eBay Makes Major Fee and Feedback Changes in New Spring Release

by: papergoy

Quirky, I don't think Jeff is skirting anything.  He has answered the questions that have been asked.  My fees will go down for the first time in eons (I've been around long enough to remember when Paypal promised they'd never charge a fee...how'd that work out?).  But if I were selling and my fees were going up (as they had the past few times), I'd change my inventory and pricing as needed to make the numbers work.  There is no one venue that is right for every item, and no venue that is wrong for every item.  So you can either do the wise thing and get the proper product mix and make money, or you can take your ball and go home.  I see which one you've chosen.  And then you'll have problems on the next venue you try and so on.  Roll with the punches- it isn't that difficult once you get used to it- take the emotion out and act logically.

by: Digmen1

I have been with ebid.net for about 4 years now.

I don't think they have hardly ever changed their selling terms.

by: Jeff@eBay

@quirkyantiques - these changes don't necessarily mean an increase in fees. It really depends on a number of factors, and for many, many sellers these changes will mean a net decrease in fees.

The Fee Illustrator on the eBay site can help you see what the difference means for you.

by: papergoy

To 16mm- first, I will be going up to an anchor store on May 1 (11900 items so it's a losing proposition until then- I was set to make the jump August or so- this will make the switch a little earlier).  But even let's say it is "only" $7.50- that's money in my pocket- it can give me a little more juice to outbid someone at the next public auction I go to who hasn't crunched the numbers.  My friend, the secondhand trade comes down to pennies on the dollar- and if I cut my expenses $4 here and $7.50 here and $11 here and 80 cents here- before you know it, I'm running leaner than you are- and I can outbid you for product, and outsell you on the other end as well as I can come a little lower on my prices.  So I can pay more AND sell for less than you (not you obviously as we deal in different things but you know what I mean)- that's a nice one-two combo to have- I get the product that you don't AND can sell for less than you and can still make money.  That's the name of the game.  Maybe I'm obsessed with it, but I have things down to the fewest keystrokes needed for things, multiple windows and tabs to utilize my time efficiently and so on- in the end, I honestly believe it makes a difference.

by: 16mmfilmseller

@papergoy - I deal in higher priced collectible items, so the $7.50 is not that big of a deal to me (although I would certainly try to avoid it )-- what is a big deal is the FVF increase from $43.75 to $90 on a $1000 item... Makes the $7.50 look like chicken feed after a single item.

So I guess my point is that while you can save a little by scheduling your auctions and Fixed price listings, I don't think it will have a major impact on anything.  

by: 16mmfilmseller

@Jeff@ebay -- I did a back of the envelope calculation and I think my fees are going to go up somewhere between 50-100% overall. That's pretty substantial. You are penalizing moderate volume sellers who sell high priced items.  

by: papergoy

To 16mm, we are in different leagues.  I've found my niche with 10 to 20 dollar items as they're readily available for purchase, and there are always ready buyers.  So, to both of our points, the odds of us going head-to-head on a given item at auction are slim- I'll let the big boys beat each other up and then I'll make my money on the scraps.  Works for me.  That being said, it comes down to which venue to use for a given product.  There are specialty sites for lots of collectibles (delcampe for stamps and postcards, bidstart for stamps, beckett for sports cards) as well as Amazon, and then of course craigslist, your own website, eBay, flea markets, brick and mortar store, public auction and so on.  And what will sell on Craigslist may not sell on eBay and what sells out of your store may not work on Amazon.  I'm sure I'm preaching to the choir, but you need to try as many of the venue as you can, and work the product mix to best suit that venue.  Apparently eBay wants the 10 to 40 dollar sales- so give it to them.  Find another site for the higher end.  What I list on Amazon is generally different than what I list on eBay, primarily because of the difference in fees as well as my experience in what sells on each site.  You'll figure it out- you're too reasonable not to (from what I can ascertain from your comments in this thread).

by: dans parts

C'mon, folks.  You know eBay is going to be charging us more at each update, whether they try to ''disguise'' like last time, or just overwhelm us with doublespeak to try to confuse us (which is what this one is beginning to look like).  It's not like we have a choice - other than disappearing from eBay.  It's their sandbox - we pay to use it, period, even if they essentially treat us like the cat who has just pooped in said sandbox...

I seem to be in a fortunate niche for this new update in that I think I am only going to be paying more in fees based on higher number of items sold.  And make no mistake, dropping tons of insertion fees I would have to be paying to list more items will definitely help with that.  The more I list, the more I sell.

Of course, there is the inverse curve of shrinking number of Buyers that will impact on that, but by and large, for me at least, it has been historically true that the more items I can have on eBay, the more money I make by the end of the month.  Profit.  After usurious fees.  Yes, the margin does shrink with eBay fee increases, but it's still profit.

Now all I have to do is figure out if I want to go from Premium Store to Anchor Store come May 1st, or stay put with Premium.  Using eBay's silly Fee Illustrator (which is only really good for figuring out up-front costs), the break-even point between the two (for my Category) is 1365 listings per month (auction type).  Guess it just depends on whether I think I can maintain a minimum of 1365 auctions every month.  Although, falling below that number only results in a couple dollars more per month, if I should happen to slip up a couple of months during the year.

Maybe I'm one of the few lucky ones in this update?

by: kreativebargains

I am so glad I am off eBay. I got fed up with all these changes and fee increases, Now on eBid, sales are lower, but there's no hassle and they actually treat sellers as fairly as buyers. FVF's are 2%, no listing or store fees. It is not for everyone, you have to work at the sales a bit more, but do eBay really want the smaller sellers?

by: Ed Gadfly

Do you really trust eBay not to rip you off?

All these deals and freebies and various rates are free of glitches, right? Glitches, as regular readers know are the monetary billing or technical problems that make money for eBay 99% of the time.

So how do you check to make sure that you are charged the right amount? Does that take time for you to do that?

Do you worry about the rates being wrong? Do DSRs and customer extortion keep you up at night?

Can you trust the people you do business with? Are they looking out for You? Are they giving You good value for Your money?

Remember the true purpose of eBay - to return value TO THE EBAY SHAREHOLDERS.

Who are the shareholders and where do they get the money to run eBay?

eBay is the casino. Who beats the casino? Other people have left. They are making money.

Are they as happy elsewhere, as you are on eBay?

eBay jumped the shark in 2008 when they eliminated Negative feedback for buyers.

Who really thinks eBay will ever become easier and more profitable?

You deserve better.  

by: twentyjuan

Am I reading this right, then? My premium store is going up $10.00 more every month, but the first 500 of my current listings that are GTC will renew free every month, at .05 cents each, that is a $25.00 saving, so I am actually saving $15.00 a month in this scenario?

by: Jeff@eBay

@16mm - If you'd like me to run your store's past performance against this new fee structure model, I can help you compare your results apples to apples.

by: Anonymous Annie

Hi Jeff! Thanks for stopping in and fielding our questions. I know that many of us appreciate it. You're a brave man. :-)

You write: ''The Fee Illustrator on the eBay site can help you see what the difference means for you.''

Is this the one that compares eBay's fees (minus PayPal fees) to Amazon's ''all-inclusive'' fees (which are inclusive of payment processing)?

If so, isn't that like comparing Apples and Oranges?

I wonder if someone will be able to create a comparison matrix that shows how the *combined* eBay/PayPal fees compare to the *all-inclusive* Amazon fees.

by: AgendaSwallowsAll

What good are free listings? They're running a special that ends today, listed an item almost 3 hours ago and another 40 minutes ago. I can find them if I run a search of my account I.D. but they are nowhere to be found in a generic ebay search for either.

by: Jeff@eBay

@twentyjuan - Your calculations look correct to me. Plus, if you decide to subscribe to your store for a year, you'll save an extra $10 per month.

by: Jeff@eBay

@Anonymous Annie - The Fee Illustrator is an interactive tool that doesn't compare your results to anything except how your fees would calculate without a store or with one of the three store options. We haven't included PayPal fees in the calculations. Not all sellers use PayPal as their payment system.

by: 16mmfilmseller

@Jeff@ebay - would be happy to share that with you - do you have an email address that I can use to reach you?  

by: Jeff@eBay

@16mm - My user ID is jeff. You can send me a note through the eBay Community messaging system (not My Messages, but the message system within Community).  

by: Marie

@Annie

According to the CSR I spoke to earlier today, they have a matrix they are going to release to us soon.  It takes our last three month's history and evaluates it.  She ran it for me and said I will have a savings of approximately $200 per month in fees overall.

I think this is what has so many people upset.  They are taking pieces of the update regarding fees and dwelling on it.  When they need to look at the overall affect.

For example the decrease in BIN FVF to 9% from 11% is just about a wash for me.  Currently it is 11% on the first $50 then 6% for the rest up to a cap.  [I never get to the cap].  Anyways, simplifying it to 9% for ME is just about a complete even exchange.

Small Sellers that may have a basic store right now and run about 150 BIN listings per month would pay about $45.95 in listing fees for the month.  Under the new fees starting May 1st, that same seller would pay $19.95 for the same amount of listings.  That is a savings of $26.

Yes, you are certainly right about that fee comparison with Amazon.  I don't know why, but I still get disappointed in Ebay when they do this kind of stuff.  I don't understand why they refuse to get the message.  Treat us like adults.  Treat us with respect.  And certain treat us like we have functioning brain cells.  I like selling on Ebay for the most part.  We have problems, there is no doubt.  We have rules that need serious attention.  But because of Ebay I have met some the most wonderful people that I would never have met otherwise.

by: bitbybit

''Not all sellers use PayPal as their payment system.''

But the majority do .. remember Paypal is a forced requirement here in the US

Since MOST sellers do use Paypal and by NOT showing PP fees in the calculations, tells me Amazon's fees are overall much lower than ebays.