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Fri Mar 30 2007 13:49:29

eBay Quashes Rumor over Store Fee Hikes

By: Ina Steiner

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eBay is not raising fees for eBay Stores, spokesperson Brad Williams told me today. ChannelAdvisor CEO Scot Wingo had speculated on his blog yesterday that eBay would raise listing fees for Stores in April. He believes Store listings are growing too fast, and that auction listings are not growing fast enough.

Scot was referencing eBay's dilemma in balancing Store versus core listings, a problem that it revealed last summer when it decreased exposure for Store listings and increased Store fees.

"We don't have any plans to raise Store fees today. Scot is just wrong," Brad said. "As always, when we have major changes, we'll communicate with our community in a timely and comprehensive way."

Scot's blog post has gotten much attention from other bloggers and on discussion boards. Randy Smythe, a former eBay PowerSeller turned blogger, agreed that Store fee increases were "inevitable," and advised Store owners to increase their prices incrementally over the next several months in preparation.

Another blogger, Debbie Levitt, who is President of AsWas, eBay's first Certified Service Provider, went against the grain. "Why are people reacting like the sky is falling upon hearing a rumour?" she wrote, writing that she has yet to see people leave eBay in droves. She also advised, "If a multi-channel selling strategy is right for you, you should be looking at it (or doing it) ANYWAY."

Blogging is all about speculation and rumors, and the discussion resulting from Scot's blog post was interesting and informative. There's no doubt that some sellers were quite concerned on how possible, rumored fee increases would affect them, however. Will eBay's adamant position that they have no plans to raise Store fees reassure them?




Comments (13) | Permalink

Readers Comments

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Jim

Fri Mar 30 14:36:49 2007

"eBay is not raising fees for eBay Stores" spokesperson Brad Williams told me today.

One to dig out in a few months time Brad...

Where have we heard promises 'not to raise taxes' before.

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Bonnie

Fri Mar 30 16:04:12 2007

"We don't have any plans to raise Store fees today. Scot is just wrong,"

You missed the part that says "Today"

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Debbie

Fri Mar 30 16:48:44 2007

Blogging doesn't have to be ALL about speculation and rumour. It could be about facts, and it could be about unbiased suggestions.

I stand by what I said. If a multi-channel selling strategy is right for you, DO IT. Don't wait for a rumour or anything else. :)

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Ron

Fri Mar 30 16:51:31 2007

You can always tell why ebay lies... Their lips move..

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Randy Smythe

Fri Mar 30 17:45:40 2007

I stand by my comments as well. Raising fees is inevitable and sellers need to be aware of that and consider their options with enough time to make changes. eBay changed on a dime to reverse SIS if they see the metrics going south, what do you think they will do?

I am speculating this will happen based on history, experience, logic and Scot’s post and I don’t believe the sky is falling but this is a wake-up call for sellers. Look out for your business and plan accordingly.

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Chairman

Sat Mar 31 05:18:34 2007

Its only a matter of time before they raise fee's again ,its a pattern that has held to form and likely to do so again.

They have driven more and more of my Slavic Book listings off of eBay sites and into my own store for Russian and Ukrainian books

Its getting harder to sell collectible items on eBay ,its a clunky system ,expensive and less sales all the time

A fee increase is likely otw

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Bonni

Sat Mar 31 08:01:57 2007

"Why are people reacting like the sky is falling upon hearing a rumour?"

Because people know eBay has, can, and will muck with the system at will and raising fees again sounds like something eBay would happily do?

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

This user has validated their user name. by: Nan

Sat Mar 31 09:06:52 2007

If eBay raises Store fees again, it's going to drastically change the way I think about the Store. It would be a damned shame.

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Debbie

Sat Mar 31 10:12:15 2007

eBay raises fees regularly. If you're a seller, you know that. That's why it makes no sense to panic at the idea that they may raise fees. Fees will go up at some point! The better thing to do (than panic) is to be planning now the many ways in which you could react to changes.

What will you do if your supplier raises prices? What will you do if UPS rates go up? Postal rates are going up... what will you do about that? What will you do if 2 new competitors start selling your items on eBay. You should know what you would try doing in each of these situations before they happen and without driving yourself bonkers. :)

These things shouldn't bring panic. I'm not saying eBay fees will never go up. I know they will. But it doesn't have to mean panic and knee-jerk reactions without making well-thought-out operational decisions.

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Mamachia

Sat Mar 31 10:22:05 2007

As I see it, Ebay will raise their fees soon as it is always about the numbers for their stock holders and potential investors.  As Bill stated not "TODAY",  but it will be soon enough.  With the last outrageous store increases, many sellers moved off site with their own stores or other hosting sites.  I myself, am in the mists of computer classes so I may focus on my own personal website.  To me it is worth it in the long run as Ebay will not dictate to me any longer what I can and can not do or list.  For being a "VENUE",  there are sure too many rules!!!

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Randy Smythe

Sat Mar 31 14:30:27 2007

You know Ina, eBay really didn't quash the rumor they just quashed the timing. As you can see by the comments to your post, eBay's response was met with "some" skepticism.

The only way for eBay to quash the rumor is to state they will not raise Store Fees through the end of 2007 – That is a comment that would work.

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Andrew Titcombe of www.crucialmusic.co.uk

Tue Apr 3 06:41:17 2007

The comments here reveal how UNTRUSTED eBay is. How sad. How different from those great early days of eBay.
Brad says ''As always, when we have major changes, we'll communicate with our community in a timely and comprehensive way.''
SO how come it took them a month to tell us here in the UK that our listings were no longer being shown on ebay.com with a suggestion that we list on the US site - that is called doubling of fees in my language but done in such a way a seasoned politician would have been proud of!
US buyers must think a lot of us UK sellers suddenly stopped selling.
SURE - eBay still attracts major traffic and I would be foolish to ignore it but as a specialist record/CD dealer it is no longer my No 1 site for selling and looking at the powerseller chat boards here in the UK, that goes for a lot of people.
More and more  (as sellers) we need advice and warning from specialists such as Auctionbytes to keep us on track with a rapidly changing marketplace (thanks for doing that Ina and David!)
I used to run 6 stores in London England and changed to eBay/Amazon selling when stores came under threat from the internet so I am adaptable but eBay is so blatantly in business for shareholders rather than people like YOU and me who helped them get where there are today (he says modestly!)

eBay Quashes Rumor over Store Fee Hikes   eBay Quashes Rumor over Store Fee Hikes

by: Rudy

Tue Apr 3 09:00:33 2007

The second someone comes up with an ebay store to website program or service, I'm gone.  I just don't have the time to recreate my listings.
I think that's what many sellers are waiting for.  I honestly can't wait to leave ebay.  



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