New eBay Fees!!!!!

jcdcubs · January 29, 2008 7:14AM

Here's the actual math in case someone can't figure it out:

Look at how eBay is trying to hide a HUGE price increase in what appears to be a discount.

My average sale on eBay is about $15 so the prices increase will definitely affect me.

Price Level $15

Old auction fees: $0.60 listing + $0.35 gallery + $0.79 (selling fee 5.25%) = $1.74
New auction fees: $0.55 listing + $Free gallery + $1.32 (8.75% selling fee) = $1.86 (a 12¢ increase which is 6.90% increase)

For STORE LISTINGS it's even worse.

Store Old fees: $0.05 listing + $0.01 (gallery) + $1.50 (10% selling fee) = $1.56
Store New Fees: $0.03 listing + $free Gallery + $1.80 (12% selling fee) = $1.80 (a 24¢ increase which is a 15.38% increase)

Let's try another price level ($45 sale)

Old auction fees: $1.20 listing + $0.35 Gallery + $1.32 (5.25% selling fee 1st $25) + $0.65 (3.25% selling fee on remaining $20 of sale) = $3.52
New auction fees: $1.00 listing + $Free Gallery + $2.19 (8.75% selling fee 1st $25) + $0.70 (3.50% selling fee on remaining $20 of sale) = $3.89 (a 37¢ increase which is 10.52% increase)

Store Old fees: $0.10 + $0.01 Gallery + $2.50 (10% 1st $25) + $1.40 (7% remaining $20) = $4.01
Store New Fees: $0.05 + $free Gallery + $3.00 (12% 1st $25) + $1.60 (8% remaining $20) = $4.65 (a 64¢ increase which is 15.96% increase)

Yet another price level ($250)

Old auction fees: $3.60 listing + $0.35 gallery + $1.32 (5.25% of 1st $25) + $7.32 (3.25% remaining $225) = $12.59
New auction fees: $3.00 listing + $free gallery + $2.19 (8.75% of 1st $25) + $7.87 (3.50% remaining $225) = $13.06 (a 47¢ increase which is 3.74%)

Old store fees: $0.10 listing + $0.01 gallery + $2.50 (10% 1st $25) + $5.25 (7% of $25-$100) + $7.50 (5% remaining $150) = $15.36
New Store Fees: $0.10 listing $free gallery + $3.00 (12% 1st $25) + $6.00 (8% of $25- $100) + $6.00 (4% remaining $150) = $15.10 (a 26¢ decrease which is 1.70% decrease)

I guess if we only sell $250 and above store items we can save some money. Otherwise prepare to be shafted by ebay again.

KEEP IN MIND!!!!! We haven't included the Buy-it-Now fees on any of these calculations. Those didn't change but would be on top of the other listed fees.

storm888 · January 29, 2008 7:26AM

The MOST important thing to remember is:

Business owners NEVER pay ANY expenses in the
operation of their business. The end-user of ALL
goods and services pays for ALL of those expenses.

EBAY has never had a price-hike that I could not
pass onto the buyer.

EBAY may think they are stealing from me. They
are not. My buyer pays the tab.

jskirwin · January 29, 2008 8:24AM

<< <i>EBAY has never had a price-hike that I could not
pass onto the buyer. >>

That could explain why I'm spending less on the Bay. Bargains are fewer and farther between.

mtcards · January 29, 2008 8:32AM

This has been my point of many posts on different threads. If fees go up (and they always will), you pass it on. On ebay its passed on in the shipping AND handling part of the purchase price. I used to think the same way until I went into business for myself 6 years ago and believe me, nickle and dimes cost a lot when added together.

The one thing I do like that is changing is the buyer feedback. I havent read the whole thing, but I find it absolutely ridiculous that a buyer can purchase an item, get screwed on it, leave a neg (which he should) and get a retaliatory neg in return. The only thing I'm leery on is how will this affect non paying bidders? Can they be negged or not?

TheVon · January 29, 2008 8:34AM

I agree with you guys . . . the costs can and will be passed onto the buyers who, for the most part, are looking for bargains. I think this will backfire on eBay somewhat. In my case, I won't stop buying on eBay, but I'm not going to increase my card spending budget just because eBay increased their fees. So they'll still get their FVF from items I buy, but it's likely I will end up buying fewer items overall.

My gut feeling is that eBay, as a publicly traded company, has gotten so big and that the pressure from shareholders to continue to grow revenues is actually going to start eroding the company's support. Even though we would all prefer it that eBay leave well enough alone, they can't because Wall Street hates no growth companies.

storm888 · January 29, 2008 8:41AM

"Even though we would all prefer it that eBay leave well enough alone, they can't because Wall Street hates no growth companies. "

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

That is the ONLY thing that has ruined EBAY.

And you're right: Buyers will buy less.

That works for me. I sell on EBAY only to make a profit.
If I sell one item and make money, I am much happier
than I would be if I sold ten items and lost money.

If I want to sell stuff at a loss, I can just throw it in the
trash or give it to some street urchins. I don't need to
pay EBAY to sell stuff at a loss.

If you look at the math in the OP, you should conclude
that none of the hikes are planet-ending.

Leiascards · January 29, 2008 9:36AM

The only thing I'm leery on is how will this affect non paying bidders? Can they be negged or not?

After May Sellers can only leave positive feedback for buyers.

What about all those buyers who try bait and switch or anything else like that should warrant a neg?

storm888 · January 29, 2008 10:29AM

"What about all those buyers who try bait and switch or anything else like that should warrant a neg? "

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

No NEGs for SCUM; no matter what they do.

Got It. Get Used To It.

Seller Are Bad, Bad, Bad.

Buyers are ALL wonderful.

MooseDog · January 30, 2008 1:44AM

While I'm not going to defend the eBay price increase or your math, you neglected to factor in your calculations the 15% rebate on your fees provided you maintain high levels of customer satisfaction (those stupid 1-5 ratings buyers can leave in addition to feedback).

My FVFs run about $200/month so I can expect to get a $30 rebate which will along with the pidly lower listing fees will definitely mitigate the price increase in the price ranges I sell.

New eBay Fees!!!!!

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