eBay Makes Major Fee and Feedback Changes in New Spring Release

by: JustTheFacts

@arisdisc..
I agree it would be great for sellers to decide how we would apply the free listings but something tells me that that is not going to happen because it would not benefit ebay.

Remember, ebay changes are never about benefiting the sellers, they are always about benefiting ebay and the buyers. Sellers are left to try and figure HOW and IF they can somehow make it work for them.

When sellers complain there always seems to be the "right people" there to remind sellers "they must stop complaining and CHANGE THEIR BUSINESS MODEL and that it is THEM who is the problem, not the ebays changes."

If that method does not fly, then we are given the old, "If you do not like it, then go elsewhere".

by: JustTheFacts

@arisdisc..
I agree it would be great for sellers to decide how we would apply the free listings but something tells me that that is not going to happen because it would not benefit ebay.

Remember, ebay changes are never about benefiting the sellers, they are always about benefiting ebay and the buyers.  Sellers are left to try and figure HOW and IF they can somehow make it work for them.

When sellers complain there always seems to be the "right people" there to remind sellers "they must stop complaining and CHANGE THEIR BUSINESS MODEL and that it is THEM who is the problem, not the ebays changes."

If that method does not fly, then we are given the old, "If you do not like it, then go elsewhere".

by: Tiques_N_Ties

While I do not care for change, it is inevitable.

I currently have a premium store and the way I handle my listings is I write up listings all summer long and save them in auctiva and list them all at once in October. Last year I launched 2500 listings in addition to about 900 leftover from the year before and I relist them month after month until they sell and write up listings all summer long and repeat.

So, with that explanation, I average about 3500 listings during peak season and will dwindle down to about 1000 by the following October before I submit the new set of 2500 or so listings.

I worked up an excel spread sheet and found out that based on my relists and the final value fees being 2% lower, I would end up spending about $670 extra per year with a premium store purchased at the monthly rate. That figure drops by $120 if I sign up for the yearly plan.

If I moved into an anchor store, and included my final value fees, I would end up saving about $100 moving to the new plan based on a monthly plan. If I went with the yearly plan, I would save a total of about $320.

For me, a large volume seller, it makes sense to move to an Anchor store.

For others, It appears that ebay is putting the squeeze on the small time sellers and giving the big time sellers breaks.

Personally, I LOVE the idea that I can list up to 2500 auction style listings for free - I would do more of them. Before, I only got 50 a month free and never really bothered.
 

by: Ed Gadfly

@Tula

''Now the way Ebay does it may not be to our tastes, but the goal is not invalid because of that.''

So the end justifies the means?  

by: pace306

@ NSC

Its all about the FVFs. Ebay gets a cut from USPS on shipments (the difference between the best aggraget pricing and what was cut with the Chinese government) and what the Chinese sellers get charged PLUS the FVFs.

Theres a reason that the Cell phone category has a high FVF rate .....

In the areas that I sell that issue doesnt come up - fakes do - often - as does VERO abuse - so I cant tell you %100 - I can only tell you what the lady from USPS told me when I went to thier booth at the toy show in Feb in NYC. eBay lives off the "slice" as described above ... what happens to US sellers is of no concern to them - or they would have cut US sellers a deal like they did for the Chinese.

by: JustTheFacts

I do agree that going from a premium store to an anchor may be the best for me as well based on the fee increases.

However, it looks like I will not be posting auctions anymore.

As I believe peace mentioned, ebay MUST be trying to kill off auctions.  How can they possibly think that demanding we do at least 30% off is feasible on top of all of the other fees.

The FACT is, peace HAS TO BE RIGHT!  ebay has got to be trying to KILL OFF auctions.

by: pace306

@Justhefacts :)

"The e-commerce company e-Bay has indicated that it recognises it has an image problem in continuing to be thought of as an “auction site”. According to chief marketing officer, Richelle Parham, e-Bay is targeting the growing m-commerce market segment by positioning itself as an e-commerce innovator."

Auctions have become the redheaded step child of eBay. They need them because there are still too many people who believe its what eBay is all about. Behind the scenes eBay is doing everything to STOP that from taking hold any longer.

The fee structor against Auctions is a continuation of the above policy - mentioned in my first paragraph.

Make it unpalatable (via stick or carrot) and it will slowly diminish. eBay has said many times that too many customers never comeback after being outbid by sniping, shill bidding, auctions ending at obsene hours (3AM) etc. They write into eBay saying they wont be back and eBay listens (buyers thoughts count, sellers do not)(its like the myth of seller protection when you see that eBay is SO desperate for buyers that they will even void thier own policies to keep them!)

I dont do auctions so the change doesnt directly effect me - but it does as a buyer. I collect toys. I used to be able to get great deals - a 1/3 of my collection I got off eBay. But I too - because eBay is warped - wont buy anything - I just go to toy shows and support the vendors directly.

Oh and this one is for RIC and Ming =)  "The latest figures from the German Bundeskriminalamt (BKA) show that one in three cases of white-collar crime takes place over the Internet, according to a report in the German edition of the Financial Times last Thursday. Mostly this relates to fraud, with the auction site eBay most frequently affected".

Read it again "Mostly this relates to fraud, with the auction site eBay most frequently affected".

We all knew it all along!

by: JustTheFacts

@pace306..
Sorry for keep calling you peace.. I should have double checked but I am glad you knew who I meant. :)

As for the German article.  I think I briefly read that but I do not recall it stating which side the fraud was being committed, by the seller or buyer?

by: Digmen1

I think we'd all like to see ebay make a healthy profit.

But I wish they would lower their fees and make it easier for us sellers to sell on eby.

Then we'd all make more money.

by: Marie

@pace306

Other than 99 cent auctions, because they certainly are not going to fair well with the structer, how is the upcoming fee changes negatively impacting auctions?  

by: nsc

I don't think ebay is trying to kill auctions at the moment. From certain words said about auctions bringing interesting items to market and attracting buyers, I think ebay regards auctions as a kind of marketing device, or at least a necessary evil.

If they were really trying to kill auctions they would not have included the auction format in the quota of free listings. Instead they removed any price advantage the fixed price listing ever had. I think I will be listing more auctions, since they no longer cost any more to list (if you still have your free quota), the fvfs are the same either way, and with auctions, you have the possibility of competitive bidding.

by: Marie

structer s/b structure, sorry about that.

by: nsc

@digmen1, I wish ebay would get it through their thick skulls that everyone benefits when the site is effing *stable*.

Nobody can make a business plan if they don't know how the site will behave next month. Not the small sellers, not the large sellers.

Instead ebay management thinks 'ooh we're so clever that if we restructure listings again we can fool Wall St into thinking we've decreased fees and increased earnings!'

Instead they have increased fees, and very likely decreased earnings with the site blackouts and glitches that are likely to accompany the extra 100 million listings that will hit the site in May.

But they will fool Wall St. That much is a constant. Those analysts are dumb as a box of rocks when it comes to ebay's tricks.

by: Marie

@nsc

Why would you think 100 million listings are going to hit Ebay come May?  I'm just curious.

by: Ebay Seller-Ebay Buyer

I called customer service to ask a few questions.  The rep didn't even know they had a new update--he's in Philipines and said no one had told him. This shows how poor ebay's upper management has gotten.  

It looks like forme my only concern or question for Ina Steiner oran ebay rep wouldbe whether the monthly promo specials willbe coninuing.  If they are I'd stay here selling; if not I'd be done selling on ebay except for the 50 free.  The auction final value fees are rising so this is a price increase for me.  And there's no reason for any Amazon store owner to close theirstore and open on ebay Amazon has a $40 monthly fee and unlimited free listings so a store of 2000 is $40/month i upfront fees; compared to ebay which is $50/month plus 1,500 items times 10 cents/item($150 per month in listing fees for the 1,500 items over the allotted 500 free).

Ebay appears to want sellers to do less auctions and more fixed price

by: Ebay Seller-Ebay Buyer

By monthly promos I mean are the invitation only promo's going to continue. This is the ONLY thing keeping ebay going for many of us. The rest of the update is just a bunch of math numbersand a distraction. I hope the Steiners can do a follow up because them and most here have been suckered into Ebay's numbers game but have ignored what's actually most relevant for many of us: please Ina Steiner; wake up and ask~~~Are the invitationonly free promo's going to continue???  Thank You!

by: BB2

twentyjuan - Your theory only works if you have less than 500 items listed in your store. GTC insertion fees double to $.10 after the first 500 listings.

You would pay roughly the same for insertion fees and your store subscription today, if you have between 500-1000 items listed. Once you cross the 1000 item threshold, those fees increase. Let's say you have 1500 listings in your store. Today, you are paying $49.95 (premium store) plus $75 in insertion fees ($.05 each x 1500), totaling $124.95. After the change, you will pay $49.95 (premium store - if you commit to a year) plus $100 in insertion fees ($.10 x 1000 / 500 are free), totaling $149.95. For me, however, the biggest difference is in final value fees.

When it comes to FVFs, I'm with 16mmfilmseller, who said ''You are penalizing moderate volume sellers who sell high priced items.'' It's taken me 4 years to get to where I am. A Top Rated small seller with a premium store. I have about 1400 GTC items listed now and sell in Home and Garden. My average sale is $115. Without any changes, my monthly fees will go up roughly $200. For a seller my size, that is a big deal.

Selling higher-price items, doesn't mean I'm drowning in margin. I have to compete with the big boys who make their money on volume. I could live with these changes if I could count on eBay to attract a consistent number of buyers to my store every week. Instead, all my orders come in waves... and then usually from the same region. I get turned on and off like a light bulb.

I originally planned to double the size of my store this year. But, like Tiques_N_Ties said, upgrading to an anchor store doesn't make sense. It appears I need to change the plan or completely reevaluate whether or not it is worth the effort.

by: nsc

@marie, I anticipate many sellers are listing less than their full quota of free listings, and will shift to listing more auctions and fp to use it up.

by: Marie

@nsc

Possibly.  My opinion and what I will do personally is use those free listings to help ofset the increase costs.  I run enough listings every month to use up all the free listings even if I go with the premium store, but the 2500 free will help tremendously in keeping the costs down.  

So I won't be increasing what I currently carry, it is just that it will relist using the free listings.  I think lots of sellers will follow suit.

by: Ed Gadfly

eBay CEO John Donahoe's Salary And Other Compensation Grew 80% In 2012

''The bulk of the pay increase came from stock awards amounting to $23.7 million last year, up from $8.9 million in 2011.

Those awards included a one-time $14.9 million grant as part of the company's performance-based incentive plan. It is structured ''so Mr. Donahoe is incentivized to maintain strong performance through the vesting date of the grant in 2017,'' eBay spokesman John Pluhowski said.''

So JD will be around until 2017? Interesting.

http://www.huffingtonpost.com/2013/03/19/ebay-ceo-john-donahoe
-salary_n_2903221.html?utm_hp_ref=technology