New FEE increases (effective Jan.30/06) - Happy New Year Everyone

[futuretech_liquidations]

So eBay has done it again -- another nice increase for CORE listings -- they want another .06Cents per listing plus another 1/4% increase in FVF.

Must be nice -- wish we sellers could increase our profits in the same way.

Time to get our website up and running ASAP.

Curious to see what everyone else thinks about these new price increases.

FTL

[systemagic]

That's it! I'm done!

The rocket surgeon at the helm of eBay remains clueless about the actual unhealthy dynamics within the eBay marketplace. Today the CEO of Home Depot got canned because the company's stock fell 8% during his tenure. When exactly did genius Bill take over?

I have a house crammed with inventory. When that's gone - so am I. Maybe that'll leave the rest of you a little more room to slave for your half-a-percentage profit while eBay pounds the rest up its %@@.

[treasure-pot]

Yep... January... the month we can do without.

All the credit card bills come in with our Christmas shopping expenses and so many look to make extra cash by listing on eBay. But there is eBay and Canada Post with their grubby little hands out to take another huge bite.

Bill Cobb may think that these reflect only modest increases but it is this annual "nibbling" of sellers that will eventually bite them in the backside. Every year more and more of the core long-time sellers disappear from the site because they can no longer afford to pay eBay and Paypal 15% (more or less) for merely providing a platform. It seems eBay sellers do all the work and eBay shareholders reap all the rewards.

Its a shame that the geniuses in San Jose can't see that they are rapidly approaching the point where sellers will abandon the site en masse. Whether Bill Cobb will be there to witness the exodus remains to be seen. Regardless, it will be remembered as his legacy.

Let's see how Jordan Banks responds to this erosion of seller profitability. Is this one of the initiatives that he has been promising?

Bill treasure-pot

[funkywatch]

I really didn't want to increase my shipping fees this year despite the CP increases. Now I have to think about it because this extra increase will start to hurt for real.

What really makes me mad is the way they set up theFinal Value Fee brackets. I find that a $25 transaction and a $1000 transaction are very different and should not be billed at the same rate. EBay obviously think similarly since they have 7 different Insertion Fees, yet they keep the 3-tier for FVF.

Once again, I find myself asking the question: Is it still worth doing it?

[lockotronic]

what's 1 or 2 % when you are paying 13 too 15% already. SIGN*** I have been doing much better on craiglist then Ebay, you guys should try it if you haven't already.

[tsachs22]

Really, I am kind of new to this and have had a tough time dealing with the ebay fees. I thought they were already too high and just figured I was missing something. With this new 15% listing increase, how can anyone really expect to turn a profit.
Same deal for me, once my inventory is gone, so am I. Also, with the recent PayPal headaches (seller protection, yeah right), it just isn't worth it.

[trinkets-on-site]

da-ja-vous

I seen this "circus" balancing act before. As sellers we will retreat to our store listing format and lick out wounds. Once our wounds have scared over Bill Cobb will have the job of "Resetting the balance of the eBay Marketplace". (Taken from the email sent to us on July 19th 2006 regarding store rate increases.) We haven't recovered from the last rate increase.

Send in the clowns or at least someone who knows how to juggle...I'm tired of the high wire balancing act!

Today my cup is 1/2 empty!
Nora

[u-deserv-it]

what i don't get is how they're justifying the fee increase 'because of the bad guys on ebay'...WTF!! am i stupid?!?!? what an insult that is to sellers to openly admit that WE HAVE TO PAY THE PRICE for the bad guys...like ebay doesn't make ENOUGH money...grrrrrrrrrr

i can't figure out how ebay can justify 'a small fee increase' (their words)-yea right, gimme a break, and how much does that work out to in a DAY for ebay??? a billion??
how many other companies increase their fees at least once a year? isn't that excessive??????? especially with their apparant yearly growth?
their greed will eventually come back to bite them-sellers will in turn increase their fees to buyers and buyers will get less and less...

[recped]

how many other companies increase their fees at least once a year?

I'd be hard pressed to think of any that don't.
"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915

[youreinthebook]

Then you're really not thinking very hard.

[u-deserv-it]

well if they all increase their prices every year, why are we always complaining?????
we should be satisfied with their fee increases and accept it as the 'norm'..?

[tea_past_times]

Well, I used to LIST items on Ebay in the 1-5 dollar range. Now I try to list for $9.99 and up. The items I sell are still worth 5 dollars, but I ask $9.99 so that the extra $4.99 can be used to cover Ebay, Paypal fees, Canada Post increases etc. If the item won't go for a minimum of $9.99, it goes into my store for all eternity or until it does sell. Hello EBAY did you notice my monthly listings drop from 200 to 40?? You may be soaking me on the few things I am listing, but overall my ebay Bill has fallen from $305 a month to below $80. ADJUST THAT MR BILL COBB.!!

[u-deserv-it]

..same here..it sits and sits...and then you re-list (more fees)...re-list again (more fees)..and so on and so on...

i can understand some companies that do increase their fees due to inflation, or other factors (shoplifting etc...), whatever the reason, depending on the nature of the business, but i just can't get it right in my head how a company as MASSIVE as ebay can justify their fee increases on a regular basis...

largest trading company on the stock market...hmmm..
greedy much?

[trinkets-on-site]

This is the second rate increase in 5 months.

The last time eBay raised its rates for Auction Format sellers retreated to Store Inventory Format....throwing off the delicate balance of the eBay Marketplace. Resulting in huge rate increases to Store Inventory Insertion rates on August 22nd, 2006. This new increase will probably cause sellers to do the same which will throw off the balance yet again.

Looking forward to yet another "balancing" act.

[jakeeangel]

Obviously nobody here has been to Walt Disney World or Disneyland. The calendar turns and the prices go up. It's as simple as that. Hotel, admissions, souveniers etc.

---

[laplaya29]

But at Disney World Land you get value for your money. If the ride is broken you get a voucher to return... If eBay is broken, your told its something that you are doing wrong and to clear your cache. You get lots of bang for your buck at Disney World Land, but not here in eBay World Land

I actually expected a much larger increase all across the board. Of course No Increase would have been nice, but all things considered, it could have been a whole lot worse.

If eBay would quit with the rising fees, we would be spending more time listing instead of on the threads discussing. eBay is not making any new listing fees off of me tonight, I am busy going through the threads.

Bill.

[systemagic]

I'm thinking of short-selling eBay stock. What future can be expected from a company that increasingly, routinely, and more frequently, removes all incentive for sales?

[recped]

I'm NOT a stock market expert but looking at the chart I'm not sure this is the right time for short selling.

If you want to gamble you could have a really close look just prior to the release of the next quarterly financial reports.
"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915

[systemagic]

Recped: Actually, I wouldn't short sell anything. Short selling is a short-term gambit and it could take analysts quite a while yet to realize that eBay is effectively canibalizing it's sales force. You're right in characterizing the stock market as a gamble however. On that basis I'd maintain that the greater potential for gain would be the day before the next quarterly report is issued. I just meant that the long-term outlook for the stock can't be too good if they maintain their prefferred course. I am looking at the markets as a source of income to replace eBay, however, because a gamble beats a guaranteed loss.

When it comes to a Disneyland comparison it would be more accurate if Dysneyland had free admission and, instead, charged fees to its rides and vendors for conducting business inside its gates. Sadly, the vendors wouldn't be able to succeed either if they were compelled to charge $30 per ride and $20 per bag of popcorn.

In the very long term eBay will inevitably have to come to the realization that increasing its fees indefinately erodes its core sales. Share price is of very high concern to corporate board members and, while routinely increasing fees works for many business models, the realization that this is counterproductive for eBay will, one day, inevitably sink in. Increasing eBay's share price is simply not as facile as raising the fees to sellers. Genuine growth is of higher integrity and much more hard won. EBay will, one day, realize that real growth means increasing the sell-through rate which includes finding the optimal fee structure which isn't neccesarily the highest. Mr. Cobb is a slow learner. I can't wait for him to come around. When eBay does, I may be back.

[gloriaguides]

Look on the bright side. With the lowering exchange rate (Canadian $ falling), the exchange difference will cover your extra fees! I've been around for a few years and this is a fairly minor readjustment, I think. And yes, everything is going up in price, not just ebay and the PO. It's just that this is the best place to vent over the ebay increases. Happy New Year one and all! GLoria