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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by: ebayout This user has validated their user name.

Tue Aug 7 11:19:05 2018

The beatings will continue until morale (and earnings) improve.

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

Tue Aug 7 11:22:15 2018

Due to eBay's gross mismanagement of the 'New eBay experience' and the copying of Amazon in nearly all aspects of their operations I have reactivated my Amazon selling account and will list new inventory there.

If eBay is going to charge the same as Amazon sellers may as well sell on Amazon and move away from paying eBay listing fees in advance, you can list on Amazon for free and pay when you sell, you are not limited like you are on eBay paying listing fees and relisting fees over and over.

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by: sasikat9 This user has validated their user name.

Tue Aug 7 11:23:15 2018

None of the changes will effect us. We don't do auctions, nor do we use special do dads that increase the cost of hiding our items. Nothing in the new fleecing will affect us at all. We never participate in the carrot jumping. We still continue to not accept returns. We also don't use tracking as most of our stuff just ships first class anyways. Its going to be interesting to see how many sellers are going to claim that they are done and will in all probability still be there come January.

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This user has validated their user name. by: MainelyVintage

Tue Aug 7 11:44:45 2018

Yep, I might just increase my selling on Amazon as well... being that fees are about the same.

I got out of selling lower priced books after Amazon's last price increase.

Thanks for the update!

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by: dans parts This user has validated their user name.

Tue Aug 7 11:47:06 2018

I'm glad that none of the fee increases affect anything I do on eBay either.  I'm one of the lucky ones.

I feel sorry for those folks in the Media categories, though, they're going to take a hit.

The only thing mentioned in this update that makes me nervous is the Shipping Labels update.  I'm wondering what kind of debacle this will be, if eBay comes up to their usual standards.

Anyone know where I can get a look-see at the new Bulk Shipping process to see how it's changing from what we're using now?  eBay's pages describing the update are 100% useless at showing what things might look like.  Although I wouldn't expect anything other than 100% useless from them...

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by: Papadurun This user has validated their user name.

Tue Aug 7 11:47:09 2018

After the Spring update I started putting my new inventory on Etsy with great success. Now that I've read the Fall update, I'll begin moving some my existing inventory.

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by: Golddustwoman This user has validated their user name.

Tue Aug 7 11:52:26 2018

I didn't realize Amazon doesn't charge to list items. I might be forced to go to Amazon and back to Etsy to sell my handmade items. I currently have all my items listed on Bonanza and sales are basically nil over there. They just don't get the traffic and their items don't pop up in searches much. Yes, eBay is slowly strangling all their American sellers. I need to transfer to different venues because one day, eBay will simply shut down their website and leave us all stranded.

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by: songe-d-automne This user has validated their user name.

Tue Aug 7 11:58:23 2018

Yeah. I think Etsy's about to get an increase in listings from me.  

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by: maxmad This user has validated their user name.

Tue Aug 7 12:00:37 2018

there was a time when we would be sick hearing this news, but not today, because ebay now helps our business grow, the more ebay raises prices, the more sellers raise prices, the more we sell on our site,

jumping for joy, thanks ebay,

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by: Ichabod This user has validated their user name.

Tue Aug 7 12:03:40 2018

If you are selling music, take a look at Discogs, commissions only 8% and no commissions on shipping. I took all of my LPs and CDS off of Ebay a couple of months ago. I haven't gotten them all moved to Discogs yet but steady working on it.. Discogs doesn't have the audience that ebay has but ebay is doing everything in their power to change that. Discogs has just under 10 million listings now and I am assuming that will only increase. As to the  SNAD thing, speaking from my personal experience with them, a large percentage of those SNADs are bogus and manufactured by ebay so there is no escaping that. If they haven't come for you yet, just wait.  

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by: Ichabod This user has validated their user name.

Tue Aug 7 12:05:32 2018

Doing business on ebay is like playing 3 card Monte on the street. The dealer may let you win a hand here and there to keep you in the game but in the long run, you are going to lose.  

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by: wilburnet This user has validated their user name.

Tue Aug 7 12:06:48 2018

I'm not sure if this only applies to Ebay UK, but the charge for adding a subtitle to a listing is increasing from £1 to £2 - madness. This will affect buyers who use subtiles in their Good Till Cancelled listings.  

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by: wilburnet This user has validated their user name.

Tue Aug 7 12:08:03 2018

@sasikat9   You must be a very special member of Ebay to not be affected by any of the Q4 business seller updates.

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

Tue Aug 7 12:09:18 2018

For those moving to Amazon, make sure you set up your account as an individual seller or they will defraud you out of 40.00 dollar a month right off the bat, they have a dumb policy of starting all seller off as professional seller which involves the monthly charge.

But they force you to downgrade to individual seller to avoid the $40.00 per month fee, in the meantime they will defraud you out of those monthly fees, they just did it to me.

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This user has validated their user name. by: Rexford

Tue Aug 7 12:16:35 2018

wilburnet,

Yep.  Most people hate eBay.  Some people seem to hate their fellow sellers.

A ray of sunshine with every keystrike.

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by: ebayout This user has validated their user name.

Tue Aug 7 12:23:57 2018

They cut employees, do ebay Open on the cheap...and raise prices.
More proof the execs can't tell vinegar from honey.
Etsy posted a 20% gain yesterday...today, there's yawnng interest in ebay stock.
Enjoy your vinegar, ebay.

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

Tue Aug 7 12:24:43 2018

Sasikat, yes the changes do affect you.

even if a buyer just initiates the return process, you will get a ding on your record. Enough dings (likely, because Ebay is encouraging people to return) and you will pay 40% more in Final Value fee.

It does not matter if you resolve the return before Ebay intervenes, it does not matter if it a false SNAD. Ebay will ding your account.

Ebay is coming up with "metrics" comparing your returns (or rather, requests for returns in any shape)  to your peers, which will be false like everything else they claim.

It is a way of raising final value fees by blaming the seller for things they cannot control. And scam return buyers are at a high right now.

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This user has validated their user name. by: toolguy

Tue Aug 7 12:29:01 2018

In the long term if you really want to make money short eBay stock!

The USS eBay has finally taking on more water then it can stand, she's going DOWN!

I'm bailing off this ship by years end.

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

Tue Aug 7 12:29:38 2018

Wenig and his cronies have been wildly plundering Ebay  and trying to hide it. While they fail at actually running a business. They are the gang that can't shoot straight, complete incompetents.

So it is time to steal again from the sellers while they collect bigger bonuses every year- millions of dollars for failing and stealing.

A Bain Board of directors just colludes with this.

I think these thieves have a bigger plan though, which is to gut Ebay and just use it as a platform for a new financial racket- the new payment processor. Fraud in the field of finance is what they are about, and if that is true, these incompetents are just  the front men. There are bigger fish behind them, which is why they get maintained, and promoted in the Wall Street media.

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

Tue Aug 7 12:31:33 2018

songe, be careful about Etsy. They have increased because the CEO is another version of Wenig, turning it into a Chinese seller flea market.

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