Ebay plans to cut seller fees
bidask
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SAN FRANCISCO, Jan 23 (Reuters) - The world's largest
online auction site, eBay Inc EBAY, plans to cut the fees
it charges sellers on its auction site, according to a
presentation of the company's quarterly results on Wednesday.
Responding to complaints by its key network of auction
sellers, eBay will reduce the upfront fees sellers must pay to
insert new listings on its auction sites along with reductions
in the final transaction fees they pay on successful sales.
"We are going to make breaks from the past," John Donahoe,
the newly named chief executive to be, told investors on a
conference call to discuss eBay's 2007 year-end results.
Over the next week, eBay will announce changes in pricing
of its services and improvements in the way buyers can rate
sellers, Donahoe said.
"We are going to get very aggressive about making eBay
easier to use," said Donahoe, who will formally take the reins
from long-serving CEO Meg Whitman at the end of March.
(Reporting by Eric Auchard, with additional reporting by
Michele Gershberg in New York; Editing by Braden Reddall)
((E-mail: eric.auchard@reuters.com))
y or sell on ebay but caught this news:
online auction site, eBay Inc EBAY, plans to cut the fees
it charges sellers on its auction site, according to a
presentation of the company's quarterly results on Wednesday.
Responding to complaints by its key network of auction
sellers, eBay will reduce the upfront fees sellers must pay to
insert new listings on its auction sites along with reductions
in the final transaction fees they pay on successful sales.
"We are going to make breaks from the past," John Donahoe,
the newly named chief executive to be, told investors on a
conference call to discuss eBay's 2007 year-end results.
Over the next week, eBay will announce changes in pricing
of its services and improvements in the way buyers can rate
sellers, Donahoe said.
"We are going to get very aggressive about making eBay
easier to use," said Donahoe, who will formally take the reins
from long-serving CEO Meg Whitman at the end of March.
(Reporting by Eric Auchard, with additional reporting by
Michele Gershberg in New York; Editing by Braden Reddall)
((E-mail: eric.auchard@reuters.com))
y or sell on ebay but caught this news:
I manage money. I earn money. I save money .
I give away money. I collect money.
I don’t love money . I do love the Lord God.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
0
Comments
<< <i>eBay will reduce the upfront fees sellers must pay to
insert new listings >>
Don't care.
<< <i>along with reductions
in the final transaction fees >>
Do care.
Russ, NCNE
I DO care about ANY reduced fees.
<< <i>
<< <i>eBay will reduce the upfront fees sellers must pay to
insert new listings >>
Don't care.
<< <i>along with reductions
in the final transaction fees >>
Do care.
Russ, NCNE >>
Russ, NCNE
SAN FRANCISCO (Dow Jones)--EBay Inc.'s (EBAY) chief financial officer said
Wednesday that the Internet auctioneer's take-rate would drop "modestly" in
2008 due to changes the company plans to make in the way it charges sellers for
listing items on the company's e-commerce platform.
Speaking on a conference call following the release of the company's fourth
quarter results, Bob Swain said eBay would next week provide details of the
company plan to reduce the upfront fees it charges sellers to list items and to
raise the final value fee charged when an item is sold.
Some analysts have worried that such a shift in the fee structure would reduce
the company's cut from transactions, known as eBay's take-rate, ultimately
affecting revenue and earnings.
Swain said the shift, which will apply to fixed-price and auction
transactions, will deliver to sellers the best e-commerce economics on the
Internet.
The company earlier on Wednesday posted better-than-expected fourth-quarter
results, but issued first-quarter guidance that fell below Wall Street
forecasts.
EBay executives told analysts that their guidance, which disappointed
investors, reflected the company's conservative outlook and took into account
concerns about a broader slowdown in consumer spending.
I give away money. I collect money.
I don’t love money . I do love the Lord God.
<< <i>SAN FRANCISCO, Jan 23 (Reuters) - The world's largest
online auction site, eBay Inc EBAY, plans to cut the fees
it charges sellers on its auction site, according to a
presentation of the company's quarterly results on Wednesday.
Responding to complaints by its key network of auction
sellers, eBay will reduce the upfront fees sellers must pay to
insert new listings on its auction sites along with reductions
in the final transaction fees they pay on successful sales.
"We are going to make breaks from the past," John Donahoe,
the newly named chief executive to be, told investors on a
conference call to discuss eBay's 2007 year-end results.
Over the next week, eBay will announce changes in pricing
of its services and improvements in the way buyers can rate
sellers, Donahoe said.
"We are going to get very aggressive about making eBay
easier to use," said Donahoe, who will formally take the reins
from long-serving CEO Meg Whitman at the end of March.
(Reporting by Eric Auchard, with additional reporting by
Michele Gershberg in New York; Editing by Braden Reddall)
((E-mail: eric.auchard@reuters.com))
y or sell on ebay but caught this news: >>
EBay CEO Whitman to step down March 31
By Amanda Fehd, Associated Press Writer | January 23, 2008
SAN FRANCISCO --Meg Whitman will soon step down as chief executive of eBay Inc., the online auction company that went from wobbly startup to multibillion-dollar household name in her 10-year tenure.
Whitman, 51, had been reported to be plotting the move and handing the job to John Donahoe, 47, who has been heading eBay's core auction and e-commerce businesses. She confirmed her March 31 departure as eBay reported fourth-quarter earnings Wednesday.
Whitman will remain on eBay's board of directors....
...Donahoe pledged to upgrade the site and to revamp its fee structure. Though details are to come later, he indicated that eBay would lower the fees that people pay to list something for sale but raise eBay's commission on successful sales.
That's a move analyst Derek Brown of Cantor Fitzgerald said will be eBay's "wild card" going forward, placing pressure on the site to turn any increase in listings into actual sales transactions.
"(The fee structure change) in itself has the potential to change the face of eBay," Brown said.
A bit of a contradiction between Reuters and the AP.
Oh yeah, if the AP story is correct, sorry Russ.
PCGS, ANACS, & NGC Certified Coins on My Website.
<< <i>Though details are to come later, he indicated that eBay would lower the fees that people pay to list something for sale but raise eBay's commission on successful sales. >>
That sounds a lot more like the eBay we all know.
Russ, NCNE
-Fuzz
<< <i>sounds to me like its just going to become one big store front, with less auction atmosphere. >>
They are/have been changing their business model to accommodate for what they think will be an enhanced buyer experience. The latest changes, the new search and the new layout is trying to make it a "storefront" type sale. I don't quite get it, but they think that's what people want. I personally opted out of both the new search and layouts as soon as they changed them.
-Paul
-Paul
<< <i>Though details are to come later, he indicated that eBay would lower the fees that people pay to list something for sale but raise eBay's commission on successful sales. >>
Like 10% for a store front ain't enough??
I guess their philosophy will be to get more people to list and if it doesn't sell it won;t cost as much.
Unless you start it at .99 then its time to break out the rubber hoses!
The name is LEE!
Now will they reduce the paypal fees.
NSDR - Life Member
SSDC - Life Member
ANA - Pay As I Go Member
<< <i>Someone managed to cop this frame from the powerpoint presentation at the press meeting yesterday
I hope they stick to this model
Lowering insertion fees would help in one area; very low price items, but they would also need to lower PayPal fees on this type of material to revive this now dead sector of their business.
If they cut listing fees its to get more listings and more final fees where the real money is...........
New boss says they will be pushing for more fixed prices which IMO is a mistake.
Too many 'auctions' are already not true auctions but rather simply lists of stuff for sale with high Buy it Now prices.
I recently was looking at some Platinum coins and 90% were not auctions but Buy it Now offerings.
Interesting, that would be a 180 degree departure from Meg Whitman's initiative to go back to Ebay's roots as an auction site.
I'm sure that somehow it is going to cost sellers more money in the end.
<< <i>eBay will reduce the upfront fees sellers must pay to
insert new listings >>
Do care. I would think anyone would prefer to pay less to list a coin on eBay (this could even affect the .99 cent listers, if eBay decides to make gallery/bold/10 day/scheduled listing fees cheaper).
<< <i>along with reductions
in the final transaction fees >>
Do care.
Great news - hope it actually happens!
<< <i>Too many 'auctions' are already not true auctions but rather simply lists of stuff for sale with high Buy it Now prices. >>
I see the "True Auction" phrase a lot on these boards and the reality of the situation is that nothing on EBay is even close to a true auction!
Since bidders can jump in at the last minute or seconds with their snipes instead of "heads up" bidding, as in a "true" auction, prices often get reduced dramatically. I could submit a $5,000 bid on an item that only has $5.00 bid on it and if nobody else bids, then the item sells for $5.50. If someone else throws in a $6.00 bid, then the item sells for $6.50. In a "true auction" my $5,000 would be my actual bid!
Regardless of how items are listed on EBay (no reserve auction, reserved auction, high starting price auction, or BIN) its nothing more than an online "flea market" with a percentage of the listing and selling proceeds going back to the proprietor (EBAY).
The name is LEE!
Sniping is a GOOD thing for everyone concerned.
1/2 Cents
U.S. Revenue Stamps
<< <i>I caught part of the interview on TV, the new guy said he was going to put emphasis on the Fixed price listings... sounds to me like its just going to become one big store front, with less auction atmosphere. >>
The auction atmosphere is pretty much dried up anyway. Bidders won't bid on auctions with reserves and sellers won't list quality rare coins without them.
The exception, for some reason, is generic gold. Sniping seems to be less prevalent here and most times a realistic price more in tune with today's market is reached with days to go before the end of auction.
Moderns also seem to do ok with no reserve.
Most sellers (including myself) have just quit listing real quality coins of rarity or price as no reserve auctions.
With everyone holding back until the last few seconds the risk is just too great to lose serious money.
In non sniping venues like the major auctions where reserves are acceptable to most bidders and the coin is "alive" until the hammer falls, a much better return can be expected for really desirable coins.
Dave W
David J Weygant Rare Coins website: www.djwcoin.com
From a buyer's perspective, it was not as good then as it is now. In the old days, selection was limited, final value prices were higher, there was more risk involved (no 'protection'), no online payment (through eBay, anyway), etc. And yet -- assuming you can weed out the con artists and over-priced junk -- deals abound on eBay these days. Selection is great -- and there is more stuff for sale than buyers willing to bid. This is great for buyers -- but not so great for both sellers and eBay. Unless you have a really hot item, you can lose your shirt on a 99 cent auction these days. That is probably why the 'Buy it Now' and higher listing prices are the trend today. Plus, ebay has shifted to making a lot more money up front, both with higher fees and more ways to 'promote your item'. So today, about the only way to make a buck on eBay is to have overpriced junk and just keep relisting it until it sells.
SO - lowering the fees is great and overdue. An auction should make most of its money at the point of sale, anyway. But even more important than this, eBay needs to figure out how to get more bidders into the game. With a better balance between buyers and sellers, the 'true auction' could become a reality again.
KR
<< <i>Heh. I guess it's all a matter of perception. I've always felt that sniping drives UP prices, because people realize that it's their only shot. If they're outbid, there's not enough time to bid again, so they make the bid count. If anything, bidding early drives people away.
Sniping is a GOOD thing for everyone concerned. >>
Well then, Why do you have your coins listed in your ebay store instead of just listing them at ebay auction no reserve.?
If sniping is so great for everyone concerned wouldn't you be much better off getting all your coins sold within 10 days or less?
I'm sure if you believe your own argument that you would be quite comfortable listing your best coins and with 1 hour to go see your $5000 coin with 3 bids the highest being $117.77. No sweat, Right?
Surely you're confident that some last second sniper will bid what the coin is really worth.
Ebay is the only venue where sniping exists and ebay has become a place where you will see no real quality or rare coins listed at no reserve. This is not just an opinion. This is a fact.
Just think how nice it would be if ebay were like all the other auctions. Internet and live.
Think about being able to participate in bidding on great rarities just like you do at a Heritage auction.
Think about being able to list your best coins with the confidence that they will be fairly exposed to the bidding public and the fact that bidders will be able to see the price they have to beat and either bid or pass.
As long as ebay encourages auctions with a time constraint factor thus encouraging what is in effect "sealed bids only" there will be snipers. And sellers with high quality and expensive coins will seek other selling venues to protect themselves from those whose first and foremost mission is to rip coins for flipping.
A great improvement for all concerned would be for ebay to structure their auctions like other internet auctions that keep a coin in play until at least a few minutes after the last bid.
I'm sure that the snipers would hate that when they are bidding but would really appreciate it when they were selling. I would call it shark repellent. Dave W
David J Weygant Rare Coins website: www.djwcoin.com
<< <i>I do not thin Ebay has any competition when it comes to coins and even then they cant find their ass with both hands and a flashlight
VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV
<< <i>...A great improvement for all concerned would be for ebay to structure their auctions like other internet auctions that keep a coin in play until at least a few minutes after the last bid. I'm sure that the snipers would hate that when they are bidding but would really appreciate it when they were selling. I would call it shark repellent. Dave W >>
I had not thought of that, but it would be a great improvement. Ebay lists things by close date (by defaut) and I often come across something I like that will end faster than I can get a bid in. Just from me alone, eBay has probably lost 1000 bids for items that end between the "place bid" and "Confirm Bid". That is probably why they added 1 click bidding. But back to your point, there is no law that says eBay has to be so ridged when it comes to the end of an auction. Adding an undisclosed and varied length grace period after an auction would at least give you a chance to win back an item that was snipped away at the last minute.
The biggest problem I have with ebay is not sniping, though -- it is the 'creapers' out there that just keep bidding in small increments until they've figured out what you have bid. Sometimes they even retract their bids to cover their tracks. I don't know how many times I've lost by just one bid increment. This is the stuff that encourages sniping in the first place. Perhaps eBay should add a true 'sealed bid' format - allowing only one "max I'm willing to pay" bid per member per auction. Bidders would see nothing in terms of bid amounts until the auction ends. Sellers on the other hand, should have access to the bids amounts and could end the auction at any time and sell to the highest bidder. Such a format would encourage bidders to bid what an item is worth to them and sniping would go away. Plus, I've always thought that a seller should have the right to a hidden reserve. If used responsibly, it would not discourage bidders and would protect sellers from having to give an item away if there happened to be no interest during a particular auction period.
KR
Item not sold No fee No change
$0.01-$25.00 5.25% of the closing value 8.75% of the closing value
$25.01 - $1,000.00 5.25% of the initial $25.00, 8.75% of the initial $25.00, plus 3.50% of the remaining
plus 3.25% of the remaining closing value balance ($25.01 to $1,000.00) closing value balance ($25.01 to $1,000.00)
Over $1,000.01 5.25% of the initial $25.00, plus 3.25% 8.75% of the initial $25.00, plus 3.50% of the initial $25.00 - $1,000.00 plus 1.50% of the remaining closing value balance ($1,000.01 - closing value)
of the initial $25.00 - $1,000.00 plus 1.50% of the remaining
closing value balance ($1,000.01 - closing value)
So the reduction they are claiming for having a 4.8 or better raiting across the board means you only have a 45% fee increase.. Gee thanks
Let's see. If I list an item for $.01 and it sells for $20, I pay 20 cents for insertion plus $1.75 for the FVF. That's $1.95 so far.
If the buyer uses PayPal, there's another 88 cents in fees. Total pound of flesh = $2.83 for a $20 sale. That's more than a 14% cut!
[Edit to add: Oh, how nice. The insertion fee is 5 cents less. So their take is $2.78, not $2.83. And really, I think they should jack up insertion fees and CUT the FVF because a low insertion fee encourages a lot of high fixed price garbage. Of course, they are doing it backwards.]
~n