eBay Announces Major Fee Increases For Store Sellers

[jeffrey]

In a move that is sure to upset eBay store sellers, eBay announced major fee increases effective February 18, 2005. While the fee increases hit a number of areas, the main seller's it will effect are those who have eBay stores.

In addition to an increase in monthly subscription rates for stores from $9.95 to $15.95 a month, a large increase of 3% in the final value fee (the fee that is charged based on the price the item sells for) of store merchandise will be implemented. The 3% increase is effective for all items under $25, with smaller percentage increases for higher priced items.

The final value fees for certain Business & Industrial categories will also be changing, but those changes have yet to be announced.

For normal auction items, some popular add-on auction upgrades will increase. The buy-it-now option which is currently a flat per listing rate has been given a tiered pricing and will cost between $0.05 and $0.25 depending on the buy-it-now price given.




The gallery fee which allows buyers to see a mini photo preview will increase in price from $0.25 to $0.35 per listing. The 10 day listing fee will double in price from $0.20 to $0.40 per listing.

For more information on the eBay fee changes, you can click here

[PennyPincher]

This is a real disappointment to me ~ Add PayPal fees on top of these increased fees, and they are taking away about 12% of the sale. This truly dimishes possible profit margins. I will be listing heavily before the Feb. date and will be very reluctant thereafter. This is pushing greedy.

[jeffrey]

The key to note is that the increase in final value fees is NOT for regular auctions (although knowing eBay, you can expect those to rise sooner or later since they have now set the store inventory pricing that way), but for ebay stores. Regular auctions will have the same final value fees as now.

[PennyPincher]

Thank you for the clarification. I do not have a store, so I'm safe for now... I think about all the stay-at-home moms making income off ebay and all the little people like me that just do it part-time, and I hate to see any more of the small profits go away. For as many items as possible, I may turn to the flea markets and consignment stores...

I feel for the ebay store owners right now!

[Jewelsmom]

GreedBay!

[Broken Arrow]

None of this affects buyers right?

I'm just double checking because I may make some purchases off there some time in the near future.

[Jewelsmom]

"Buyers" don't pay e-bay fees. The sellers do.
But know this, sellers can pass on the added cost of business to the buyer in the form of higher starting bid levels, handling fees, etc.
Many a buyer has been surprised by unspecific shipping costs after the bidding has ended. Ask for a breakdown of shipping/mailing costs before bidding if it isn't stated clearly in the listing. A little "handling" cost is acceptable to cover the packing materials & seller time, but make certain you aren't mistakingly paying high priced "priority mail" and getting a slower-class shipping.

[poundwise]

To me, this is no big deal. If people don't want to deal with the cost-of-doing-business then they don't have to sell on eBay. Otherwise, eBay is free to charge what the market will bear. I don't like eBay fees, PayPal fees, etc. but what do you expect? They aren't in business just for the fun of it.

[LuxLiving]

Yes, poundwise, you are right - they aren't there for the fun of it. I think what gets most people so upset is that they started out as the 'low-price' auction house w/something like penny listings to garner total market dominance and are over the years increasing fees at a fast pace.

Smart business on their part in some instances and yet it does tend to leave a bad taste in those who have small items to sell and no truly 'as effective' marketplace to sell them. I was one who had lots of 99 cent to 2.50 items (paperbacks) to sell - I quit ebaying after their rates started going up...it just wasn't cost effective on my end. If it costs you .60 cents or so in fees and re-listing fees it quickly eats up profits on the sellers end.

OTOH, my leaving does not seem to have affected their continuing success!