Fee-bay is at it again - an analysis of new fee structure!

Ichiro51fan

Well, I just saw the announcement of the new ebay fee structure in my ebay inbox. Of course, they word it in such a way that it actually appears on the surface as though we're all going to be saving money due to reduced fees. Of course, I really knew better than that, so I read further and saw that while some fees are being reduced, others are being jacked up (what a surprise)!

I wanted to see how this would all shake out and how it would relate to me... being a mid-range, low-volume, part-time seller. I start almost all of my auctions at .99 cents and most end up selling for between $15-$50. I almost always use gallery pics, so I originally thought the changes might actually benefit me. Couldn't have been more wrong... and here's why.

Assuming my regular auction parameters, the break-even point for the new fee structure is about $11.50. Anything going for less than that will result in slightly less fees, but anything over that and you'll be paying more.

For a $20 item (final value): old fees = $1.60, new fees = $1.90... a .30 cent (19% increase)
For a $50 item (final value): old fees = $2.68, new fees = $3.21... a .54 cent (20% increase)
For a $100 item (final value): old fees = $4.30, new fees = $4.96... a .66 cent (15% increase)
For a $500 item (final value): old fees = $17.30, new fees = $18.96... a $1.66 (10% increase)

So, as you can see, the biggest hit will be to those selling in the $20-$100 range, then phasing out a bit (% wise) the higher you go. This is mainly due to the up to $25 FVF's being jacked up from 5.25% to 8.75% (a whopping 67% increase)! At least the mid-level ($25.01 to $1,000) is only going up from 3.25% to 3.5%, but that small consollation, considering we'll be paying .50 cents more for the first $25 of every item we sell. For expensive items over $1,000, there's not a major impact % wise as those fees stayed flat at 1.5%.

Unfortunately for me, and probably many others in the card-selling market, this is going to impact us to a high degree. I really, really despise the way ebay is trying to disguise this fee increase. I think it's fine to call out the reductions, but it would be nice to see some honesty from them in regards to the totals fees actually going up for almost everyone. And btw, I thought their fees were already on the high side. But, they essentially have a monopoly going, so I guess they figure they will keep pushing the fee envelope and see what gives. Man, maybe I should buy some ebay stock to try and offset some of my new selling fees.

Estil

You know something? I wonder if there should be a trading cards only version of Ebay.

sagard

The only thing that would have helped is a significant reduction in listing fees. I know people don't like dump day, but that is the only time I prefer to sell.

Ichiro51fan

yeah, I'm with you on that... that whopping 5 cent cut isn't going to make a dent in the extra final value fees for $25 and under!

tedh111

I will be saving about 5% with thew new fees. The savings could possibley be more or less depending on how many items i list in my store and how many of them sell.

clydecoolidge

<< <i>You know something? I wonder if there should be a trading cards only version of Ebay. >>



NAXCOM?

And to the OP: Not to mention the money paypal takes.