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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: meme

Wed Jan 27 04:36:12 2010

I am a bronze PS, 100% feedback and have been for years.  The star system DSR is not fair for I was maked down recently and now get lowered in the search..competition can destroy a seller's reputation. I have glowing feedback...go figure.  Sellers are no longer allowed to give deserved negative feedback and sellers have to beg/demean themselves for 5 star feedback.

I have a store with over 400 items as well as live auctions.  

Over 10 yrs ago I came to eBay and it was enjoyable/profitable. For 8 of those years I was proud to say I sold on eBay.  For the last few years it has been nothing but frustrating with all the changes.  Best Match does not work, buyers have disappeared, no live customer service, and my merchandise thrown in with all the Chinese junk that can be found anywhere locally cheaper.

I have been waiting to see what this change would bring and needless to say it is not in my favor to try to cope with this messed up eBay that does not give a hoot about me as a small seller and I am embarassed to tell others I still try and sell there for eBay's reputation is in ruination.  

I do have a booth on Bonanzle and ALL of my attention will go forth in that direction before March 30.  I look forward..

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

by: joe

Wed Jan 27 04:37:32 2010

A straight forward significant price increase marketed as a price decrease.

we are a big seller offering new electronics items. most of our listings are fixed price, high value items, offered at $1000 - $3000

The new fixed price final value fees means an increase of $5-$25 in eBay commissions per sold item.

It is immensely difficult to be excited about a few cents decrease in insertion fee when it is accompanied by a 100 times bigger increase in FVF commission.

The presentation of these fee changes as a discounted commission is an insult.

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by: Beachgal707

Wed Jan 27 05:23:25 2010

Donahoe just declared war on sellers!

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

by: garedunord

Wed Jan 27 06:24:47 2010

Why bother with the Titanic Ebay looking for an iceberg, more changes more problems for small sellers
$0.99c auctions don't work for anyone other than bargain hunters and Ebay. Again Ebay have found something that isnt broken and deciced to break it. One day there will be an alternative to Ebay and then watch them take notice and become focused on the seller. You would sell something for $0.99 and risk getting a negative from some disgruntled buyer only to find that all Ebay will do is run you around in circles with double talk if you try to negotiate negative feedback removal.
Is Ebay fast becoming one of the worlds most hated / loathed organisations ?
I think so !

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

by: ebay Nonsense

Wed Jan 27 06:34:53 2010

Face Painter,

You obviously missed that recent video that shows him acting all goofy and behaving like some silly little child.

He even mentioned the ebay employee comments on the glassdoor and laughed about those too. I'm sure his employees appreciated that. NOT!
His income probably keeps him warm at night.

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

by: ebay Nonsense

Wed Jan 27 06:41:19 2010

Is anyone else getting an Error page on ebay's boards when trying to post?  Three of us have now run into this. All have valid accounts in good standing.

Error
Error: you don't have permission to view the requested forum or category.

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

by: theredfurby

Wed Jan 27 07:44:58 2010

Insertion fee: 66% increase
Subscription fee: 233% increase
Will have to sell 20% more to break even.

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

by: eBay seller

Wed Jan 27 07:48:52 2010

@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."

Thank you for your perspective from an eBay site that has gone through these changes.

I am a bit confused though.  If sales have remained steady, but fees have increased, does that just mean you are losing on your profit margin while eBay simply takes a bigger cut?  I don't intend to sound negative, I am just trying to figure out how the US changes will impact my business.  From what I can see, if my sales don't actually increase moderately to substantially, the increase in fees just hurts my bottom line.  As mentioned previously, I am willing to give eBay about 60 days from the start of the "new exposure" to see if there really will be an increase in my sales, but after that, if no increase, I will greatly reduce my eBay presence.

Thanks again for your input.

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

by: unaware

Wed Jan 27 08:31:40 2010

Are the news service getting different information then the rest of us? How did eBay release this to them? Everything I see on Google news about this treats the story as a big fee reduction... what gives? No matter how I look at it, it is a big fee increase. Here is one news story from Red Orbit:

EBay announced Tuesday that it is planning to take a cut of the final selling price and get rid of its ''listing'' fees in hopes of luring more sellers.

The electronic commerce website has been tampering with its fee structure in recent years, trying to improve the experience people have on the site and reinvigorating its growth.

Tuesday’s announcement is meant to encourage more people to list items for sale.

EBay said that starting March 30, sellers will be able to post up to 100 items for auction every 30 days without paying fees to list items.  The items will have a starting bid of less than $1, and when they sell eBay will take 9 percent of the final price or $50, whichever is less.

The San Jose, California-based company currently allows sellers to auction up to five items for free every 30 days, and charges them 8.75 percent of the final price or $20, depending on which is less.

For some sellers, this change could mean that they will pay more.  However Lorrie Norrington, the president of eBay Marketplaces, says the change will be easier overall for people that wish to auction off items that are sitting around the house.

''Our customers have consistently told us, We love free and we love simple,' and that's what we think these changes are about,'' she said.

EBay made similar changes in its European markets in 2008, which Chief Executive John Donahoe said was a successful system.

Once a seller exhausts the number of items they can list for free, they are subject to listing fees and commissions.

EBay is reducing the fees it charges sellers for offering fixed-price ''Buy It Now'' items through stores that run on its site.  These sellers will pay 3 cents and 20 cents to list an item, which is down from 35 cents previously.

THE WRITERS FROM THE NEWS SERVICES JUST DO NOT UNDERSTAND EBAY AND ONLY PUBLISH EBAY NEWS RELEASES IT APPEARS. EXCUSE ME but I was paying $15.95 a month and 3 cents/5 cents a listing for my 800 store items (NOT 35 cents), now eBay ''suggests'' that I pay $49.95 a month and 5 cents a listing.... I guess the FVF would drop from 12% to 8% but still just some napkin figuring tells me I will be paying eBay another $50.00 a month or so for my current sales volume. If I got a 25% increase in sales out of it I guess it might be a fair trade-off but history has shown that my eBay sales are trending down, not up. They just are not getting the buyers to the site like they use to for my one of a kind collectibles.

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

by: Jeff Stannard

Wed Jan 27 08:59:58 2010

Paypal MM was .05% yesterday, and today its .04%.  A 20% drop!!  Take it all why don't cha!  lol

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

by: eBay seller

Wed Jan 27 09:17:22 2010

@unaware

I just browsed though a bunch of blogs talking about the eBay fee changes.  And the majority of them seem to have bought into the it being a great fee reduction for sellers.  eBay has done a masterful job of selling this to those who are not active eBay small-medium store sellers.  As my mother said, "don't believe everything you read".

I realize that everyone, including myself, has their own way of looking at things.  But this widespread acceptance of eBay-speak is disturbing.  In an era of instantaneous internet reporting, it seems that few "reporters" take any time to dig into the reality.  I just find this to be a sad commentary of our "evolving" life.

Bottom line, I know in my case that there is NO fee REDUCTION and I am actually facing a substantial fee INCREASE in my store upfront costs come April.  Although I am holding out some hope that increased exposure may increase my sales to make the increased fees workable, the more I read about the coming changes, the less hopeful I am.

For those occasional sellers who are excited to get 100 free auctions a month, I think that most will find that an auction starting at 99 cents will probably only sell with a final bid of 99 cents (if it sells at all).  I believe that recent years has shown that to be the most likely outcome.  What really concerns me about flooding the site with these auctions (something I thought eBay itself had decided was a bad thing not too long ago) is the effect on search exposure.  That could wipe out any possible "improved exposure".

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

by: James

Wed Jan 27 09:41:05 2010

I can currently list an item in my store inventory format for 3¢ to 10¢, depending on asking price. That listing is good for 30 days. For an additional 2¢, I can include a subtitle, which I often take advantage of.

And currently, if I choose to list an item as Fixed Price (BIN) format for greater exposure, that listing is 35¢ in most categories good for 30 days. However, the additional charge for a subtitle in Fixed Price listing is $1.50.

My question is, when the store inventory format is eliminated, and my items automatically become regular fixed price listings, will I get a ginormous surcharge of $1.50 each for all of my previous 2¢ subtitles? (about 344 listings in my case I think - $17.08 vs $516.00 ?). Or will there be a new reduced fee for Fixed Price subtitles? This could end up being a big money trap that first month for many unsuspecting store sellers. It has to be addressed by ebay before the switch so that sellers have time to eliminate the subtitles if needed, wouldn’t you agree?

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

by: Carl G.

Wed Jan 27 09:47:05 2010

Here's google analysis of fees now compared to fees after March 30...

https://docs.google.com/Doc?docid=0AZI995tTj_PQZHdqcWNzel80MGRtcmM
2d2dr&hl=en

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

by: Jimbo

Wed Jan 27 10:59:53 2010

@ ebay Nonsense

The error message you are getting on the ebay boards is ebay practicing their usual censorship practices. They are deleting all threads that they find objectionable and that is the message you get when you are in the middle of posting. They are deleting so fast it makes your head spin. Can't have any of that nasty truth getting out.

Several months ago there was a purge of ID's from the ebay boards led by the lead ebay yes man Griff.

If you can't beat them just censor them. Another pathetic move by a corrupt company.

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

by: JoeS

Wed Jan 27 11:43:01 2010

@ Jimbo

That's why I like coming to read this place even though I don't do ebay anymore. You can find out what really is going on there without the censorship.

The so called fee decrease stores were supposed to get 3 years ago turned out to be a huge fee increase that destroyed a good business I had on ebay. I, as other ebay store sellers I know, just walked away. You would think they would have learned by now that their policies are very destructive. As a former seller I come back here to Auctionbytes and read that nothing has changed. They remain destructive to the very small sellers that made them. And YES, it was the small sellers that made ebay unique. Many of those small sellers continue to move on (taking their buying power with them) with each destructive change. They still don't get it!

So you have the same ole, same ole fee increase disguised as a fee decrease. Ebay must be desperate for revenue for raising fees (that will be passed on to the consumers) when so many households are hurting right now.

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

by: J.G.

Wed Jan 27 11:47:02 2010

JD and the powers that be are counting on the sellers and the press being bamboozled by this fabulous new fee 'decrease'.  Well, they were right about the press, but, obviously, NOT about the sellers.

My advice to James and others about transferring their listings to the new system:  TAKE NOTHING FOR GRANTED!  Omit anything that will cost you if it transfers off before the big change.  Imagine fighting with customer service to get those charges taken off.  There'll be alot of confusion around that time, so be proactive about it.  

My advice to everyone else, myself included, is USE eBay like it uses you.  There's no more loyalty to the site on either side, management or sellers.  USE it until it no longer works for you.  Yes, it's sad that eBay is not the friendly place it used to be.  It's business now, and that's ALL it is, so make your own decisions based on your bottom line.  This is not nostalgia time.  If you've been thinking of leaving, this may be a good time to do it.  Regardless, we should all have multiple places set up from which to sell, so no one site can have us hanging in the wind.

And, don't listen to those who tell you not to complain.  These are not complaints.  They are ventings.  And we count on each other as friends to help us decide what to do in troubled times.  

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

by: Who'll Hire Him Next?

Wed Jan 27 11:56:04 2010

JD has successfully run a once successful company into the dirt. Guess he's hoping he can make enough to retire pretty soon as I can see the end of his ''career'' in the very near future. Being a headhunter for over 30 years, I must tell you that word on the street is that he'll never be rehired.  BY ANYBODY.  Guess he can take his MBA and stick it where the sun don't shine.  Cause once he's out, he's pretty much gonna be flippin burgers for the rest of his life.  Aint nobody with common sense hiring THAT guy.

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

by: Marianne

Wed Jan 27 12:17:36 2010

One, Thank you Ina for the great survey. Too bad eBay didn't read the results before the changes were discussed-implemented in the near future.

I am a small store. To list 250 items per month, from where I am now, I'd have to list 60+ items per week. I don't think I'm going to do that for the thwarting the increased fee for having the store then the decreased per item listing price. Will

SMALL SELLERS UNITE! I will be paying 4x the amount for my items in my store than I do now. FOUR TIMES! That's outrageous, Dinesh. I guess it'll be time to bite the bullet and go elsewhere to make a buck.
I will attempt to make my voice heard at the town hall, but I fear eBay will continue to ignore the little guy!
Time to dust off the Dreamweaver book and get the show on the road to create my own ecommerce site. I hate to leave eBay, but I don't have a choice. I barely make money as it is, and will probably make less with the new fees.
Traffic be damned! I don't know if I'll get the sales I need from the potential 'increased traffic'

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

by: x_powerseller

Wed Jan 27 12:57:37 2010



Now I understand why Ming left.  Yes, this board is being censored.  

I wrote a comment last night in response to @Sam link of Griff’s youtube video and it is now gone.

I guess I will join Ming and just leave.  No more auctionbytes for me.  This is no better than eBay’s censored boards.

So, let’s see how long is this comment  will remain here.

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by: MsFish213

Wed Jan 27 13:59:12 2010

The poor pinks on the special discussion board are trying so very hard to keep everyones focus on the great deal on insertion fees...totally avoiding FVF's.  LOL....Shame on you Ebay for being so shady.

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