New ebay fee structure

Full Member
customersplanet
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29 Jan 08 03:47:34 pm
Hey All
I just thought that my fellow Salehooers would be interested in the new fee structure that ebay has developed for us. Click the link below for a detailed view.
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Do the math people. If you start your listing at $9.99 like I do you may find yourself paying more in total fees per item. Let me explain for those who might get confused. Under the current fees structure, I start my auction-style listings at $9.99 and use Subtitle, Buy it now and Gallery, all for a discounted fee of $1.30.
So, my total listing fee is $1.30.

Under the proposed fee structure, assuming that there is no discount since gallery is now free, my total listing fee is now $1.10.

Well I can hear you asking ' why are you complaining? Your listing fee is now $0.20 less than it use to be. Well that is true, However, when you factor in the whopping 8.75% of the first $25.00 then you would see my point.

Under the current fee structure, 5.25% of the first $25.00 works out to be $1.31.
The proposed fee structure of 8.75% of the first $25.00 works out to be $2.19

So let's wrap it up so you can see me paying more.
Current fee structure: $1.30 + 1.31=$2.61
Proposed fee structure $1.10 + 2.19-$3.29..........

Now you see!! The initial $0.20 discount was consumed by the 8.75% of the first $25.00.

Well, I now have to depend on the proposed 5-15% Final Value Fee discount for PowerSellers to keep my cost at bay. What ebay actually did was 'dropped their pants' but 'raised their shirts' thereby telling seller to kiss their a**. :evil:

Here is the icing on the cake. 'Buyers will only be able to receive positive Feedback' but seller can get negative. What a joke! :mrgreen:

Just my opinion.


Regards
Allan

Free Member
designerthriftshop
Posts: 292
Joined: 27 Sep 07
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29 Jan 08 07:17:17 pm
I did see that today. I knew it was going to benefit eBay in the end. But, most people will see it as saving them money in their listing fees & not take the time to actually calculate it out like you did. Also, I think that you are paying miniscule amounts for the sheer volume of traffic eBay generates. Think if you had your own webstore, you'd have to pay for Adwords & other means to drive traffice to your store. I think in the long run it's still a great deal. Just my opinion.

Full Member
grboutique
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29 Jan 08 08:45:57 pm
It's just weird how Sellers can get a Negative Feedback and Buyers will not.... So the feedback system will only work on sellers then right????

Full Member
planes
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29 Jan 08 09:14:13 pm
This is not a good thing. What about the jerk of a buyer who will neg. someone on anything. Like the shipping box being crushed but the item is in perfect condition.

At least now the buyer has to think twice about leaving a neg. for minor things.

But i do like the free gallery pic as most of my auctions start at .99. So it will cost me just .20 with a pic.

But i now will open as many eBay accounts as I can in case one gets creamed by negs.

Well 4 negs out of 500 aint to bad so I shouldnt be complaining but it still sucks as the seller gets no recourse.

Free Member
jimmy_huber
Posts: 2867
Joined: 11 Mar 10
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30 Jan 08 07:51:34 am
The feedback setup is a complete joke. I am very pissed off about this. More then likely I will close down my whole ebay store for the month of december just because of the picky , pathetic shoppers I have to deal with. The feedback system in place allows sellers to push buyers into contacting them about issues that arise.

Ebay thinks they can bring more shoppers to thier site and increase thier business but they must have forgot that if all the high volume sellers start running to other sites to sell on then because ebay has no support for thier sellers then they will have lost a bulk of your lowest priced selling items on ebay thus pushing buyers to another venue.


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Full Member
customersplanet
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30 Jan 08 08:33:58 am
Hey! Cheer up Guys.

At least there are some good in this new structure. You are now able to access all fees on features when a buyer doesn't pay, and you close the Unpaid Item Dispute. Also, PowerSellers are now protected for the following:
1.Protection for any shipping address, not just a confirmed address
2.Unlimited annual coverage, not just $5,000 per year
3.Global coverage, extended to 190 countries around the world.

However, dropshippers may run into problems especially if you depend on the customers money to buy the product. If you do not qualify, you may be subjected to the Safe payment Option. What are the qualifications?
Go here for more details:
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Maybe we should sticky this for a while. I had a couple of people raving about the $0.20 saving until i show them the monster that awaited them in the end. Long live the dragon! :twisted:

Regards
Allan

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jimmy_huber
Posts: 2867
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30 Jan 08 12:24:46 pm


This in my eyes is not anything to rave about. The little loopholes that paypal uses to screw over sellers has not been shown in the new changes. Unconfirmed shipping addresses is only 1 if the excuses paypal used to weasel out of the seller protection policy. There is a whole page of unfulfillable things a seller still has to prove. Including signature delivery. Specific times a package must be shipped, delivered, blah blah blah the list goes on.

They are just baiting the hook and only telling you what they want you to hear. All the hidden surprises of course are not mentioned.


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Full Member
gulfy13
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30 Jan 08 07:14:59 pm
Not to mention that they boast of lowering the insertion fees a few cents, but if you noticed the final value fees were increased starting at the lowest level which used to be 5.25% and now that rate has been increased to 8.75%. And it goes higher from there...

Basically it looks just like a shell game. They try to think they are lowering fees, but they are increasing them overall...

Full Member
planes
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31 Jan 08 09:46:48 pm
I think eBay is concerned overall. At some point, a company reaches a saturation
of the market. There are only so many people who will buy from eBay. No offense, but lower income people don't buy from eBay. And people with money don't care-they will spend an extra 20 30 or 50 from a store. And enjoy the shopping experience.

Its the middle income people looking to save money for themselves and kids.

They say eBay draws over 2 million people a day. So what! They are in a market that has a billion people. Say 600 million have buying potential, subtracting the kids. So there are 600 million people buying stuff every day. They attract less than a half of a percent of the buying population.

Yes, thats a lot. But at some point saturation kicks in.

In my opinion, they are in trouble as far as growth is concerned.

So they are willing to take a risk to draw new traffic. And they have to keep the stockholders happy. So they increase fees to increase income.

This will probably go on until it doesn't work anymore and fee increases don't off-set loss of sellers anymore. Then they will have a firesale and lower fees.

Lets face it. If they had actual growth then fee increases wouldn't be necessary.

Free Member
jimmy_huber
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1 Feb 08 08:33:39 am
Im actually considering moving some auctions and trying out a new selling venue. Im actually looking at checking out Link hidden: Login to view

It looks as its growing fast in new members,Alot of ebay sellers are moving from ebay to them. Might be time to give another site a try.

Since the announcement ebays sellers are running for the door. They dont believe it but they are loosing sellers left and right and ebays community forums are exploding with mad sellers threatening to leave.

Looks like they screwed the pooch big this time

You will never see an end to ebay but you will start to see other auction companies and true competitors form when ebay makes mistakes that anger thier sellers.

After the announcement shares of eBay dropped 2.8 percent, or 75 cents to 26.12, on the Nasdaq stock market.


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Full Member
mvm
Posts: 296
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7 Feb 08 03:44:06 pm
Jimmy
Thank you for your suggestion of another site.

With the thousands of Salehoo members here that sell on ebay, we can really make a difference.

If we all agree to move auctions off ebay and onto one agreed upon auction site, we can hit ebay where it counts, and drive more traffic to a competitor auciton site that most likely really needs it.

Im on board (and we used to spend over $5000 a month listing on ebay - pulled auctions july 2007).

Lets see if we can make something happen, not just chat about it.

Tiffany
Mountain View Movies
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designerthriftshop
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7 Feb 08 05:04:55 pm
Great idea Tiffany. Ebid here we come!

Full Member
planes
Posts: 839
Joined: 19 Jul 07
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8 Feb 08 11:03:27 pm
I read an article about the fee changes and other auction sites are seeing record new sellers.

eBay said that their forums are pretty tame in regards to the responses to the fee changes.

Yea right!!!

It almost seems like eBay wants to get rid of the mom and pop sellers and concentrate on large companies. Maybe their thinking is a large company will provide a more controlled selling experience.

Maybe they are looking to change the blueprint of ebay to a more conventional
online retail store.

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