Spring 2010 – eBay Raises Selling Fees Again, Lies To Sellers
Ebay has recently announced some pretty major changes to their seller fee structure. Following their recent trend of the past few years, they continue to slightly reduce insertion fees while raising final value fees–each time boasting this will help customers. This time, the final value fee increase is HUGE.
The real problem here is eBay’s attempt to cover it up as a positive change for everyone. eBay has sent out mass emails advertising wonderful new changes, with fee reductions for sellers, however in reality almost nobody will see any reduction while most will see medium to HUGE fee increases.
CHANGES: Auction Style
- Sold item (final value) fee sees a HUGE increase for any item over $25.
(Previously only the first $25 was billed fully, the rest of the sold value was given a cheaper rate. Now only a flat 9% rate for the entire price is charged–this is a huge increase on more expensive items.)
- ALL auction listings see at least a fee increase from 8.75% to 9% of the sold price
- TINY savings on insertion fees, the biggest being 100 free listings starting at $0.99 or less. (Old cost was $0.10 — big whoop)
Example: You start your item at $0.99 bid. It is bid up to and sells at $125. You save $0.15 listing your item but end up paying $11.25 in final value fees – a $5.56 increase or over 200% increase! More expensive item? Bigger increase in fees.
CHANGES: Fixed Price Style
- Medium to small increase in final value fees for electronics in the $50-$1000 range (raised from 4.5% to 5.0%)
- Other final value fees seem to be mostly unchanged
- Insertion fees RAISED from $0.35 to $0.50 across the board.
- Books, Movies, Video Games insertion fee RAISED from $0.15 to $0.50! – HUGE increase
eBay’s FAQ for the changes reads:
In general, are eBay fees going up or down?
For most sellers, the new fee options will bring significant savings with dramatically reduced upfront cost. Across the board, Insertion Fees are being dramatically reduced. Final Value Fees for Fixed Price listings are for the most part staying the same. See the fee charts for details.
Now tell me, how do the huge increases listed above equate to “significant savings”, or even “staying the same”? Saving a dime on insertion fees means nothing when you end up paying an extra $5.00, 200%, or more when your item sells!
The single demographic who will benefit from this will be a seller who lists a few dozen items at $0.99 every month but only has a few of them sell. If a good amount sell, or if they sell for over $25.00, the final value fee increases will VERY quickly overtake any new savings he might have from the slightly reduced insertion fee. This is a tiny demographic.
Expect to see fewer people using auction style listings since there is no way to cover the increase in selling fees. More fixed price (immediate purchase) listings will be used and prices will be raised moderately to cover the increased final value fees. New users who don’t notice the hidden final value fees will be shocked when they are billed $35.00 for selling their Playstation 3 (or whatever), have to pay $25.00 in shipping, and another $9.00 in PayPal fees. Suddenly that $300 they got from their sale has dropped down to around $225.
The real crime here is eBay’s poor attempt to disguise their massive fee increases. I hope this article has helped shed some truth on the changes since most people probably will not take the time to calculate how this will negatively affect them.