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.

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

This user has validated their user name. by: Marie

Thu Aug 9 14:36:15 2018

@jack

Ask Tool, he has it.  I'm not sure why it is so important to you, but you can get if from him if he is willing.  I don't have it anymore.

****************************************

I understand that the distaste for Ebay runs deep here with many of the posters.  Ebay has earned the distrust many of us have for them.  It is ALWAYS wise when dealing with Ebay to keep your eyes wide open.  And it wouldn't hurt to keep your minds open too.  

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 14:48:00 2018

@Marie - So you have zero proof that anything in the invitation, "and anything that may be attached to it," had any mention whatsoever that Beta test sellers would not be allowed to accept 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 14:58:05 2018

I looked in my ebay messages and couldn't find it, I'll check my email but that will take some time as I get 50 or so emails a day on that account. If I find it I'll post it.

I would never sign up for anything that did not allow Paypal payments as 99% of the payments I receive are from 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: Marie

Thu Aug 9 15:26:15 2018

@jack

If it makes you feel better, no I don't.

**************************************

While this isn't the actual email, here is some other info that may help some readers.

http://lhdlogistics.com/ebay-invites-sellers-to-test-n
ew-features-for-payment/

https://pages.ebay.com/seller-center/service-and-payments/managed-payments-on-ebay.html
The
very last statement on this page:
Will PayPal be supported in managed payments?
We expect to be able to accept PayPal as a form of payment in summer 2019.

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: mindelec This user has validated their user name.

Thu Aug 9 15:45:07 2018

@shut1968

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

That is only if an eBay seller only has 50 items up, otherwise there will be a listing or store fee too.

For example I have 1100 books up that is a $75 store fee plus $10 in listing fees, eBay has knocked my sales down to 25-30 books a month, so I am paying roughly an additional $3 on every book I sell.  Ebay costs just as much as amazon, the chief difference is that amazon only takes its fees if a book sells.

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 15:57:05 2018

That's correct, when etsy Added Adyen payments, there was ABSOLUTELY NO TESTING ON LIVE ACCOUNTS,
they just flipped the switch, and they accepted PP as well as Adyen which we have to this very day.

You Should NEVER need or should never test on LIVE CUSTOMER ACCOUNTS, that's why they have a SANDBOX setup, you can SIMULATE every action and transaction OFFLINE with MADE UP TEST SANDBOX accounts, I have done it many times.

Of coarse Ebay knows this, they are stupid, but not that stupid, (well maybe) but I personally believe it's a scam , and as @Marie says a scam needs to involve one party getting something, and the other getting burned, what ebay will get is the data, of what a buyer will do when they introduce this payment gateway, without paypal and the seller will need to get a ride down to the food bank.

As mentioned what seller in their right mind "on ebay" would opt into this knowingly without PP

even the biggest ebay cheerleader I know CrazyNYdriver ( great guy by the way, love his videos ) is warning his viewers to stay away from this disaster DO NOT OPT IN

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 16:38:40 2018

@Marie - My point is, you imply that Toolguy is unable to read and/or comprehend what he's reading because you "know" for an absolute fact that eBay would disclose that PayPal would not be accepted during the Beta test, all evidence to the contrary. Also, your first link is dated August 2nd, when the Beta testing was announced in mid-July, so obviously the ihdlogistics article had more current information.

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 16:45:26 2018

@jack

It is very kind of you to stick up for Toolguy.  Very thoughtful of you.  My posts regarding him have never said or implied he is "unable to read and/or comprehend", those are your words, not mine.  It is not my way of talking anyway, but obviously it is yours.  So if you have a problem with my saying that he must not have read the entire invitation and/or attachments [which is what I said BTW] your leap is a BIG one.  

It is ONLY said by you to inflame the conversation or used to somehow bolster your position on the subject.

No one was invited in Mid July.  That happened later.

I get it, you don't agree.  I have no problem with that and you shouldn't either as it has absolutely no affect on you.

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 17:25:55 2018

@Marie - I'm not the individual who addresses everyone as though they don't have connected brain cells, and is constantly posting condescending remarks and acting as though we are all first graders who know nothing about selling online.  

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 17:52:02 2018

@Marie
, this is not about, ha ha we told you so tool, oh well, should have read the fine-print, it's about a genuine honest concern to undo AGAIN what the idiots at ebay has done to yet another honest devoted seller and their family, and I've seen his feedback, ebay should be immediately bending over backwards to keep this seller happy and in business,

i was an ebay cheerleader 10x more then toolguy at one time, i personally know what he's going thru, i have experienced it first hand, you won't get one word of sarcasm from me.

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: Silver Ice King This user has validated their user name.

Thu Aug 9 19:52:48 2018

@Marie

What I remember reading is that Paypal would not be accepted until at least the summer of 2019.  That may not be forever, but it is a long time to go without being able to accept it when they never gave you a clue that was going to be an issue at all.

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: Silver Ice King This user has validated their user name.

Thu Aug 9 20:02:28 2018

@Marie

I do not know when you received your invitation to be in the Beta Test but Toolguy opted in before Ebay Open.  That is when Ebay made the announcements of all the differences including not being able to accept Paypal AND not being able to opt out.  They put it flat out that nobody can opt out of the program, so where have you read that Ebay would let Toolguy Opt Out?  If that is an option please provide him with a link to it or anything that he can quote to Ebay to allow him to opt out.  I do not think they are going to let anybody out because they are going to be struggling to get 5% to join.  

Also to whoever mentioned it, you are right Etsy did not need a Beta Test, they just went at it which means either Ebay does not trust its software or there are other issues that Ebay is testing.

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 21:16:56 2018


@Marie,,,,,iheartjacksparrow is correct , just for the record, below is your exact comment to me, , I know you probably did not mean it to come out that way, but it did, i'm sure we could both agree toolguy read some of the agreement, and i'm sure we would also agree No PP payments should have been in bold capitals on the first line it would be a big deal breaker for most.

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.

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: bitbybit

Fri Aug 10 00:46:10 2018

Chiming in here.

Marie stated: "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."

Yet Toolguy primarily uses Paypal. Obviously eBay doesn't screen sellers when signing up for this Beta test. Not a good sign from the getgo if this is starting off messed up. Ebay needs a Beta test for the Beta test.

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

Fri Aug 10 01:39:29 2018

I got 2 USPS Money Orders this week!

I haven't received one in months yet I get 2 in 1 week.

Are buyers having problems paying with 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: Marie

Fri Aug 10 02:27:14 2018

@bitbybit

Some sellers received invitations and others have requested to be part of the Beta test.  It is my understanding that responding to either method still has to be accepted by Ebay, or at least that was my take away from the webinar.  I don't know how they are actually determining who is accepted in the Beta test.

@toolguy

If I offended you as others have said I did, I am sincerely sorry.  That was never my intention.  

@maxmad and jack

I did not use the words that jack used to describe what I said to toolguy.  And as I stated before, it was not my intention to offend him.  Jack's word choice and mine were quite different and certainly carried different meanings.  You two may see them as the same, I do not.

I hope we can be done with this now and just move 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

This user has validated their user name. by: Marie

Fri Aug 10 02:39:23 2018

I don't know if this will help anyone here, but from another blog here another poster wrote the following.

Written by poster dasw

There was no "opting" in for the beta test yet.  What sellers received was an option to be put on a list for the possibility of being a beta tester. When it comes time, Ebay will be sending more info and a formal request. You can then get to opt if you so choose.

This is what I received in July:

What will I have to do to sign-up?

Your invitation in September will take you to a sign up page for a quick and easy enrollment process. After you enter a few personal details like preferred bank account for payouts and your social security number to verify your identity, we’ll manage the rest. We will automatically update your existing account and listings and transfer your existing listings to the new payments model. For new listings, we’ll ask you to use Seller Hub’s listing page and any existing listings APIs you use.
Will PayPal be supported in managed payments?

We expect to be able to accept PayPal as a form of payment in summer 2019.

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: wilburnet This user has validated their user name.

Fri Aug 10 07:57:20 2018

Its still very fishy that Ebay will not accept Paypal as payment for ONE more year once Beta testing starts. They will probably then extend this to Autumn 2019

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by: mindelec This user has validated their user name.

Fri Aug 10 10:33:51 2018

Really the long and the short of this beta discussion is that one should NEVER opt in to an eBay beta test.  After all who wants to experiment with their business for ebays benefit?

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: Shane

Fri Aug 10 12:30:55 2018

eBay -- clueless as always. Management is driving this company into the ground.

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