Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Mon July 15 2013 15:10:21

Is eBay Testing Fees After Spring Restructuring?

By: Ina Steiner

Sponsored Link

eBay is running a new invitation-only promotion that caps commission fees at $100. A recipient of the promotion invitation wrote, "In what is perhaps an admission of fact that their Final Value Fees on higher priced items have been raised too high, eBay is running a promotion which caps Final Value Fees at $100.00."

When eBay changed its fee structure in the spring, it left the existing cap of $250, but it took away the tranched (tiered) pricing structure, instead offering a flat-rate FVF (commission) fee. For example, sellers without a Store now pay a flat 10% FVF, resulting in higher commission fees for higher priced items (up to the $250 cap).

In what could be a sign that eBay is testing the pricing it rolled out on April 16, 2013 (for non-Store sellers) and on May 1, 2013 (for Store sellers), eBay lowered the FVF fees for items that sell in the Coins and Paper Money and Stamps categories in June - though only for sellers who have an eBay Store subscription.

The new eBay invitation-only promotion will run for a month, through August 15, 2013 - details will be forthcoming in Tuesday's Newsflash newsletter.

What do you think - did eBay's new pricing structure that went into effect in the spring end up raising FVFs on higher priced items too high? Could the promotion be a test of a new lower cap?

Or is this just a summertime promotion to try to goose sellers into listing higher-value inventory?

Update 7/15/13: See this Newsflash article that explains there are two versions of the same promotion, with different caps.




Comments (25) | Leave Comment | Permalink

Readers Comments

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

by: Steevo This user has validated their user name.

Mon Jul 15 16:29:35 2013

I doubt seriously ebay would be concerned about whether their fees are too high or not.

We save half the FVFs on our items with a store subscription, so we now have one.  

It seems silly but we were forced into it by those fee increases.  

Fortunately they covered most of our categories so we benefit.

We'd really benefit a lot if we had any sales!  I guess a guy can hope.  Have faith.  Stuff like that.

An ebay rep admitted to me last night how darned slow sales are lately.

I think it's completely because of the tampered search results.  

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

This user has validated their user name. by: Ric

Mon Jul 15 16:39:58 2013

eBay's Final Value Fees are too high across the board, but are especially onerous on high ticket items.

No doubt in my mind that eBay is using this promotion to assess their latest self inflicted shot to the foot.

It is likely that when eBay raised the FVF on high ticket items they did so knowing that the listing volume would take a hit. It is my belief that eBay assumed that the fee increase would be sufficient to generate additional revenue for eBay despite the calculated decline in listing volume.

Apparently the decline in listing volume of high ticket items has been so great that they now realize they drastically miscalculated the negative impact their greedy money grab would have on seller behavior.

Sellers of high ticket items have likely stopped listing on eBay and taken their items to marketplaces which are not as greed driven as eBay has become.  

Perhaps, if eBay sees a surge of high ticket listings during this promotion they will realize that their nuclear option of increasing Final Value Fees on high ticket items has cost them more business than they expected.

The problem for eBay is as simple as an age old retail tenet... "Never give your customers a reason to shop the competition".

eBay's greedy attempt to fleece sellers of high ticket items through ridiculously high Final Value Fees motivated sellers to move their items to other less greedy marketplaces.

It remains to be seen if this promotion will motivate those sellers to return, or if eBay will have to permanently lower Final Value Fees on high ticket items in the hopes sellers they drove away will return.

I am betting that the damage is most likely permanent, since sellers have had time to evaluate the lower cost alternatives to eBay and many have likely found success.

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

This user has validated their user name. by: Philip Cohen
Web Site

Mon Jul 15 17:42:59 2013

Agreed, the only reason eBay would reconsider their last “decrease” in fees is if said “decrease” has had a greater than anticipated effect—if any effect was anticipated at all—on the listing of those higher-valued items most affected by said “decrease” … http://bit.ly/YvxFEg

But, “The band continued to play on, even as the bow dipped lower and lower.”—The Titanic/eBay Story ... http://bit.ly/11F2eas

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

by: NetWatch This user has validated their user name.

Mon Jul 15 17:47:27 2013

Ebay's reputation continues to sink as small sellers leave by the thousands due to the flawed DSR system and as disgruntled former ebay sellers continue to blog on topix forums and various blog sites.

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

by: pace306 This user has validated their user name.

Mon Jul 15 18:33:24 2013

"Invitation Only" in eBay speak = "we screwed up by over estimating/guessing since we dont know what we are doing... heres a quick fix, shhhhh dont tell anyone" LMAO!

"Coins and Paper Money and Stamps categories" ... that = we tried to get a few high end Platinum Stores who sell in these categories up and running but they all failed since they heard eBay isnt a marketplace anyone would want to be in if they had a choice. So, now we have no choice but to fix the problems that JD created on his "day off for thinking" about breaking eBay ...

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

This user has validated their user name. by: Rexford

Mon Jul 15 18:42:03 2013

As for the self-inflicted shots to the foot that Ric mentioned, did they  (and do they) seriously think that small sellers who are getting no visibility in search would stick around, much less shop on eBay after the most recent changes were implemented?  Bone heads!!!  This must be the only business in the world that runs off paying customers. Arrogance beyond belief.

How's that algorithm working for you John?

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

This user has validated their user name. by: Ming the Merciless

Mon Jul 15 19:12:39 2013

@ Rexford

--Greed beyond belief
--Fees beyond belief
--Ebay created and encouraged criminal buyers beyond belief
--An illegal bait and switch policy system that unfaitly and possibly illegally unduly influences seller feedback and the viability of their businesses beyond belief
--Ignorance at all levels beyond belief
--Stupidity at all levels beyond belief
--Tech incompetence from Texas to Arizona to Utah to California to India beyond belief
--Middle and upper management heavy beyond belief
--Inexperienced supervisor level know nothings capable only of reading scripts beyond belief
--Useless and always declining customer service beyond belief
--Sociopathic or narcissistic father knows best management beyond belief
--Undeserved free stock shares beyond belief
--Wall Street pimps beyond belief

The time is NOW for The Ho to go.

Death to ebay.com -- it's finally happening!

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

This user has validated their user name. by: Rexford

Mon Jul 15 21:11:17 2013

That about sums it up Ming.

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

This user has validated their user name. by: Ming the Merciless

Mon Jul 15 21:22:34 2013

Only one restructuring inside ebay could possibly stop the ebay's slide into e commerce irrelevance:

The restructuring of The Ho so he can only materialize in his phone less new San Francisco luxury abode.

Today's announcement as fundamentally dishonest and deceptive as it was with its multiple fee caps depending on who you are what you sell marks the sellers' achievement of another benchmark ebay tipping point.

Rejoice!

You're doing down, ebay.com.

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

by: auctionguy This user has validated their user name.

Mon Jul 15 23:49:36 2013

I didn't even check my ebay messages to see if I was invited to this promotion. It doesn't matter to me, anyway, as I don't sell anything on ebay for over $100 any more, not since the new ''lower'' FVF structure. It just isn't worth the high fees. I can sell the same things elsewhere for much lower fees, and sometimes for no fee. I only continue selling a limited number of items on ebay until I get my accounts on a few other sites a little better established. I'm already at risk of losing my TRS status. When that is gone, no more selling on ebay!

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

by: comet This user has validated their user name.

Tue Jul 16 00:13:14 2013

I ask you----

Who in their right monds would sell ANYTHING on ebay that would generate that $250 FVF--

When you KNOW that there is an excellent chance the item will be STOLEN and your reputation as a seller will be TRASHED?

What are thee people drinking?  The lime Kool-Ade????

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

by: Will This user has validated their user name.

Tue Jul 16 01:08:20 2013

Seems to me, that sellers are reluctant to sell anything with such high selling prices, since buyers are pretty much allowed to rent the item for a couple weeks and then send it back. Even if the seller charges a restock fee, it's not even close to the monetary loss incurred.  

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

This user has validated their user name. by: bitbybit

Tue Jul 16 01:35:26 2013

Oh thank goodness! Now I can put all my $2,000.00 items back on ebay! Can't wait to use ebay's global shipping to send them to Bolivia with ebay's return shipping to a new buyer with zero feedback.

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

by: blaumann2 This user has validated their user name.

Tue Jul 16 03:24:12 2013

Ebay is also running a List as much as you want free special This one went to all of my 3 regular accounts and my store. Never before have they offered all of my accounts any special. Ebay does indeed seem desperate. The horrible abuse of sellers has to be eating their real bottom line.  

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

by: FREDDY This user has validated their user name.

Tue Jul 16 07:45:55 2013

@ Ming,  beyond belief - love your comments.....

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

This user has validated their user name. by: iheartjacksparrow

Tue Jul 16 12:03:00 2013

I've noticed something new in the last couple of weeks: If I look at an item on eBay, and don't buy it, I get an e-mail from eBay a couple days later asking if I'm still interested in the item. This seems like another desperation move in an attempt to get buyers.

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

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

Tue Jul 16 12:56:55 2013

There is a nest of people at ITT Tech in Texas who's job it is to watch WHO punches WHAT search terms into the Ebay Search window. I "Seeded" the window with a few "Choice Words" and in a few hours, started getting harassing emails in my Ebay Affiliated mailbox.
The email IP's ALL traced back to ITT Tech.
It got to a point where I could carry on a regular conversation with this person >
Ebay Search window (me), my email box (him).
THAT'S when I stopped cold. NO MORE EBAY.

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

This user has validated their user name. by: Basset

Tue Jul 16 13:34:37 2013

Jack -

I'm getting those emails, too, on all my accounts. Plus ads for everything I've viewed lately.

Seems like they ought to be figuring out a way to give a boost in visibility to ALL sellers, since sellers, IMO, were historically the most faithful buyers - but sellers must have the money in order to buy. If sellers SELL they will BUY.  



The End -  

Whoa, that is creepy with the search terms!

ps - I can't see your username without the Late, Great Jim Morrison song ''The End'' popping into my head. Every time. Automatic. Sigh. Its like you have your own theme music.

''The blue bus… is calling us''.

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

This user has validated their user name. by: Ming the Merciless

Tue Jul 16 15:05:08 2013

Does anyone here remember giving ebafia authorization to give out our private email addresses to ITT Tech?

Perminate Link for Is eBay Testing Fees After Spring Restructuring?   Is eBay Testing Fees After Spring Restructuring?

This user has validated their user name. by: Ric

Tue Jul 16 17:06:41 2013

Browser settings in Firefox can be configured to stop the browser from storing DOMStore cookies.

DOMStore cookies are like cookies on steroids. Sites often use cookies to cause your browser to store & retrieve a few K of data. With DOM Storage each site can also have several Meg of persistent storage to use as they wish.

Link: http://www.dslreports.com/forum/r25664128-IE-9-and-DOMStore

DOM
Store
cookies may be the tool that eBay uses to track your activity, and it seems that CCleaner does not remove DOMStore cookies.

When I first learned about these super cookies, I changed my Firefox settings to deny DOMStore cookies.

This can be easily done by typing "about:config" without the quotes into the address window and hit enter. Ignore the void your guarantee warning  and click I'll be careful. In the resulting window, scroll down to "dom.storage.enabled. Now, double click that line entry so that the value changes from true to false.  Close the window.

This may stop eBay from storing large amounts of cookie data which they could be using to solicit/harass you.

I changed that setting months ago, and do not receive eBay emails about items I looked at.

Click to view more comments
1 2  [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.