posted on January 3, 2007 03:49:02 PM
***A Message from Bill Cobb – eBay.com and eBay Motors Fee Adjustments***
January 03, 2007 | 03:00PM PST/PT
Hello everyone...An important part of any business strategy is a regular evaluation of our pricing structure. From time to time, we make pricing changes to correct unhealthy dynamics in the eBay marketplace, as was the case last July. Typically, however, we make changes on an annual basis at the beginning of the year.
Today, I'm here to tell you about fee adjustments for eBay.com and eBay Motors which go into effect on January 30, 2007.
Core Auction-Style and Fixed Price Listing Fees:
Insertion Fees
We're increasing the Insertion Fee for the $1.00 to $9.99 level from thirty-five cents to forty cents.
Final Value Fees
We're increasing the Final Value Fee for the $25.01 to $1,000.00 level from 3% to 3.25%.
Please note that there are no fee adjustments for eBay Stores or Store Inventory listings.
eBay Motors Fees
The Insertion Fees and Final Values Fees mentioned above will also apply to eBay Motors Parts & Accessories categories.
For eBay Motors Vehicles categories, we are making these adjustments:
The Transaction Services Fee for both Motorcycles and Powersports is increasing from $30.00 to $40.00.
The Transaction Services Fee for Cars & Trucks and all Other Vehicles & Trailers categories is increasing from $40.00 to $50.00.
The Motors Reserve Fee is changing from a flat $5.00 to 0.1% of the reserve price, with a minimum of $5.00 and a maximum of $10.00. (The Reserve Fee is refunded when bidding meets the reserve price.)
Let me say that, while we believe these changes are modest, we consider any changes that may impact our sellers with great care. These adjustments are the result of careful analysis, and we believe they're the right thing to do to keep the marketplace strong for our eBay.com and eBay Motors sellers.
To learn more about each of these changes, I invite you to read our Frequently Asked Questions and our eBay Fees Help page. (To learn more about Canada fee adjustments, please check the Announcement Board for eBay.ca.)
posted on January 3, 2007 04:53:48 PM
2 years ago, I would have hated this news. Today, I am mostly indifferent. I just ran the 2006 numbers. My online sales were three times higher in 2006 than they were in 2004. In 2004, auctions were 75% of my business. In 2006, I would estimate they were under 5% of my business. Ebay can increase its fees all they want, they don't get that much of my business anymore. They priced me out of their market. I've gone on and succeeded elsewhere!
posted on January 3, 2007 05:08:07 PM
I can't figure out what it is that Ebay is trying to do. For example, at this time last year there were approximately 35,000-40,000 listings. Right now there are approximately 9,000 listings. That is a huge decrease in listings. I noticed the drop with the last increase. I wonder how many more listings are going to disappear. In Ebay UK, there are normally 3,500-4,000 listings in my category, and as of today there are just under 900. I wonder how many other categories have dropped this much?
posted on January 3, 2007 05:25:21 PM
Diane, where did you find that information about the number of listings? Surely there are more than that!?
--------------
You can say any foolish thing to a dog, and the dog will give you a look that says,
'Wow, you're right! I never would've thought of that!'
- Dave Barry
posted on January 3, 2007 05:29:39 PM
I believe Diane is talking about listings in her category -- without a doubt since she mentions "fee increase" this was before the store fee hike. Nothing to do with an eBay auction fee hike that I can see?
posted on January 3, 2007 05:32:33 PM
Roady .... I keep track of the number of listings in my category (crochet patterns) each year. I don't understand how ebay can increasing the fees and losing sellers. It just doesn't make any sense to me. Of course, it's good news for those of us who have hung on -- less listings means less competition. However, I have also noticed that my auction closes in the last year have gone way down. I now have to work twice as hard just to make the same amount of money.
posted on January 3, 2007 05:47:05 PM
Re: A previous thread about effectiveness of the Gallery...This recent announcement helped me make up my mind...No more gallery...and that will save me $.35 a listing and, I suspect, will not impact sales one whit. Basic economic principle...when prices go up, pare down where you can.
posted on January 3, 2007 05:53:34 PM
Happy Feeuary, oops, I meant January. This is getting ridiculous. I agree, probably time to drop the gallery, got to save money somewhere.
posted on January 3, 2007 06:08:43 PM
Bill Cobb is full of $!#$^. I wish someone would wipe that stupid grin off his face. It's like he's saying "Aren't these fools great? They'll let us keep raising fee's, and won't do a thing about it... I wonder just how rich they can make me?" I just love his line about fixing the eBay dynamic... we made changes in July... but since we usualy do it on a yearly basis... we're going to go ahead and stick it to you again! (after just six months!)
Sorry for the vent... but I'm just sick of it. I am so glad that I've set up my own website. Ebay is obviously trying to clear out low-priced items. I don't understand how sellers of such items can rely on eBay. There's no trust anymore. Prices can change (by LARGE percentages) at any minute. Their latest change will give them anywhere between 9.5% - 45% of the selling price for items priced between $1.00-$9.99. Much more if you take Paypal. Sorry, but that's getting a bit greedy.
I am in agreement with eBayvet, though. I'm not going to worry about it to much. My time is better spend working on my own site. That's where the real money is. I'll use eBay for advertising and building up my customer base, but that's about all I expect from them anymore. There just isn't enough head-room to make a profit on eBay if you sell low-priced collectibles.
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posted on January 3, 2007 06:27:33 PM
I sold 2 items today without the gallery pic and got more hits than the ones with the gallery pics. I suspect some people are curious and think they are missing something and click on the listing. Considering the extra cost, I am not sure the gallery is worth it on cheaper items.
buyhigh
posted on January 3, 2007 07:04:28 PM
vintage paper ads,
i am kind of wondering why, if you dislike eBay (as do i!), you have an eBay prostore? i don't get it and am kind of curious. know one postcard dealer who went that route and he said it was like impaling himself on a sword. he dropped his prostore in a hurry and went to other venues.
posted on January 3, 2007 07:15:47 PM
Actually, I don't have a Prostore. I have a website business solution provided by Valueweb. They license the ProStores shopping cart technology from eBay, but provide all the support directly. The monthly fee is less than Prostores, the service is WAY better, AND there's no final value fees like Prostores has. The added benefit is I can list directly to eBay (which I've been doing strictly as a promotional measure) and have the eBay checkout redirected to the website.
Even so, I thought long and hard before choosing Valueweb. When I originally started looking at them, they were using Miva Merchant (an open-source shopping cart software), but they switched to Prostores right before I signed up. Am I thrilled that some of my website fees go to support eBay... no... but, at least I'm dealing with another company that presumably will try to provide the best product/service for their customer (ME) rather than eBay's theory of providing services for their customers, customers. (ever notice how bidders have it much better than sellers on eBay!).
All in all, I'm very happy with my ValueWeb experience. The entire website hosting costs me less than $550 a year... and their service is fantastic (FREE 24-7 phone support). It's a bit of a steep learning curve, but my real-time job is in a computer support field, and I have extensive Web Design, HTML programming, spreadsheet and database experience. I wouldn't say that Valueweb would work well for everyone... but it sure is a nice fit for me!
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posted on January 3, 2007 08:12:19 PM
Add $75 per month to my horrendous fees, on the other hand, maybe it will discourage sellers who buy at 50 cents, sell for $1.25 and figure they're way ahead.
posted on January 3, 2007 08:23:01 PM
ebay has become my venue of last resort. I only use them to sell items that won't move on Amazon or Craigslist or various other sites. My ebay activity has dropped 80% in a year.
posted on January 3, 2007 08:30:25 PM
"we make pricing changes to correct unhealthy dynamics in the eBay marketplace"
So does this mean that they finally figured out that EBay has been unhealthy for a while!
It sure needs a shot of something and I don't think that raising fees is about to do it.
Some of you have mentioned dropping Gallery...I have always been a strong Gallery user in fact I never list without it as all my items are different and I have liked to think that Gallery draws them in.
I am going to re-think that as maybe it is "unhealthy dynamics" for me to pay EBay for the Gallery Fee in my marketplace!
If I just had Gallery on half of my listings that would be a big saving. I am also Canadian so we have to add on the exchange so right now Gallery costs me 41 cents per listing.
[ edited by otteropp on Jan 3, 2007 08:31 PM ]
posted on January 3, 2007 09:04:53 PM
I do not use gallery in my auctions and have not done so for about 2 to 3 yrs. apart from saving a lot of monies, there is no difference in my sales.
i do use gallery on my bin articles for 1.cent a month.
posted on January 3, 2007 09:27:19 PM
I also have used gallery on all of my listings...until now. I figured some buyers liked to "window shop"...I started re-thinking that a few weeks ago and, from now on, probably won't use that feature any more..or only for extremely unusual items. I'm strictly a "small time/volume" consignment seller and, like "upriver", even a small increase impacts significantly on my profit margin.
posted on January 3, 2007 09:29:21 PM
Remember a few years back when dbest was telling us that we should only list on the FLD's or 10 cent listing days? And we all lambasted him for being such a leech. Looks like the mud is on our faces now.
It is becoming more clear everday that eBay doesn't want us and maybe we should take his advice.
I did very well on Yahoo this Christmas season and mostly with "left overs" or slow moving items, so I am considering it very much.
[ edited by ST0NEC0LD613 on Jan 3, 2007 09:32 PM ]
posted on January 3, 2007 09:36:12 PM
Here's a thought. Maybe it's time to go on the offesive. Everyone should send e-mails to every possible media outlet that they know about the fee increases. Maybe a lot of heat from the media will bring eBay to there senses.
posted on January 3, 2007 09:37:16 PM
the hilarious part about the "unhealthy dynamics" comment to me is, that was the same sort of doublespeak reason they gave when they "rebalanced" eBay last July after the evil stores "diluted the magic" of feeBay. so, let's see, stores were not good for eBay and hence fee increases. so now let's see, raising auction and FP prices because there are "unhealty dynamics." too many "core" (gawd, i hate that word!) listings now? not likely.
there just appears to be no rhyme or reason with these people. and no mention of what the nickel per listing will be used for. it seems unlikely that the money will be used to benefit us by let's say, upgrading those creaky servers or fixing search glitches or...well, you get the picture.
hey pelorus and others selling off eBay - i've been working on a magazine article regarding the changing face of eBay and the flight to other venues. if anyone wants to e'mail me privately at sales - at sign - vintagepostcards.org, i'd be interested to hear your experiences re: what's working for you and what's not. i'd be willing to try to plug you a little in the article if possible, but no guarantees due to editing further up the line in the publication process.
posted on January 4, 2007 05:29:13 AM
I just knew it was coming kinda like the plague. I use to make decent play money now I work for nothing it seems sells are down and now more fees. What is unhealthy is the greed ebay is suffering from.
************** I married my wife for her looks, but Not the one she gives me lately!
$$$$$$$$$$$$$ Check it out
posted on January 4, 2007 06:25:53 AM
I don't have a problem with the new fees. On average, my listings won't be affected.
Paying 35 cents to list something at $9.99 or less was never a good idea anyway. If you're only selling two out of ten $9.99 items, your fees will destroy the tiny profit. I suspect many of you aren't even getting that 20% sellthrough.
eBay is telling you, plain as the nose on your face, to suck it up, get a little courage, get off the pot and start such items at 99 cents.
This is consistent with their stated desire to keep the marketplace lively and interesting.
fLufF
--
Now appearing on eauctionair.com
The Internet's Most Informative Talk Radio Show
[ edited by fluffythewondercat on Jan 4, 2007 06:29 AM ]
posted on January 4, 2007 06:39:12 AM
I think the unhealthy dynamic that this jerk is talking about is the tons of money that they sunk into a failed eBay express. Their "improvements" are breaking their sellers. Well eBay how about cutting back on some of the deadwood you have laying around the office...like the idiot that came up with eBay express. A site that is not advertised (at least not in my area". Or how about the junk mailings on how to make a successfull business with their selling tips, which basically tells you to give your stuff away.
My sales have decreased steadily this year. I just restructured my pricing and have gone down in my overall pricing. Now I have to rethink that. They will get only one more month out of me. I will be looking for other venues.
I married my wife for her looks, but Not the one she gives me lately! 