Facts about eBay's new fee structure (not bashing)

halfcentman

TO WHOM IT MAY CONCERN:

Under the new fee structure for auctions which start $0.99 and under, eBay is charging 9% of the hammer with a cap of $50.00.

Under the current fee structure of 8.75% on the first $25.00, 3.5% on the next $975.00, and 1.5% on all monies over $1,000.00, you would incur a $50.00 final value fee on an item valued at $1,912.00.

As an eBay Powerseller, I felt it it's important to let everyone know what the facts are, nothing more and nothing less.

Greg
eBay ID: gynandroidhead

notwilight

That is part of the facts. Under the new fee structure at what price will you hit $50 in FVF? $550 or so?

halfcentman

$555.55 under the new system. You take $50.00 and divide it by 0.09.

seemyauction

at least they are making it easy to calculate the fees.....

halfcentman

eBay also has a policy where they give you "zero insertion fees" for the first five auctions of a period in a month (I believe it is based on your join date, but do not hold me to that).

In any event, they charge you 8.75% of the hammer with a maximum of $19.99. For this, you could list a coin under $25.00 or over $550.00. You could also circumvent it by using Turbolister.

Greg

MsMorrisine

<< <i>at least they are making it easy to calculate the fees..... >>



From the announcements web page:

Great news ...

•Either way, pay one easy Final Value Fee of 9% of the winning bid—and never more than $50—pay only if your item sells.




an "easy" FV Fee calculation is not a major concern of their sellers base.

Classof67

<< <i>eBay also has a policy where they give you "zero insertion fees" for the first five auctions of a period in a month (I believe it is based on your join date, but do not hold me to that).

In any event, they charge you 8.75% of the hammer with a maximum of $19.99. For this, you could list a coin under $25.00 or over $550.00. You could also circumvent it by using Turbolister.

Greg >>



That goes away when the new structure hits.

Wolf359

<< <i>TO WHOM IT MAY CONCERN:

Under the new fee structure for auctions which start $0.99 and under, eBay is charging 9% of the hammer with a cap of $50.00.

Under the current fee structure of 8.75% on the first $25.00, 3.5% on the next $975.00, and 1.5% on all monies over $1,000.00, you would incur a $50.00 final value fee on an item valued at $1,912.00.

As an eBay Powerseller, I felt it it's important to let everyone know what the facts are, nothing more and nothing less.

Greg
eBay ID: gynandroidhead >>



So an item starts at .99 cents, closes at $50. Current eBay fees $3.21. New eBay fees $4.50. A 40% increase. I'd laugh if this wasn't so greedy.

MsMorrisine

and short-sighted.

wall street wants the earnings growth of eBay from years ago.

9% + 2.9% .... where are they going next? 10-15% fees similar to auction houses, but it's got to end there or somewhere close. this is not a profit/loss scenario, so why upset the (previous - current) seller base? it also opens the door for someone like google to come in and back fill in the void. as said before... the are moving and probably already have moved away from serving their original customers: small traders. Between Amazon and Google or Microsoft, eBay could be slowly squeezed out of existence as many players are slowly squeezing out Yahoo.

66Tbird

Glad I quit selling ebay Maybe I'll start up later if they figure out they were just a tad to high on the fees.

illini420

wow, I was just starting to like the 5 free listings every month that capped out at $20 in final value fees. this could be the end of my eBay selling days. I never really sold much anyways, but I imagine the quality and number of coins for me to buy on eBay will be impacted by eBay's greed as well.

droopyd

<< <i>wall street wants the earnings growth of eBay from years ago. >>



Of course, growth of any business will plateau. And that is the ultimate folly of market capitalism -- it cannot be sustained without ever increasing rates of growth.

Res

They are betting that since sellers have no real alternative, they will suck it up and pay the fees. Time will tell.

ebaytrader

<< <i>They are betting that since sellers have no real alternative, they will suck it up and pay the fees. Time will tell. >>



Sure, as it applies to collectibles sellers. Widget sellers have long since fallen in love with Amazon and their flat 15%.

The real question is: Would you throw 100% of your support behind a site that is tailored to collectibles?

timcoin

It would seem Heritage has most of the technology in place already, and they advertise enough to attract buyers and seller. Seems like a natural fit.

19Lyds

<< <i>It would seem Heritage has most of the technology in place already, and they advertise enough to attract buyers and seller. Seems like a natural fit. >>



The only problem with Heritage is their $5,000 minimum lisitngs.

99.999% of the eBay coins sellers would never have that much to sell at one time.

eBay fee's are going to kill the opportunity for some of us small time listers and other venue's will simply fill in that void. I may now be forced into trying some of these other guys since everything I list now has a starting price at the very minimum.

BTW, I like their news releases. Designed to "sound" like they are actually lowering fees. Ain't it GREAT!

Russ

For the first time ever, I just opened an eBay store. The way the new system will work, auctions get a better fee structure if one ponies up the money for a store. Instead of a flat 9%, it's 9% of the first $50, 4% up to $999.99, and 2% over that. It's pretty clear that the hidden agenda is to force traditional auction sellers in to retail. Of course, my store will simply have my auction listings, no categories, no FP listings, just auctions.

Russ, NCNE

timcoin

Russ, just out of curiosity since you have a lot of listings, what would it take for you to stop using ebay?

123cents

I wish Yahoo would bring back their auctions and give Ebay some competition.

CEOGBOSE

Another alternative is my site CoinSpace still rather new but growing very fast and it's free to list and FVF less than half of Ebay before the increase.

Take a peak...

Auctions

Russ

<< <i>Russ, just out of curiosity since you have a lot of listings, what would it take for you to stop using ebay? >>



A site that actually has buyers.

Russ, NCNE

shorecoll

EBay fee rip-offs are just the dance, what the street is watching now are the Paypal margins..if they increase those by 40% and could get away with it...their stock would double in a week. Eventually, those will get the attention of the pols bashing the banks, but they could do a lot of damage until then. IMHO

timcoin

<< <i>

<< <i>Russ, just out of curiosity since you have a lot of listings, what would it take for you to stop using ebay? >>



A site that actually has buyers.

Russ, NCNE >>



It is none of my business, but I'm saying fee-wise. Fee-wise, what would you be willing to pay and it still be worth your time to list. Personally, I would think that coin margins are so tight, that 8% would seem like it is right on the edge of not being worth the time and effort.

CEOGBOSE, impressive site. You do all that programming yourself?

Russ

A tight margin on a sale is better than no sale at all.

Russ, NCNE

OPA

<< <i>A tight margin on a sale is better than no sale at all.

Russ, NCNE >>



List up to 100 items a month Auction-style free—no Insertion Fees—when you start your Auction-style listing under $1.
Get new, lower Insertion Fees for all other start prices.
Either way, pay one easy Final Value Fee of 9% of the winning bid—and never more than $50—pay only if your item sells.
List in Fixed Price for 50¢ with Final Value Fees mostly the same as today

derryb

If nothing else, at least ebay helps drive up the value of my collection

MsMorrisine

<< <i>A tight margin on a sale is better than no sale at all.

Russ, NCNE >>




many eBay sellers are now saying eBay is driving traffic to their regular sites, thus making eBay more of an advertisement (potential ""loss leader to the real site""??)

CEOGBOSE

<< <i>

<< <i>

<< <i>Russ, just out of curiosity since you have a lot of listings, what would it take for you to stop using ebay? >>



A site that actually has buyers.

Russ, NCNE >>



It is none of my business, but I'm saying fee-wise. Fee-wise, what would you be willing to pay and it still be worth your time to list. Personally, I would think that coin margins are so tight, that 8% would seem like it is right on the edge of not being worth the time and effort.

CEOGBOSE, impressive site. You do all that programming yourself? >>



Thank you very much, I did all the design and layout and hired programmers to make if function.

packers88

Just like their last fee increases, all pump, but no substance. In essence, this is another large fee increase while they try to act like they are helping the little guy (their sellers) again. Do the math and you will see it costs more now to sell coins under $1400.. Most ebay transactions are way under $1400. Another big shaft by ebay and it still surprises me that no attorney general or FTC has brought this house down for tactics like banning checks.

LindeDad

Wondering if all these complaints were also made on the eBay Forum? Seem like there is more chance of them hearing them there.
A link to there eBay Community.

Russ

<< <i>Wondering if all these complaints were also made on the eBay Forum? Seem like there is more chance of them hearing them there.
A link to there eBay Community.
>>



Yep, by the thousands. And, it's just as effective there as it is here.

Russ, NCNE

leothelyon

When did esnipe start working for ebay? Won some auctions and ebay posted my esnipe max bids. What's up with that?


Leo

RunnersDad

<< <i>

<< <i>Wondering if all these complaints were also made on the eBay Forum? Seem like there is more chance of them hearing them there.
A link to there eBay Community.
>>



Yep, by the thousands. And, it's just as effective there as it is here.

Russ, NCNE >>



Agreed. Ebay does what Ebay wants regardless of what is said on the forums or despite their best Seller's thoughts on the subject. They continue too alienate the very seller's that made Ebay what it is today by raising fee's when a rate hike isn't necessary. Unfortunately Ebay is the only auction site on the web that offer's that kind of viewer traffic for the small time/big time seller's out there.

TavernTreasures

I stopped selling there in the spring of 2008. They lost my business.

gsa1fan

I just sold a coin for $800. EBay fees $21.49.

With new fees it will be $50?

Aberlight

<< <i>I just sold a coin for $800. EBay fees $21.49.

With new fees it will be $50? >>



The fees will be 9% for the first 100 free listing starting at .99 and lower. Will the fees be lower if we start at $1.00 and pay the insertion fee?

Russ

<< <i>Will the fees be lower if we start at $1.00 and pay the insertion fee? >>



Nope. It will be a flat 9% regardless of starting price. That 100 auction no insertion fee under $1 is just another part of the spin.



<< <i>I just sold a coin for $800. EBay fees $21.49.

With new fees it will be $50? >>



Correct. If you regularly sell high dollar coins, it would be a good idea to pony up the $16 a month for a store. In your example, the fee would be $33.19 instead of $50. The difference on that one sale would pay the subscription fee on the store for a month.

Edit: Where did you get $21.49 on an $800 coin? Under the current fee structure, it's $29.32. Which means one sale wouldn't pay for the store. In any event, everybody needs to crunch their own numbers to see if the store subscription works out for them.

Russ, NCNE

yellowkid

<< <i>

<< <i>wall street wants the earnings growth of eBay from years ago. >>



Of course, growth of any business will plateau. And that is the ultimate folly of market capitalism -- it cannot be sustained without ever increasing rates of growth. >>




Exactly, which gets us close to the definition of a cancer, growth for the sake of growth.

BECOKA

I have been e-bay free for over one year now.

Just too much hassle.

Connecticoin

Nice. Since eBay has failed to significantly grow their auction business, they have now decided to pork as many fees as they can out of existing sellers so they can waste more money on trying to compete with Amazon. Yup, just like Blockbuster is trying to compete with Netflix. So when do you predict Amazon will acquire a gutted eBay?