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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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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 14:27:39 2010

"Please feel free to use "contact us" on the eBay.com home page".

Do we get an automated email response or did Ebay hire some real help?

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

by: RBH

Tue Jan 26 14:29:58 2010

I hope you don't get an automated response but if you do, you can always email me ebayink@ebay.com.

-RBH

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

by: Fruity

Tue Jan 26 14:36:54 2010

I was wondering, how many sellers  are above the basic casual seller status. See below so you understand what I mean


CNBC Jim Goldman on Squawk on the street
this morning said ebay was essentially eliminating the up front fees for the occasional seller,says that its about 28 million sellers who regularly use the ebay site.

I'm curious about how the seasoned seller what that number is. not necessarily how many make all or most of their living, but apparently the bottom casual is 28Million, how many are in the next tier?

know what i mean? Anybody?

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

by: ZZTopshlf

Tue Jan 26 14:37:33 2010

@RBH

Is 3 cents vs 5 cents listing fees the only difference between the anchor and premium store?

Just wondering if there is any other added benefeit for paying $299.99 vs $49.99

The page Ebay has up now trying to get us to subscribe doesn't really spell that much out.

http://pages.ebay.com/sellerinformation/news/StoresRegistr
ation.html

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

by: fruity

Tue Jan 26 14:40:26 2010

oh and also won't that add to an increased risk by taking on so many more and will that risk cause ebay to justify the paypal holds/reserves? Because you know, there is that email where ebay says its category based and that it has nothing to do with the sellers performance.

no doubt if ebay is using the category to be the factor in implementing reserves on at least 1 of their reserve/hold programs.. that flooding the market place or dropping the front end will bring on risk that umm could adversely trigger strong reserves as they average it or something. u know?

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by: Smoke and Mirrors

Tue Jan 26 14:47:27 2010

Everything ebay does is to guide seller behaviour to a desired result
that increases ebay's take-rate.

To achieve this, they will not necessarily tell sellers everything they need to know about ebay's systems, either good or bad for the seller.

Keep this in mind, as we all keep shoveling them fees. Do the math and consider how much fee ''savings'' vs new exposure from your competitors listings in core will effect your bottom line. Take the long view and remember how slow sales get around May, even at the best of ebay times (pre-2004)...

For ebay, it is like shooting fish in a barrel. Seller A loses their sales to seller B or seller C via Best Match and that is what ebay wants to happen; to make sellers desperate for exposure, so they lower their prices to pretty much nothing. Seller A gets the cash flow, sellers B and C are out.

Ebay needs the fees from ALL the sellers who continue to attempt to sell on ebay. So, they want ALL the sellers to keep trying to recover from each Best Match tweaking behind the scenes...

It's like a Las Vegas casino. The house always wins, no matter how it turns out for the gamblers (sellers).

Best Match, ''functional'' or not, will never be a ''Time ending soonest'' kind of variable you can work with.

The house (ebay) always wins....

All this ebay kool-aid about fee changes will make too many sellers forget that Best Match will park their listing on page 13.....

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

by: Jimbo

Tue Jan 26 14:50:10 2010

So I guess RBH can not answer my question honestly lest eBay be shown in a bad light. Thus no answer.

The absolute fact is that the little profit I had remaining after the first 2 years of changes will now be much less due to the 40% to 50% fee increase presented by eBay as a decrease. I am so tired of being lied to.

I am not saying Richard has lied to me but I really have learned to not expect the truth from any eBay employee. Silence is an answer in and of itself. A sad comment on the state of eBay customer service.

RIP small sellers.

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

by: fruity

Tue Jan 26 14:56:17 2010

oh wait I have another thought. This seems as though a return to the pre july 2006 changes. Duplicate flooding of stuff. I'm sure there's going to be something for someone but I sure dont see something for little trailer seller me. lol

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by: Me

Tue Jan 26 14:59:30 2010

I mainly use the fixed price format with best offer and have moved most of my store format to fixed price because the exposure in search was next to nothing.  Based on the fee illustrator data- my fees actually go down with the anchor store.  So- all in all this is not such a bad deal for me, but I rarely run auctions anymore.

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by: RBH

Tue Jan 26 14:59:38 2010

@zztopshlf

Is 3 cents vs 5 cents listing fees the only difference between the anchor and premium store?

With regard to pricing benefits... yes. There are additional marketing benefits between the two tiers but from a pricing benefit that is the primary difference.

Just wondering if there is any other added benefeit for paying $299.99 vs $49.99

From what I can tell, for someone listing ~12K+ items per month, the Anchor store would make financial sense. For someone selling less, they wouldn't be realizing any savings by upgrading (the delta between $299.99 and $49.99 and should go with the Premium.

Cheers,
RBH

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by: fruity

Tue Jan 26 15:02:32 2010

hey maybe ebay this is a co-branding campaign with Vaseline and Preparation H. What do you think boardies, do you think all these creative announcements and terrorizing clandestine reserves has gotten our insides tense up so much where we need ointment? Im a gonna go look up to see if Bain & Co every worked with those brands. lol

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by: RBH

Tue Jan 26 15:06:01 2010

@Jimbo

Admittedly, I don't know your business set-up but I was of the understanding that for most sellers, the new fee options will bring savings with reduced upfront cost. Across the board, Insertion Fees are being reduced and Final Value Fees for Fixed Price listings are for the most part staying the same.

Are you seeing this 40-50% increase through the fee illustrator? http://pages.ebay.com/sellerinformation/news/FeeIllustrator2010.htmlR>
If
so, I'd love to find out more about why... if you're up for it. I'm at ebayink@ebay.com.

Cheers,
RBH

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

by: ZZTopshlf

Tue Jan 26 15:08:17 2010

@RBH

Ok, that's what I thought. :) I just wanted to confirm if there were features available for the anchor store that weren't available for the premium.

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by: My Own Website Not Quite Paying My Bills Yet

Tue Jan 26 15:10:43 2010


If tv stations (like CNBC) ever wonder why they are losing viewership to the internet it's because they never tell the whole story. The "Ebay Lowers Listing Fees" type headlines mislead the viewers. Why don't say something like "EBay Increases Store Fees"?

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 15:15:54 2010


To RBH:

"I was of the understanding that for most sellers, the new fee options will bring savings with reduced upfront cost."

Do you always let people tell you how it's supposed to be? If that's the case then I suggest you open an EBay account and start selling and experience what sellers actually go through.

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

by: nosnevada

Tue Jan 26 15:16:20 2010

so far, seems the best advice is to diversify selling venues while using ebay to chum for future, repeat customers. thus one might look at the first sale to a new customer via ebay as merely an advertising/couponing/free sample cost.

what will be the effect on today's power sellers from ebay's continuing agenda to sign up million item/"large retailer entire catalog" listings ?

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by: John

Tue Jan 26 15:16:52 2010

My initial impression is that I like the change. After running through the numbers this puts my ebay fee's back in line with Amazon fees or perhaps lower. The key factor is the sell through rate. Will FP format remain constant, go up or go down and by how much. You would have to drop down to less than 1% sell through for this to not benefit.

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by: Jimbo

Tue Jan 26 15:28:46 2010

@RBH

I'd love to explain more about how the increase is and will kill small sellers, especially ones who use auctions exclusively and have average ending prices in the $50 to $200 range per item. It is really simple math. Figure a starting price from $0.99 to $9.99, compare now and March and you will see.

Unfortunately I have found that any eBay controlled site practices censorship so with David and Ina's permission I would like to briefly discuss it here. I would, of course, promise to be civil.

I have to take care of some business so will be unavailable for awhile.

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

by: eBay Jacking Up Fees Again

Tue Jan 26 15:30:48 2010

To RBH:

Compute the total fees (listing + FVF) for a casual seller (i.e. non-store)under the old and new fees on an auction item that is listed at .99 and sells for $100.  Then you will see why people are upset.

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This user has validated their user name. by: Ina

Tue Jan 26 15:39:14 2010

I spoke to Scott Morrison of the Wall Street Journal / Dow Jones newswire, he's interested in hearing from sellers about the changes. He said he would be returning to the eBay news after covering this afternoon's Yahoo earnings. You can see his article here:

http://tinyurl.com/yjl3j3v

His email is at the bottom of the article.

I spoke to eBay too, I will have more about the changes in tomorrow's newsletter.

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