Tuesday, January 29, 2008

How will I be Affected by the New eBay Fees?

Ebay just announced some very large changes in their fees. I will break down the main points for you below:

  • Reduced eBay fees: the fees have been changed so it costs less to list, but this is really just a fee increase, as there is a higher final value fee. eBay does not lose at all in this situation, they just shifted their source of income.
    • If you used to list a 7 day auction item for $20, with a gallery picture, it would have cost $.95 for the insertion fee, and if it sold for $20, an additional $1.05 would be taken out in final value fees (FVF). A total of $2.00 paid in fees.
    • Now with the new fee structure, if you do the same listing, gallery pictures are free, and insertion prices dropped, so it would only cost $.55 to list the item. But once it sells, the FVF has raised from 5.25% to 8.75%. So it will cost you $1.75 in FVF, and $2.30 total.
    • If you used to list a 7 day auction item for $100, with a gallery picture, it would have cost $2.75 for the insertion fee, and if it sold for $100, an additional $3.75 would be taken out in final value fees (FVF). A total of $6.50 paid in fees.
    • Now for a $100 item, it will cost $2.00 to list, and the FVF will be $4.81. The total for new fees will be $6.81
  • Store fees have increased as well, from 10% to 12%.
Take a look at eBay's new 2008 Fees for yourself.

Steve Weber, just wrote a new book about selling on eBay. I will let him explain the rest of the changes at eBay :
  1. Rewards for seller performance
    There will be discounts and incentives for sellers with the best customer satisfaction rates according to the anonymous five-star Detailed Seller Ratings (DSRs).
  2. Feedback Changes
    The strategy is to "increase buyer confidence" and "showcase good sellers."
From: Selling Books: eBay bans negative feedback for buyers, cuts listing fees

1 comment:

amodernguy said...

As a small Powerseller I have grave concerns regarding the new fee schedule and the changes to the feedback system.

I have detailed my concerns in an An Open Letter to eBay on my blog.

http://amodernguy.wordpress.com