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eBay Declares WAR on SMALL eBay Stores

I guess they are no longer interested in hosting small stores on their
venue.

New store-listing fees SOARING; effective 8-22-06 !!!!!!!!!!!!!
"You've got 30-days."

(I am NOT saying this is not a reasonable financial move for eBay;
I am saying that many stores are going to shrink or close.)

Maybe google should do something...........


//////////////////////////////////////////////////////////////////////////

Store Inventory Listings
For those of you who operate an eBay Store, we're making changes to Store Inventory listing fees, as well as to the on-site exposure we provide for this listing format.

We'll begin charging variable insertion fees for Store Inventory listings, as we do for core listings. Beginning Aug. 22, eBay.com Store Inventory format insertion fees will be tiered with an item's starting price.

These Store Inventory format insertion fees take effect Aug. 22, 2006:

Starting Price New Insertion Fee

$0.01 – 24.99 5¢ (Current Fee 2-cents)
$25.00 – and higher 10¢ (Current Fee 2-cents)

Some Store Inventory format final value fees also will increase, effective Aug. 22, 2006:

Selling Price New Final Value Fee Current Fee

$0.01 – 25.00 10% 8%
$25.01 – 100.00 7% 5%
$100.01 – 1,000.00 5% (no change) 5%
$1,000.01 and higher 3% (no change) 3%

Please note that for current listings, the new final value fees will apply only after these listings are renewed.

For more detailed information on these fee changes, please see our fee changes overview.

For some time, we've been working to identify the best way to display Store Inventory listings on the site. In the spring, we pledged to sellers that we would test a variety of ways to mingle their Store Inventory listings with core listings on eBay.com. We've tested several alternatives and these tests showed the ideal approach is how we're doing it today – that is, when a buyer's search returns 30 or less core listings, we display up to 30 Store Inventory listings. This is what we'll stick with going forward.

However, starting in about a month, we'll also include an unlimited number of Store Inventory listings after all matching core listings, when the buyer clicks the Buy It Now listings tab at the top of every search results page. When the buyer hasn't selected this option, eBay.com will display Store Inventory listings along with core listings as described above.

Half.com Listings Added to eBay.com Search Results
I recognize that sellers in the Books, Movies, Music and Video Games categories will have unique challenges with the changes we're making. As many of our media sellers have requested, starting in late August we'll again provide visibility for Half.com listings in core search results, by bringing back the Half.com listings merchandising feature we used previously (click here for an example). We're also exploring additional ways to promote Half.com listings in search results on both eBay.com and eBay Express.

How These Changes Affect You
I'm confident the actions we're taking are the right thing to do for the overall eBay Community. We'll more effectively deliver on our buyers' needs and expectations. And for sellers, these changes will ensure that eBay remains a differentiated and distinct e-commerce channel with fast inventory turnover.

I know there's a lot to digest here, and that you're probably most interested in quickly determining if and how these changes will impact your business.

A typical eBay Stores seller who uses Store Inventory format – making no adjustments to his or her selling strategy following these changes – will experience an overall fee increase of less than six percent, based on our analysis of all June selling activity. Of course, you need to clearly understand the impact on your business – which could be greater or less than six percent. To get started, please visit the seller resources page or consult the Frequently Asked Questions we've prepared. Also, use your seller support resources in Customer Support. Our CS teams are fully prepared to help you understand the effect on your business, and discuss your options for adjusting your eBay selling strategy to minimize impact to your bottom line.

In addition – to help eBay Stores sellers make informed decisions about any changes to their selling strategies – we're making eBay Marketplace Research Basic available to them at no cost for eight weeks, starting today. Through September 19, eBay Stores sellers can use this data to compare selling formats or determine how best to price inventory on eBay. You can access eBay Marketplace Research here.

I'll be hosting a Community Town Hall discussion tomorrow at 4:00 p.m. Pacific time, where I'll answer your questions. Please click here for more details on the Town Hall, or to submit a question in advance.

Sincerely,

Bill Cobb
President, eBay North America

Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
«1

Comments

  • Gee what a surprise! Ebay is raising their fees again! image
  • envoy98envoy98 Posts: 4,000 ✭✭
    So basically what it says is...

    We'd like more of your money...about 6% more. That's a pretty hefty raise eBay is giving itself. I wonder if the shareholders can expect a >=6% increase, or if all the employees are getting 6% raises. Just because ebay is a monopoly they keep raising and raising their fees. I haven't sold anything on there in 8 or 9 months, and I'm in no hurry to do so. I continue to buy off of there, but that's only because the sellers are still there and willing to pay all of ebay and paypal's ridiculous fees.

    $100 Card Sold before 8/22/06
    eBay $5.02
    PayPal $3.29

    Total = $8.31

    $100 Card Sold After 8/22/06
    eBay $7.10
    PayPal $3.29

    Total = $10.39

    So just over 10% of your total sale will now be going to eBay and paypal. I know in the "regular" auctions this percentage has run roughly 9-11% so the stores have finally caught up.

  • As a shareholder and "Powerseller", I will close my store 8/15. Get it while you can!

    As an aside, I wonder how this might change how small-time sellers submit cards to PSA. I often submit duplicates of the same card I need for my set and figure the lower grade examples might eventually sell in my store. Now that that is not an option, I may only submit one example of each and hope my eye didn't miss. image

    Brent
    Collecting:
    Bo Jackson Basic(#1) and Master(#1)
    Bob Feller Basic(#4)
    Sam McDowell Basic(#1)
    2004 Cracker Jack Master

    My Ebay Store
  • digicatdigicat Posts: 8,551 ✭✭


    << <i>Bill Cobb: I'll be hosting a Community Town Hall discussion >>



    Heh. He wants to watch you bleed.
    My Giants collection want list

    WTB: 2001 Leaf Rookies & Stars Longevity: Ryan Jensen #/25
  • SDavidSDavid Posts: 1,584 ✭✭
    Envoy - Are you selling at shows a lot more now or have you just stopped selling?

    Anyway, the FVF for regular auctions after the first $25 is only three percent.

    The total ebay/paypal fees if you started an auction at .99 and it ended at $100 would be $6.96. Of course, most seller make a buck or two back on shipping, so you're looking at a 5-6% overhead fee. Where most sellers get screwed is with insertion fees and with lower end items.
  • SDavidSDavid Posts: 1,584 ✭✭
  • BoopottsBoopotts Posts: 6,784 ✭✭
    Whatever. I'm actually kind of glad they raised fees, since it will offer an additional incentive for someone else to make a push in the online auction market. Oh-- and I'll definitely be closing down my store on 8/21.
  • BoopottsBoopotts Posts: 6,784 ✭✭


    << <i>The Reaction image >>




    That's hilarious-- at first glance it appears as though at least 50% of the people b*tching about the increased fees have feedback ratings less than 50.
  • SDavidSDavid Posts: 1,584 ✭✭
    Those are probably posting or buying id's, though some could be from people just trying to raise hell.
  • storm888storm888 Posts: 11,701 ✭✭✭
    "Oh-- and I'll definitely be closing down my store on 8/21. "

    ////////////////////////////////////////

    The way I am reading his krap is that you shoudl list
    full-blast on 8-21-06. And, close the store on 9-20-06.

    He does not start stealing-big, on "listings in existence
    as of 8-21-06." Anything listed 8-22-06 or later, will take
    the big hit.

    storm
    Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
  • TheCARDKidTheCARDKid Posts: 1,496
    I learned about this in my college finance classes a few years ago. Monopolies raise prices!! There's a new one....

    This further kills the low end business.

    How many Fortune 500 companies would kill to increase prices 6% and then tell their customers with a straight face, "it's the right thing to do", lol.
  • phreakydancinphreakydancin Posts: 1,691 ✭✭


    << <i>

    << <i>The Reaction image >>




    That's hilarious-- at first glance it appears as though at least 50% of the people b*tching about the increased fees have feedback ratings less than 50. >>

    I noticed that as well. I'm guessing some of them sell under alt IDs?
  • DOUBLE CRAP!!!!!!!!!!! THATS 2.5X more than 2 cents. I'm thinking about close my ebay store.
  • jskirwinjskirwin Posts: 700 ✭✭✭
    Wow... That's pretty pathetic.
  • yankeeno7yankeeno7 Posts: 9,242 ✭✭✭
    Sellers will begin to increase shipping costs once more to cover this cost...who really loses? Buyer or the seller? I say both.
  • Lothar52Lothar52 Posts: 2,664 ✭✭✭
    well.....this only hurts us little guys....the big time sellers like 4SC's will just submit MORE CARDS lol
  • storm888storm888 Posts: 11,701 ✭✭✭
    "...who really loses? Buyer or the seller? I say both. "

    ///////////////////////////////////////////////

    End-users of goods/services are the ONLY folks who
    pay for those items. Sellers collect money from buyers;
    buyers fund ALL commerce.

    If sellers find they cannot pass on the costs of staying
    in business - as will NOW happen in small eBay stores -
    those sellers stop selling. BIG sellers pick up the slack
    and end-users' costs rise.

    The ONLY people really hurt by eBay's gouge are the
    buyers who want the choice to deal with small stores.
    That choice will now be erroded, and BIG sellers will be
    free to raise prices more easily.

    "The rich will get richer, and the poor will lose even that which they have."

    storm
    Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
  • SDavidSDavid Posts: 1,584 ✭✭
    The question is...will ebay's overall profits increase because of this move?

    I have my doubts, but it will obviously depend on how many of the store owners continue selling. Most of the sportscard sellers will probably stick around (let's face it - we're hooked), but in other areas that are more profit driven it could be a different story.

    I also think that decisions like this will hurt them a lot more if a decent competitor emerges. Some sellers may be willing to even lose a little at first just to "stick it to 'em."
  • schr1stschr1st Posts: 1,677 ✭✭
    Glad to see that's Bill's analysis that it'll only be a 6% increase. My analysis: a more than 100% jump in listing price for low end items, a 500% jump for higher end items, plus more fees on the backend if my item actually sells. You can put lipstick on that pig anyway you want, but that is the reality of the situation: they get you coming and going. I could possibly see an increase to the FVF, but the allure of the eBay store was the very low listing fee.
    Who is Rober Maris?
  • Is 3 to 8 cents really going to make that big of a difference?? Let me look in my couch.. I bet I can find it.

    I will be keeping my store and will not change one thing about it.

  • yankeeno7yankeeno7 Posts: 9,242 ✭✭✭
    Higher selling prices, higher shipping costs, fewer sales, fewer listings, fewer stores, less variety
    Good for ebay, bad for everyone else.
  • storm888storm888 Posts: 11,701 ✭✭✭
    "........but the allure of the eBay store was the very low listing fee."

    //////////////////////////////////////////////////////

    Yup. That fact is responsible for the uproar that will now ensue.
    The uproar will change nothing, though.

    I am not closing anything down, but I had planned on opening
    some more, now I will wait awhile on that.

    storm
    Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
  • Higher selling prices, higher shipping costs, fewer sales, fewer listings, fewer stores, less variety

    I see it as opportunity. Less sellers equals less competition. So please if you are wanting to close your stores please do so.

    Show me one venue that is cheaper that exposes your items to more potentional customers?? You can't because there is none.
  • yankeeno7yankeeno7 Posts: 9,242 ✭✭✭
    That's easy to say when Ebay is such a monolpoly. Competition is what our economy is built on.
  • That's easy to say when Ebay is such a monolpoly

    Don't know what a monopoly is do you?? Nobody is forced to use Ebay, are they?? There are other means to buy and sell items that do not involve Ebay aren't there??
  • yankeeno7yankeeno7 Posts: 9,242 ✭✭✭
    There is no real competition for ebay. That's just a fact. But I respect your opinion on these increase pros and cons. I just have my own, so relax! image
  • There is no real competition for ebay. That's just a fact.

    That is true, but that alone does not make them a monopoly. Nobody calls the oil companies a Monopoly, but in reality they are far closer to being one than Ebay is, even though there are several of them.
  • BoopottsBoopotts Posts: 6,784 ✭✭


    << <i>There is no real competition for ebay. That's just a fact.

    That is true, but that alone does not make them a monopoly. Nobody calls the oil companies a Monopoly, but in reality they are far closer to being one than Ebay is, even though there are several of them. >>





    We need a 'wha guy' for posts like this.

  • We need a 'wha guy' for posts like this

    We need a baby crying for posts like yours..

    I just love how some posters here ignore logical questions and responses with veiled insults.
  • BoopottsBoopotts Posts: 6,784 ✭✭


    << <i>We need a 'wha guy' for posts like this

    We need a baby crying for posts like yours..

    I just love how some posters here ignore logical questions and responses with veiled insults. >>




    Einstein-

    The reason nobody calls the oil companies a monopoly is because-- and I hope you're sitting down for this- monopoly implies a single seller, while 'companies' is plural, and therefore implies, uh, multiple sellers. The oil trade may be oligopolistic, or it may exhibit features of monopolistic competition, but it's obviously NOT a monopoly. With that having been said, there's nothing logical about your response. 'Nobody calls the oil companies a Monopoly, but in reality they are far closer to being one than Ebay is, even though there are several of them'? WTF is that supposed to mean?


    And anyway, who cares if Ebay technically qualifies as a monopoly? I don't. What matters is whether they have some monopoly power in the online auction market, and if they do then just how much monopoly power do they possess. Maybe once you've concluded your Tony Robbins motivational talk on how increased overhead will be great for business you can pull your old microecomics book out of the closet and bone up a bit on the concepts in play here.
  • sagardsagard Posts: 1,898 ✭✭✭
    The 6% needs more explaination to me.

    My store --- $15 per month.
    400 items < $25 ---- $8 per month.
    100 items > $25 ---- $2 per month.
    $1000 in sales ----- $70 per month.

    Totals $95 per month.

    After change:

    My store --- $15 per month.
    400 items < $25 ---- $20 per month.
    100 items > $25 ---- $10 per month.
    $1000 in sales ----- $70 per month.

    Totals --- $115 per month.

    Looks like a significantly bigger than 6% hit for me.

    I probably won't re-open in the fall.

  • So now you gotta result to name calling.. Very professional.

    If you would open your eyes and read you would see that I was stating that the oil companies are more like a monopoly than Ebay is. I never said they were, I know the difference in a monopoly and oligopoly.
  • pandrewspandrews Posts: 7,598 ✭✭✭
    im just making this post because i dont think ive ever typed the word "oligopoly" before, and now i cant quit saying it in my head..

    oleg taktarov would kick olig opoly's ass..
    ·p_A·
  • KnopflerKnopfler Posts: 783 ✭✭✭
    Is Boardwalk still $400? Or has inflation hit there too?
  • storm888storm888 Posts: 11,701 ✭✭✭
    Tomorrow and Friday.

    20-cent "core listings"

    "Back To Basics."

    blahblahblah

    Cobb-speak for "run more auctions or close your store."

    storm
    Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
  • BoopottsBoopotts Posts: 6,784 ✭✭


    << <i>So now you gotta result to name calling.. Very professional.

    If you would open your eyes and read you would see that I was stating that the oil companies are more like a monopoly than Ebay is. I never said they were, I know the difference in a monopoly and oligopoly. >>



    I can't buy this kind of entertainment.

  • kingraider75kingraider75 Posts: 1,500 ✭✭
    to stay open, I will have to raise my prices. I have some cards listed at under $1, which won't make any sense now, since it will cost me almost that much to list it for a year. I don't know, I break even on my store, mainly because I am lazy and it isn't my job.
    Running an Ebay store sure takes a lot more time than a person would think!
  • yankeeno7yankeeno7 Posts: 9,242 ✭✭✭
    I was using the term "monopoly" loosely...I was just using it to make a point. If we want to get so technical, Ebay isnt a monopoly because there is Bidville, Yahoo Auctions, and who knows what else. Let me correct myself and state that Ebay is "monopoly-like". Relax and enjoy a conversation!

    Say "oligopoly" 5x fast...oligopoly oligopoly oligopoly oligopoly oligopoly!!!

    It's just my opinion that Ebay is sinking its own ship. No, this wont be the cause of a downfall and any downfall will not be any time soon...but finding ways to increase fees every 6 or so months will drive away sellers....first it will be the small sellers whom I have had GREAT dealings with!

    Next fee to rise will probably be something like the monthly cost of a store. What is it? 15/month right now? Before we know it, it will be 20/month.

    Of course I will still buy off ebay. But I am also going to be ready to figure higher shipping costs into auctions. And this is good for the buyer how? Good for the seller? It's a rhetorical question so please no one get their panties in a bunch!
  • storm888storm888 Posts: 11,701 ✭✭✭
    eBay's seller central board is now being visited by
    high-FB store owners. Some are closing down, or
    say they are.

    If the mid-level stores start to bail, it may mean
    that there will be room for some smaller stores
    to expand.

    The main thing this round of publicity is going to mean
    is FEWER new stores. That, I like ! image

    All blustering complaints aside, anybody who has set
    up several eBay stores knows that they are mini-goldmines
    and they will never abandon them, unless there is a
    better place to go.


    storm
    Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
  • Carew29Carew29 Posts: 4,026 ✭✭

    Best quote i could find---

    "There are too many items in the store format, and that's caused buyer experience to suffer," Whitman said.


    Then why are they constantly urging sellers that don't have a store to open one?

    eBay, make up your collective mind!


    ~*~I killed Kenny~*~

  • storm888storm888 Posts: 11,701 ✭✭✭
    ""There are too many items in the store format, and that's
    caused buyer experience to suffer," Whitman said. ...."

    ////////////////////////////////////////////////////////

    My buyers do not think they are "suffering."

    I would be suffering, if I was having to list "slow-moving"
    stuff in 7 - 10 day BINs or auctions.

    A lot of store operators stock their stores with the stuff
    they "steal" at eBay auctions that are under-bid.

    I run auctions all the time, and I cannot recall the last
    time I hit a homerun on one of them. They are ONLY
    useful to me as a means to get folks to visit the stores.

    storm
    Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
  • BoopottsBoopotts Posts: 6,784 ✭✭


    << <i>So now you gotta result to name calling.. Very professional.

    If you would open your eyes and read you would see that I was stating that the oil companies are more like a monopoly than Ebay is. I never said they were, I know the difference in a monopoly and oligopoly. >>




    Actually I've thought about this a little more and I'm prepared to take back everything I said to you. Now I DO think that Ebay is a little sleazy, they have monopoly power in the market place, and so on. But I'm beginning to agree that these changes may be more beneficial then harmful to store owners who know what they're doing, and even if this isn't true then Ebay definitely needs to weed out some of the crap listed in these stores. When Ebay first starting pimping these stores they must have underestimated-- as I too continually underestimate-- the number of guys living in their parents' basement who have nothing to do all day except smoke Newports and list $.25 cent cards on Ebay. The volume of this stuff is staggering, and when you figure there's no percentage in this for ebay-- who cares about 8% of $.25 ?- it becomes clear that they need to thin out the stock.

    For a good laugh pick an obscure '90's junk set and do a search through the Ebay stores for it. I just did this for 1992 Topps Micro, for instance, and saw that you can either a) buy the whole set for $5, or b) buy the Paul Assenmacher for $2 (that includes shipping). I mean c'mon-- if you got so much free time that you can afford to list cards like this it's time to reevaluate.
  • hehe you said assenmacher
  • storm888storm888 Posts: 11,701 ✭✭✭
    firemeg.com

    Has links to ALL of the know eBay "alternatives."

    As I reported last month, I tried bidville and had
    ZERO visitors.

    google also has a "selling site," of sorts. Tells me
    they are not close to ready to take on meg's
    crippled empire.

    BTW: Do NOT think for a minute that eBay shares
    have hit the toilet. There is A LOT more downside
    no matter what the tea leaves are telling you. If
    I was still holding, I would dump on ANY sign of
    strength and plan to buy back at $13+/-. (Meg's
    announcemnt that she is going to buy back $2-billion
    during the next 24-months is telling. Anybody REALLY
    think she plans to pay $25+ for those shares?)

    storm
    Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
  • I probably wont close my store but im sure i'll reduce my inventory by about 200 items or so.
    I have to agree on both sides.
    I feel ebay is a monopoly and these fees are out of control.
    On the other hand my ebay store profits are still up 100 percent over the auction items so untill a viable alternative comes along i'll have to stick with ebay. It's a sad truth that ebay knows and thats why the fees go up.
    As always I feel this crap hurts the little guys. I will still list my big money items but will no longer list the .99 cards i listed mostly to help people finish sets. I usually only made pennies on these but they brought repeat customers and there is a market for it.
    I could say more but theres already enough on this board.
    Bottom line imo some will leave most will stay and ebay will screw us another day.
  • storm888storm888 Posts: 11,701 ✭✭✭
    I just toured rubylane.com.......

    There are not too many card dealers over there.

    I have bought a few things on there in the past.
    Sadly, they now REQUIRE that all shop-owners
    adopt a "uniform refund and return policy." That
    policy conflicts with the way that I do business,
    so I will not be moving to RubyLane.

    (I REALLY like the look and feel of RL. If you have
    super liberal refund-policies, you could probably
    build a little empire over there. I am just not
    interested in dealing with buyers'-remorse and
    other ridiculous refund scenarios. RL does allow
    a "restocking-fee," but that still does not fit into
    my model.) The eBay "SNAD" rule is fair and I
    just do not want to go beyond that threshold.

    The more I search for alternatives tonight, the
    better eBay looks.

    storm
    Folks Who Bite Get Bitten. Folks Who Don't Bite Get Eaten.
  • As if it's a Constitutional right to be able to sell on EBAY for low fees or something LOL image
  • RobBobGolfRobBobGolf Posts: 414 ✭✭✭
    All E-Bays price increases generate the same reponse from me.....I will just pass it along to the consumer. Thats what all business do isn't it. $.05 for under $25 is still a good deal for 30 days. I add the FVF to my desired profit level and price point that way. The sky is not falling.
    Serving Ice-Custard-Happiness since 2006

    image
  • Boo- those are the exact same reasons why I think they are for the better, yes they did try to push more sellers to use stores. As you stated they seemed to have underestimated the sheer amount of pure junk that would be added to the site. Its like any store goes you go in and have the same stuff over and over nobody is going to buy.

    As I said it just makes you have to get creative.

    This is why I dislike free and reduced listing price days as well, all the old FLDs used to do was bog the site down for a week with garbage that would never sell. I know of one seller who used to spend all year getting listings loaded in a folder on TL. When the FLD came around he dropped over 20,000 auctions onto Ebay. This was crap that you could not give away and did nothing buy help bog down searches and turn more and more buyers off to Ebay.
  • jskirwinjskirwin Posts: 700 ✭✭✭


    << <i>That's easy to say when Ebay is such a monolpoly

    Don't know what a monopoly is do you?? Nobody is forced to use Ebay, are they?? There are other means to buy and sell items that do not involve Ebay aren't there??
    ...
    So now you gotta result to name calling.. Very professional.
    ...
    Nobody is forced to use Ebay, are they??
    >>



    Don't know what a monopoly is do you?? - an insult.
    So now you gotta result to name calling.. Very professional - whining.
    Nobody is forced to use Ebay, are they?? - statement showing poster doesn't know what a monopoly is.

    For your edification,


    << <i>
    Industries which are dominated by a single firm may allow the firm to act as a near-monopoly or "de facto monopoly", a practice known in economics as monopolistic competition. Common historical examples arguably include corporations such as Microsoft and Standard Oil (Standard's market share of refining was 64% in competition with over 100 other refiners at the time of the trial that resulted in the government-forced breakup). Practices which these entities may be accused of include dumping products below cost to harm competitors, creating tying arrangements between their products and other practices regulated under antitrust law.
    >>

    source: Wikipedia

    Monopolies don't involve the use of force. You don't have to use electricity in your house, but that doesn't stop the electric company from being a regulated monopoly.

    But I agree with you on one point:


    << <i>I see it as opportunity. Less sellers equals less competition. So please if you are wanting to close your stores please do so. >>


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