AuctionBytes Conducts Survey on Recent eBay Changes

[The Bar Keep]

By Ina Steiner
AuctionBytes.com
February 04, 2008
 
AuctionBytes is conducting a survey of eBay sellers who sell on the U.S. eBay.com website to learn more about their reaction to eBay's recent changes and the effects on their businesses. eBay announced far-reaching changes to fees and feedback, as well as search, on January 29, 2008.

In conjunction with the survey, AuctionBytes published an eBay Fee Calculator to help sellers estimate the effect of the fee changes on their business (http://www.auctionbytes.com/cab/pages/feecalc).

AuctionBytes will publish the survey results in a future issue of the newsletter. (It will aggregate the data and will not identify individual results.) Note that eBay made different changes to different international websites; this survey addresses changes to the eBay.com website. Sellers can take the survey online by clicking on the URL below.

http://www.surveymonkey.c...mUVoonwebUvxkrAh0Xw_3d_3d
 

[The Bar Keep]

Very important, here is a direct link to the fee calculator, see your savings, mine was 28%!!!


http://www.auctionbytes.com/cab/pages/feecalc

[The Bar Keep]

Ran Deb's numbers through and seen a 58% savings. What I find most appalling is all the alternative sites preaching empty promises. Yep there may be a flood of refugees to the alternative sites for a bit but it is not due to an increase in fee's, it is a direct result of what the alternative sites want you to believe. Based only by blinding greed of which in the end will result in a return to eBay with a more difficult task of getting their business back from their absence.

I challenge any and all to dispute the FACT that what eBay did with fee's is a decrease. For the first time ever people will benefit from the restructuring of the fee schedule. Use the calculator provided in the link below and see for yourself:

http://www.auctionbytes.com/cab/pages/feecalc

Did it ever ocur to any sellers that there is a reason why PSU has not posted the article in this thread. Blinding greed and they should be ashamed, every damn one of them. Join the band wagon everyone, the buyers are staying put because they have no desire for an alternative. Run to the alternatives while the smart business people stay put and clean up the profits!!!


Joe - The Bar Keep

[The Tavern Wench]

Here's my Two Cents for what it's worth...

It is a fee DECREASE, especially if you sell in the core.  So to me the fee changes are a good thing.

Initially my first reaction was to the changes in the Feedback system and I admit I had a knee-jerk reaction like most sellers.




Then I came to my senses and let my BUSINESS sense prevail based on the following reasons:

1) Buyers have always been able to leave unjust feedback. 

Sellers could a) retaliate with negative feedback and/or b) make a followup remark.  We will still be able to leave a follow up comment.  We will still be able to leave a NEGATIVE REMARK in the buyers feedback.  It just won't have the little red "-" beside it.

Most scamming buyers figured out a long time ago that negative feedback on a buyers account didn't amount to squat anyway.  What good did it do?  We still didn't have the option to cancel a transaction with them and by the time we saw it, they had already made the purchase.

2) Sure there is a HUGE potential for someone (competitor, pissed off buyer, etc) screwing up your feedback by messing with your DSRs, especially those with Powerseller status.  But that too has been going on for ages.  Read the Feedback board at eBay sometime.  You'll see people who enjoy ruining a Seller's 100% rating, especially if it's a Powerseller.

Will the new feedback system change this?  It just might.  eBay has said they will be more attentive and watch for manipulation in that area.  They aren't stupid.  They know if too many Sellers start getting negatives, it will turn the buyers off and they won't shop there. 


After thinking about these two issues, I came to conclusion that (as my Grandma always said) I wasn't going to 'cut my nose off to spite my face'.   From a business standpoint it would be foolish to close up shop and miss out on such a good marketing venue over something that MIGHT or MIGHT NOT happen....especially since it will cost me less to list there. 

[The Tavern Wench]

Ok...just a quick followup. 

Joe and I ran the numbers from when I sold driftwood on eBay.  If I was still selling the driftwood, it would be a 21.7% increase.

This was based on the following numbers:

9.95 starting price
32.00 ending price
64 items a month
100% STR





Like I said, that's based on a 100% STR, which is definitely not the norm on eBay.  As Joe kept pointing out, I was the exception to the rule on that one.  (Eat your heart out Joe! ) 




That would still only equate to an increase of $32 a month on $2048 in sales. Basically the price of one item.  If my STR was only 44.5% (closer to the norm),  I would break even.

So in my opinion, I would be a fool to stop selling there because none of the alternatives (other than my own website) could give me the same return on my investment.

 

[2boysandtoys]

Hey all!!  I did have about 2 minutes this morning, and ran thru a couple scenarios for me.  In every scenario I put in, the fees would be a net increase. 

Example (cuz I'm a hashbrown sliver - not even a small fry)

Start price - $.99
End Price - $9.99

Old Fee - $1.52
New Fee - $1.77
~~~$.25~~~ Increase

Monthly view:

30 Items per month
Old Fee - $45.64 (both - list and FVF)
New Fee - $53.06 (both)
~~~$7.53~~~Increase

60 Items per month - $14.85 Increase

Here's a photo - assumes 100% STR - which we know ain't happening - all these scenarios, even with the PS discount show an increase - tell me what I'm doing wrong Joe....cuz I can't find a point which I'd break even - or even reduce my fees (if I were to go back - big or small)! 



I'm not getting a 'decrease' no matter what set of figures I put in!! 

[chiquita]

Erin I got so caught up with your spreadsheet (wow now I know who to PM with Excel questions) 
I ended up confused, and look forward to some help from Joe on understanding this one.
 

[The Bar Keep]

photo - assumes 100% STR - which we know ain't happening - all these scenarios, even with the PS discount show an increase - tell me what I'm doing wrong Joe....cuz I can't find a point which I'd break even - or even reduce my fees (if I were to go back - big or small)!

Change the STR to something more realistic Erin. here is a 25% STR on the same one you offered with 100 items a month instead of 600 (makes no difference the item count the percentage would not change)

The next thing you assumed in you screenshot was the final selling price with 100% STR. Another thing is you were running all auctions which is unrealistic based on the fact we both agree auctions are dead. Play around with the numbers and place a more realistic STR based on what you would be selling. Granted the Calc won't do a store listing but I also ran auctions on Deb's driftwood account (yep Deb had 100% STR for 16 months straight) and still came out with a decrease of 4%.

All in all some sellers are going to see some sort of fee increase if your STR is 60% or above BUT that too can be adapted with common business sense.

Hope this helps but if you need a better explanation I will be happy to give one.


Joe - The Bar Keep

[Cherry Pits]

You guys can throw all the numbers around that you want to but you won't see me selling on Ebay any time soon. Fact is.....the STR for the most part is a real stinker. You have exceptions but they are not the rule. The bottom line is what I sell will be in the lower percentages and I would simply lose more money. If I want to lose money, I'd play the track. So instead of working my rear off and paying fees to further pad someone else's pockets, I'll stick to building my own independent store, other business ventures and playing with the smaller sites.

[2boysandtoys]

Ahaa......so applying a 'realistic' STR will shift/affect the fees - I keep forgetting in this new structure, the 'upfront' cost is lower, so you're 'penalty' or your CDB (cost of doing business) is less than before IF your item doesn't sell.

Based on the revised Chart you provided Joe, I can 'relist' the same set of item (just using the data we got in our faces here) 2 times before I 'lose' the amount of $$ I would in the old fee structure (looking at the 55 vs 15 dollars).

I too will not be jumping to go and build a store/existence there - but I do now 'get it' - our ability to exploit ebaY to pull traffic just got much more cost effective! 

Told ya I shouldn't do any heavy thinking in the evening - 

[The Bar Keep]

Ahaa......so applying a 'realistic' STR will shift/affect the fees - I keep forgetting in this new structure, the 'upfront' cost is lower, so you're 'penalty' or your CDB (cost of doing business) is less than before IF your item doesn't sell.

Yep, always look at the whole picture.

I too will not be jumping to go and build a store/existence there - but I do now 'get it' - our ability to exploit ebaY to pull traffic just got much more cost effective! 

Yes and No  . A few things to consider and rules to live by in the online world. Consider this, I am a silver level powerseller. Every month I pull in double to triple that on my main site and at least match to double that on the second site (same product). You should always be the main part of your business (your own site). eBay to me is a secondary market that drives traffic to my site (advertising that pays for itself). All the alternatives to me would be a third market but, that market is made up of mostly sellers (hence the lack of advertising to buyers) and most of the alternative site owners are stuggling to make a few dollars every month (Webidz is the exception with the $5 verification fee they are cleaning up). So IMO the alternatives will never be the marketing channel 1/10 of eBay because buyers have no desire for an alternative (sellers pay fees, buyers don't).

Formula to success:

                                       Your Site
                                            |
                                            |
                                ------------------
                               |                        |
                               |                        |
                           eBay                  Amazon
                              |                         |
                              |                         |
                     --------------      ------------------
                    |                  |      |                      |
                    |                  |      |                      |
          Advertising   Alternatives   Marketplaces     Forums
                 |                    |        |                      |
                 |                    |        |                      |
                 ----------------------------------------
                                           |
                                           |
                                   $$$$ in your pocket



It's imposible to achieve any other way, you need to be in control of your own business and at the top of the chain. Don't be bottom feeders!!!! 


Joe - The Bar Keep

[2boysandtoys]

Makes sense 2 me - even the Queen of Numptyville can 'see' the logic!!!