eBay Lowers Insertion Fees, Raises Commission Fees

[The Bar Keep]

By Ina Steiner
AuctionBytes.com
January 29, 2008
 
eBay will announce today new lower insertion fees and higher commission fees on auction, fixed-price and Store listings that go into effect on February 20, 2008. In addition, eBay will begin giving US and Canadian sellers up to a 15 percent discount on Final Value Fees based on Detailed Seller Ratings (DSRs) beginning in April 2008.
 




Click here to read the entire article...

[2boysandtoys]

While auctions listed with a starting price of less than $1 will cost 15 cents in Insertion fees (down from the current 20 cents), eBay will no longer allow sellers to list items in fixed-price format for under $1.

This is 'good news' - might help (but not correct) the fee avoidance by those who charge $.50 for an item then add $42.95 to ship it (when it's a 3 ounce item)...

At the same time, eBay is increasing Final Value Fees (FVFs). Items that sell for under $25 are currently charged 5.25% of the closing value - this will be increased to 8.75%. The FVF for items that sell for between $25.01 - $1,000 are currently 5.25% of the initial $24, plus 3.25% of the remaining closing value balance; this will change to 8.75% and 3.5%, respectively.

FVFs for Store Inventory listings will rise from 10% to 12% for items that sell for $25 and less. For items that sell for between $25 and $1,000, the fees will be 12.00% of the initial $25.00, plus 8.00% of the remaining closing value balance.

Reserve fees will no longer be refundable if the item sells.


Wrong answer....and further affirms the strategy to move away from unique items and become just another amazon/overstock.  For those who are PS, they will be 'good' to 'go'.

For those who are not, and those who are new, they'll give it a shot - cuz they can list 'more' for less.  However, if the sell-thru stays as is or declines further, relists will be less frequent AND the new folks will figure it out when they get a few bills!!! 

Again, will be fun to 'see' how the stats flow in 08 - we all really need to exploit all that we can relative to using ebaY as a marketing tool to 'pull' buyers towards our preferred selling avenue.

WOW is all I can say..... 

[The Bar Keep]

I think it is safe to say we can put the waders away as the great flood will not be coming.  On a more personal note the new fee structure isn't the biggest issue for me. It's the changes to the feedback system and the DSR that gets me.

Best thing to do is wait and see for the next knee jerk reaction as sellers voice there opinions.

[The Tavern Wench]

Best thing to do is wait and see for the next knee jerk reaction as sellers voice there opinions.

Well I haven't checked anywhere else, but on the Powerseller's Discussion Board, the Feedback threads outnumber the Fee Increase threads 3 to 1 both in topics and posts....including several "I'm outta here posts".   So their knees may already be starting to jerk at least a little bit. 

[The Bar Keep]

Just thought I might put a link to our ebay feemotion thread here. I saw this fee increase already back in early december and that promotion was the test for the new fee structure we are hearing about now.


eBay motor's holiday feemotion promotion...


Now we can all be pissed off about the new fee structure together 



We interrupt this thread for a special announcement Suggestion!!!

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Thank you, now back to our regularly scheduled chit chat.

[bbhc]

I think this fee cut is great! Listing on eBay is finally affordable again! 

We're closing our websites and moving all 36,000 items to eBay!  7-day auctions only from now on with FREE GALLERY!!! Thanks to yesterday's insertion fee cuts it will only cost us $40,000 (insertion fees) +FVF per WEEK!!!! What a bargain! Thank you eBay!

[2boysandtoys]

I think this fee cut is great! Listing on eBay is finally affordable again! 

We're closing our websites and moving all 36,000 items to eBay!  7-day auctions only from now on with FREE GALLERY!!! Thanks to yesterday's insertion fee cuts it will only cost us $40,000 (insertion fees) +FVF per WEEK!!!! What a bargain! Thank you eBay!

[Platzki]

I think this fee cut is great! Listing on eBay is finally affordable again! 

We're closing our websites and moving all 36,000 items to eBay!  7-day auctions only from now on with FREE GALLERY!!! Thanks to yesterday's insertion fee cuts it will only cost us $40,000 (insertion fees) +FVF per WEEK!!!! What a bargain! Thank you eBay!

Yippee for you.

[Platzki]

I think it is safe to say we can put the waders away as the great flood will not be coming.  On a more personal note the new fee structure isn't the biggest issue for me. It's the changes to the feedback system and the DSR that gets me.

Best thing to do is wait and see for the next knee jerk reaction as sellers voice there opinions.

What's a DSR?

[2boysandtoys]

No clue what DSR is.  I have not had time to cruise around the web and see what's up, but I do suspect that sellers are NOT happy.  I do not get 'it' - why can ebaY not identify their true Customer (notice ---- big C) - the sellers?  Buyers are the little c - and like all have said, that customer set does not survive/last/exist without the primary Customer!!   

I am glad that I don't sell there any more!  Really never did too much - a very small fry.  I feel horrible for those who've had their businesses devastated by ebaY's approach to business - hope they got smart in 05 when the 'big fees' started.

 

[The Bar Keep]

DSR = Detailed seller rating

It's that ridiculous star system.

[chiquita]

I think this fee cut is great! Listing on eBay is finally affordable again! 

We're closing our websites and moving all 36,000 items to eBay!  7-day auctions only from now on with FREE GALLERY!!! Thanks to yesterday's insertion fee cuts it will only cost us $40,000 (insertion fees) +FVF per WEEK!!!! What a bargain! Thank you eBay!

Who could pass up a deal like that?
 

[Platzki]

I think this fee cut is great! Listing on eBay is finally affordable again! 

We're closing our websites and moving all 36,000 items to eBay!  7-day auctions only from now on with FREE GALLERY!!! Thanks to yesterday's insertion fee cuts it will only cost us $40,000 (insertion fees) +FVF per WEEK!!!! What a bargain! Thank you eBay!

Who could pass up a deal like that?
 

Not me... I know a bargain when I see one... 

[Platzki]

DSR = Detailed seller rating

It's that ridiculous star system.

Thanks Joe... I can't remember all of the shortcuts...

 

[2boysandtoys]

Currently, it appears (to me) that the analysts just aren't certain exactly 'what' to think about the ebaY announcement and it's affect on the business. 

In this article, http://seekingalpha.com/a...structure-fend-off-amazon the first sentence of the 2nd paragraph was news to me.  I'm not surprised that Amazon passed ebaY for traffic in December at all - the platform and systems work well - as a buyer.  I've never explored selling there, and don't know that I ever would, but as a buyer - it's far better in every respect.

What's 'best' about this article is the graph.  The gap is narrowing, as Amazon 'get's it'.  They built a solid market-place catering to the existing/current needs of the market - the buy-now, gotta-have-it-now consumer.  And THEN added auctions to meet the smaller demand for the auction avenue.  They 'think' and 'plan' based on the market, vs. based on the platform.

Now, in this article, http://seekingalpha.com/a...-are-overall-for-the-good - the author suggests that the 'net-net' for ebaY will be a lower take rate.  Since I've yet to find any data that suggests STR by item value, and this author quotes the ebaY HHIC (head honcho in charge), one can speculate that ebaY is suggesting STR is much 'higher' for items valued above $25.

My anal brain says - 'Prove it'.  I would love to see detailed stats that show the break-down of sold items at various price points.  That is a telling metric, that would help us and the analysts truly 'see the big picture'.

  - comparing ebaY vs. Amazon is pointless.  They have similarities in offerings to the market, but are not 'like' businesses.  This is truly one of these - you're comparing apples to oranges scenarios.  Irregardless of what most sellers do, the only long-term survival plan for ebaY is a revamp of their business model.  This is not possible without capital and earnings.  The changes we are seeing deployed in '08 will not fund what is truly needed for ebaY.