posted on March 13, 2001 04:14:04 PM
Makes you want to go back to the Brick and Mortar antique Malls, At least NOT everyone wants a cut and YOU dont have to wait in line at the PO , hunt Noodles and shipping supplies, And Bicker over shipping charges , Fill out forms for NPB, Pay PAYPAl, Deal with Lost or Damaged Merchandise, Buyers Remorse, Incorrect Descriptions, ( their opinions) Complaints for packaging AND THEIR FAT WAIST, because the CLothe do Not fit a size 12 body in a size 4 suit, AND THE FOREVER Bad Checks.
posted on March 13, 2001 04:48:25 PM
eBay picked a very bad time to raise their prices.I collect and sell paper (photos etc.)I had just decided to thin out my collection and had just bought a huge box of papers from a family that never threw anything away.Between the stuff I bought and the stuff from my collection we are talking about over a thousand items that I had planed to put on eBay.When the prices went up I decided I would try putting the higher priced items in my mall space and things flew out the door as fast as I could put them in.I also decided I would never pay extra for ten day auctions so the things I put on eBay were all seven days,I thought it might hurt sales but I was wrong,seven day auctions seem to bring the same prices as ten day auctions.Because I list less than I did before and don't use any of eBay's sepcial"services" anymore my eBay bill is about half of what it was before they raised their prices.Thanks eBay!
posted on March 13, 2001 09:26:41 PM
You know what's really strange? There were three other threads earlier this evening about the new AW fees and the moderator shut them down as not being related to eBay. Not only was the thread locked, 17 of the 24 posts were deleted! When another thread started asking about the deletions that thread was locked. Then the third was locked. I guess this thread is ok though as it is about everyone elses fees in general and not just about the AW fees. After looking over many other threads this evening, many do not have anything to do with eBay but they just continue to roll on. I'm not complaining about locking the threads...no big deal. But to delete only some of the posts....that's uncalled for. Pathetic.
posted on March 13, 2001 10:03:05 PM
My eBay bill is about 1/4 of what it was last year and my on-line sales are about the same (I list most of items elsewhere). I don't use PayPal or any on-line payment service and I've never used a third party service for hosting images or launching or managing auctions. The only fee increase affecting me this year has been the postal rate increase - it now costs me on average 10 cents more to ship my paper items.
You have more control on how much you pay in fees than you think you do.
posted on March 13, 2001 11:07:48 PM
I agree with stockticker.
In the next month I'm:
- going to have a yardsale and dump all my low end stuff.
- put middle range stuff, or heavy items in a consignment shop that I've done very well in.
The rest of the year:
-concentrate on high-end, low-weight items (or items so high end that shipping isn't much of a factor)
While not a fan, I still find value in and use Paypal, and will continue to until they s*rew me. So, Paypal and eBay are the only fees I pay.
But the answer to your question is: No it won't stop. Don't forget also - if you're on the left coast, your electricity to use your computer probably went up also.
posted on March 14, 2001 04:45:47 AM
My point of reference is on-line auction selling vs. retail store selling. I am not as bent out of shape over being nickled and dimed as some, but maybe that is because....
I no longer have to pay $30,000 a year in rent for 670 square feet of space (and 1 year after I closed my shop, the new landlord wants $50,000 for the space!)
I no longer have to deal with the twice yearly puddles of water, or worse, on the floor (it was a below grade space in a low lying area).
I don't have the hassle of trying to find and keep employees to help and all the taxes, stealing and lack of motivation that go with hired help.
I no longer have to pay $40 a month for my credit card terminal, the $10 a month statement fee, the 1.5% surcharge on manually entered cards and international cards, the .20 daily transaction fee with or without any sales.
I don't have to spend 60 hours a week stuck in one place waiting for customers during the slow time. I found myself spending most of the off-time dusting, cleaning, picking up after children and their parents, rearranging displays, answering stupid questions and generally wasting my life away....
I cut $20,000 a year in advertising costs, town licenses, excise taxes on inventory, inspections, recharging fire extinguishers, onorous banking charges, special halogen bulbs, sprinkler system inspections, common area charges, well you get the idea.
I had to sell $250,000 a year in merchandise to net a $25,000 income. Now $60,000 in gross auction site sales earns me the same.
This is 1/5 the work for me, so I am happy to pay any fee that makes my life more manageable.
Before I felt I was working for the landlord, but at last I feel I am working for myself.
And I don't lay awake at night worrying about the many problems involved in running a shop.
Sure, there are still plenty of problems, and I don't make money on every transaction, but the contrast with the past is startling.
[ edited by litlux on Mar 14, 2001 04:51 AM ] to correct typos and syntax
[ edited by litlux on Mar 14, 2001 05:01 AM ]
posted on March 14, 2001 05:19:08 AM
I don't think the fees will ever end. People are out there to make money and AuctionWatch only has to make a buck too. With venture capital drying up left and right, I don't think they had any other choice. Sadly for us, it had to be done.
Lots of great stuff at http://www.auctionideas.com
posted on March 14, 2001 05:21:20 AM
The last post is so true...
We operated several booths in nice antique malls.
Thought we were doing well. Nice check at the end of the month.
Our accountant advised that in order to make a profit simply meeting the rent was not enough.
Reality was 3x cost. For instance; item cost $10. Sell for $30. He outlined the actual costs of time, $ amount of inventory in booth, and length of time it sat in the booth. Plus, of course, gas to auctions, etc.
We've also owned and operated brick and mortar - fees + fees + more fees...everywhere for everything...
No. eBay is less stress, better return on the $.
Although, I encourage everyone to go out and operate a store front. Great experience - especially if you enjoy stress.
posted on March 14, 2001 07:05:18 AM
3x is a good rule. Someone told me this about 25 years ago and I though he was an idiot. I had just graduated from college, and I didn't see how such a simple rule could be true for different kinds of business. But it is a very good rule most of the time. But I am glad car dealers don't use it, at least not for new cars.
Also I think that it is good that many ofr the fee's are performance related. i.e. If and only if an item sells do you then pay some of these fee's. There is less risk for you that way. I don't know if any Antique malls offer reduced rent in exchange for a % of the gross.
posted on March 14, 2001 07:12:46 AM
litlux: your note about your real-world experience of online vs offline selling is very interesting.
Would you mind if we quoted it when B&M customers are on the fence about whether to try selling online? We would attribute it to you however you like of course.
posted on March 14, 2001 07:32:36 AM
Hi Unknown...
we learned the mall experience the hard way.
Like any business, there are fees or time required.
Before leasing a booth, we now insist upon a daily and weekly traffic count; $gross dollars per month for last three months; and close review of what is being sold in the mall.
If the mall owner won't provide that info - something is wrong. If they are a good mall, they should be proud of their numbers and highlight them to get more booths rented.
Most have the space rental and take a percentage - plus may require some time from the booth holder to monitor or help out.
We avoid malls with questionable collectibles - ie beanies, etc.
Period furniture and good collectibles.
Security is a must...we ask for it to be demonstrated.
posted on March 14, 2001 08:48:31 AMAnd you wonder why the dot com's are failing?
The failing dot-com phenomenom is indeed strongly associated with fees.
Thousands of dot-com's, AW a prime example, started with a model that says "build traffic with a free service, then figure out how to make money from it".
That 2nd phase is turning out to be a bear. Indeed, the fees we see today are not the end. eBay itself remains an unrealized golden goose in its owners' plans, making $1000 for each $1 they make today. PayPal remains grossly unprofitable, unprofitable beyond the comprehension of most of us. AW has now shown its plan to become profitable, and has met the intense psychological barrier of converting what once was free into a substantial cost item.
What is clear however is that there is unlikely to be an infinite supply of free services willing to compete with the fee services. There is little money these days going into starting up new free services.
posted on March 14, 2001 09:19:51 AM
Most free services do try to at least cover some costs by earning advertising revenue. The problem is, with the economy failing, advertising budgets are the first to be cut. Yahoo is a prime example if this - 90% of its revenues last year was from advertising. Last week the company announced that it's first quarter earnings will be well below street expectations and that the CEO is being replaced.
posted on March 14, 2001 10:25:17 AM
There's not much to be done about fee increases except to shop around and find places that offer the best fees and value for their service.
