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: Jeff@eBay This user has validated their user name.

Tue Mar 19 15:03:54 2013

@Marie - The free listings apply to Auction and/or Fixed Price listings, including GTC listings.

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: winter-garden This user has validated their user name.

Tue Mar 19 15:03:59 2013

OK, folks - Here's what really matters. The Final Value Fees are increasing to a flat amount of 9% (no longer tiered) for MOST categories, including ALL the categories I sell in.  I used the fee illustrator for a dozen sample transactions.  My FVF increases by an average of 30%.  So even though I will be paying nothing, or less, for insertions, I will be PAYING MUCH MORE to ebay every month.  OF COURSE!!!  Who would expect anything different from greedy ebay.  I love the way they always send out updates that suggest there's something good for sellers happening, and BURY the increase in costs with double-speak.  

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: Cavewomansman22 This user has validated their user name.

Tue Mar 19 15:06:59 2013

Right under where it says "Anchor Store" on the rate plans page, it says that "If you list in Books, DVDs & Movies, Music & Video Games additional listing fee is only 5ยข for fixed price." For now, anyway. This month was supposed to be when they were going to decide whether or not they were going to let it go back up to where it had been a few years ago.

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 15:07:59 2013

@Jeff@Ebay

I'm aware of that and I'm trying to get the word out there the best that I can just as a regular member of Ebay.  But there is no where in the announcement that states that, which is a huge problem.

I believe you will have sellers assuming that since they are NOT covered in invitational promotions that they aren't covered in these free listings.  Personally I think that is a reasonable assumption.  It's wrong, but it is reasonable and I think there will be a whole lot of sellers assuming that.  How are they to know different if Ebay doesn't tell them.  Ebay has told them all along that they don't count in free listing promotions.  I see confusion on the horizon that doesn't need to be there.

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: Jeff@eBay This user has validated their user name.

Tue Mar 19 15:36:42 2013

@Marie - We're announcing the free listing changes today and are highlighting that the free listings apply to Auctions and to all Fixed Price listings.

We'll also be promoting the free listings for all sellers consistently as we ramp up to the policies going live, so hopefully we'll be able to minimize any confusion. Thanks.

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: papergoy This user has validated their user name.

Tue Mar 19 15:38:52 2013

To Jeff from eBay- here's the question in a nutshell- I have a store- let's say (and I'm completely making these numbers up) with 300 items- of which 10 renew daily.  I get 250 items free.  I list 5 items a day at auction through the month.  What am I paying fees on- do I get 150 free auction listings and then the remaining 100 are GTC?  Do I get the first 250 items listed (which would be 5 auction and 10 store per day) and then after that I pay the full boat?  Is it figured as we go, or is it figured at the end of the billing period with the actual auctions being given to us free first and then the balance being GTC?  That will change how I approach my listings obviously.

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: Steevo This user has validated their user name.

Tue Mar 19 15:41:34 2013

@winter-garden,

Not if nothing sells, and if ebay keeps tampering with the search so nothing sells (which is what it's like for us right now) the FVF will cost you nothing!  

So that's lower, right?   Heh.  

Jeff@ebay, what can you do to make our sales work better?  That's the problem I have.  I spent time with seller outreach (wasted time IMHO).  They told me to do all the things I am already doing.  

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 15:42:49 2013

@papergoy - I can't answer for ebay, but from reading the thread on the ebay forum, it appears to me that it's first come first served for the free listings, and GTC listings count EACH TIME they are relisted - so 1 the first time you list it, and then 1 30 days later when it renews.  

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: Jeff@eBay This user has validated their user name.

Tue Mar 19 15:43:44 2013

@Cavewomansman22 - Books, DVDs & movies, music & video games listing fees are remaining at 5 cents for any fixed price listings after your allotment of free listings are used up.

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 15:46:22 2013

Thank you Jeff

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: Jeff@eBay This user has validated their user name.

Tue Mar 19 15:47:21 2013

@papergoy - 16mm has it right that the free listings are first listed, first used up until you use up your allotment of free listings.

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: papergoy This user has validated their user name.

Tue Mar 19 15:48:23 2013

To 16mm, if that is true, then the more wily sellers will load up on listings at the beginning of the billing cycle (will list a ton of auctions) to save that money then only list store during the month, and so on.  Not sure if that's what eBay wants- a plethora of auctions at one time and then a lot fewer, but that would be the wisest thing to do with the price structure in place.  

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: papergoy This user has validated their user name.

Tue Mar 19 15:49:08 2013

Thanks Jeff.  Guess who is listing auctions only at the beginning of a given billing cycle.

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: WOODJUNGLE! ON EBAY

Tue Mar 19 15:50:19 2013

Regarding feedback: Yes, there will be some vindication for sellers for winning cases. Feedback will be removed if the buyer loses a case.  I wish they would grandfather that new policy. I have a situation that  just occurred to me  where that would apply and will be livid if they don't. However, I can see this bringing ALL sorts of complaints from buyers for completely silencing them for losing a case.  I have my share fair of bad buyers but completely invalidating their feedback for losing a case is going to be interesting to watch. I also think Jeff@ebay should get a Ecommerce policy violation for trying to post an external link here, or perhaps even a posting restriction.

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: Anonymous Annie

Tue Mar 19 15:57:09 2013

David Steiner Rocks!

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 16:07:03 2013

Actually, I think it's great that Jeff has come back and provided answers to people's questions.

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: Massachusets Howler This user has validated their user name.

Tue Mar 19 16:11:06 2013

I ask my fellow sellers:

WHEN EVER has there been a true "fee decrease" from ebay?

MH

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: quirkyantiques This user has validated their user name.

Tue Mar 19 16:12:43 2013

@jeff@ebay-nice job in pointedly skirting the fact that all of us savvy sellers are pointing out that this is more of the same old Ebay smoke and mirrors-how about addressing the fact that far from fees decreasing-the FVF structure will now mean about 100% increase in fees for anything other than a $10 book? How about addressing the fact that a basic store subscription will increase by 30% on a monthly basis and the fact that sellers who commit to a year to get the $15.95 price it currently is, will get hit by an "early termination fee" of the remaining balance of what they WOULD have paid for the entire year when they decide to close the store after a few billing cycles? I, for one will be CLOSING my newly opened Ebay store at the end of the month.

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: WOODJUNGLE! ON EBAY

Tue Mar 19 16:14:50 2013

I have had one of the roughest weeks ever with Ebay and the their CSRs and feel  more than ever that I am being treated like dirt, hence my comment.  The new feedback measures are just more evidence as to how broken that system is and how incompetent or unwilling they are to make it right.  

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 16:15:20 2013

@papergoy -
Does it really matter anymore whether you list auction or fixed price? Based on the new system, the FVFs for auctions and fixed price listings are going to be the same, and the insertion fees for auctions (if I understand correctly) are going to be compacted down to a single fee regardless of the starting price. Fee will be the same for non-store holders, and a nickle more for store holders -- so even if you did 150 free fixed and then paid for 150 auctions, we're only talking about $7.50 difference for a basic store holder. For a non-store holder, there is no difference. Only if you are an anchor store holder listing 2500 items might it start making a substantial difference ($125)

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