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eBay Store Inventory Fees To Rise to $0.10 Per Item?
sadelb

10+ Year Member



 
Msg#: 3015394 posted 3:27 am on Jul 20, 2006 (gmt 0)

Anybody else get this email from Bill Cobb? Not to happy about it. They should at least have more exposure for store inventory items if they plan on raising it to $0.10. Plus this kind of came out of nowhere. Little dissapointed in ebay right now. Shipping prices will probably jump $2 or $3 higher because of this.

 

groove30

5+ Year Member



 
Msg#: 3015394 posted 4:37 pm on Jul 20, 2006 (gmt 0)

Yeah this sucks. They are increasing store inventory listing prices as well as the Final Sale fee. The final value fee is now 10% of the first 4.99.

Running a business on Ebay is so expensive and its getting more expensive.

ashear

10+ Year Member



 
Msg#: 3015394 posted 6:40 pm on Jul 20, 2006 (gmt 0)

I am curious, is it more expensive than running your own site and buying Google Ads to it?

eBay is the number 1 marketplace online, thus your visitor base is already there.

AffiliateDreamer

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3015394 posted 6:56 pm on Jul 20, 2006 (gmt 0)

listing feeds, final value fees, then paypal fees.

so for a $25.02 item that is:

listing: $1.2
final: 1.31
paypal 1.03

total: $3.53

or a little over 14% of the cost of the product.

New pricing model:

listing: $1.2 (did this go up?)
final: 2.50
paypal: 1.03

total: 4.73

or 18.9% of the cost of the product.

[edited by: AffiliateDreamer at 7:02 pm (utc) on July 20, 2006]

matimer

10+ Year Member



 
Msg#: 3015394 posted 7:05 pm on Jul 20, 2006 (gmt 0)

So anyone going to start using the other online market places or is ebay being smart to raise prices b/c they own such a tight grip on the market?

Auctions: bidville, yahoo, we-bidz, overnightauctions, livedeal
Haggling: uask, ioffer

trinorthlighting

WebmasterWorld Senior Member 5+ Year Member



 
Msg#: 3015394 posted 7:16 pm on Jul 20, 2006 (gmt 0)

I have reduced my ebay advertising by 75% as a result of this. With ebay/paypal making close to 20% of the total sale, it is just not worth it anymore.

venrooy

5+ Year Member



 
Msg#: 3015394 posted 7:27 pm on Jul 20, 2006 (gmt 0)

I make about 5xs as much using pay per click advertising and my own site, as I ever did on Ebay alone - And I was a Gold Power seller.

sun818

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3015394 posted 8:00 pm on Jul 20, 2006 (gmt 0)

I was hoping to transfer my eBay advertising budget over to AdWords & Overture, but I am seeing extremely depressing conversion rates on PPC. I'm using Ads Automator, but it seems like you really need compelling ad copy for conversion.

shigamoto

10+ Year Member



 
Msg#: 3015394 posted 9:11 pm on Jul 20, 2006 (gmt 0)

Thinking about moving over some of my inventory to other auction sites after the Cobb-mail yes. Yahoo and Amazon seems like resonable alternatives for me, however I haven't done much research yet. Anyone else thinking the same?

farmboy

WebmasterWorld Senior Member farmboy us a WebmasterWorld Top Contributor of All Time 5+ Year Member Top Contributors Of The Month



 
Msg#: 3015394 posted 10:09 pm on Jul 20, 2006 (gmt 0)

so for a $25.02 item that is:

listing: $1.2
final: 1.31
paypal 1.03

First of all, if the price point is $24.99, a wise person wouldn't list an item for $25.02, just 3 cents more, and incur a greater than 3 cents fee increase.

But that aside, where do you come up with a $1.20 listing fee? This new structure concerns store items and assuming someone did list something for $25.02, the listing/insertion fee would only be 10 cents. If the starting price was $24.99, it would only be 5 cents

And even if you listed something with a starting price of $25,000.02, the insertion fee is still just 10 cents under the new structure.

And that's for a 30-day listing with the option of an automatic relist. So considering the 10 cents insertion fee, let's suppose it doesn't sell in the first 30 days and gets renewed. It's still just another 10 cents.

At that rate, you could have your item listed for a full year for about $1.25. That's a bargain compared to putting it on your own website and paying to get traffic to that site and it's a huge bargain compared to having your item sit on the shelf of a retail store for a year.

As for the PayPal fee, you don't have to use PayPal. If the convenience of automatic billing and immediate access to your money isn't worth the fees charged by PayPal, then wait for people to send you checks and money orders.

No...wait...forget what I wrote above. The more sellers who leave eBay the less competition I have.

You're right! eBay is way too expensive. I think all you other sellers should leave now - as in stop reading this and go cancel all your current listings.

FarmBoy

ashear

10+ Year Member



 
Msg#: 3015394 posted 11:04 pm on Jul 20, 2006 (gmt 0)

Ah ha, simple math. Makes it easier.

You also have to consider as PPC rates go up, companies like eBay still have to pay those higher rates.

trinorthlighting

WebmasterWorld Senior Member 5+ Year Member



 
Msg#: 3015394 posted 11:51 pm on Jul 20, 2006 (gmt 0)

Its very expensive if you sell items over $1000.00

nippon

5+ Year Member



 
Msg#: 3015394 posted 1:16 am on Jul 21, 2006 (gmt 0)

<quote>"The marketplace has been overwhelmed with identical, often poorly-priced items that have diluted the magic of the eBay experience," she said. "This has resulted in fewer return visits, higher exit rates and fewer bids per listing. In turn, conversion rates and successful listings have declined and eBay's GMV growth has not been as strong as we would like."

To remedy this, she said, eBay will raise the profile of the auctions and raise prices for stores. That won't be popular.</>

from [theregister.co.uk...]

natural number

10+ Year Member



 
Msg#: 3015394 posted 6:10 am on Jul 21, 2006 (gmt 0)

I can't believe I'm actually saying this .... but I hope the higher entry fees exclude some of the more inefficient (duplicate) store listing and clean up eBay a little.

Hopefully Google wallet will lower paypal fees, as competition universally lowers prices and improves quality. (schmidt says wallet won't compete with paypal)

However, as far as paypal being a rip, I've always found them to be priced within my limits of toleration.

topr8

WebmasterWorld Senior Member topr8 us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3015394 posted 9:24 am on Jul 21, 2006 (gmt 0)

just for comparison do any of you guys know how much a bricks and mortar auction house charges?

normally 15% seller fee on the hammer price plus a 15% buyer fee on the hammer price:

thus an item hammer price of $500

the seller gets: $425

the buyer pays: $575

this by my calculation means the auction house creams 26% of the final price.

on top of this are possible extra fees for:
illustrations in a catalogue (for the seller)
storage fees for the buyer
unsold fees (for a seller who's item didn't sell)
minimum fees for low priced items

i do realise it is different plus ebay is full of cheap items, but this is how auction houses work.

for me i think the killer on ebay is the listing fee (if you don't sell) i think there are a lot of ebayers who don't make much money after all the time and fees - of course there are many making huge amounts just like anywhere else.

PCInk

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3015394 posted 2:57 pm on Jul 21, 2006 (gmt 0)

And they are rising the final value fees to 10% in the UK as well. From August 21st.

In the UK on August 21st, due to Royal Mail price increases, shop sellers can look forward to not only a rise on eBay, but also any item over 25mm thick will now cost 1.00 (minimum) to send through the Royal Mail First Class system instead of the old rate which started at 0.32.

eBay may become on of the most expensive places to shop.

[edited by: PCInk at 2:58 pm (utc) on July 21, 2006]

farmboy

WebmasterWorld Senior Member farmboy us a WebmasterWorld Top Contributor of All Time 5+ Year Member Top Contributors Of The Month



 
Msg#: 3015394 posted 9:47 pm on Jul 21, 2006 (gmt 0)

Hopefully Google wallet will lower paypal fees, as competition universally lowers prices and improves quality.

eBay has prohibited payments via Google, so the only competition for PayPal from Google is for non-ebay purchases where the seller makes both available.

FarmBoy

uhzoomzip

5+ Year Member



 
Msg#: 3015394 posted 4:08 am on Jul 22, 2006 (gmt 0)

I personally feel that my money is better invested in my own site because I have control. I feel that anyone basing their business model solely on ebay is subject to the whims of ebay and therefore making a big mistake. If ebay decides to raise their prices you are at their mercy. I say sellers who base their incomes on ebay alone need to definitely create options for themselves.

Much better off investing in your own site where if sales are not converting you can fix the problem or pay someone else to do it and not have to rely on the whims of some mega company that puts their bottom line first and leaves you in some other lower position.

Ebay certainly has it's place and I have been selling on ebay since 1998 but imho it should not be at the top of anyone's business plan.

Essex_boy

WebmasterWorld Senior Member essex_boy us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 3015394 posted 6:21 pm on Jul 23, 2006 (gmt 0)

I just listed several items this past month, 3 years ago I used to sel repro painting on teh site and get 125 viewings in a week.

Ive been averaging 45, one aprticular painting could sell for around 80, currently over the last 3 weeks ive sold Nil.

Listed a Victorian mahogany wine table, reserve of 80 listing cost me 3.50 before final value fees etc.

Getting a bit pricey and an unreliable way to sell online.

natural number

10+ Year Member



 
Msg#: 3015394 posted 2:54 am on Jul 24, 2006 (gmt 0)

Investing primarily on ebay has it's risks, but it has it's benefit too. eBay does great marketing for itself, and it does have critical mass in the auction market. i will always probably include ebay in my business model.

seofeed

5+ Year Member



 
Msg#: 3015394 posted 12:50 pm on Jul 28, 2006 (gmt 0)

eBay is good for two things. Generating traffic and leads. The latter is a bit tricky but within the terms of service. All you really get with eBay is exposure anyway. Their rates have gone up year after year since like '97. Wouldn't it be nice if they just held off for one year?

wmuser

WebmasterWorld Senior Member 5+ Year Member



 
Msg#: 3015394 posted 3:12 pm on Jul 28, 2006 (gmt 0)

I hope that people will start using other market places as monopoly is never good,almost everyone are selling stuff on Ebay and only there

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