AuctionBytes Blog
Covering auctions, collectibles and marketplace selling.

AuctionBytes Blog The AuctionBytes Blog has been giving a voice to online merchants since its launch in 2005. Named one of the world's top 30 blogs in 2008 by "Blogging Heroes." Weigh in with your thoughts on the joys and pitfalls of selling online.
Wed July 6 2011 10:19:13

Reminder - eBay's New Fees Take Effect Today

By: Ina Steiner

Sponsored Link

In March, eBay announced new fees that take effect today, July 6. The company is lowering its commission fee rate while applying it to the total amount of the sale including shipping.

According to eBay:

- "Sellers subscribed to a Store: Final Value Fee rates reduced and applied to the total amount of the sale (including shipping) starting July 6. Get the same low Insertion Fees - as low as 3 cents."

- "Sellers not subscribed to a Store: FREE to list Auction-style up to 50 items a month - any start price - with FREE Buy It Now option starting April 19. Auction-style Final Value Fees apply to the total amount of the sale (including shipping). Starting July 6, Fixed Price Final Value Fee rates reduced and applied to the total amount of sale (including shipping)."

You can find more information and fee charts on this page.

eBay said it was making the changes to encourage and reward low-cost shipping. Have you made any changes to your selling behavior as a result of the new fee structure? Let us know how this is effecting you.




Comments (68) | Permalink

Readers Comments

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: Paul

Wed Jul 6 10:44:03 2011

I quit selling on "Feebay" a couple of days ago in anticipation of this latest "Lowest fees ever BS"

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: Patricia This user has validated their user name.

Wed Jul 6 10:52:56 2011

Ebay has now turned into a rip-off for sellers - lower than any flea market. At least that environment was lucrative for all, this latest scam is simply a desperate attempt on Ebay's part to look "successful."  They continue to "ration" the shrinking pool buyers they have and still squeeze sellers for every penny.  pfffttt - they simply don't matter much anymore.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: Welkinview

Wed Jul 6 12:06:44 2011

I'm busy today taking most of my 1,600 items for sale off ebay.  The fees to sell an item (book, in this case) for a dollar + $3.99 shipping are now (based on having a $49.99 store subscription & 1,600 items listed): $.03 (portion of subscription); $.05 (per month for fixed rate listing); $0.65 (final value fee - was $0.15 prior to July 6, 2011); $0.44 (Paypal fee).  Also $0.25 (mailer) & $2.82 (average media mail cost to mail book.  So, if a book sells in the first month of being listed, costs total $1.17 to Ebay/Paypal & $3.07 shipping & supplies.  Grand total taken from the $4.99 received for the book: $4.24.  'Profit'with new fee structure: $0.75 minus $.05 per month listed (with old fee structure - $1.25).  Nope, no thanks.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: coconut

Wed Jul 6 12:39:23 2011

Yup, just raise everything 10%. If people don't want them they can go somewhere else.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: F Off Ebay

Wed Jul 6 12:41:14 2011

We have increased our shipping costs across the board to allow for the new "lowest fees ever" BS. We also have opened our own website and are putting over half of our efforts of getting the heck off Ebay.

We got a call the other day from one of the Ebay assistants. man was she ever sorry she called us. If its any comfort, she was going to let Ebay know exactly how unhappy we were. Yeah, that's gonna happen. What a bunch of complete morons!

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: Barb

Wed Jul 6 13:25:57 2011

Haven't changed a thing in 12 years.  Still charge for shipping.  Still run only auctions.  Still selling a ton of merchandise.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: Bob H.

Wed Jul 6 14:18:02 2011

I use the auction format exclusively for period antiques, collectibles and housewares. All of my auctions start at 99 cents and my sell-through rate is over 85%. Not much change since I started in 1997. These fee changes should result in a savings of several thousand dollars a month for me. I don't know why people think the auction format is passe. It's alive and well for me.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: really

Wed Jul 6 14:32:19 2011

Please coconut, barb, boh h, tell us your handles, let us see some of your auctions

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

This user has validated their user name. by: Anonymous Annie

Wed Jul 6 15:11:59 2011

@Really:

I think they're all the same person. Perhaps an eBay employee, or paid social-media propagandist.

Even though they ignore our ''noise'', we must be getting to them... otherwise they wouldn't be making the effort to offer their own ''spin'' (even if it is a corporate sponsored and paid ''AstroTurf'' effort). ~ If only eBay would put the same effort and funds into addressing our legitimate and valid concerns. (Oh well, a girl can dream, can't she?)

With regard to the change in fees, this is ONE TIME that a change in eBay policy benefits me. ~ Well... kind of.

Over a year ago, I changed all of my listings to ''free'' (included) shipping... which meant that I raised prices for each item by the exact amount of shipping.

During that time, my eBay fees went UP. Even though the shipping was marketed as ''free'' eBay was getting their increased FVF's because my shipping costs had been rolled-in to the cost of the item.

So, for me, the new fee structure looks to be a benefit... but only at first glance.

The reality is that in spite of my playing eBay's ''best match game'' and in the (vain) hopes of being rewarded somehow with better (or even fair) placement in search results, my sales have plummeted in recent weeks.

I'm very fortunate that I have my web site as a source of exposure and income, but I feel absolutely awful for those who rely exclusively on eBay.

So, the small percentage of ''savings'' really means NOTHING to me if my actual sales have dropped to about 1/10th of what they previously were.

eBay's published FVF's may appear to be ''less'' than Amazon's fees... but if you do the math, and look at the low STR's, and relisting fees, and consider the PP fees, etc. Add it all up and Amazon is a better bargain.

eBay may continue to exist (as a company) and it may continue to be profitable (with the help of big-box diamond Chinese junk sellers, and PP) but for me, it's DEAD IN THE WATER.

Stagnant.

A festering cesspool.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

This user has validated their user name. by: David Steiner

Wed Jul 6 15:43:52 2011

This is probably long overdue, but let me be clear about something. Because we allow people to post anonymously, that leaves room to conjecture whether or not a poster is a shill for a service.

As moderator, I have a lot more information about who posts here than you do. If I can verify that someone is posting under multiple IDs, or that someone is shilling for a company, you will likely never see their post, because I pull it, block them, or call them out for it.

As it just so happens, I have followed one of these poster's auctions for a long time, and I can tell you that their sell-through rate and the prices they realize on eBay are both quite healthy. This person didn't ask me to verify their statement, but I think this is an example of taking someone's comment at face value, and not just slapping them with a label of shill.

We have a couple of options here. We can either cool it and address the post and not make accusations against the poster that can't be verified. Or we can make this blog a place where only registered users can comment.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: Thom

Wed Jul 6 15:53:38 2011

This is their latest cash grab, which totally sucks. I've had to increase all my prices to make up the difference eBay is charging me now for my shipping. I sell sports equipment and the weight of the items are substantial, so shipping for an item costing $30.00+ isn't unheard of, but now I have to add 15% to that price to cover the loss I'm incurring, so now my customers are paying $34.50 for the same thing and I'm not making any more money at all. This also puts my items in the same price category of retail outlets, so why would people want to spend the same amount of money on something they can go down the street for. I am not a fan of this at all, but there doesn't seem to be a whole lot we can do. I am also opening my own website to move my customers to. At least I'll be able to tell them that they'll save more money by coming to my website than my eBay store, maybe in the long run it'll pay off. It's always sad when companies get greedy, and poach off the people doing the real work.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

This user has validated their user name. by: Anonymous Annie

Wed Jul 6 15:57:54 2011

@DS: My apologies for the accusation, David. That was unfair of me.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: Man the lifeboats

Wed Jul 6 16:06:13 2011

Anyone who subscribes to Terapeak's research will see how many times an item is relisted over and over again. It's a killer for auctions with all the relist fees and especially for the small basic store subscriber.

My teenage daughter was doing research for me and asked why items were not selling and the same item repeated so many times. I told her this is how eBay is getting rid of auctions and making their money.

Listing as fixed price just doesn't work for me with 1 or 0 views. (I sell collectibles, OOAK, antiques).

So if nothing is selling, the FVFs and shipping fees, aren't really a concern.

Annie is right, eBay is DEAD IN THE WATER. We all need to find other venues and our own websites to not go down with them. Sellers cannot succeed with a delusional CEO in charge.

It's terrible, besides criminal, what eBay has done to this troubled American economy.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

This user has validated their user name. by: Anonymous Annie

Wed Jul 6 16:07:22 2011

@Thom writes: ''At least I'll be able to tell them that they'll save more money by coming to my website than my eBay store, maybe in the long run it'll pay off.''

This has been my approach, and it does pay off eventually. At this point I'm resigned to view my eBay fees as an advertising expense and a way to meet new customers. ~ They can sample my wares on eBay, and if they like them (and want to SAVE on future purchases) then I direct them to my web site.

--- ''It's always sad when companies get greedy, and poach off the people doing the real work.''

eBay's greed may be backfiring on them as far as I'm concerned, because I'm ''greedy'' too... and my own greed and desire to be successful (along with eBay becoming an adversary rather than a partner) is what caused me to expand AWAY from eBay and to list only a portion of my inventory on eBay.

The more they squeeze me, the less they get. ~ I'll bet that I'm not the only one who feels this way and who responds as I have done.

They aren't contributing to my success anymore, and I'm certainly not contributing to theirs! I wonder how long it will take before enough people feel the same way... and the situation reaches a critical mass?

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: MR ME

Wed Jul 6 16:49:14 2011

Great!, yay!!, eBays new fees come into effect, sellers need to raise prices in order to salvage a profit, prices higher across the board,...... buyers ticked off, look on other sites,( where I have my items listed 10% below my eBay prices and still make a better profit ).... Great job JD!!!!

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

This user has validated their user name. by: Ming the Merciless

Wed Jul 6 17:06:38 2011

David, I respect your wishes but disagree with your statement that you can normally detect shills.

At any given time, there are dozens of proxy IP addresses that can be used to disguise the poster's real IP address.

Further, after the Jose Mallabo fiasco, what's to prevent an ebay or LiveWorld employee from posting from home? I believe that at least two ebay employees are doing this.

How do we know that social engineering sites don't in fact employ people from home to escape or minimize the possibility of detection and exposure?

Only high end net users have fixed IP addresses which would include ebay and LiveWorld. Posts originating from them would be easily detectable.

However, for those working from home, dialup connections assign a different IP address for the user each time a user logs on. Many high speed providers also assign different IP numbers each time a browser is initiated.

While I realize that few people have dialups anymore, dialups would serve social engineering purposes quite well.

There are easy ways to mask ebay and Liveworld employees' posts.

With literally millions of sellers, the math would suggest as small percentage of sellers remain successful. But the businesses of the majority of small and medium sellers have been decimated under John Donahoe.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: Keith

Wed Jul 6 17:12:44 2011

I am WOODJUNGLE! on Ebay.  I Ebay period.  The problem is is that they are a monopoly and my only choice and they know it.  That is why they do what they do.  For fun, awhile back, I sold EBAY SUCKS, and I HATE EBAY T-shirts ON EBAY to protest the money order thing (another greed squeeze disguised as something else)  I was told I could as they had no policies to stop me.  Yep, I am the reason for part of the site interference policy that they put into affect :)

Anyway.  What ebay is doing by raising fees is still thinning out sellers. There is still a disproportionate amount of sellers to buyers as far as they are concerned.  Too many sellers equal prices that are too low.  Bad for them. They KNOW that buyers will pay more for alot of products so they thin the sellers. This is all calculated. They will be making the same amount of revenue or more with less sellers.  More efficent, less headache.

Bottom line is, its not a fair market place. It ruled under a monopoly.  Oh, and I got a call from them as well last week and the caller was equally sorry that she called me :)  

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: Angela

Wed Jul 6 17:19:33 2011

Add me to the list of people who are raising their prices to cover the extra fees that I will now be paying.  

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

by: flotsam

Wed Jul 6 17:31:17 2011

I should preface with the info that I am more of an ebay buyer than seller.  So in other words i buy occasionally and sell less occasionally.  I am still a fan of eBay and i frequently look there unless i know an online outlet (like a Amazon) where i can get it for less.  I think the sellers who have the idea they can acquire buyers through ebay are correct.  I have established a relationship with a seller and then if i have other purchases i contact them separately outside ebay to complete them and i usually see a discount and the sellers are happier not giving money to a third party.  But lets give credit to ebay for establishing that market and attracting customers like myself in the first place.

As a part time seller I like ebay because i find at least I have a ready market I can join.  what are my options?  yard sales, consignment, Craigslist?  i generally have had less hassle and made more money on ebay even with their fees.   So i can only stomach the complaining so long but then again i don't make my living off of eBay.

Reminder - eBay's New Fees Take Effect Today   Reminder - eBay's New Fees Take Effect Today

This user has validated their user name. by: David Steiner

Wed Jul 6 17:43:22 2011

@ming:
"Further, after the Jose Mallabo fiasco, what's to prevent an ebay or LiveWorld employee from posting from home? I believe that at least two ebay employees are doing this.

How do we know that social engineering sites don't in fact employ people from home to escape or minimize the possibility of detection and exposure?"

The point is that if anyone that has some positive comment is immediately labeled a shill then you're running them off the blog without proof. Think about what you want here. Do you want a conversation or do you simply want to have your arguments rubber-stamped? I suspect that you're fully capable of holding your own in a debate, Ming.

It's simple really. We maintain a fairly open forum, with minimal censorship. Argue the points of the post, don't attack the poster.

Click to view more comments
1 2 3 4  [Next Page]


Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.