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Tue Jan 29 2008 09:29:23

eBay Increases Fees Overall

By: Ina Steiner

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While wire services are lighting up with news that eBay has lowered insertion fees, the truth is that eBay has increased fees in many cases.

If you list 100 items with a starting and ending price of $9 with a 50 percent sell-through rate (50 items out of 100 actually sell), it would cost you a total of $63.63 in fees under the old structure and a total of $74.38 under the new structure. This is a fee increase of 17 percent.

This is based on the old insertion fee of 40 cents plus commission fee of 5.25%, and the new insertion fee of 35 cents plus 8.75% FVF.

If you list 100 items with a starting price of $9 and sell 50 percent of them at a selling price of $35, you would have paid $121.75 in total fees under the old pricing structure. Under the new pricing, you would pay $162. That is a 33 percent fee increase.

Despite this, John Donahoe just announced in his keynote address at the Ecommerce Forum that the majority of sellers will see a decrease in fees - let me know if this makes sense in your specific situation.

Check my math, and let us know how these changes will affect you!

Call 1-877-222-0856  and leave a 60 second message about what you think of these changes.

Update: As the first person comments below, Gallery fees make a difference.eBay is now making the Gallery feature free. Here's how the numbers work:

$9 starting and ending price with 50% sell through, with gallery: Old fees: $98.63, new fees: $74.38: A decrease by 25%

$9 starting price with $35 ending price with 50% sell through, with gallery: Old fees: $156.75, new fees: $162: An increase of 3.35%.


Comments (117) | Permalink

Readers Comments

eBay Increases Fees Overall   eBay Increases Fees Overall

by: chump change

Tue Jan 29 09:36:58 2008

It is an increase even if you facor in that Gallery pics are now free. Please call him on it. Don't let him do his corporate double talk.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: David

Tue Jan 29 10:19:56 2008

The final value fee increase on items sold under $25.00 is more than 66%!

eBay Increases Fees Overall   eBay Increases Fees Overall

by: chump change

Tue Jan 29 10:38:23 2008

Count how many times during his inteviews Donohoe says 'We think that' followed by 'Our data shows'. I'd like to ask him why he 'thinks that'. I'd also like to know how his data was collected and if he will make the collection process public for all to see.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Joan

Tue Jan 29 10:45:33 2008

So much to say; so little space!

1-So, we are cleaning up the site by not being able to leave FB for potentially bad buyers?
2-My accumulated FB since 1998 is for naught?
3-My FVFees get bumped 67%?
4-EVERYBODY gets a gallery pic? So, why not save bandwidth and give NOBODY a gallery pic?
5-Those not using a gallery pick are generally selling low-end items. A gallery pic now puts them on a par with those selling better items, thus flooding the site with lower end items. Thought eBay wanted to get rid of the low-end sellers? Wasn't that why they RAISED Store fees a while back?
6-How is raising FVF 67% ''getting back to Core?''
7-A 5 cent listing fee reduction [hahahahahahahahahahahahahaha!] Lowering the ''entry risk.'' PLEEEEEEZE. What I want are MORE SALES---not nickle hedges on higher and higher #s of UNSOLD ITEMS!
8-Why PUNISH people that actually SELL STUFF by charging them higher fees? Isn't this kind of a NEGATIVE Reinforcement?
9-I've been waffling on trying an eBay Store [again!] but found the 10% on the back end a bit steep. Now they RAISED that and guess what my STORE decision is?
10-Business plan 2008---Milk eBay as a traffic driver to ELSEWHERE while only selectively listing higher-end items.
11-Much more, but it's mostly venom...

My goal for the next few months is to pull the plug on my account after filling the few remaining gaps eBay may still fill in my online biz plan.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Jill Daniel

Tue Jan 29 10:50:29 2008

Been a seller since 1998 and I cannot BELIEVE these changes.  I've been loyal and put up with all the changes targeted to specifically DEMOLISH my business, and this new pricing structure will do just that.  So long, GreedBay!  Time to give Amazon and Overstock my business.  

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Me

Tue Jan 29 11:50:29 2008

This is absolutely terrible. I can't believe eBay. Are they shooting themselves in the foot? Why take more and more just because your a monopoly? Don't they have a business model? And why disguise huge fee increases with lower upfront listing fees and feedback dribble.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: pcat

Tue Jan 29 12:03:21 2008

looks like the joke's on us sellers...AGAIN! I can't possibly see how this helps me at all, will actually pay more in fees. The bigs at ebay must think we're as stupid as they are greedy.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: John

Tue Jan 29 12:26:05 2008

I've been a seller (99.6 pos f/b) since 1999 and I can't remember a positive change for the seller in quite some time.
If I did not know better, I would think that eBay somehow had plans to make money with just buyers and no sellers.    

eBay Increases Fees Overall   eBay Increases Fees Overall

by: LilyLoToycompany

Tue Jan 29 13:21:17 2008

Good-buy Ebay.  I barely knew ya.
Now I have to figure out how to market my website
And I guess I have to put more time into filling my inventory.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Cosmic-King

Tue Jan 29 13:46:46 2008

They must have a list of everything they can do to ruin the business ! Step by step they destroy the chance to recover.   I am a longtime powerseller with a peak of 2000 listing to down under 200 listings.   I thought this was supposed to be good news but this is more of the same.   I will continue to remove my business from ebay.   Besides I now do over triple the business on AMAZON.  


eBay Increases Fees Overall   eBay Increases Fees Overall

by: Dan

Tue Jan 29 13:49:24 2008

I just closed out my store on E-bay...with the feed back change that is comming and the new fees and then check out what Pay Pal can do!! its not worth it to me to spend my time trying to make a few dollars on E-bay when I can spend my time on my 2 sites and make them better..{ they do ok all ready }..and I only spend $25.00 a month for both sites and will never run out of I ask my self this over and over again..Why??? am I wasting my time on E-bay to sell!!..As soon as I read the new postings on what E-bay new policy's were all about and the new feed back system { what a joke that is..Not!..that leaves the door wide open for a lot of buyers to pretty much leave what ever they feel like leaving for feed back and you the seller can leave nothing but postive..for get that. }I pulled the plug on my E-bay store...after doing the cost more..not less over all to sell on E-bay and if you do buy nows or auction style...and with the low percent of sell thru's..its a waste of time if you have another way to market your will keep my account with be a buyer..but forget being a seller...and be interesting to see how this all pans out in the next year...because after the last big increase all the sellers jacked their shipping and handling way up..some times way to much and be interesting to see how that works now!!..because most if not all were trying to cover their listing and final vaule fees and Pay Pal fees with their high shipping and handling and packing fees...Oh my...time to go back to work..

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Dan

Tue Jan 29 14:02:16 2008

Oh!, I forgot..for those of you that are ringing your hands or wondering now what!..Get your own web site and be in control of what you want to do...Check out Yahoo's small business plans...for around $10.00 or so { that is for a website and domanin name included...they also have a on line store you can open..but I do not want that..) you can not beat it as far as I am concerned and learn Html..its not that hard and work towards having your own bussines and be more in charge of your life....Just a thought!

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Doug

Tue Jan 29 14:04:47 2008

Don't see where anyone mentioned the removal of the reserve price listing fee CREDIT. You won't be able to afford to put a reserve on an item, when you don't get a credit back when it sells.  Add another 1% to your sales commission calculations when figuring out how much the INCREASE is.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Ms. Dow

Tue Jan 29 14:35:57 2008

It's human nature to resist change. It's also standard business to raise prices. That's why people get income raises. It's just the way business markets work. I say quit whining, and get back to selling. If you have a low sell-through rate with the current/old fee structure, you can't blame that on fees that aren't even imposed yet. My sell-through rate is 74%. I always use gallery - a picture is worth a 1000 words! I have 100% feedback rating, after 8 years on ebay. Yes, it will now cost me more. Hopefully all you whiners will exit ebay, leaving more bidders for my auctions, so I will actually make more money in the long run. Regards -- Adair Dow ~ MS DOW ANTIQUES (ebay name msdowantiques)

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Don Davis

Tue Jan 29 16:02:52 2008

I have to admit I am so upset at eBay for thinking I am a dummy. They really feel that giving Gallery Free but inceasing the final value fees is the cure for there mistakes?
I am definatly going to change my business plan, and focus on other selling strageties off of eBay. I guess I will have to check-out Amazon and Google Base.
Thank you

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Nina

Tue Jan 29 17:00:33 2008

Well, Ms. Dow, you'll be happy to know that I WILL be leaving Ebay.  But thanks for posting your User ID.  I will have fun watching your pretty li'l ol' perfect FB rating go quickly down the toilet with buyers leaving you negatives at their whim.  You'll be begging for mercy.  

eBay Increases Fees Overall   eBay Increases Fees Overall

by: beachgal

Tue Jan 29 17:18:52 2008

There's no growth in ebay because Donohoe broke ebay!  

1.  He drove sellers away by adding offsite ads that direct buyers away from sellers.

2.  Nothing works.  He released markdown manager knowing it didn't work & won't fix shipping manager. The site has so much bad script nothing works - not even simple links a child could make.

3.  Best match doesn't work!  There are over 66 pages of posts on one thread alone telling Donohoe best match doesn't work.  

4.  Guinea pig tests.  Donohoe is responsible for ordering guinea pig tests on millions of members which drove them from the site.

Until Donohoe admits he caused ebay to experience NO GROWTH and fixes what he broke, fees could be FREE and it wouldn't make any difference.

Sellers know the truth - buyers couldn't find IT if their lives depended on it and that's why both buyers & sellers are leaving.  Maybe one day the stockholders will realize ebay's no growth problem lies in Donohoe.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Bryan

Tue Jan 29 17:57:49 2008

Ms Dow...I hope you don't come here for sympathy when your business goes to he!!

eBay Increases Fees Overall   eBay Increases Fees Overall

by: Sapper Supplies

Tue Jan 29 18:40:23 2008

I just ran my numbers for my best month on eBay last year for my store...
Average listing/sell price of $55 with a sell-thru rate of about 33% = 13% fee increase. While my current feedback score would qualify me for the 15% PowerSeller discount, with the new changes - who knows? - so I purposely did not incorporate that calculation.

I closed my store after Christmas, not because I was prescient but because of the already high overall fees, constant problems and *offsite ads*.

In summation, I'm glad that I didn't have much time and energy invested in eBay; it made breaking away quick, easy and obvious.

eBay Increases Fees Overall   eBay Increases Fees Overall

by: JS

Tue Jan 29 19:24:15 2008

With all the sellers posting on forums everywhere on how they are leaving, never to come back, I wonder how many really mean it. Boycotts, yea right. They never work either. Fact of the matter is there is no other place to go. You have to suck up the fees and like it. I ran the numbers on a random sampling of my items that all started at 9.99 and ended between 9.99 and 50.00 in the past month. I did not use Gallery. My fee increases under the new rate schedule is between 35% and 45% depending on final cost. My random sample was $8 more in fees, total, under the new rate. This is the biggest single increase I've had to absorb. I am not a big seller. I do it to make a few extra bucks, and I've been doing it since 1997. I was a power seller for 5 years during the ''glory days'' prior to 9/11. I'm no newbie who is just bitching. Now,  on average for a given month, I'll make about $25 less per month. That's really something to be pleased with, loosing $300 a year to a greedy monopoly. I don't even want to get into the feedback issue, but I'll tell ya, the slightest thing wrong with anything I buy off of eBay, I'm going to slam the seller with feedback, whereas before I just let it go. eBay wants to play game, I'll play the game. I won't intentionally give a seller a bad feedback, but there's no holding back now.

Yep eBay, you've really gone and done it this time.

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