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Tue Aug 30 2016 09:55:06

How Will New eBay Fees Impact Auctions?

By: Ina Steiner

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eBay is making a change to the optional Reserve Price fee for auction-format listings. 

eBay announced today in conjunction with its Fall Seller Update that on October 1, the optional Reserve Price fee for auction format listings will increase to the greater of $3 or 4% of the reserve price (minimum price that must be met for your item to sell), with a cap of $100.

eBay said, "Since a reserve price can discourage bidding, enter the lowest amount you’ll accept, and only use this optional feature when absolutely necessary."

And, it advised, "Instead of using the reserve price option, consider using fixed price with a Best Offer option. This is beneficial if you know the market value of your item, but may be willing to accept a lower price."

It also recommended that "Rather than using the reserve price option, consider increasing your starting price."

How do you think the new Reserve Price fee change will impact seller behavior when it comes to listing auctions?




Comments (15) | Permalink

Readers Comments

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

This user has validated their user name. by: toolguy

Tue Aug 30 10:00:42 2016

I DON'T do auctions anymore so it won't affect me at all.

10 years ago I was 100% auctions with NO fixed price items.

eBay wanted sellers to go fixed price, I did that.

They lost the luster of auctions long long ago!

I'm not going back to auctions until eBay brings back the bidders. . .

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

by: a_c_green This user has validated their user name.

Tue Aug 30 10:36:39 2016

I'd be happy to see the pointless Reserve price go away altogether.

It did have a purpose in the past, when eBay had a sliding scale of insertion fees based on the opening price, and so it might have made sense to pay only for a low opening price, adding a Reserve as insurance in case bidding didn't reach the hoped-for price. Nowadays with unscaled and mostly free insertion pricing, there's little reason to use a Reserve, annoy bidders, have to field questions on what your Reserve is, etc.

Then there were the clueless newbies who couldn't tell the difference between a BuyItNow and a Reserve price, shrieking because their "Reserve" had disappeared on them after the first bid came in, and asking if they really had to sell at the low ending price their auction had reached.

I had a different clueless-seller experience recently with a newbie who'd gone the other way, setting a BuyItNow and a Reserve on their auction, and when my last-minute snipe bid (one penny below the BuyItNow) failed to reach the Reserve, it became apparent that the BuyItNow was the Reserve as well, thus rendering the entire week-long auction pointless. Last time I checked, their relisting had gone nowhere as well.

As noted, just set your opening price to be what you would be willing to sell it for if you only ever got one bid, and then all the rest is gravy.

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

by: val2525 This user has validated their user name.

Tue Aug 30 10:56:55 2016

I hate auctions with a reserve price. I hit the back button and won't bid on them.  For buyers, I think this is a good move.

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

This user has validated their user name. by: toolguy

Tue Aug 30 11:35:32 2016

I also never bid on auctions with a reserve.

I'm not on ebay to play games, you either have a high listing price or a buy it now.

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

This user has validated their user name. by: Marie

Tue Aug 30 13:23:34 2016

I think what Ebay is after here is to encourage sellers to list differently.  Not using reserve pricing.  Reserve pricing, as most of us know, discourages bidding.  Anytime you discourage bidders, they may go elsewhere to find what they are looking for.  And sometimes they may pay a little more for something just because they didn't like the structure of the listing on Ebay.

So to me, this is great.  And hopefully it has the right affect.

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

This user has validated their user name. by: iheartjacksparrow

Tue Aug 30 14:31:03 2016

I hate reserve price listings as well. If it's something I'm interested in I will often contact the seller and ask if they will disclose the reserve. Sometimes the seller will tell me the reserve, and sometimes I'll get a belligerent response about how reserve prices are meant to be secret and I'll just have to bid. I guess they can't see that if someone doesn't have the $100K reserve price it's a waste of time to bid.

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

by: mcposty This user has validated their user name.

Wed Aug 31 01:11:51 2016

I hate reserve as well..but slapping fees on it isnt going to.solve the issue.

Just like slapping fees on 3 day auctions...

Its just greed

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

by: SoniaD This user has validated their user name.

Wed Aug 31 10:43:24 2016

Ditto here.  I see a reserve I'm outta there.

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

This user has validated their user name. by: RKTOYS

Wed Aug 31 12:33:32 2016

Here's how I see it:

eBay cannot or will not provide the traffic for auctions to be feasible.  This is a failure.  eBay could resolve the problem but would prefer to be rewarded for failure.  Thus, the attacks on coping mechanisms like reserve prices and listing allocations.

I don't use reserves (or other add-ons), at any price, because I will be damned if I pay eBay for non-performance.

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

by: mcposty This user has validated their user name.

Wed Aug 31 23:20:51 2016

If people want to lose sells because of reserve let them be..or take out reserves altogether. Ebay is stupid

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

by: Maui5150 This user has validated their user name.

Thu Sep 1 06:51:01 2016

Please.  Get a clue.  Reserves are PART of the auction world.  Whether it is Sotheby's, Doyles, Christie's etc... I have been to plenty of established auctions house over the past three decades and many of the items not only have reserves, but the auction sometimes does not even indicate that there is a reserve and when the bidding stalls, "Lot is passed"  

Auctions are a function of "2 or more bidders"  People can get drawn into a bidding war, and there used to be a time when eBay's traffic existed that Reserves worked.  

The problem today, is Ebay's traffic is 10% of what it used to be.  I have things that used to get 30+ watchers and 1600 views and lucky these days if I get above 5 and 100 respectively.  

The demise of the auction model on eBay is completely eBay's fault.  The pushed the fixed price model with its favoring because they coveted Amazon too much, and for those who were selling in the late 90s, I still remember getting more than I expected on pieces, sometimes double or a few even triple.  Was nice seeing that item you would have been happy with $100 but got $285 instead.  

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

by: spooky This user has validated their user name.

Thu Sep 1 10:15:16 2016

I do 99% auctions; one of the last of the die-hards with most string at 1 penny. I would have no qualms about starting a Rolex for 1 penny. That being said - I hate reserves. I also buy a lot on eBay auctions and if there is a reserve I do not even bookmark it. Reserves get no action and should be done away with. Stupid gimmick or secret minimum price.

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

This user has validated their user name. by: Don Wagner

Thu Sep 1 18:46:47 2016

I've been on eBay since 1998 and only once bid on a reserve auction. You see many a reserve auction peter out after a few token bids. Very, very few bidders want to play that game.  

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

by: OnlyPollyPocket This user has validated their user name.

Thu Sep 1 22:14:22 2016

Reserve price listing?  The back button is my friend!

How Will New eBay Fees Impact Auctions?   How Will New eBay Fees Impact Auctions?

by: Toledo Maude This user has validated their user name.

Fri Sep 2 13:03:19 2016

EBay auctions are a dinosaur.  Reserve or no reserve, auctions on eBay rarely bring together the minimum 2 bidders willing to go at it.  

And when in that infrequent occasion of 2 bidders going at it, eBay closes the auction based on time rather then when the last bid is in.  Leaving the seller to ponder ''how much money was left on the table.  

I was amazed when eBay introduced 30 day fixed price listings several years ago.

My monthly eBay bill went from $500 per month to one hundred bucks.  That is when I started to profit from eBay.

Lately, I tried a few auctions with select items that were rare.  Not much luck there either.  

Seems patience and fixed price listings bring the best results.  

Yes, I know Alaska, relist, relist, and relist some more.  Sorry...



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