Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Mar 19 2013 09:30:23

eBay Makes Major Fee and Feedback Changes in New Spring Release

By: Ina Steiner

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As I noted when we introduced our new fee calculators, eBay's fee structure has gotten quite complex, and today, the company is announcing a move to simplify its fee structure - but while there are more opportunities to list with no insertion fees, this should not be seen as an overall decrease in fees.

eBay is announcing its 2013 Spring Seller Release today in which it will offer more free listings and will eliminate its category-based, tiered commission fee structure for non-store owners in favor of a flat across-the board commission.

Sellers without a Store subscription will receive up to 50 free listings per month - either fixed price or auction - and will be charged 10% final value rate across all categories.

For items up to $50, this is good news in many categories for fixed-price listings except for electronics, which had a FVF of 7% for items up to $50. Books that sold for under $50 currently incur a FVF of 13%, for example.

But because there's no tranched FVF structure, this will be a fee increase for high-value items. For example, Clothing Shoes and Accessories currently have a FVF commission of 10% of the total amount of the sale for up to $50, but after that, the FVF drops to 8% of the remaining balance up to $1,000, and drops to 2% of the remaining balance over $1000. Under the new fees, it will be a straight 10% FVF.

For Auctions, non-Store owners paid 9% FVFs across the board (no tranches), and this is increasing to 10%.



eBay is also changing fees for Stores and is making a great number of other changes. See today's Newsflash story for more information about changes to feedback, eBay's attempt to reduce deadbeat buyers, and other news.

eBay is clearly facing pressure from Amazon - it compared its new fee structure with Amazon's - but it left out PayPal fees, while Amazon's referral fees include payment processing fees. Here are some other changes coming to eBay:

- eBay will require Buy It Now prices to be 30% over the starting price for auction BIN listings.

- Beginning May 1, positive, negative, or neutral buyer feedback will be removed from transactions in which an eBay Buyer Protection case is resolved in the seller's favor by eBay, including comments and DSRs.

- Beginning in May, eligible fixed price listings and auction-style listings purchased with Buy It Now will remain for sale until a buyer has paid for the item.

Be sure and read Tuesday's news story for more details, and let us know what you think of these changes and which ones will impact you the most.

Comments (202) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

by: Frank F This user has validated their user name.

Tue Mar 19 11:23:53 2013

My question on the free listings is will fixed price GTC renewals use up your 500 free listings?   I would much prefer to use these for auctions..   I see during this latest free listing promo that was for auction and FP, that a GTC renewal didn't use up one of the free listings.  Hope that is the way it works,but as usual we have lots of questions..

And I definitely do not like the item still will be for sale until its paid for.  Ebay - what would be MUCH BETTER would be to defer charging the final value fee until the item is paid for.  We should not pay a fee until the item is paid for - that is more important than keeping it active.  I can definitely see situations where I am going to have buyers upset with me as someone else bought the item they just hadn't paid for yet.  What a way to lose your BEST customers.... PLEASE change this - its an awful idea!

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

by: jiggs_casey This user has validated their user name.

Tue Mar 19 11:25:39 2013

I am most concerned at the moment about the photo requirements.  I currently have 525 items in my store with an average of three to six photos apiece.  Each of these has a border.  All of the listings I've added in the last couple of months also have my own watermark.  I host my own photos and have thumbnails which are clickable to hi-res.  All of my photos are professional quality and IMO, pro-quality photos have borders.  Nobody wants their photos stolen so pro-photos also have watermarks.  If eBay forces me to remove ALL of my photos it will shut my business down completely.  It will be like starting over from scratch.  This will also put my brick and mortar antique shop at risk because I depend on the eBay sales to keep the shop open during the week, when my walk-in customers are few and far between.

Why would eBay want to restrict borders?  I don't get it.  My watermark doesn't include a web address or anything.  It's basically my eBay user ID.

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

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

Tue Mar 19 11:29:15 2013

In the main news story, Ina points out something that concerns me. ''Photos cannot have borders, nor can they have seller-added text or seller-added artwork.''

I understand Ebay's reasoning for trying to establish some minimum standards and continuity for photo quality. But I also understand that Ebay cannot possibly have enough human eyes to monitor these things. The only practical way for Ebay to enforce this would be if they used special software, or 'bots' to analyze each graphic.

My concern is due to the fact that my 'photos' are not really photos. Instead they are 'screen prints' or illustrations of what the printed item will look like.

As an example, see my Ebay item: 290880551605

My stickers and labels have a lot of text. How will Ebay's 'bots' be able to determine if the text is part of the item illustration, or if it the text should be prohibited?

I suspect that all of the text that is present in my illustration will cause my listings to be automatically flagged as being in violation. I wonder also how Ebay's 'bots' will respond to the text overlay that indicates the sticker's measurements.

If something as innocuous as that is also prohibited, then life just got more difficult for me.

BEFORE adding the size indicator to my illustration, I'd receive many messages from potential buyers wanting to know 'what is the size of the sticker'. Even though the description tells what size the sticker is, people would still ask without reading.

BEFORE adding the size indicator, I would have an occasional complaint that the sticker was smaller, or larger, than expected.

However, AFTER adding size-indicator text to the illustration (along with the arrows) I no longer receive questions asking what the size is, and I have received no complaints from customers who received something other than what they were expecting.

For this policy, I do see the overall benefit. But it's another example of how one-size-fits-all policies really aren't possible. I hope that final enforcement of the ''no text in images'' policy is reviewed by HUMANS (not bots) and that common sense can be applied before a listing is deleted.

~ CW

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

by: MaD Mercantile This user has validated their user name.

Tue Mar 19 11:33:32 2013

I Agree with Basset's 'but it now' comment & I will reiterate - concerning ''It Ain't Sold Until It's Paid For''  I have old (Very Reliable) customers who still pay by check, or the occasional Money order.  How would I keep an item from being sold to another while ''the check is in the mail'' ??  

And they enjoy taking their time- with is fine with me, as long as they are buying. I know I will get paid. - Do I mark it paid & then get penalized for not having a tracking number downloaded ASAP.

Also the Global Shipping program Does NOT allow for combined shipping.  This has been a big problem  

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

by: bcgator This user has validated their user name.

Tue Mar 19 11:48:22 2013

This is not good news for us.  We sell higher-end women's jewelry, and most of the watches we sell are Tag Heuer, Breitling, Omega, etc.  We also sell gold coins in the $1000-2000 range.  The change in FVF is dramatic.

For example, a $2000 Breitling, sold via a pure auction, with a Basic Store subscription, would currently have a FVF of $61.85.  Under the new plan, the FVF jumps to $180.  The same will be true for our 18K jewelry items.  

That same $2000 item, sold by Fixed Price listing rather than a pure auction, would currently have a FVF of $82.70.  It also would now jump to $180.  These aren't small increases.

Now think about how many coin, jewelry, and watch dealers there are on eBay, and we're all waking up to this news.  I have to imagine the outcry is going to be enormous.

We do have a website, and we've very successfully transitioned much of our business away from eBay to the website, but we still do a not-insignificant amount of business on eBay.  I'm guessing that if there's a silver lining, it's that when customers see how much one of our jewelry items is selling for on eBay, and then sees how much less we sell it for direct (our direct prices reflect the subtraction of eBay fees), there's now much greater incentive for the customer to buy direct and avoid clicking the Buy It Now button on eBay.  From eBay's standpoint, they're going to lose sales from us - we're going to raise prices on everything to account for the fee increase, and I'm sure customers will disapprove, and sales on eBay will be affected.

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

by: Filadelfos This user has validated their user name.

Tue Mar 19 11:51:31 2013

I'm concerned about this section:

Photo Requirements
Starting July 1, 2013, eBay will start enforcing picture quality requirements it had previously announced on all new, revised, and relisted items. All photos must be at least 500 pixels on the longest side of the picture. Photos cannot have borders, nor can they have seller-added text or seller-added artwork.

As a few others have asked, does this mean I can no longer add watermarks to my personally photographed product shots?  I spend a great deal of time setting up my diecast models and add a watermark to prevent other vendors from stealing my shots for their own use.

See this listing for an example:  http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=190803615304<
BR>
Bill

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

This user has validated their user name. by: twentyjuan

Tue Mar 19 11:54:15 2013

Question for @Ina
As a premium store seller in the music CD category, do the 500 free listings a month only apply to NEW listings, or will the first 500 old listings auto-renewed every month be free? Just wondering if I literally have to list 500 new listing every month in order to get this deal. Thank you.  

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

This user has validated their user name. by: Marie

Tue Mar 19 12:01:51 2013

I'm still reviewing all of this, but one thing I notice is that IF you have a premium store, the increase in BIN listing rates is pretty much offset by the free listings.

Let's say your store runs about 2500 BIN listings on a regular month.  2500 x .05 [current rate] is $125.  500 free listings x .25 = 125.00.  

So If you are a seller with a premium store and you run about 2500 BIN listings AND 500 auctions per month, your only increase is potentially the $10 increase in the store subscription fee, however you can get that to zero IF you pay for a year.  

For Small sellers that only run auctions, to me they will be the ones paying a more, depending on what category they sell in.  Some may be able to ofset the listing fee increase with a decrease in FVF.  

I think what we each need to do is analize the heck out of what our own personal needs are for our little businesses and then decide on the best approach.  There are many ways to restruction that may help you save on OVERALL fees.  I suggest not just looking at listing fees, store fees, or any other fees on their own.  They are all changing, so look at them together for a more accurate review of what or how you will be affected.

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

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

Tue Mar 19 12:02:09 2013

Regarding the Photo requirements. Much of this is a reiteration of eBay's photo policy from SR1 2012. We did a podcast with Jim Griffith shortly after the release, and he tried to clarify.

Our blog post is here:
http://www.ecommercebytes.com/C/blog/blog.pl?/pl/2012/2/13305
53923.html

The
podcast is here:
http://podcast.auctionbytes.com/cgi-bin/podcast/pod.pl?/pl/20
12/2/1330457395.html

eBay
may be taking a harder stance on watermarks now.

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

by: Filadelfos This user has validated their user name.

Tue Mar 19 12:06:21 2013

@ David Steiner

''eBay may be taking a harder stance on watermarks now.''

Wow, so I may now be an un-paid employee for my competitors, and my work can be stolen?  Is that legal?

Bill

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

by: LaLaLa123 This user has validated their user name.

Tue Mar 19 12:08:03 2013

eBay doesn't seem to understand that you, the seller, are providing content for their site.  Without your content where would they be?  Dead in the water, that's where.  

And the apples and oranges comparison with Amazon is laughable.  

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

This user has validated their user name. by: baconsdozen

Tue Mar 19 12:14:54 2013

The most meaningfull change ebay could make to the crummy feedback system is to allow sellers to actually post true feedback on dead beat buyers.As it is even the biggest time wasters end up with 100% feedback.
It really is a total nonsense.

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

This user has validated their user name. by: Marie

Tue Mar 19 12:30:24 2013

I called Ebay to get some clarification on the Free Listings.  My concern was that it didn't cover GTC listings.  I have been assured by Ebay that it does.  The plan to release another email notifications to all member a little closer to the implementation date and it will include the clarification on this subject.

So what this can be and extremely important distinction for store owners.  You want to look at your stuff closely.  You may want to up your subscription.  It very well may pay off for you.  And make sure you keep in mind the changes in FVFs.  Some are going up, but others are going down.

For example, currently I pay 7% FVF on auctions and 11% on my BINS.  After the change it will be 9% across the board, which will save me money and my higher end items are BINS usually.

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

by: GoodK9 This user has validated their user name.

Tue Mar 19 12:33:40 2013

Well, since we're small sellers on eBay (like a few others, we also have a brick & mortar store), I reckon this all is just giving me more reasons to leave eBay and go somewhere else.  

There are only 2 of us to run both the physical shop (7 days a weeks) and (mostly) me to handle all the online stuff.  Raising the FVF to 10% means we'll earn less money -- NOT what we put items on eBay to do.

I also occasionally put items on Ebay for others.  Can't wait to try & explain why they're getting less money for their items.

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

by: RCL This user has validated their user name.

Tue Mar 19 12:45:45 2013

eBay will keep a sale indefinite until the seller receives payment? The checks, the partial payment ''layaways'', isn't eBay interefering with our contracts with our buyers?

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by: elainevernon This user has validated their user name.

Tue Mar 19 12:47:44 2013

The 500 px photo requirement is NOT a good thing for sellers of ACEOs.  With an over sized image the artwork will not be accurately represented.  Also there is an increased probability that people will download the image and make their own prints cutting into the artist's and eBay's profits.

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

This user has validated their user name. by: Marie

Tue Mar 19 12:53:30 2013

@RCL

Why would any seller on Ebay do a "layaway plan / partial payment"?  It breaches Seller protection for both Ebay and PP.  While Seller protection is limited, it is something and has come through for me many times.  But if you get partial payments and don't ship within approximately a week, you aren't covered.  Certainly not a risk I'd be willing to take.

However I too have concern how this part of the update is going to work.  It certainly is in response to many sellers not wanting a sale to be a sale until the item is really paid for.  Many sellers have said it on these threads as well as countless times on Ebay threads.  Now that they are doing something as requested, some will be upset and/or concerned and with good cause.

No change will ever please everyone or work for everyone.  There are too many of us with different needs.  And then there is our history with Ebay and how them implement things, so we have very good cause to show caution and concern with this change.

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

by: 16mmfilmseller This user has validated their user name.

Tue Mar 19 12:59:58 2013

@Ina - I just did some calculations on the fee change for me -- I have a basic store and sell films (which are in the DVD/media category) -- for a $100 sale, the total fee goes from $6.75 to $9.00, and for a $1000 sale - it goes from $43.75 to $90. This is no more and no less than a massive fee increase.

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

by: comet This user has validated their user name.

Tue Mar 19 13:00:09 2013

YEp--as a small seller--and I DO mean SMALL---I will LOSE money in several ways I believe.  One is--the new 30% "difference" between what an auction start price is and the BIN minimum difference.  I try and keep these a fair split so that a BIN customer is getting the item they WANT right then and there at a not staggering price--I have seen many a BIN that started at say $20 with a BIN of $150---to me this is no way to get a sale.  The days of (most) auctions getting even one bid on them on ebay is long gone and the BIN's are the Bread N Butter now.  

SO now I either have to DROP the price of my starter figure OR raise the BIN price that very few people seem to want to pay anyways.  Judging by the LACK of sales that is!

And I don't overprice either.  

When I do have higher end items I will now pay DOUBLE (if I am reading this right) the FVF's on some items.  Like higher end womens bags.  Gee just listed a bunch of those yesterday--hope these are not the last.  I can't GIVE AWAY all profit to Greedy Gus  The Ho.  

I also have my issue with the GTS aspect---I haven't had many people complain about this sort of thing (and I do BIN-IPR on almost ALL of my listings) but I can def see where the problem will arise.  And not liking this!  I can see where as a BUYER I will not like this at ALL!

I wish just ONCE ebay would PAY ATTENTION to something other than their own greed.

I will be happy to see a deadbeat policy that works--but not holding my breath.

And as far as watermarks go--I HAD my images blatently STOLEN by a competitor.  Now--I had not watermarked these as when I first listed them I was the ONLY seller.  And I mostly sell one off used clothing etc.  when I went into repeat sales of a motorcycle part I guess someone else decided HEy! No one will mind if I STEAL their images to sell--something.  They "Only" stole the item installed so I never could find out if the item was indeed the SAME as mine.  So--Of COURSE I called ebay.  They could have cared LESS.  I reported this guy and so did a number of my ebay friends.  I believe they finally made him take one image down--so he CROPPED the image and out it right back UP there!  I actually ahd to threaten--and I did mean this--to call our local JUDGE to get an INJUNCTION before this guy quit.  ANd--he is FAMOUS--or is that INFAMOUS?----for stealing OTHER images of other guys bikes for things he claims he is selling!  And will ebay DO anything?  Nope!

So of COURSE I now watermark.  This item is a steady seller for me--and NOW what do I DO????   And my watermark IS my ebay user ID!  How much MORE ebay can I GET

Perminate Link for eBay Makes Major Fee and Feedback Changes in New Spring Release   eBay Makes Major Fee and Feedback Changes in New Spring Release

This user has validated their user name. by: Marie

Tue Mar 19 13:09:07 2013

@16mm

Please correct me if I'm wrong, but according to the Fee schedule, currently film has a 13% FVF rate and in mid April it will drop to 9%.  Now I certainly could be reading something wrong, so please let me know.

@ comet

•All listings will be required to have a picture.
•Photos must be at least 500 pixels on the longest side of the picture.
•Borders around pictures, and text added to pictures, will no longer be allowed. Watermarks for attribution purposes only will continue to be allowed.
•When listing a used item, stock photos may no longer be used as the primary item photo for the listing. A catalog image can still be used. However, it can’t be used as the primary photo representing a non-new item for sale. Books, Movies, Music, and Video Game categories will be excluded from this requirement (with the exception of Video Game Consoles which will be required to adhere to this new requirement).
•Pictures that do not meet these requirements can’t be uploaded at the time of listing—or upon revise or relist—until the requirements are met.
•Visit the new eBay Photo Center for tips on taking pictures that attract buyers and best showcase your item.

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