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

Sponsored Link

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.

Comments (150) | Leave Comment | Permalink
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: ebayout This user has validated their user name.

Wed Aug 8 21:35:29 2018

Thinking about putting some "FO ebay" sweatshirts on ebay.
I know tool is good for a dozen.
Question is...how long before the bots catch on?

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

Thu Aug 9 01:46:19 2018

Wenig knows there is more money in fraud than in running a business, so that is his business model, the same as Donahoe when he took 10% of the shipping fees.

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

This user has validated their user name. by: Marie

Thu Aug 9 02:29:22 2018

@toolguy

The new payment system for Ebay is not accepting PP during this initial test.  It is NOT a forever non-feature.  They will be accepting PP, but just NOT in this initial test.  So if that is your deciding factor for leaving Ebay, it is an unnecessary one.

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.

Thu Aug 9 06:56:57 2018

@Marie @Toolguy

I guess it depends how long the initial test is, and not accepting PP on a site like ebay, could be the end of your sales, plus who knows how ebay will word it at checkout or even in his listings, it might have buyers running away, it certainly is not going to end well, this is going to be a mess

I suggest to start a new user id, ASAP even as a backup plan

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

This user has validated their user name. by: toolguy

Thu Aug 9 11:08:44 2018

@Marie

Like Max said how long is the test period?

99% of my customers pay with Paypal right now.

I can't afford to lose any business as sales are down 43.5% from last year.

We live day to day with our Paypal money and eBay wants to delay our funds for 2-4 days.

It will be hard to pay shipping out of my own pocket for those few days.

Let's just take yesterday. We made our car payment and had zero left in Paypal, we had to wait until we had a sale to buy dinner last night!

Under the new system we would've went hungry or just ate what little we have in the cupboard.

Paypal is our CASH, and we need it ASAP. . .

Like I said sales are down 43.5% from last year.

The wife & I will look for regular jobs after being eBay sellers for 18 years.

eBay will be a supplemental income in the future or as some say we'll become hobby sellers until we sell all of our inventory

We don't have a credit card so if eBay isn't accepting Paypal we will no longer be buying on eBay!

I see no light at the end of the eBay tunnel. . .

PS: I have the funny felling Amazon will be buying Paypal. . . .

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: extremetm This user has validated their user name.

Thu Aug 9 11:24:48 2018

ebay=dead man walking

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

This user has validated their user name. by: Ric

Thu Aug 9 11:33:28 2018

eBay and it's incompetent management have become little more than parasites.

They attach themselves to their hosts (sellers) and feed off them ( fees ) while slowly infecting them with a parasitic disease ( insolvency sue to ever increasing fees ).

The problem for the parasites is that they can only continue to exist as long as the hosts remain viable and their slow infections are causing their sellers to succumb to the inevitable abandonment of the marketplace.

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

This user has validated their user name. by: iheartjacksparrow

Thu Aug 9 12:00:58 2018

Maxmad makes a really good point. How long is the Beta test going to last? On eBay's informational site about this scheme, I mean payments plan, they state they will be adding more sellers next year, so it's very possible the test could last until September 2019. So that's potentially a year without the use of PayPal.  

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.

Thu Aug 9 12:04:19 2018

@toolguy

There is no doubt that ebay tricked you into agreeing to this beta test, without first disclosing the fact that they were removing PP , and the no opt out is just pure evil, I think everyone other then ebay would agree this is disgraceful, and a despicable, thing ebay did to you, your business, your livelihood, and your family

trying to put a positive spin on this, or waiting it out, is just pure nonsense,, take some listings and move them to new or other ebay account that is not opted into this scam beta no pp payment test

it's a scam, the only thing they are testing is to see how many sellers go bankrupt when they don't accept PP, and I can tell you for a fact by our etsy store, when buyers are given a choice between Adyen or PayPal most select PayPal

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

This user has validated their user name. by: toolguy

Thu Aug 9 12:55:15 2018

@Maxmad

If ebay will not let us opt out of this new payment program we will move most of our listings from our z50com ID to our vw ID

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

This user has validated their user name. by: Marie

Thu Aug 9 13:19:11 2018

@maxmad
The initial test is with around 5% of sellers.  In this test group they are trying to target sellers that do NOT primarily get their payments through PP.  The implementation of Ebay's payment system is a 3 year plan.  The vast majority of sellers have nothing to be concerned about at this point.  They will add more to the Beta group as they can per their current contract with PP.

They are limited to the percentage of off PP payments that can be processed on Ebay under the contract.  That number changes as the contract grows closer to completion.  

BTW, you do not HAVE to participate in the Beta testing.  You can decline.  

@toolguy

I honestly do not see this as a big deal.  Just don't participate in the Beta testing.  In time PP will be added to the mix, it just isn't right now.  There is NOTHING that says you have to participate in the Beta testing.  I think you are just reacting harshly to this because you have other issues with Ebay right now.

There is absolutely no need to be concerned or upset by this right now unless you are just looking for a reason to be upset with Ebay.  Then that is a different matter all together.  This is just NOT an issue.  Just don't participate yet.  It will improve in time.  There is 2 1/2 YEARS left in this process.  But if you feel you need to jump ship over a problem that does NOT have to affect you, then that is your decision to make.

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

This user has validated their user name. by: Marie

Thu Aug 9 13:24:32 2018

@maxmad

You are ASSUMING Ebay "tricked" toolguy.  Chances are Toolguy didn't read everything before joining.  That is never a good idea on anything.  

To have a "scam", someone would need to benefit from it.  I don't see that here.  If the seller gets no sales because PP isn't an option, then there is nothing to be processed.

@toolguy

Call Ebay.  They will let you out of the Beta group.  Others have done it.  It serves no purpose to have someone in a Beta test that isn't going to get any sales because of restrictions within the Beta program.  That tells them nothing.  

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.

Thu Aug 9 13:27:20 2018

@toolguy

There you go, problem solved, just another non profit make work project, caused by the idiots at ebay,

We were saddened to abandon an ebay id. that had 10,000+ positive feedback to be humiliated to a 0 feedback nu bee id, but what can you do, ebay is a backward stupid company,

Have to take the Chinese approach, 1000 user id's per worker, and move the inventory around.

Anyway, good luck

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

This user has validated their user name. by: iheartjacksparrow

Thu Aug 9 13:31:01 2018

Marie writes: "Chances are Toolguy didn't read everything before joining."

Reading has nothing to do with this situation. They did not tell anyone in advance that PayPal was excluded from their Beta test. If they had disclosed that little fact, how many sellers do you think would have signed up? By not providing all the details, that's the same as lying, something eBay does on a regular basis.

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.

Thu Aug 9 13:38:19 2018

I knew it

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

This user has validated their user name. by: Marie

Thu Aug 9 13:41:02 2018

@jack

OK that certainly could be true for you.  I can't speak to that.

For myself, if I get information about joining a Beta program, I read what is in the invitation and anything that may be attached to it.  Again speaking for myself, I do consider that notification.  I understand from what you posted that you do not.  I simply have a different viewpoint than you do.

**************************************************
FYI for anyone that is interested.  This fact and others were covered in the Webinar yesterday on this subject and gave those interested in a way to APPLY to be in the Beta testing.  They further said that not all applicants were being accepted.  AS they weren't accepting those dependent upon PP as their main form of payment.

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.

Thu Aug 9 13:50:02 2018

@Marie

it's ridicules and sounds fishy, What 's ebay testing anyway, Adyen is an already proven payment gateway, they do probably millions of transactions a day, it already works, and I would bet the farm JUST LIKE PAYPAL , that Adyen have a sandbox to test payment flow offline to simulate payments, I have even used Paypal's sandbox for testing our website payment flow, to check if everything works, emails get sent to the customer and us.the API's are communicating from Paypal to our site

I don't believe ebay, for one second, this testing is normally done offline not with customers live accounts, something else is in play here, and why would they not include PP in the test, lots of unanswered questions

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

This user has validated their user name. by: iheartjacksparrow

Thu Aug 9 14:21:08 2018

@Marie - Please provide us with the details, word-for-word, that were contained in your invitation. Does it say anywhere that PayPal was excluded? And the webinar you speak of was way after they first asked people to join the Beta test, so even if the no PayPal was covered in the webinar, there were people who'd already signed up without knowing that fact per all the other reports of all the people who didn't know that fact. So stating that Toolguy and I are clueless when it comes to reading comprehensive is extremely disingenuous.

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

This user has validated their user name. by: toolguy

Thu Aug 9 14:21:23 2018

I think eBay is testing how many buyers will bulk at eBay's new payment system.

I know a few people who will NOT give eBay their credit card number and only trust Paypal with internet payments.

I WON'T be eBay's guinea pig, I just can't afford it.

I bet ebay beta testers lose 20-30% of their business while the test is ongoing.

No one in their right mind would sign up for this.

DISASTER in the making!

Without funds in my Paypal account I can't buy anything on the Internet.

I HAVE NO CREDIT CARD. . .

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

This user has validated their user name. by: iheartjacksparrow

Thu Aug 9 14:22:42 2018

@Maxmad - I don't remember Etsy having any sort of Beta test with their sellers, so I agree with you that there's something more that eBay is not telling us. Like, perhaps, the software on their end is a mess?

Click to view more comments
1 2 3 4 5 6 7 8  [Next Page]


Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.