Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue May 16 2017 13:52:07

Is eBay Testing Zero Listing Fee Model?

By: Ina Steiner

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It is now free to list your items in the Guitars and Basses category on eBay, and the Final Value Fee has been reduced to 3.5% with a cap of $350 for non-store sellers and $250 for Store subscribers.

eBay already provides sellers with a certain number of free listings on eBay. It isn't clear why it would pick one sub-category to completely do away with listing fees - thus the speculation on our part. (Is there something we're missing?)

You can read eBay's announcement and its interview with Michael Mosser, general manager of Musical Instruments & Gear at eBay.

Not everyone believes free listings are a good idea - some sellers believe it makes the site too cluttered and provides sellers with no incentive to delete aging listings.

Let us know what you think of the zero-listing fee model in guitars (and why guitars?), and if you think such a move would play well across all eBay categories.

Comments (56) | Leave Comment | Permalink
Readers Comments

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by: Ichabod This user has validated their user name.

Thu May 18 01:46:00 2017

I don't understand why ebay doesn't shuffle the listings a few times a day or, at the very least, a few times a week. That way everybody, small sellers, big sellers, casual sellers, all of them would have a decent shot at someone picking their items. To list all of the stuff in any kind of chronological order or by price is grossly unfair to a lot of sellers. I may not have the cheapest price on an item or have an ebay store with tons of listings but that doesn't mean that my stuff shouldn't get looked at. I would bet that there are lots of buyers who go to a category and are just looking for something that they like or in a certain price range and buy the first item that meets their criteria. And, if items were shuffled, they might buy something that they hadn't planned on buying just because they happened to see it while they were browsing.  

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

Thu May 18 03:25:50 2017

Agree with FF.  Free listings means I cancel all 3 of my store subscriptions.  As it is I have many free listings unused every month, so I would not be listing more items in a free listing scenario.

Also eBay knows what listings are stale, and which have been relisted umpteen times, and those are most likely not to show up in search.  If you've relisted Grandmas precious vase 27 times, it's not going to sell.  Now if you start with a brand new listing, you might have a chance.  But be aware that Millenials and Generation Z are not buying dust collectors, so it may be a lost cause anyway.

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This user has validated their user name. by: Jono

Thu May 18 06:36:18 2017

Why do so many of you insist that eBay are hiding listings? Why would they do that? If I don't sell then they dont make any money. It's counterproductive & nonsensical. What proof do you have that eBay hiding listings is intentional? Surely it's a bug?

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This user has validated their user name. by: Rexford

Thu May 18 07:04:06 2017

Jono says "Why do so many of you insist that eBay are hiding listings?"

1) The verbiage is in their user agreement.
2) It has been proven many times.  Many sellers have had friends or acquaintances conduct searches for their items on those friends' devices and they were not found
3) 50 people could do the same search using the exact same key words and they will all get different results.  Also proven.
4) Off again on again sales. These patterns don't lie. A few days of robust sales followed by crickets. Consistent patterns for several years.
5) Hidden sales limits.  Also consistent.  Reach that limit and get ready for the crickets until the next month.
6) The musical chairs of the servers.  Orders from California, Oregon and Washington on same day.  Then orders from North Carolina, South Carolina and Georgia on another day.  Orders from Minnesota, Wisconsin and Iowa on yet another day.  Think you are getting full geographic coverage? Think again.

Need more?

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by: digger This user has validated their user name.

Thu May 18 07:06:07 2017

"@JQ is nuts.  A 20% FVF would put many sellers who aren't crawling yard sales for used junk to flip under."

Just a reminder that eBay's books & media site, Half.Com, now charges sellers a 25% sales commission.

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by: GotToGetOut This user has validated their user name.

Thu May 18 08:11:11 2017

Marie, I agree with Rexford. Amazon does not charge a listing fee for all items listed like Ebay does so we can actually be charged more money on Ebay if we don't sell anything. THAT is the problem. A listing fee that is charged only for sold items is not the same kind of listing fee though Amazon may call it that. Wexford's point is accurate and you are accurate and and of the point that Amazon does call it a listing fee, however inaccurate.

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This user has validated their user name. by: VV

Thu May 18 08:36:07 2017

Stop hiding listings instead.

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by: pace306 This user has validated their user name.

Thu May 18 08:41:05 2017

Rexford is of course %101 correct.

We can debate how much "gross" traffic eBay receives - ie whether or not its any where close to Amazons (hint: its not), but what cant be argued is the length that eBay will go to manipulate the viewing of listings.

eBay says it as clear as day - if you dont do X - what ever X is today - 30 day returns, 60 day returns, 90 day returns, 1 day handling, fast n free 2-3 day shipping etc - your listings  MAY not get seen by buyers.

Of course eBay gladly hands buyers additional switches that segregate listings by what ever devious thoughts eBay has that day/month/year.

Yes, logically you would think that a smart ecommerce company wouldnt hide ANY listings - after all as you said - they would loose money - but that "view" isnt wasted - its simply being rerouted - to a seller eBay likes/wants to succeed.

eBay has changed - back since 2007, from a neutral platform to one that picks and chooses winners and loosers.

Bad mouth eBay here and on the forums, dont do their carrot jumping ect and you get punished - by having your items come up onthe bottom of the page or even page 2.

Listings long ago stopped being organic. Theres NO need for any "switch" beyond distance and total price - anything else is a manipulation and eBay gives themselves the authority to do so, by putting it in the TOS you automatically agree to when you log on to eBay each time.

Cassini was specifically designed to be able to manipulate search. If eBay wanted "the best organic search" - they could have used Googles - after all - ALOT of manufacturers use it internally on their website - AS THEY WANT THE PEOPLE VISITING THEIR SITE TO ACTUALLY FIND WHAT THEY ARE LOOKING FOR.

But of course eBay had to piss Google off, even after they were warned NOT to .. something all sellers are paying the price for.

eBay isnt your friend, they arent a mall owner leasing you space, they are you UNasked for business partner. EVERY part of the sale, is controled by eBay in some form - mostly due to their lecherous relationship to Paypal. Paypla is the lackey who does eBays bidding.

Since you pay Paypal for their service, shouldnt YOU have control ... ? why does eBay have ANY legal right to interfere with a monetary transaction that YOU paid for ... "because they can".

eBay wants successful sales, NOT successful sellers.

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by: dans parts This user has validated their user name.

Thu May 18 08:53:35 2017

@Jono

Rexford is 100% correct on all counts.

Sunday, one of my accounts sold 5 items out of 50.  Three went to Texas, one to NY, one to Tennessee.  None of my other accounts sold anything to Texas, out of 550 more items offered.

A couple of months ago, one of my accounts sold 6 items.  Five went to California.

I see this kind of geographic distribution every single week.

Rexford's point #6 is absolutely proven in my mind.

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by: Barbbie This user has validated their user name.

Thu May 18 09:00:06 2017

@Jono, you must be new.
Once you begin to sell a lot, the points that rexford have shown you are obvious. Yesterday I spent all day translating spanish questions from an unusually high number of buyers from PR.
Ebay does many things that do not make good business sense.  

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This user has validated their user name. by: toolguy

Thu May 18 09:55:38 2017

@pace306

"If eBay wanted "the best organic search" - they could have used Googles"

You're KIDDING right?

Google is 100x less organic then eBay is, on Google it's pay to play all the way everyday!

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This user has validated their user name. by: epuise

Thu May 18 10:30:04 2017

It is too expensive to sell on eBay. Most cats start w/ a 10% FVF on item AND postage. That can equal a 20% take on, e.g. a $15.00 item where postage is $15.00 - a $30.00 sale costs $6.00 in fees, which comes out of the non postage $15.00 - then, PayPal takes thir cut - then, you risk a forced fake SNAD postage return - Now, you are looking at: a $30.00 sale - $15.00 in postage both ways - $7.50 eBay/PayPal... you LOSE $7.50 potentially on any item at that price point put up - that means you must sell TWO items to 'break even' net/net... and don't show a meager profit until you sell 3... not a formidable business model.

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by: Thinwoodandoldtools This user has validated their user name.

Thu May 18 10:48:02 2017

I list 20% of my inventory in Guitar and Basses sub-categories and it generates 40% of my sales. Finally a eBay win for me.

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This user has validated their user name. by: toolguy

Thu May 18 11:00:11 2017

@epuise

I sell an item for $30 on eBay

eBay charges me $2.40 in FVF fees

Paypal charges me $1.20

Total Fee's on $30 sale = $3.60

No where near 20%, more like 12%

It's CHEAP to sell on eBay in my opinion!

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by: spooky This user has validated their user name.

Thu May 18 11:07:46 2017

I want HIGH listing fees. I would be happy to pay them and it would be a great strategic move. Like most are saying - TOO MUCH CLUTTER. stop the fools from constant relisting marginal items at high prices looking for a hook. I also buy on eBay and have seen the same item listed literally over 100 times at insane unrealistic price.

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by: bpm This user has validated their user name.

Thu May 18 11:24:24 2017

Toolguy - Google Shopping is 100% pay-to-play; the ordinary Google search is organic, and that is the search most companies pay a licence for because it works!

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This user has validated their user name. by: toolguy

Thu May 18 11:55:23 2017

"the ordinary Google search is organic, and that is the search most companies PAY a licence for because it works!"

If you have to pay it's NOT organic. . .

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by: pace306 This user has validated their user name.

Thu May 18 12:48:13 2017

TOOL - farming gateway opiod drugs DOES NOT equal computer lessons.

Googles paid search is separate from the rest - its part of google shopping.

But thats NOT the point here - whether you understand it or not.

eBay search is manipulated at their whim PERIOD, Googles is not.

If you DONT like the Google analogy - pick any - insert any OTHER search - Bing, Yahoo etc - its all the same.

Cassini was designed that way - and eBay said so - its not even an argument.

Anyone who has been here for some time remembers Voyager - eBays last search engine - it was MUCH better.

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This user has validated their user name. by: RKTOYS

Thu May 18 16:34:33 2017

Are you being deliberately slow?  If your item is $15 and your shipping is $15, the 15% paid on the entire transaction is effectively 30% on the item.  Remember, if you use calculated shipping, you are not getting a cent of the money spent on shipping.  Therefore, the fee on it should be shifted into the item portion.  This is basic math.

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by: mindelec This user has validated their user name.

Thu May 18 16:36:13 2017

reverb is the "go to" site to buy, sell and LEARN about the values of guitars.  ebay managed to piss off all of the people who might know these things about items in different categories, so now the only way they can compete is by being cheap place to sell guitars.

the only way ebay would do unlimited free listings is if they create another store level at a super high price.  they aren't going to give away the massive profit they make from being the highest place to list on.

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