Ebay decreasing FVF from 7% to 6% for store owners

Frankcoins · June 14, 2013 5:03AM

After overhauling its fee structure in May for all sellers, including those with a Store subscription, eBay is making another change, this time for Store subscribers only.

At the end of June, sellers who list in the Coins and Paper Money and Stamps categories will pay a lower final value fee - if they have an eBay Store.

The final value fee (commission) for items that sell in the Coins & Paper Money category will decrease from 7% to 6%.

The new fees go into effect on June 27, 2013 on both eBay.com and eBay.ca (Canada).

Before the announcement, sellers discussed the new fees for coins on the eBay discussion board, with one writing, "Great strategy, Ebay! Doubled fees in coin and bullion catagory (sic) where I was working on a 1 to 2 % profit. My sales for May were off a full 60+%. Ebay/Paypal cartel now making TEN TIMES MY TOTAL PROFIT on every item sold."

From Ecommercebytes

mbogoman · June 14, 2013 8:50AM

Finally! Some good news on the Ebay front. Every little bit helps. The only reason I opened a store was because of the huge hike in non-store FVFs. I don't do a whole lot of business, but 10% FVF (for non-store) was too much to stomach.

OPA · June 14, 2013 9:49AM

Cougar1978 · June 14, 2013 10:04AM

I think its great news. However paypal still takes around 3%.

July one their picture policy goes into play - if I understand correctly an item can be clear like blue water at Hawii but if the largest side is not 500 pixels its unacceptable. Does this mean a slightly blurry photo that meets the size criteria is ok? Here we go again with some mindless criteria. What I would like is to c them cut the people thinking this stuff up and then reduce fees further.

It could be they are feeling the heat from Teletrade with their zero sellers fees.

LindeDad · June 14, 2013 10:14AM

Cougar how can anyone doing coins even think about making a picture that small? Ones I upload are normally 2000 to 2500 pixels on the side.

BTW I haven't got that email Frank but will like it when it gets to me.

coindeuce · June 14, 2013 11:56AM

<< Finally! Some good news on the Ebay front. Every little bit helps. The only reason I opened a store was because of the huge hike in non-store FVFs. I don't do a whole lot of business, but 10% FVF (for non-store) was too much to stomach. >>

mbogoman, you obviously didn't read the eCommercebytes blog that Frank linked - you missed the following comment within the context of that blog:
"Fees used to be tiered... you paid the top rate on up to $50, and a lower rate on over $50. 7% is actually a decrease over where rates were before for stores, but only on the first $50. People selling items at a couple hundred and up, per item, just got a HUGE fee hike, whether they have a store or not."

The Spring fee changes were touted as making it simpler for sellers to calculate their fees, though it became clear that simpler didn't necessarily mean cheaper.

More of eBay's shell game.

mbogoman · June 14, 2013 9:40PM

<< mbogoman, you obviously didn't read the eCommercebytes blog that Frank linked - you missed the following comment within the context of that blog: >>

<< "Fees used to be tiered... you paid the top rate on up to $50, and a lower rate on over $50. 7% is actually a decrease over where rates were before for stores, but only on the first $50. People selling items at a couple hundred and up, per item, just got a HUGE fee hike, whether they have a store or not." >>

No, I fully understood it. The Spring fee hike was huge for everyone, stores and non-stores alike. It sucked big-time (and still sucks). But it was especially huge for the non-stores. The difference in FVFs between stores and non-stores was 3%. (7% and 10%). I sold about $35K last year. That 3% difference is $1050. An Ebay store at $15/mo gets me back a little more than $850 of that - that's why I was forced to get open a store.

BTW - I'll bet that the fee drop from 7% to 6% was not a totally altruistic move on Ebay's part. It would not surprise me if sales in the coins and bullion category showed a significant drop since the new fees were implemented in the spring. I don't see how anybody can make anything selling bullion. The margins were too thin already.

TwoSides2aCoin · June 15, 2013 12:31AM

Let me see if I got the math straight. I know I got the venue down to a science.
By decreasing fees from 7% to 6%, a person can save 100 % by not listing at all.

LindeDad · June 15, 2013 1:04AM

<< No, I fully understood it. The Spring fee hike was huge for everyone, stores and non-stores alike. It sucked big-time (and still sucks). But it was especially huge for the non-stores. The difference in FVFs between stores and non-stores was 3%. (7% and 10%). I sold about $35K last year. That 3% difference is $1050. An Ebay store at $15/mo gets me back a little more than $850 of that - that's why I was forced to get open a store. >>

Actually the cost of the store per month is a wash as with the store the seller gets 150 no cost listings per month even at the lowest rate of 20¢ to list that equates to $30.00 of listings for $16.95 store fee on the yearly rate.

TwoSides2aCoin · June 15, 2013 1:21AM

<< 

<< No, I fully understood it. The Spring fee hike was huge for everyone, stores and non-stores alike. It sucked big-time (and still sucks). But it was especially huge for the non-stores. The difference in FVFs between stores and non-stores was 3%. (7% and 10%). I sold about $35K last year. That 3% difference is $1050. An Ebay store at $15/mo gets me back a little more than $850 of that - that's why I was forced to get open a store. >>

Actually the cost of the store per month is a wash as with the store the seller gets 150 no cost listings per month even at the lowest rate of 20¢ to list that equates to $30.00 of listings for $16.95 store fee on the yearly rate. >>

That might be true, but by the time a dealer pays a fair price for an ugly 1916 D dime for $400, submits it to PCGS and pays the fees, shipping, etc., and lists the coin in the store where it sits for even 1 month without takers at "FMV" pricing standards..., it doesn't much seem like a store shelf on eBay is as useful as a store shelf at A Coin Shop. com
This is my personal opinion/situation, and no spam is intended. It's just what it is. eBay does EVERYTHING to make me jump through hoops to serve my customers , when, in fact... I serve them better.

~joey~

mbogoman · June 15, 2013 1:46AM

<< That might be true, but by the time a dealer pays a fair price for an ugly 1916 D dime for $400, submits it to PCGS and pays the fees, shipping, etc., and lists the coin in the store where it sits for even 1 month without takers at "FMV" pricing standards..., it doesn't much seem like a store shelf on eBay is as useful as a store shelf at A Coin Shop. com This is my personal opinion/situation, and no spam is intended. It's just what it is. eBay does EVERYTHING to make me jump through hoops to serve my customers , when, in fact... I serve them better. >>

No arguments with that at all. It seems that every year Ebay does some "improvement" to make it more difficult and less profitable for a seller to make a buck, especially for the small-time sellers like me..

Manorcourtman · June 15, 2013 7:31PM

They are killing the golden goose slowly but surely.

TwoSides2aCoin · June 16, 2013 1:07AM

<< They are killing the golden goose slowly but surely. >>

When they make laws telling me that I cannot tell people who I am by putting who I am on eBay, and that exclusive ownership of those rights are not mine, then the 500 pound gorilla doesn't need me as a customer. So if I am to use them , it will be to produce profits. I will resort to selling used children's clothes. (no spam intended)

Ebay decreasing FVF from 7% to 6% for store owners

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