon beat them in Xmas web hits in 2008 for the first time.  And in each of the past 2 years Ebay made major changes, which only led to bigger boatloads of sellers quitting each year.  And now today Ebay announces a knock out change, which will mirror the 2005 fee hike and crush Ebay.  Wall Street is slow; a bunch of Harvard grads who don't live in the real world.  So Ebay stock is okay today, but as millions of items once again leave Ebay for Amazon and other competitors; Wall Street will punish Ebay stock as they should.  Ebay has 2 months to quickly wake up and announce today's changes will be thrown in the trash.  And if they don't, then Ebay will be a distant 2nd to Amazon by years end. Amazon will be $100+/share and Ebay in the $10/share range.  I'm switching this week to Amazon because I'm guessing Ebay will stick with their changes

by: another side of the coin

''For the most part'' FVFs stay the same or just a little pregnant. They are so full of it!

Haven't caught up in my reading of this massive thread but just jumping in.

Like I said in another post several days ago ''wait until April to see where this is all going''. Better yet, don't wait, RUN, FLEE!

They will get that last nickle and dime from everyone and NOT show your listings in Best Match. The site is going to be flooded with 99 cent listings and cater to the mega sellers. The ''experiment'' eBay was doing the last couple months was just to get all the stores excited about being in core. Their listings were actually being shown and items were selling. Don't expect or even think this will continue to happen. It's the great money grab. They know most small and medium businesses will never be able to sustain in the long run.

Please get other avenues going for your business. How many nickles are you going to put in this rigged slot machine?

by: Smart or not?

I bet ebay execs have stock in Amazon.

At least if they were smart they would.

Oh wait, what am I saying! Smart? LOL

by: lars

I wonder how google will adapt the agorithm for indexing the NEW Ebay site.

by: My Own Website Not Quite Paying My Bills Yet

Even with a Premium package, not only does the fee increase over 300%, but the listing fee goes from 3 cents to 5 cents each.

Can you image that? Ebay's trying to get an extra 2 cents from you. That's how desperate they are--it's even worse than nickel and diming you--they're pennying and nickeling you. There, I just coined a new phrase.    

by: JoeS

Wow, just wow, how many times is ebay going to announce fee decreases only to really be fee increases. I left ebay 3 years ago when we were ''supposed'' to get a fee decrease but it turned out to be a huge fee increase for stores.

Those who run this company are so lost with change after change, fee increase after fee increase. This will only lead to more users leaving just like what has happened in the last several years (taking their buying power with them). They obviously have not learned anything with continuing their insane policies. They would rather resort to manipulation and deception instead of being creative and innovative. I left for sites that have been creative and innovative as well as cost friendly.

Those who are still there remember that old saying, fool me once, shame on you....

by: Fakebay

Fakebay is eliminating 'stores' to eliminate seller brand identity.  Fakebay has pushed the HTML seller description off the top page for the same reason.  Fakebay wants 12 photos up top so buyers won't scroll down and realize there's more to Fakebay than the top outside spam links.  Fakebay wants so desperately to be Amazon that Fakebay believes if the fees are structured 'the same', their success will follow.  Fakebay is so completely schizophrenic with their constant site personality changes, and competitor immitations that Fakebay is willing to give away its sellers by flooding them out of search, hoping item prices will panic drop, while sellers eat shipping and more FEES, and Fakebay believes forcing all to .99 cent auctions will attract more mooch buyers.  This is the dumbest move Fakebay has EVER made.

by: BURTON

EBAY WILL NOT BECOME AMAZON WHATEVER THEY DO............MEG MADE SURE

by: Kay

My 200 listings in my store will now cost me $40. 200 x .20 = 40.00 where it was at .60 cents. 200 x .03 = .60 they are out of there mind!

by: BKB

WOW! Very nice to see RBH (Richard Brewer Hays, the eBay INKblogger) commenting here on Auctionbytes. WOO HOO! Good for you!


It is also VERY VERY nice of Ina and David to run a site where there is no censorship and RBH can freely post here just like the rest of us all do. Isn't that what it truly is all about, freedom of speech, the American way?

So a big THANKS to Ina & David for allowing me to post here!

Ever since I posted (on Seller Central well-over a year ago) a link to an article about how well Amazon did (mind you, this was 4Q 2008) I have been permanently banned from voicing my opinion about eBay on eBay, whether on the boards, INKblog, groups, ANYWHERE on eBay.

And again, Ming was right..........

by: Bill

Frankly, I think we have to look past our well-deserved animus toward eBay. (Yes they deserve it, yes we have a right to hate them, yes their evolving  Amazon-wannabe business model is pathetic and self-destructive.  None of this matters.)

No question -- these changes are good for auction sellers.  If you do not have an eBay Store or use eBay Fixed Pricing, your fees go down.  Sure, eBay could have lowered them more, but reducing listing fees is a big help.

Changes to the Stores seem more problematic but after modeling a few alternatives, its pretty clear some sellers will save a little, others will pay a bit more.  

The big losers seem to be casual sellers, without a store, who list Fixed Price.  These changes essentially invite them to leave eBay.  

But, given recent eBay history, these appear to be the most positive changes in years.  Give the devil its due.

by: TLS

Wow! Start reading the ebay discussion boards, especially this one!!

http://forums.ebay.com/db1/topic/1262010-Announcements-Di
scussion/Ebays-Giant-Price/510184943

Sellers are really peeved, and have every right to be!!

by: NoiseTube

Make noise everywhere you can
http://www.youtube.com/watch?v=A1okviXx1lU

by: Sam

Here's Griff explaining the new fee's on youtube:

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

by: Sam

@ x_powerseller

Your not telling anyone something different than we all already know!

I posted it in case anyone wanted to comment under the video.

by: ebay Nonsense

@ oh please!!!!!

"And if you really want to change how eBay works, then quit your job and go work for eBay and change it from inside out instead of telling me how it sucks."

You need to go over to the GlassDoor site and see what ebay's own employees (former and current) think about what's happening inside ebay.

Here's a representative example.

TERRIBLE upper management.
A CEO that runs his business based on some poor experience he must have had buying on ebay.
No vision is present in this company. They look to the future and prey. Business does not work that way!
To much outsourcing sending good American jobs overseas while customer service suffers.
This company has a very long history of ignoring the needs of their customers.
The CEO is intentionally making changes to the core business to reduce the customer base. To put more focus on it paypal payment service.

Advice to Senior Management

Go back to your roots and get rid of the entire upper management. Listen to the advice of your customers, who know best! The sad truth is that the only way this company can rebound is to remove John Donahoe from his position. He has done irreversible damage to the company and will continue to do so until someone steps in to stop him. For the sake of the customers, shareholders, and staff I hope this happens soon.

by: dc

Another CROCK of CRAP from eBay.
PEOPLE, pay attention!  Final value fees increase to 9%.  That's about a 50% increase in money I have to pay eBay when the newest round of seller-bashing changes go into effect.

eBay must think we're a bunch of freaking idiots.  

by: nadine

That 9% final value fee for auctions is a killer. eBay wants to kill off auctions? That will do it.

If you list an item at $199.99 at auction, and sell it at one bid, the take rate just leapt up from 8% currently to 12.3% (including Paypal fees) post March 30th.

It beggars belief that eBay still thinks they can raise fees.

by: Another ps

For those who are worried, Ebay introduced this to Australia before Christmas, so we've been adjusting to the change for a few months now. So far, sales have remained steady, with fees increasing slightly due to higher FVF and store subscription prices. But it is workable.All the best!

by: Face Painter

I can't even imagine being John Donahoe, and feeling the fear he must feel just leaving the house and going to work each day.  What a horrible feeling now that everyone hates him.