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Ebay fees

Started by skypinkblu,

76 posts in this topic

skypinkblu

skypinkblu

Posted
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Posted
People clearly aren't doing the math. doh!

 

Yes, eBay fees are going WAY up. On the first $25 of sales only. If you are a PowerSeller and receive the 15% discount on your fees, the net change in fees is an increase to 7.44% on the first $25 of sales (a 41% jump :o )The other incremental change - the bump from 3.25% to 3.5% on the sales between $25.01 and $1000 - is GOING DOWN if you're a PowerSeller. The net change on those sales is a decrease to 2.98% (an 8% drop).

 

If you're selling small stuff, things under $25 all the time, your margins are going to get killed. If you're a PowerSeller and do a lot of volume, you're only going to lose a little bit. If somebody tells me how to attach a file, I can put a spreadsheet up with all the math.

 

The key to all of this is getting the 15% discount on your fees, which only PowerSellers will be able to do. That's what the real story here is, not the bump. What eBay is trying to do, clearly, is get rid of the little guys.

 

The other changes are just stupid, but what do you expect.

 

I am a power seller, Dan, and despite all their requirements, thank goodness, I fit...however, MOST of the items I sell are below $25.00 and that 5% off of what? with the 3.50 as a raise, even 15% off, just doesn't do it for me. I suppose that if I continue to list, I'll have to do more expensive lots...which might be what they are aiming for.

 

I got a phone call the other day, soliciting me as a trading assistant...and a follow up email...my feedback is pretty good (knocking on wood) ...I said no thanks, but ...I have a feeling that is what they are aiming for.

Me, I was aiming NOT to be a power seller, just to use Ebay the way I used to, to sell books or junk, as I clear things out, or change collecting patterns.

 

For me, it's going to be annoying, but not life threatening, there are/however, people who this will really impact.

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capt_comics

capt_comics

Posted
Posted

Looks like they're trying to get the little guys (sellers) off the site(a nickel off listing fees ain't gonna get it, they're still too much), screw the Power Sellers(on FVF)and make a super buying experience for all the buyers (including the deadbeats)

 

WOW - what a plan rantrant:insane:

 

*SPOON* - bring Whitman back :gossip:

 

They just don't understand that the collectibles market on ebay is WAY down and this isn't going to fix it. And the other markets are down too(ie. the R word)

 

Well I guess I'll just do what I do know and mainly buy

 

 

 

 

 

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Aces

Aces

Posted
Posted
Ebay fees

 

Looks like the listing fees are going down, but the final value fees are apparently going WAY up...I think someone on another thread thought this was a good idea, but this seems to be QUITE a jump, especially if you factor in Paypal fees. Sorry, I don't know how to get the image on the page, just the link.

 

:o

 

New:

8.75% of the initial $25.00,

plus 3.50% of the initial $25.00 - $1,000.00

plus 1.50% of the remaining closing value balance ($1,000.01 - closing value)

 

Old:

5.25% of the initial $25.00,

plus 3.25% of the initial $25.00 - $1,000.00

plus 1.50% of the remaining closing value balance ($1,000.01 - closing value)

 

Cheap items are getting killed. doh!

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FlyingDonut

FlyingDonut

Posted
Posted
People clearly aren't doing the math. doh!

 

Yes, eBay fees are going WAY up. On the first $25 of sales only. If you are a PowerSeller and receive the 15% discount on your fees, the net change in fees is an increase to 7.44% on the first $25 of sales (a 41% jump :o )The other incremental change - the bump from 3.25% to 3.5% on the sales between $25.01 and $1000 - is GOING DOWN if you're a PowerSeller. The net change on those sales is a decrease to 2.98% (an 8% drop).

 

If you're selling small stuff, things under $25 all the time, your margins are going to get killed. If you're a PowerSeller and do a lot of volume, you're only going to lose a little bit. If somebody tells me how to attach a file, I can put a spreadsheet up with all the math.

 

The key to all of this is getting the 15% discount on your fees, which only PowerSellers will be able to do. That's what the real story here is, not the bump. What eBay is trying to do, clearly, is get rid of the little guys.

 

The other changes are just stupid, but what do you expect.

 

I am a power seller, Dan, and despite all their requirements, thank goodness, I fit...however, MOST of the items I sell are below $25.00 and that 5% off of what? with the 3.50 as a raise, even 15% off, just doesn't do it for me. I suppose that if I continue to list, I'll have to do more expensive lots...which might be what they are aiming for.

 

I got a phone call the other day, soliciting me as a trading assistant...and a follow up email...my feedback is pretty good (knocking on wood) ...I said no thanks, but ...I have a feeling that is what they are aiming for.

Me, I was aiming NOT to be a power seller, just to use Ebay the way I used to, to sell books or junk, as I clear things out, or change collecting patterns.

 

For me, it's going to be annoying, but not life threatening, there are/however, people who this will really impact.

 

The 15% off makes the changes sort of palatable. To make an informed comparison, I ran the numbers on the last 10 items I sold, which had a total hammer price of $154.73.

 

  • Under the current system, with all of the fees (including Paypal), my net was $133.73, 86.43% of the sale price.
  • Under the new system, with no discount at all, with all of the fees (including Paypal), my net was $128.74, 83.20% of the sale price.
  • Under the new system with a 5% discount, with all of the fees (including Paypal), my net was $129.47, 83.67% of the sale price.
  • Under the new system with a 15% discount, with all of the fees (including Paypal), my net was $130.92, 84.61% of the sale price.

Note that I'm not happy with the changes, but the pricing one is the least of my worries. The feedback change is ridiculous.

 

Again, eBay has succeeded in switching the discussion to the HORRIBLE HORRIBLE NEW PRICING MODEL! and away from what they're really trying to do, which is get rid of the little guy.

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BRNebraska

BRNebraska

Posted
Posted
People clearly aren't doing the math. doh!

 

Yes, eBay fees are going WAY up. On the first $25 of sales only. If you are a PowerSeller and receive the 15% discount on your fees, the net change in fees is an increase to 7.44% on the first $25 of sales (a 41% jump :o )The other incremental change - the bump from 3.25% to 3.5% on the sales between $25.01 and $1000 - is GOING DOWN if you're a PowerSeller. The net change on those sales is a decrease to 2.98% (an 8% drop).

 

If you're selling small stuff, things under $25 all the time, your margins are going to get killed. If you're a PowerSeller and do a lot of volume, you're only going to lose a little bit. If somebody tells me how to attach a file, I can put a spreadsheet up with all the math.

 

The key to all of this is getting the 15% discount on your fees, which only PowerSellers will be able to do. That's what the real story here is, not the bump. What eBay is trying to do, clearly, is get rid of the little guys.

 

The other changes are just stupid, but what do you expect.

 

I am a power seller, Dan, and despite all their requirements, thank goodness, I fit...however, MOST of the items I sell are below $25.00 and that 5% off of what? with the 3.50 as a raise, even 15% off, just doesn't do it for me. I suppose that if I continue to list, I'll have to do more expensive lots...which might be what they are aiming for.

 

I got a phone call the other day, soliciting me as a trading assistant...and a follow up email...my feedback is pretty good (knocking on wood) ...I said no thanks, but ...I have a feeling that is what they are aiming for.

Me, I was aiming NOT to be a power seller, just to use Ebay the way I used to, to sell books or junk, as I clear things out, or change collecting patterns.

 

For me, it's going to be annoying, but not life threatening, there are/however, people who this will really impact.

 

The 15% off makes the changes sort of palatable. To make an informed comparison, I ran the numbers on the last 10 items I sold, which had a total hammer price of $154.73.

 

  • Under the current system, with all of the fees (including Paypal), my net was $133.73, 86.43% of the sale price.
  • Under the new system, with no discount at all, with all of the fees (including Paypal), my net was $128.74, 83.20% of the sale price.
  • Under the new system with a 5% discount, with all of the fees (including Paypal), my net was $129.47, 83.67% of the sale price.
  • Under the new system with a 15% discount, with all of the fees (including Paypal), my net was $130.92, 84.61% of the sale price.

Note that I'm not happy with the changes, but the pricing one is the least of my worries. The feedback change is ridiculous.

 

Again, eBay has succeeded in switching the discussion to the HORRIBLE HORRIBLE NEW PRICING MODEL! and away from what they're really trying to do, which is get rid of the little guy.

 

 

Don't forget, the 5% or 15% discount doesn't go in effect until JULY!! 4 months of nothing but the raised fees, and the laughably absurd feedback changes. Buyers can only receive positive feedback??? Flies in the face of the foundations of their company! A deadbeat bidder comes along, I turn him in for the initial NPB warning, he responds to the warning, still doesn't pay and he negs me. Now I'm out the sales price for the auction, AND HAVE A NEGATIVE FEEDBACK I CAN'T RESPOND TO OR GET REMOVED!! :pullhair: :pullhair: :pullhair:

 

I notice they didn't give a date for the feedback changes to go into effect, and I have to assume there will be enough of a ruckus raised about it that they will back off of the "buyer only can receive positive feedback" foolishness.

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MemorezGuy

MemorezGuy

Posted
Posted

Please forgive the somewhat duplicate post, but I made a little chart that may be of use to show the actual INCREASE in cost:

 

http://homepage.mac.com/cpu/PercentOfSalePricePaidTofeeBay.jpg

 

Sales of items costing less than $50 will see an average increase of 22.91% in fees paid to eBay, so even if you get a PowerSeller discount, you're still paying significantly more to do business.

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greggy

greggy

Posted
Posted
The PowerSeller chat board is on fire because of this - PowerSellers are people eBay can ill afford to off.
Yup, I've decided to check out the boards for the first time because of the proposed changes. :popcorn:
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szelim

szelim

Posted
Posted

EBay Lowers Some Fees, Raises Others

Tuesday January 29, 6:16 pm ET

By Amanda Fehd, Associated Press Writer

EBay Lowers Listing Fees to Boost Number of Items for Sale; Some Commissions Up, Others Down

 

SAN FRANCISCO (AP) -- EBay Inc. is rejiggering its fees -- raising some, trimming others -- to meet rising competition and maintain its share of the online auction market it helped start a decade ago.

 

But those who keep tabs on the Web site, including its top sellers, say the changes are a step in the wrong direction.

 

"It's too little too late," said Steve Grossberg, one of eBay's top 100 sellers and the founder and president of the Internet Merchants Association.

 

Grossberg, a Florida-based vendor of video games, spoke by phone from a conference of 200 of North America's top eBay sellers in Washington, D.C., where incoming CEO John Donahoe announced the fee changes Tuesday. EBay makes 80 percent of its revenue from the top 20 percent of its sellers.

 

"I think you are going to see a listing decrease, you are going to see some sellers leave the site or pull back quite a bit and think of other ways to make revenue, and it's going to backfire," Grossberg said.

 

Listings on eBay's various sites in the fourth quarter rose 4 percent, reversing two straight quarters of declines, the company reported last week. The number of people actively using the site has stagnated, rising just 2 percent from a year ago, while revenues have risen modestly.

 

The price changes, which take effect Feb. 20, are complex. It will cost 25 percent less to list an item for auction and up to 50 percent less to offer something for a fixed price. EBay's commission on items sold for fixed prices over $100 will also decline.

 

Its commissions on auction items selling for more than $1000 will remain at 1.5 percent, while its commission on cheaper items will rise as much as 67 percent.

 

Under the old rules, for example, a purse auctioned for $25 would have cost the seller $1.91, including 60 cents for listing the item plus eBay's commission of $1.31. Under the new structure, the seller would pay $2.74, including 55 cents to list the item plus a higher commission of $2.19.

 

"EBay does sincerely want to compete. They are reacting to the competitive threat of Amazon," said Ina Steiner, editor of AuctionBytes.com, a trade publication for online sellers.

 

Amazon already has "cherry-picked" a lot of eBay's high-volume sellers, Steiner said.

 

Company spokesman Usher Lieberman said the company's internal pricing experiments and number-crunching show listings overall will rise in response to the changes.

 

"We've heard from our sellers for a long time that they've wanted us to reduce their upfront cost and risks, and we've done that," Lieberman said. Lieberman predicted the changes will result in savings for more than 60 percent of sellers.

 

EBay most wants to encourage growth in fixed-price sales, the area where it sees the most potential for growth.

 

One of its main rivals in fixed-price sales, Amazon.com Inc., charges no fee at all to list an item, though it charges a commission as high as 15 percent.

 

Sellers told The Associated Press that Amazon is more straightforward, takes less time and that they make more money using it, partly because Amazon pays for payment processing.

 

Randy Smythe, a former eBay seller in Southern California, said eBay's sellers take more risks than Amazon's because they have to pay before an item sells.

 

Smythe sold music and movies on eBay for nine years, bringing in up to $4.6 million a year. He stopped in 2006 because he saw increased competition from those who were gaming eBay's fee structure, charging less for CDs upfront but more on shipping. He found he was keeping just 2 percent of his gross revenue, and he now blogs about the industry instead.

 

"What's going to happen is it's still going to be too expensive to sell on eBay and make good money," Smythe said.

 

Donahoe said eBay is at a crossroads. He told the sellers the new fee structure will be driven by their success.

 

"To maintain our leadership position in e-commerce, we can no longer afford to make incremental changes to meet our customers' needs," Donahoe said. "We need to redo our play book and we need to redo it fast. We need to take bold actions to meet the expectations of buyers and sellers around the world."

 

Donahoe said a majority of sellers will see their prices fall.

 

But sellers said the changes will increase their costs.

 

"I don't see any real incentive for the average seller to list more with this new fee structure. I think their 'bread and butter' core auction listings will continue to diminish as a result," said Bill Hamilton, a Georgia-based top seller who specializes in collectible gemstones.

 

The new fees affect only sellers in the United States. More changes are coming in Britain and Germany.

 

The changes come as longtime Chief Executive Meg Whitman announced she would retire at the end of March. Donahoe, president of eBay Marketplaces, which encompasses its shopping sites and classifieds, has said he will aggressively change eBay's product, customer approach and business model.

 

Martin Pyykkonen, an analyst with Global Crown Capital, said eBay's rising fees have in the past caused sellers to look elsewhere on the Internet for places to practice the online skills they perfected at eBay, whether it's their own Web sites, Amazon, or other shopping sites.

 

"The more savvy sellers look at a multitude of options. It's not like Amazon is taking market share from eBay in a big chunk, it's more of a gradual shift. This commission going up will be a telling point over the next months to see what kind of reactions it gets," Pyykkonen said.

 

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Mr. Zipper

Mr. Zipper

Posted
Posted
Please forgive the somewhat duplicate post, but I made a little chart that may be of use to show the actual INCREASE in cost:

 

http://homepage.mac.com/cpu/PercentOfSalePricePaidTofeeBay.jpg

 

Sales of items costing less than $50 will see an average increase of 22.91% in fees paid to eBay, so even if you get a PowerSeller discount, you're still paying significantly more to do business.

 

According to your chart the increase most affects items between $9.99 and $49.99.

 

What do you want to bet 95% of ebay transactions fall within that window? lol

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