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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Readers Comments

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

by: Grady This user has validated their user name.

Tue Aug 7 20:30:53 2018

By the holidays there won't be anyone left but Mao

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

by: maxmad This user has validated their user name.

Tue Aug 7 20:36:30 2018


Seriously, it can't be a surprise to anyone that ebay wouldn't raise fee's as usual, as mentioned many times it will Never stop, they are loosing market share, and sellers are their only source of money, ebay needs to make more profit per sale, because sellers don't sell as much ,you don't need much of an education to figure that out, ebay's not going to loose money, they have millions of desperate sucker sellers that can do that

This is a huge money grab that will save them for the next quarter, price of shares should start going up,

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by: Not A FOOL This user has validated their user name.

Tue Aug 7 20:41:53 2018

Won't effect me...after 17 years on eBay I stopped all listings in June. Just too many hurdles and too many problems. So long eBay!

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This user has validated their user name. by: RKTOYS

Tue Aug 7 21:08:52 2018

Doesn't seem to hit me but I'm down to about two sales per month at best.  New toys just isn't feasible unless they're stolen, gifted, or plucked from clearance racks.  These venues, not just eBay, would have to knock their fees down to 5% or less for me to even think about trying again.

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by: Chicago48 This user has validated their user name.

Tue Aug 7 21:19:07 2018

@RKtoys:  There's a good discussion in the forums on AMZ about toys.  someone in your exact position, low toy sales and this is what I wrote.  Moms are taking their kids to the Dollar Store for toys.  You should visit the $ store sometime and see the kids having a ball with the (cheap) toys.  And then there are the Savers thrift stores.  Everytime I go there, the kids are  in the toy section.   They play with those toys so much they almost break them.  Moms are not buying toys for their kids to tear up in a day.   Unless the toy is a game or electronic or some hot toy.....not worth it to sell anymore.  Familes are finding cheaper toys.
 

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by: thievesBay This user has validated their user name.

Tue Aug 7 21:46:24 2018

@maxmad

I don't agree that this raising of fees or those to come will save them. The problem is loss of overall sales that almost everyone is reporting. The site is broken and so is eBay. The hatred from sellers toward eBay has never been higher. This is only going to push more and more sellers to leave for other platforms that aren't run like a dictatorship. Sellers leaving along with their items isn't going to help eBay now or ever. They're just too stupid to realize it. eBay is in desperation money-grab mode before Wenig is fired or resigns. It won't ever get better. eBay is a sinking ship...

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This user has validated their user name. by: iheartjacksparrow

Tue Aug 7 22:15:54 2018

@RKTOYS - eCrater only charges 2.9% to have your listings sent to Google Shopping. And you are never charged a fee on the shipping cost.

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by: justchangecarriers This user has validated their user name.

Tue Aug 7 22:20:56 2018

DVD and movie sales net so little. Such a small sale why in the world are they increasing the fees on that on already small margins. There is no way that category is even that profitable for them.  

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This user has validated their user name. by: RKTOYS

Tue Aug 7 22:41:34 2018

@Chicago48
I don't doubt it.  I couldn't really sell to kids because I couldn't source anything under $10 once Hasbro took GIJoe and Marvel Universe off the market.  Even at collector shows, when people bring their kids, $20 is out of the question (for them or the parent).  When I would look through the distributor catalog, there was so much stuff that I just couldn't order because price expectations were frozen in 2005.

Yet MSRP keeps rising.  Hasbro's distributors don't even offer a 10% margin.  Collectors won't pay retail.  They'll check the sold-out big box listing for $16.82 a million times before they'll pay $16.99.  It's not until big box stock is exhausted that they'll consider paying retail, only for Hasbro to dump overstock on discounters for 50% off and undercut you anyway.

My prices have gotten a bit high only because I have to make every sale count.  I never wanted to do that and that's why I've been working on getting out.  Collectors just don't get why specialty shops aren't competitive anymore.  They're up in arms over "Amazon scalpers" but they don't want to hear why that business model is so prevalent.

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by: maxmad This user has validated their user name.

Tue Aug 7 22:52:12 2018

@thievesBay

Short term: Gains
it will save them for another quarter, for sure, if you calculate it by percentage % the fee increases are massive,

Long Term damage 4 months
these increases will force sellers to increase prices, further driving buyers away, adding to more sellers loosing sales, / ebay loosing money

Rinse and Repeat:
ebay will need to get more money from less sales / sellers, it will be another big fee increase, if I had to guess it will probably from the new ebay / Adyen payments, and or shipping labels./ or global shipping, they will hit every seller except china sellers, as you clearly see these new fee's don't impact china at all,


It's a big ship, it's going to take a bit of time to fully sink, but she's got a lot of holes and she's definitely sinking, sellers need to decide whether they save themselves or sink too

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by: Carol Is Here This user has validated their user name.

Wed Aug 8 00:09:20 2018

Sasikat, it does not matter what you keep on doing, or choose to do or decide to do- your decisions on returns are made for you by Ebay.

You will pay shipping both ways no matter the reason. You will get back damaged, borrowed, swapped out, copied and returned, stripped of parts merchandise. If a buyer even asks about a return, even if they don't return, you will get a mark against you. You will pay higher final value fees on top of the extra expense/labor with returns, not to mention merchandise that has reduced value or is even stolen.

You will not be able to raise prices to absorb those costs, because Ebay is favoring lower priced merchandise in searches.

That's the point. You have zero say in any of this.

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by: Carol Is Here This user has validated their user name.

Wed Aug 8 00:10:26 2018

Also even if an honest buyer honestly admits the return is their fault, the seller still get the ding on their record.

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

Wed Aug 8 00:26:35 2018

Mommy, Mommy, please tell all of them I want 50%, please tell them Mommy, I have to get more Mommy because the new experience I created is not working Mommy, so please tell them I want 50%, please Mommy, everyone is blaming me and its not my fault Mommy !!!

OK Devin, Mommy will tell them you want 50% fees from now on....

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by: ebayout This user has validated their user name.

Wed Aug 8 01:06:52 2018

With these "changes", the listing fee is now tantamount to a cover charge.
...and there's a 2 drink minimum if you want to dance.
e-bay...e-bar. Same Same.

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This user has validated their user name. by: toolguy

Wed Aug 8 03:11:29 2018

eBay opted me into Guaranteed Delivery!

I can't do that, how do I opt out?

Anyone?

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by: shut1968 This user has validated their user name.

Wed Aug 8 03:37:26 2018

They are taking advantage of the media sellers because they know Amazon has been gating the categories heavily.. forcing thousands of media sellers out. (Movies, Music and Video Games).  All those sellers turned back to Ebay because they can't list half (or more) of their inventory on Amazon.

Ebay is abusing those sellers because they know they really don't have anywhere else DECENT to go.

Amazon charges 15% for Media, plus a ''closing fee'' of $1.80 per media item.
If you don't have a $40 Pro account you have to pay an additional .99¢ listing fee.

So

If you sell a DVD on Amazon for say, $20
Subtract $3.00 for the 15%
Subtract $1.80 Closing Fee
Subtract .99¢ if you don't have a pro account
In the end you get $14.21

That's 29% Amazon charges in fee's to sell a $20 DVD

Think about that.  

Amazon get's  $5.80 out of your $20 sale
Ebay gets $2.40

12% is not that bad... it sucks.. but still not as much of a rip off as Amazon.

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This user has validated their user name. by: The End

Wed Aug 8 03:59:44 2018

My Comment : We need to excise the scum cancer CEO's who insist on sucking life's blood away from us. There's a concerted effort to follow us around and ruin every effort we make to earn a living online. The pattern is clear. Prison is too good for these psychopaths. They need the good old fashioned treatment. What they are doing to us is criminal. All the tadoo about fees has nothing to do with the sick mindset ruining our future. It's a plan that does not include us.  

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by: Snapped This user has validated their user name.

Wed Aug 8 07:18:46 2018

''First they came for the communists, and I did not speak out—
    Because I was not a communist.
Then they came for the trade unionists, and I did not speak out—
    Because I was not a trade unionist.
Then they came for the Jews, and I did not speak out—
    Because I was not a Jew.
Then they came for me—and there was no one left to speak for me.''
-- Martin Niemöller

You don't yet feel the hobnail boots on your neck from the Nazi's of eCommerce liebchen?  

You vill.



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by: maxmad This user has validated their user name.

Wed Aug 8 07:43:37 2018

@toolguy

why don't you just start a new user id, and move listings, ebay treats a new user as new , no mater how long you have been there, they even make you go thru the payment holds, for the first few sales, you will be reset, and back on paypal too

it worked for us .when they screwed one of our old accounts, sounds like your user id is corrupt

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This user has validated their user name. by: The End

Wed Aug 8 07:44:05 2018

"The Plan" does not include us.

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