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Tue Aug 2 2011 20:12:53

eBay Messaging on Fees Not Really that Simple

By: Ina Steiner

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An alert reader from Europe pointed out an error in eBay Australia's notice about fee changes. eBay wrote in the announcement under the heading Changes to non-Store fees: "Final value fees will increase from 5.25% to 7.9%, capped at $49.95 for each of the first 30 listings per month."

However, the reader pointed out that the current fee structure for non-store sellers is structured in tiers (tranches). On eBay's charts it states that sellers pay: "5.25% of the initial AU$75.00 plus 2.75% of the initial (AU$75.01 to AU$1,000.00) plus 1.50% of the remaining closing price (AU$1,000.01 - closing)"

The reader said, "eBay is not telling the truth by stating that they up the fees from 5.25% to 7.9%. They simplify things to their own advantage. Now the common perception is that eBay will increase their FVF with roughly 50% (from 5.25 to 7.9). And that is completely not true! FVF has almost tripled when you sell a AU $500 item."

eBay made similar changes in the UK recently, stating it was moving to a "simpler" commission structure to make it easier for sellers. eBay UK said it was "simplifying the final value fee structure, making our pricing more transparent," then added, "Fees will decrease overall for many sellers, but may increase for some." The British newspaper The Independent called the change a "massive rise in fees" that was squeezing small firms out of business.

The Australian newspaper The Age also wrote about the hardship the new fees were causing sellers in that country, called it a doubling of fees on some auction listings that "effectively penalized non-professional sellers." The newspaper said it was told by eBay Australia that the fee change was not a revenue raising exercise - because it offered non-store owners free insertion fees.

Ironically, the fee "simplification" makes it more difficult for observers to characterize the fee changes. A consumer organization told The Age it did not know whether the changes would be beneficial for consumers on balance because it depended on whether the money they saved on insertion fees was more or less than the increase in the final value fee.

It isn't just eBay's fee structure that has grown more complex both domestically and internationally. Its policies also vary depending on the country site. Our alert reader pointed out that when listing on eBay.com the difference between starting price and BIN must be at least 10%. On eBay UK this must be at least 40%. On eBay Australia no difference is required. "You get a note in red while listing to this effect. I find this very cumbersome and incomprehensible," he said.

Selling on eBay these days has changed dramatically, and sellers need to keep up with the changes and proceed carefully.




Comments (14) | Permalink

Readers Comments

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

by: pete

Tue Aug 2 23:13:40 2011

eBay treat all sellers with contempt, and why so many still put up with this abuse is totally beyond me.

Sellers never get a straight answer about anything on eBay, they pay ridicules selling and obscene listing fees for nothing more than server space.

If you are still using eBay because you think it’s the only way, well I feel sorry for you and hope that you enjoy the continuous mental abuse this company continuously pumps out onto it’s customers..you the seller.

I will never use or buy from ANY eBay Inc holding and if I can I’ll happily make the life difficult for anyone I come across that works for this outfit, because they are part of the problem.

Amazon have just opened up the 4 European market places to anyone with 1 pro seller account & NO EXTRA FEES…..this is a company looking forward  

eBay is not even worth considering now.

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

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

Wed Aug 3 01:29:36 2011

Time for a reprise of the ebay primer for sellers:

Ming's ebay Law #1:

EBAY LIES. ALWAYS HAS, ALWAYS WILL.

Ming's ebay Law #2:

EBAY REMOVES, TRIES TO GET REMOVED, OR DISCREDITS SPEECH THEY DON'T LIKE ANYWHERE ON THE INTERNET.

Ming's ebay Law #3:

EBAY RETALIATES AGAINST CRITICS USING EVERY MEANS AT THEIR DISPOSAL AND BY ANY MEANS THEY DEEM NECESSARY INCLUDING BUT NOT LIMITED TO NUMEROUS BLACK BUDGET OPERATIONS AND UNETHICAL SOCIAL ENGINEERING.

Ming’s ebay Law #4:

WHATEVER EBAY WANTS EBAY GETS ONE WAY OR ANOTHER BY ANY MEANS NECESSARY INCLUDING PATENT INFRINGEMENT, BRIBERY, CHARACTER ASSASSINATION, DECEPTIVE BUSINESS PRACTICES, AIDING AND ABETTING FRAUD, AND MISLEADING IF NOT UNTRUTHFUL PUBLIC STATEMENTS FOR THE PURPOSE OF INFLUENCING STOCK PRICES AND RATINGS.

Ming’s ebay Law #5:

EBAY THUMBS ITS NOSE AT THE RULE OF LAW.

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

by: Melissa
Web Site

Wed Aug 3 04:57:36 2011

"simpler" commission structure means more money in the pocket for eBay.

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

by: anyone out there

Wed Aug 3 06:43:57 2011

Australia and the UK are testing grounds for the US.

This is just an insight of bigger and better things that are to come to the US. Right around the start of the Christmas season.

All these changes are for the seller that is still waiting to get beat on the head some more.







eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

by: JustPray

Wed Aug 3 06:44:50 2011

Here is the way I look at it. IF you make a sale on ebay it becomes ePray.
First and foremost you pray you make a sale. Then:
You pray the buyer pays.
You pray paypal doesn't hold your money.
You pray ebay doesn't issue a refund to the buyer.
You pray you will eventually get some money.

...And if you do get any money.
You pray the listing fees, final value fees, paypal surcharge and paypal fee leaves you enough to cover the cost of shipping which ebay wants you to provide free.
You pray the buyer doesn't do a chargeback.
You pray the buyer doesn't leave you negative feedback.
You pray the buyer doesn't rate you low on stars because they did something stupid like didn't read their email and claim you didn't comunicate or they go on vacation and rate you low because they didn't get their item until they returned home or they think the post office charges to much for shipping and blame it on you.

Do I hear an Amen?

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

by: Charlie W. This user has validated their user name.
Web Site

Wed Aug 3 08:38:48 2011

Ina's ''eBay University'' chalkboard graphic at the top of this article is perfect!

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

by: Paul

Wed Aug 3 10:14:32 2011

Wow :-) what a bunch of clowns running Fleecebay, Greedbay

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

This user has validated their user name. by: Bob

Wed Aug 3 10:25:13 2011

Time for foreign sellers to face  selling price increases (disguised as decreases, as usual) so eBay can prop up their marketplace "growth" numbers for the next quarter. I am sure even more increases are on the way for foreign sellers. I am a U.S. seller: I sold a lower priced heavy item last week on eBay & paid a staggering 24 percent FVF to eBay/Paypal (OUCH!) when all was said & done...

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

by: zvicki

Wed Aug 3 11:41:10 2011

I have a BIG "AMEN" for ya Justpray! Very well said!

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

by: nomane

Wed Aug 3 11:57:24 2011

Seems like sellers outside the USA is getting a deal on there fees. they charge sellers USA on collectibles and most categories now starting at: 11% then the next stage, stage goes little bit down.  They charge sellers for all listing NO FREE LISTING AT EBAY: UNLESS YOU CONSIDER HAVING 50 LISTING FREE OF LISTING CHARGES PROVIDING YOU DO NOT HAVE A STORE: WHERE YOU CAN SAVE MONEY ON FIXED PRICED LISTINGS. The sellers from outside the USA are saying there fees are too high.  So what about the USA sellers who made ebay to begin with why are the fees so much more than any other platform?  The USA sellers get a raw deal..... ebay still sells better than any other site in the collectibles market unless you have some other suggestions where to sell and make more money in this area I would love to hear about them but there just aren't any so I feel stuck at ebay: mind you I do sell on:
ecater, boocoo aucitons, ioffer, bonanza, atomic mall, and have my own website, I see the sales come in drips and drabs, continually closing out items that have been sold out. so any one can tell me what site is better then ebay: believe me I am not an ebay happy sellers but it is what feeds the family and my only job.

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

by: Rich(y)

Wed Aug 3 13:31:12 2011

It's like being in a bad marriage and staying together until the kids are grown.

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

by: Xander This user has validated their user name.

Thu Aug 4 01:46:19 2011

Complicating the fee structure is good for ebay as they can make mistakes in their favor and a number of sellers wouldn’t know as so many sellers don’t scrutinize their bills. The more difficult, the better for ebay and don’t think for one second its purpose is anything other than to make it more difficult to follow. They want you to sign up for auto bill and let them bill your CC or PP account every month.

We are besieged and surrounded by a new type of gangster, modern corporate criminals to be exact. They don’t carry a gun but they will rob you blind by slanting the numbers and concocting formulas specifically designed to confuse and obfuscate the majority of their users. That’s right folks; this type of crime is of the worse kind as it is implemented swiftly and with no consideration of the poor souls who it affects most.

This sort of misleading razzle/dazzle mathematics is not new but has become very popular today; in fact it’s probably safe to say it has become the standard of the industry more so than not. The credit card companies were the masters in this field but were forced to become more transparent these past few years.

Really, it’s not much different than a user agreement which is written is small grey text or one which is miles long but crammed into a tiny box that makes it next to impossible to read let alone understand.

Until laws are written to protect “we the people”, this sort of financial rape and pillage is sure to continue and don’t expect much to be done about it until we decide to stand up and fight. Nothing is going to happen until the people are willing to lay in on the line and make a stand and say enough already.

The only way to do that is to stop using their services; nothing else will get their attention period! The more who remain using ebay’s slanted services, complaining or not, the more they will force their bad policy on the small seller.

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

This user has validated their user name. by: Bob
Web Site

Thu Aug 4 10:53:39 2011

I agree Pete. I've tried ordering over Amazon through this new European market and i liked it. Order and delivered in 3 days!

eBay Messaging on Fees Not Really that Simple   eBay Messaging on Fees Not Really that Simple

by: janie

Mon Aug 8 18:42:47 2011

Wow since ebay has harassed me & treated me terrible I finally woke up & quit selling & not buying either. The EPRAY said it all. It is so true that it should be on the ebay site when you sign up to sell & ruin your life. My health was on a downward spiral & blood pressure sky high with the buyers threatening me to get free stuff that ebay aways bows down too. I now have a much better life & am cleaning the clutter that ebay created at my home. I am probably saving money not buying things for ebay like I was doing. My fees were $49.00 for a month that I only put a few cheap items in the mailbox so I still can't figure out why it was so high for selling basically nothing.



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