Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Aug 7 2018 11:00:11

Fall Update: eBay Raises Fees as It Makes More Demands on Sellers

By: Ina Steiner

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eBay is raising fees even as it makes more demands on its sellers. The bad news came in the third and final Seller Update announced today.

eBay explained, "We are increasing our investment in our platform, marketing efforts, and tools to enhance both the seller and buyer experience."

But the decision to raise fees comes less than 3 weeks after eBay revealed another quarter of stalled growth, coming in at single-digit sales growth compared to Etsy and Amazon's strong double-digit growth in sales.

One change in fees is remarkable as it comes at a time when consumers are turning to digital content (ebooks, music subscriptions, and streaming movies), including from its arch rival: eBay is increasing commission fees for the Books and DVDS & Movies categories to 12%, and is removing the fee advantage it had given to Store owners:

Starting September 15, 2018, the final value fees for Books, and DVDs & Movies categories will increase from 9.15% to 12% for Store subscribers and from 10% to 12% for non-Store sellers.

Starting September 15, 2018, the final value fees for the Music category will also increase from 9.15% to 12% for both Store subscribers and non-Store sellers, with the exception of the Records category, which will remain at 9.15% for Store subscribers and 10% for non-Store sellers.

Some auction sellers use a Reserve price when they are uncertain if eBay will be able to net them a profitable selling price on auction listings, but that safety net is becoming more expensive:

Starting September 15, 2018, the feature fee for Reserve price will increase to either $5 or 7.5%, whichever is greater and the Reserve fee cap will increase from $100 to $250. In some Business & Industrial categories, the feature fee will remain at a flat fee of $5.

And sellers who try to boost visibility in search results by paying extra to include a Subtitle in listings, or use a Value Pack, will also see fees go up in certain cases:

The feature fee for Subtitle will increase from $0.50 to $1 for listings with 1-, 3-, 5-, 7- and 10-day listing durations and an item price of up to $150, and from $1 to $3 for listings with an item price of more than $150. For 30-day duration and Good 'Til Cancelled listings with an item price up to $150, the feature fee will remain unchanged at $1.50. For 30-day duration and Good 'Til Cancelled listings with an item price of more than $150, the feature fee will increase to $6.

The feature fee for Value Pack will increase from $0.65 to $1.15 for listings with 1-, 3-, 5-, 7- and 10-day listing durations and an item price of up to $150, and from $1.30 to $3.15 for listings with an item price of more than $150. For 30-day duration and Good 'Til Cancelled listings with an item price up to $150, the feature fee will remain unchanged at $2. For 30-day duration and Good 'Til Cancelled listings with an item price of more than $150, the feature fee will increase to $6.50.

And finally, eBay is removing the incentive to list auctions for lower-volume sellers:

Starting October 4, 2018, unlimited insertion fee credits for auction-style listings that end in a sale will be available exclusively to US and Canadian Store subscribers with Basic, Premium, Anchor, and Enterprise Store subscriptions. Starter Store subscribers and non-Store sellers will no longer receive these insertion fee credits. Only listings created after you sign up for a Store subscription will be eligible for a credit.

At the same time eBay is raising fees, it's delivering less (see eBay's second-quarter results) and demanding more, pressuring sellers to offer free 30-day returns, forcing them into the new Seller Hub, and charging them penalty fees for having high rates of SNAD returns. In addition, eBay is giving such sellers less visibility, announcing today, "Starting November 1, 2018, if you have very high rates of "item not received" requests, you may be subject to extended delivery estimates in affected categories."

There are a many changes coming as part of the Fall Seller Update, be sure to read and study all of the changes, and then let us know how the changes will impact you.

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by: cash4clothesbozeman This user has validated their user name.

Tue Aug 7 12:37:04 2018

I highly recommend that eBay spin off it's Used market.  This 15% of its market is what is being driven down.  It used to be the majority of the business.  It has successfully lost market share until it will be almost nothing of the business.  Separate these and you will still have 2 companies in the multi-billion category.
eBay will be able to chase Amazon in the new market and then apply minor different sets of parameters to the Used.  Presently,  The application of the new market ideas such as free shipping and free 30-day returns as an example only deteriorate the market share as sellers just leave eBay.  The used market is not shipping directly from the factory to the consumer.  Aquisition of the product is a major time, talent and monetary investment.
Right now I am paying 20% of my bill to eBay for promoting.  This is a steep cost of business and I do not know if the finding of the product is organic or promoted?
The road on eBay is getting even tougher.
Regards  Bruce Wendt

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by: pace306 This user has validated their user name.

Tue Aug 7 12:38:52 2018

I understood Sasikats post - most of the new changes dont apply to her (as they dont to me).

I dont sell Media items, nor heavy equipment.

I dont buy anything on eBay so their payment issues mean nothing

sales are at a standstill, so what buyers can or cant do mean little (if eBay hides me and no one buys very much - its not a "big" issue)

I also DIDNT expect anything positive from ebay - as they dont know how to run an ecommerce site - so what COULD happen?

Lastly - we are ALL effected by the returns garbage - but it wasnt NEW. Its a shame we cant return Jerk #1 aka Deil Wenig - but I doubt anyone would want him.

Amazon should REALLY send the Devil a BIG thank you - as it seems his crappy judgement and new rules are making people want to sell on Amazon (again). What a dope.

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by: ebayout This user has validated their user name.

Tue Aug 7 12:40:12 2018

Just got my e-mail from ebay re the Seller Update.
Inside, there's a link to "Seller Vision".

Well...I can't SEE "Seller Vision" because it's apparently on the Community Boards, from which I've been permanently banned.

Gawd but I wish I could channel George Carlin.

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by: thievesBay This user has validated their user name.

Tue Aug 7 12:43:15 2018

Isn't everyone just a little tired of seeing a Seller Update banner displayed on your My eBay page like 9 out of 12 months a year? So now it's the "2018 Fall Screw More Sellers Even Further Update". eBay has already been driving down prices of all Media items and eBay deserves to take another 2%? Just more blatant greed, they need to take more on items that are low-prices and don't sell for much.

Their announcement on this should read more like "To bring ourselves more inline with what Amazon charges for fees on Media items, we've decided to take more from our sellers on these items as well." You know, since they need to copy everything Amazon does but then say publicly they want to be anti-Amazon.

Everyone selling media items on eBay needs to make their own ecommerce site, try Bononza, eCrater, anything else. If you stay on eBay, increase your prices to compensate.

eBay will not stop until they destroy every small seller on the site and force them to leave. All that will remain is Chinese junk, big box stores (if they don't also leave eBay), and their preferred large sellers. Otherwise eBay is a total waste of time.  

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by: eBay Shill Buster This user has validated their user name.

Tue Aug 7 12:48:30 2018

Most sellers who have the ability to put their merchandise in a van and head to the largest flea markets in their region should do just that simply because you have immediate cash flow without the hassles of dealing with online venues.

But you need to hit the best markets you can to succeed, many flea markets are dead now days due to young buyers purchasing everything on their phones.

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by: pace306 This user has validated their user name.

Tue Aug 7 12:52:21 2018

Bruce - maybe you have some advice.

How do you sell under $20 NEW items on eBay (clothing, personal items, seasonal items, home goods) ????  

Amazon covers the costs when selling inexpensive goods by subscriptions and via PRIME. eBay sellers CANT do that - so how can you make those sales (your claim was eBay should chase Amazon in the new goods categories).

"YOU" try selling a NEW 47" flatscreen and shipping it from NY to Kansas. UPS/Fed EX costs alone (to residential areas) eats up most of the profits - and if farmer brown cant figure out how to hook it up to his 2 yr old Blu ray player - its comming right back via SNAD and out of your pocket.

OR you can try selling toothpaste. $6.99 for a 3 pack .... Stop & Shop, Target, Kmart, Walmart are all the same price so you have to match it (or whats the point?). Costs you for the best distributor on the planet $4 (since Colgate Polmolive doesnt sell to individual accounts). They WONT drop ship it - so you are paying freight IN (to you). So "with free shipping - since eBay will hide you if you dont)(oh and free returns)(my dentist said this kind isnt good for me) - how do you sell it??? It costs almost $5 landed to you, and USPS is at least $2-3 , never mind eBays cut .. what you make ...... ????? NEGATIVE money.

THAT is why selling new goods (I gave you 2 extremes) selling new goods on eBay is impossible.

Im assuming at this point that you DONT get falsely VEROd (something else eBay makes money on) and you end up not being able to sell your Skullcandy, AKG, Denon, Sony, Nikon etc items.

I admit Ive ONLY been selling on eBay since 1998 - so being a NEWBIE - Id love the help PLEASE :)

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by: spooky This user has validated their user name.

Tue Aug 7 12:53:33 2018

I rarely use subtitles but will now eliminate that forever. And I will now look into listings books elsewhere. I honestly could make eBay much better if I were in charge but I am not alone here in thinking that.

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by: Moonwishes This user has validated their user name.
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Tue Aug 7 12:54:44 2018

I don't have an MBA, nor do most of us and we can see what a stupid thing these fee raises will be, wonder why the guys that do have the degrees can't see it. If eBay needs money, they should cut the executives pay to the bone since they aren't doing what they were hired to do unless they were hired to kill eBay. I am so glad I no longer sell there. eCRATER is a breath of fresh air and if you price your items well Amazon can make you money.  

Charging sellers more isn't going to help them make more money. That was one of the big reasons that I left eBay, my fees were getting to be more than what I was making and with eBay's constant rule changes, I spent two years fixing listings and as soon as I had one set of rule changes fixed they came in with new ones. All I was doing was fixing listings and not listing new products so sales were plummeting.

It will be sad when eBay is dead and gone and but they did it to themselves.                                                                                          

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by: eBay Shill Buster This user has validated their user name.

Tue Aug 7 12:58:15 2018

The bottom line here is Devin is going to keep pushing through his inept replatforming of eBay until he is fired, so sellers have one option, to suffer with slow sales, or take is as a kick in the rear and a major incentive to start listing on other venues.

We can start our own Bigcommerce stores and take PayPal there, for most of us that is going to be the future.

Instead of paying eBay to advertise on a dead marketplace, you pay Google and build your own Brand and customer list that you own using Bigcommerce.

One day you will thank Wenig for that kick in the _____.

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by: thievesBay This user has validated their user name.

Tue Aug 7 13:01:59 2018

Oh another thing, Wenig said at the eBay Open that when Adyen is put into use that "Your selling fees will be lower". But of course what the liar failed to mention is by that time they will have increased fees on everything else they can think of! This truly is a criminal organization they're running, or eBafia as Ming says. They have their hands in everyone's cookie jar taking more and more, until you have nothing more to give and they kill you.

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by: extremetm This user has validated their user name.

Tue Aug 7 13:06:00 2018

Phasing out the last remnants of my inventory and will be completely done with this cess pool by years end.  

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by: eBay Shill Buster This user has validated their user name.

Tue Aug 7 13:06:54 2018

That's alright, sellers are not getting a return on investment right now on eBay due to the massive disruption of sales due to replatforming anyway.

So the mega trend will be eBay sellers moving to Bigcommerce and advertising on Google, you will be seen in Google shopping that way and you will be able to build your own email list and really market your own brand.

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This user has validated their user name. by: iheartjacksparrow

Tue Aug 7 13:17:28 2018

Everyone who will be affected by this Seller Downdate needs to start working on an exit plan NOW so you will be free of eBay on or before September 15th. I keep recommending eCrater because it's an awesome place and I make consistent sales. Free store, free to list, have you items listed for years if you want (no automatic price decreases or Best Offer added to your listings), a small fee if a buyer finds you item through the eCrater landing page, your items sent to Google Shopping, you can accept PayPal or Stripe, and best of all, you make the rules for your store.  

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by: eBay Shill Buster This user has validated their user name.

Tue Aug 7 13:21:02 2018

iheartjacksparrow

Great idea, keep reminding sellers about eCrater because in the end they will be a giant due to fair and upright seller policies.

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by: maxmad This user has validated their user name.

Tue Aug 7 13:39:50 2018


CHINA Sellers are NOT affected one bit, they have nothing listed in these categories their shipping is paid for by YOU, and they rarely list items over $30

I am starting to believe ebay is a communist owned company.

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by: Patricia This user has validated their user name.

Tue Aug 7 14:03:39 2018

Oh Ebay isn't raising fees and making more demands on us sellers.....they're helping us to make sales and be successful  Bwhahahahahaha!

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by: sasikat9 This user has validated their user name.

Tue Aug 7 14:04:00 2018

@Pace309

Gesh I thought I was the only one to say its not going to affect me. Welcome to the club and thanks.

@carol is here

Sorry to bust your balloon BUT the update isn't going to affect us at all. As for returns we take look at it this way, If fleecebag doesn't want us on the site, thats fine. WE LONG AGO DECIDED TO IGNORE THEM AND DO WHAT WE HAVE ALWAYS DONE. Not going to get ulcers over something I can't stop.

BUT we have also been downsizing our 5 anchor stores. As we only have 4 now. We have been busy going to the flea markets in the area and will continue to downsize weekly. We no longer are adding inventory to any of our stores. When they are empty then we are gone. Its been a 20 plus year ride and fun at times BUT its time to go on with something else in our lives. Maybe travel and retirement.

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by: comments This user has validated their user name.

Tue Aug 7 14:35:28 2018

Return of return defects but this time no dispute process will exist to fight buyers remorse returns opened as SNAD. Though it also appears they will not count towards seller performance either which is better then nothing.

Impacts on me will mostly be frustration and going back to blocking those that return for SNAD reasons.

I am very accurate and offer top quality items so I will never just stuck with the penalty just bad feelings.

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by: abfab This user has validated their user name.

Tue Aug 7 14:39:50 2018

I am smaller than small but been doing the eBay thing since 2001. Now as of this weekend, my items are not in Google Shopping i.e., used to be I could call up my name "abfabvintage on ebay" in the search block, then click on Shopping Tab above and a gallery of my items would come up (along with a few other vintage pre-owned sellers mixed in because they used terms in their description like AbFab or Absolutely Fab).

Now, nothing but totally unrelated items from sellers on Bonanza, etc. and all new items unrelated. However, lolol, there is a big eBay block promoting Gift Cards. Granted, there are the usual AbFab TV series genre, but always my items included.

Tried to get a Blue to help who had absolutely no clue on how to do this. Told me I had to take it up with Google? Yet eBay was paying for this since the beginning (sponsored). His reply back to me: he searched for some kind of Switch widget and he found what he was looking for. Just dumb. And ebay has removed RSS Feed & Keywords from my Store.

My question to the Blue was how come, is it that ebay now does the keywords using some cloud?, or is it ebay getting rid of the RSS feed? I am computer dyslexic, but all I know since 2013 I have always on a weekly basis gone to google search, put the info in as described above, and was able to see my items in the gallery format. As of this weekend, Nothing. Anyone have any ideas on why? I would gladly pay Google myself but ebay always paid for this as part of my being a seller.

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This user has validated their user name. by: bitbybit

Tue Aug 7 14:47:40 2018

Looks like they finally found the last nail in the coffin for auctions. The last goodbye to Ebays successful past. Actually the very last breathe will be when the auction button mysteriously disappears.  

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