eBay Makes Major Fee and Feedback Changes in New Spring Release

by: 16mmfilmseller

@Marie - You've forgotten one very important thing -- the final value fees are going way up (at least in some categories -- mine is going from a blended rate of about 6% to 9% for low priced items, and from about 4.5% to 9% for higher priced item) -- that's going to pretty much wipe out any benefit you get from the listing fee reductions.

by: 16mmfilmseller

@Marie - answering your point on the current fees -- no, for auctions I currently pay 7.5% up to $50, 4% of the amount about $50 (below $1000), and 2% over $1000... For Fixed price, it's 15% up to $50, then 5% for anything above $50... Most Items I sell are higher priced.  

by: JustTheFacts

Here is how I see the changes;
It is an overall INCREASE and for auctions a VERY COSTLY increase.

What ebay has done is lower one thing (literally ONE thing, the bin FVF) and raised EVERYTHING else, which amounts to an INCREASE.

As we all know, this is how ebay ALWAYS does their "decreases".

The store price goes up unless you agree to commit yourself to 1 year.  This is to deter people from going to Amazon and other places. = INCREASE or become a HOSTAGE

Store fees DOUBLE, which WILL cost us more for over 500 items no matter how you slice it. = INCREASE

The Bin fees go down but the auction FVF go UP the same amount the bin fees go down 2%, Auctions FVF go UP 2% = INCREASE

IF the auction insert fees are .25 regardless of price that may SEEM like a good thing, however, you have to actually lower your starting price by 30% from the fixed price, which for a $100 item is a $30 discount.  That is a LOT of money and for some it eliminates ALL profit margins.  Plus of course the $6.60 for FVF and insertion fee.  Making your cost now 39% PLUS paypal fees. = GIGANTIC INCREASE and probably unaffordable for most people.

I would rather pay the extra .75 cents and decide my own starting price.  So even this is a very COSTLY INCREASE!

Now to the FB removal for cases sided in a sellers favor.
Well what I see is a lot less cases being sided in the sellers favor.  A draw removes nothing, so we will see many more draws.

Oh and a little note:  If ANY case is considered "unresolved", meaning the seller did not refund, reship etc, regardless if they were not obligated to, it is automatically declared UNRESOLVED and decided in the BUYERS favor.

I think it will be very interesting to see how many cases end up in the BUYERS favor and UNRESOLVED once this starts.   I bet the increase in these two will speak volumes.

by: Marie

@16mm

I didn't forget anything.  I was commenting on what you said. I wasn't aware you had a store, you hadn't mentioned it.  

What category is 15%?

"...that's going to pretty much wipe out any benefit you get from the listing fee reductions".  That was my point earlier.  You have to look at it overall, not piece by piece.  If overall you aren't harmed then it isn't a big deal.  But unfortunately there will be many that the increased will damage.  Those of us that are OK overall should be happy, it could have been a lot worse.

by: iheartjacksparrow

At least eBay didn't start their announcement with "Lowest fees ever!"

by: 16mmfilmseller

@Justthefacts -- it's actually only a decrease in BIN FVFs IF you have items under $50 -- in the DVD category, for instance, it's now 13% for the first $50 and then 5% for anything above that -- so items under $100 will be cheaper or the same, but anything over $100 will increase even for fixed price listings. Auctions go up for everything...

by: Massachusets Howler

Who can crunch these numbers and do a new chart with the PP fees INCLUDED.
Then we would know more where we stand.
This was a lot of work Ina and David- we appreciate- can you do a chart for us WITH the pp fees included and stick it up there with the amazon chart?
Thank you Ina,
MH

by: 16mmfilmseller

@Marie - Sorry - it's 13% - typo...

I sell most of my stuff as auctions - so the Fixed price fees don't really matter that much - it is true that for BIN items under $100, the price will either drop or stay the same, but for items above $100, it will go up - quite dramatically. Most of my items are more than $100... And auctions are going up dramatically..

by: 16mmfilmseller

@Massachusetts -- try this page, although it doesn't include paypal fees, and it assumes that you are using one of your free listings.

http://pages.ebay.com/sellerinformation/news/Feecalcu
lator.html

by: Marie

@16mm

Well maybe you can benefit from having a store after May 1st.  Currently a store only makes sense if you are going to run 50 or more BIN listings every month.  But that doesn't stay true after the changes in May.  If you are going to run 115 or more auctions in a given month, then the basic store at 19.95 will be a better option for members.

by: papergoy

Looks like I'm the only person pleased.  The last two or three changes hit those of us in the center (mid-sized- 8500 to 15000 listings) the hardest- this one seems to spare us.  The FVF on books is going down- and I specialize in $10 to $20 items- so for once the gods smiled on me.  To those who are negatively impacted- change your business model.  I've had to do it the last couple of times and am stronger for it.  Is it difficult?  Yes, but being nimble is the name of the game.  I guess there are two possible scenarios- 1) figure out how this impacts you AND your competition and make the necessary changes that you know your competition will be slower to do and then eat their lunch OR 2) sit around grumbling and get your lunch eaten.  It's survival of the fittest, and those that can roll with the punches will do best.  Just an unpopular thought, but I'm not into pity parties.

by: 16mmfilmseller

@Marie -
I have a basic store now -- with the current rates - my auctions are 7.5% up to $50 and then 4% up to $1000 and then 2% above $1000. That's vs 9% without the store.. So it clearly makes sense to have a store if you run a lot of fairly high priced auctions.

My fee for a $1000 item is now $43.75. With the new system, it will be $90. Even a $100 item will go up by $2.25. So as I see it, I'm going to get clobbered.. 150 "free" listings (not really free since you have to pay the subscription fee) is worth a bit - but it wont make up for the huge hit on the back end.  

by: Jeff@eBay

This is Jeff at eBay and there have been a lot of good questions posted here. I wanted to make sure that everyone knows that we have eBay staff on hand today to answer questions about the Spring Seller Update that are posted to eBay's discussion boards.

The Spring Seller Update discussion board is at http://forums.ebay.com/db2/forum/2013-Spring-Seller/5200000027.

by: David Steiner

Hi Jeff,

Thanks for your comment, but I'm afraid that posting your link constitutes an attempt at an off-EcommerceBytes transaction. We require eBay to answer our users' questions on our venue. Thanks for your patronage!

David Steiner

by: Marie

@16mm

As long as the fees overall work out for you, you will be fine as I'm sure you are aware.  Quite obviously you are well informed and know what you are doing.  

For me, I have a premium store, but with the changes, as of May 1st I will change to an anchor store, close [stop using] my second ID where I just run some auctions and bring them back to my main ID.  In changing the way I currently have my stuff structured, my best estimate at this time is that overall I will save about $200 per month in fees.

Now I know that doesn't work for everyone and I completely respect that for many these rate increases are going to hurt.  But I encourage everyone to think outside the box.  Re-evaluate what you are currently doing.  Look at all the stores and rates Ebay has available.  There may be a way for you to see only a small increase in fees, no increase in fees or even less fees.  Just stay open minded, work the heck out of those numbers, take a breath, step back and just take a good hard optomistic look at it.  You may get pleasantly surprise and I sincerely hope that is the case.

I am in no way trying to take away from those that will most definitely have increases in fees with these changes.  

by: Ina

@Jeff welcome. Please feel free to answer questions from EcommerceBytes readers, there seem to be a few areas where people are unclear.

by: Marie

@Jeff@Ebay

Personally I think Ebay need to clarify the Free Listings and relatively quickly so that members can make informed decision about what they need to do in the best interest of their businesses.

I called into Ebay earlier today as the Free listings do not say anything about GTC listings.  And GTC listings are extremely important to many.  The CSR did some research and informed me that the Free Listings do cover GTC listings.  

This is something that Ebay needs to get the word out on and not just by a little blurb on the announcement board.  Of course that will help, but it won't be enough.

by: go-figure

@David

I like that! Turn-about it definitely fair play!

by: go-figure

While there are some select points that you MAY actually see your fees go down, overall it's just another one of ebay's bait and switch ''look what we've done for you now'' (read done to you) fee announcements.

No matter how it impacts you, just be ready for another 40 or 50 unannounced changes that will modify, weaken or otherwise prove onerous to most sellers.

by: nsc

I think the marching morons have struck at ebay again. They are already bandwidth constrained  carrying 150 million listings. They already grade their servers on how much revenue they produce for ebay. So what they need is not more listings but better listings -- listings that will sell quickly for a high price. But what do? They make listings free and remove the tiered FVF fees that encouraged high price goods. Now the site will be absolutely flooded with another 200 million listings of cheap Chinese carp.

Morons.