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: sasikat9 This user has validated their user name.

Wed Aug 8 08:42:16 2018

@carol is here.

You miss the point. EVERYONE HAS A CHOICE. You either jump for the carrots Ebay hands you or you get up enough gonads and leave.

We chose to do nothing and let the ball fall where it falls. When we have had enough WE ARE GONE. That easy. Don't care what fleecebag says or does as we just do our thing. You people are to hung up on returns. We have 4 anchors stores and about 35000 listings. We might have one or two return requests per store each month. Now if you are a hobby seller and have a whopping listing of about 2- 300 and get a couple of returns you are going to be in trouble in a heart beat. Customer service is what its all about..... If you think you are right all the time then guess what.....pay the 4 per cent more. With the volume we do we just refund and move on. No questions asked. Block the moron and move on. In some respects Ebay is right when they say chalk it up to the cost of doing business.

By the way what do you think Penneys or Walmart etc do. They take back the return. No questions asked. And yes some of those returns are worn and useless. Those they just write off as the COST OF DOING BUSINESS,

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by: pace306 This user has validated their user name.

Wed Aug 8 09:00:42 2018

The new fees are:

1) as said above (by better people then I) a way to take advantage since they know Amazon is putting the squeeze on media sellers. NEVER think for 1 sec that eBay doesnt love to take advantage !

2) also as said above - a hold over till after the holidays (when sales will naturally go up and so will GMV) until the profits from Adyen come rolling in. eBay will make $MILLIONS off the float, and any other financial gimmick - and that will carry them till the end of the first quarter/second quarter.

By then eBay will have "removed" all the low hanging fruit aka the smaller sellers (they are not looking to remove people like us - they are looking to remove the garage sale and flea market people)(the ones who buy stuff at Goodwill - not people who have "real businesses") and then they will raise fees on other categories.

That gets them thru till 2019 Q3/Q4 where the holidays will kick in again and eBay brass will be safe until mid 2020 (when the Devil & Co will probably move on).

eBat takes in BILLIONS, the money gets "washed", then sent off to the BOD members (remember its the San Jose Mafia).

As long as eBay posts gains - ANY kind of gains - Wall Street will be ok (as they are now). For what ever reason, WS has low expectations for eBay (no one ever says their stock should be $50 "and its not") they are happy with 39-42.

Shame such a great company is so messed up.

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This user has validated their user name. by: wolf

Wed Aug 8 10:57:16 2018

Hello

I feel sad for all the Business sellers & sellers in general that have created eBay but also have put so much into having successful businesses to see it being destroyed slowly but surely!!

eBay does not care about its sellers & has introduced way too many draconian s rules & is for the past few years using sellers as "cash cow" flow

The Muppet's at the top do NOT have a clue & DO NOT care in the least which most of us know or have known for quite a few years now !!

The world has gone bananas however eBay & other platforms also have the Monopoly & abuse sellers left/right & centre = sad state of Affairs

It is up to sellers to decide if they want to remain on this site or not & it will be a very difficult decision especially when one relies on the income to support his/her family = however will not be able to due to the incompetence/corporate greed /mis-managemnt & one very biased/limited view = fast profit to the detriment of all

I have given up on this farce that is eBay that is for sure as I believe there are alternatives even though starting from scratch is daunting but at least I will be the one stearing the whell & not some Muppets who have NO knowledge of running a Business

So Dream on eBay I am out = TAXI !!!!!!

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by: ebayout This user has validated their user name.

Wed Aug 8 11:40:47 2018

Presumption (that promo listings will fly) based on blind hope is some business plan.
Not taking paypal is another great plan.
But the best plan of all...assuming seller backlash will be minimal.
The 3rd quarter earnings call will be a hoot.

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by: mcposty This user has validated their user name.

Wed Aug 8 12:16:17 2018

Ebay is ran by idiots.

I have zero respect for wall street and any ebay shareholder that is so easily lied to.

How can the shareholders fail so bad at finding proper talent to run the company?

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by: thievesBay This user has validated their user name.

Wed Aug 8 12:36:20 2018

If eBay was inline with the rest of the Specialty Retail segment of the market, their stock should be ~$50 per share. It's at $33-34 now. They are getting beaten by everyone else, on average, by 50% in the last year alone! Management is clueless as ever and all they can ever think of is to create new scams to take more from sellers and raise fees. They have no long-term plans. Just another quick money-grab as always.

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by: thievesBay This user has validated their user name.

Wed Aug 8 12:54:31 2018

I see they have a 15% Off Everything today lol. With all these desperate promotions they run and pay out of their own pockets for them, how exactly are they making any profit out of fee increases and all the other garbage they do? They think they're getting more long-term buyers doing this, but the fact is buyers are just likely gonna wait until the next promotion and that's they only time they use eBay. Another fail.

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by: Snapped This user has validated their user name.

Wed Aug 8 13:18:33 2018

''By the way what do you think Penneys or Walmart etc do....''

They do what THEY CHOOSE to do.  Not what their 'landlord' compels them to do under penalty od disadvantge for lack of compliance.  Because it is THEIR business.  

They also sell at RETAIL markup.  Meaning RETAIL 'benefits' included within the cost.  eBay has always been a discount marketplace.  Easy for them to want to 'appear' otherwise on their customer's dime.

Those other retailers also face no penalty for doing it 'too often'.

They also place reasonable limitations on return terms, and it does not cost them MORE to refund (e.g., return ship costs as well as outbound shipping) than the buyer originally paid.  Try asking for gas reimbursement for your 'trouble' next time, see how that flies.

Others may well 'look down' on those struggling to survive eBay with less than a ''whopping'' 10% presence in comparison making returns unaffordable as a 'policy', and bully for all that, etc.    But when it comes to a ''cost of doing business'', it is eBay who routinely balks at sharing it, when it is THEIR actions that encourage and then virtually compel 'spending' that cost regardless of the propriety.

It may well be eBay's 'playground'.  But an empty playground is one of the first signs of community decay.  Want to advocate your position?  Tell it to the abandoned swing sets an see saws.  

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This user has validated their user name. by: Marie

Wed Aug 8 13:58:38 2018

@toolguy

The setting for Guaranteed Delivery is in your Site Preferences.  But know that it is listing by listings.  So you can be qualified for the program as a seller with no listings that qualify.

@maxmad

If a seasoned Ebay seller decides to open a new selling ID, they certainly will start off being treated as one by Ebay, that is true.  But on PP, if you are having the money come into the same PP account as your experienced account, you can call PP and they will NOT hold money on the new selling account.  That is what I've always done and it has always worked.

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by: wilburnet This user has validated their user name.

Wed Aug 8 13:59:16 2018

Ebay nees to tackle the Amz to Ebay dropshippers - The UK Ebay site is over run with them

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by: bpm This user has validated their user name.

Wed Aug 8 14:04:08 2018

With an update this punitive, raising the costs of doing business so much, I cant help thinking that this isn't a strategy, this is just vandalism Wenig is visiting on Ebay sellers businesses for not complying with his demands of the last few years, prior to his exit (which he must see coming). Not even the worst businessman on Earth would think this is viable?

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by: pace306 This user has validated their user name.

Wed Aug 8 14:13:41 2018

In any business where you have "partners", you need to ensure that your partner makes a profit - you dont steal from them or abuse them.

eBay takes advantage and feels that most sellers have "no other good choice" (they dont see Etsy or Walmart or Sears or Poshmark as substitutes) and so therefore they can go right ahead and do as they please.

eBay sadly thought that people spending time on the site browsing was a waste of time - its not. People who stay longer on a site tend to buy MORE, not less.

eBay is definitely at the breaking point - they have stretched the rubber band as far as it will go - its called the law of diminishing returns.

Sometimes I feel sorry for DW - hes too stupid to get out of his own way ... but he makes MILLIONS and I dont - so I have no pity at all.

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This user has validated their user name. by: toolguy

Wed Aug 8 14:25:42 2018

@Marie

THANK YOU ~ I reset my preferences and opted out. . .

@pace306

I see you're opted into GUARANTEED DELIVERY

Did you opt in or did ebay opt you in?

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by: maxmad This user has validated their user name.

Wed Aug 8 14:34:12 2018

@Marie

I'm sure your much more polite then me, but,,,,,,,,,,,

when we started a new ebay id, same paypal account, (over a decade old) paypal / ebay would not remove the new seller hold, and we did call paypal, and ebay, this was about 3 years ago, they did eventually remove it after a few sales.

anyway the new user id did work to reset our account, and it put us back into equal search standings to our competitors, i truly believe with ebays poor coding and manipulative ways, your account can get corrupt, where it gets flagged, and these flags don't ever get removed

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This user has validated their user name. by: Marie

Wed Aug 8 16:59:40 2018

@maxmad

I didn't go through Ebay to get it removed, I called PP and it was an easy thing to do and get them to agree to in a matter of just a couple of minutes.  It was extremely easy.  I guess I've always gotten a well trained CSR at PP or something.  Sorry you had such trouble.

@toolguy

A couple months ago Ebay opt'd in a lot of seller that qualified to Guaranteed Delivery.  They sent the sellers email notifications of this too.  We chatted about it here.  When they finished the Beta testing they opened it to all sellers that qualified.  You either overlooked the email or for whatever reason you have, didn't read it.  But they did send them out.

And again, just because a seller is qualified to have Guaranteed Delivery appear on their listings does not mean it will.  Each listing has to qualify too.

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by: Whatever This user has validated their user name.

Wed Aug 8 17:46:21 2018

Well like some others - whatever new fees/rules/stupid new policies won't affect me much either - I only list for 30 days - now I won't list much over $150 - if things sell they sell - I move them to my website if their not already there. Can't believe ebay is yet again strangling the sellers but why not? they've stayed all this time - squeeze them again. I've downsized all my stores and started back up with Etsy and much to my amazement all my expired listings were still there after a few years even. They made it easy to come back. Still on Bonanza (not sure why) and my own website - that's enough to keep me busy. Only adding 1 or 2 items a day to ebay now - trolling for buyers to steer to my website.

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by: ebayout This user has validated their user name.

Wed Aug 8 17:47:06 2018

I have too much free time, so I've been monitoring ebay stock since it semi-crashed last month.
I'm no stock analyst, I just play one on the internet...but...funny thing...
Since etsy announced their 20% hike late Monday, ebay stock has been in the doldrums yesterday and today (Wed). Low volume transactions during the day (no multi-100K share transactions), except for predictible 200K/300K sell-offs at the closing bell.
It appears that ebay stock is now a cautionary tale...investors may actually be looking behind the numbers.
Hopefully, they'll see what amounts to that replica of Rock Ridge from "Blazing Saddles"...and move on.

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by: ebayout This user has validated their user name.

Wed Aug 8 18:23:45 2018

ATTN: Devin Wenig
SUBJECT: Your Gross STUPIDITY

Been selling on ebay for 20 years. I've had over 25,000 sales.
Many, many over $100. OK...not a bunch of money in your world, but it is in mine.
Point being, you have created a fear (real or imagined...who knows?) of possible SNAD cases going forward.
Ergo, I now rarely offer items above $100. I list them ELSEWHERE.
Do you understand ELSEWHERE?
ELSEWHERE is gonna tank your stock and your so-called "brand".
Yep...you'll land on your feet...but it'll be with a big "F" on your forehead.



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by: pace306 This user has validated their user name.

Wed Aug 8 20:07:37 2018

@pace306

I see you're opted into GUARANTEED DELIVERY

Did you opt in or did ebay opt you in?

TOOL - no idea (that I am/is/was) in it.

It doesnt seem to effect me and I have no issues (from it).

I own what I sell so everything ships next day (dropped off at the PO)

HOWEVER - it may explain why eBay gave me a hassle with a late shipment problem (and I told eBay CS to take a long walk off a short pier)

Had a sale on a Sunday, printed the label and dropped it off on Monday, USPS didnt "accept it" till Tuesday - and it was marked LATE.

I asked the morons (sorry morons - its not fair to call eBay employees morons as the CS is dumber then you - apologies all around) what they wanted me to do?

Should I break in to the PO and scan the item myself?
Should I break in to the Postmaster Generals office, & hold his kid hostage until he goes back in work and scans it for me?
Should I try to find someone "on the dark web", ask them to hack USPS to make it show "accepted"?
Should I get a note from ex President Obama as an excuse?
Should I ask Donald Trump to write a Presidential Pardon cause USPS scanned it late?
Should I invent a time traveling auto, go back to 1955, find my dad and ask him to remind the future me that on "that day" the PO wont mark it accepted so I should stand there until Im thrown out to get it mark "accepted"?
Should I take it with me on my vacation to England, then take the worlds biggest and most unsinkable ship back to the USA in time to get it post marked?

The dopes had no answer and neither do I - the cost of business isnt "returns" - its dealing with the worlds biggest set of morons aka eBay.

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This user has validated their user name. by: toolguy

Wed Aug 8 20:47:07 2018

eBay's on the phone trying to explain the new payment system since we signed up for it last month.

They have CONFIRMED that none of my customers can pay using Paypal during the initial test.

I explained that I would not be able to buy anything on eBay as I don't have a credit card.

They said I could transfer daily the amount sold but it would take 2-4 days for my bank to process the deposit.

I asked them if they would have a eBay debit card (LOL) and they said no.

We explained that we use Paypal like cash on daily basis and eBay's new payment system wouldn't work for us.

BYE BYE EBAY!



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