posted on March 2, 2001 11:16:03 AM new
Here is an interesting article about the present break-even analysis of online auctions, based in the present and proposed fee structures.
posted on March 2, 2001 01:12:19 PM new
I don't understand how you are calculating these fees. For example, on the first row, the closing price is $1.03, and the analysis says that eBay fees will be .99 and AW fees will be .27.
Unless I'm missing something, it takes a sale of $10+ to rack up .99 in Ebay fees.
posted on March 2, 2001 02:05:54 PM new
Hi amalgamated2000:
I don't understand how you are calculating these fees. For example, on the first row, the closing price is $1.03, and the analysis says that eBay fees will be .99 and AW fees will be .22.
The reason why the closing price is $1.03 is because on our category, 7.7% of the time we get two or more bids, with the bid increment of $0.25, that translates to $0.03. Therefore, making the closing price $1.03 on the average.
Our Sell Thru Rate is 24.3%, that means that on the average, we would have to list that item 4.12 before we sell it. You get a free relist at eBay, therefore you need to paid for 3.12 listings @ $0.30 each or $0.93. The FVF is $0.05 for a total of $0.98 to eBay. Because of the decimals there is another penny fee on the Spread Sheet.
The fee to AW is calculated the same way, since there is no free relist, you need to pay for 4.12 listings or $0.21 and the 1% FVF would be $0.01, for a total of $0.22.
Unless I'm missing something, it takes a sale of $10+ to rack up .99 in Ebay fees.
That is correct, if you sell your listings a 100% of the time, and there is no need to relist. That means you have a 100% Sale Thru Rate.
Those were excellent question, unfortunate the Spread Sheet is very wide and I had to collapse it to make it fit on the page.
If anyone would like a copy of the Spread sheet email at [email protected].
