New fee structure (store subscriptions) coming March 30, 2010



The rumours circulating over the past year and a half that eBay stores as we knew them would be phased out and replaced by fixed price listings is coming to fruition.

Here's a short cut and paste of what I received in an eBay email:

"The upfront cost of selling on eBay is about to be dramatically reduced with our lowest Insertion Fees ever. I wanted to let you know about this exciting change and how it can help you in particular -- and also give you a heads up about what you need to do to qualify to receive the best rate package for your business.

In short, on March 30, 2010 we are changing the fee structure to provide a range of fee options designed to improve profitability for sellers of all sizes. New standard fees are being simplified and work best for sellers that sell occasionally.

Higher volume sellers like you will want to choose from one of three new Stores subscription packages offering significantly reduced rates. "


So anyhow, thought I'd open this up to discussion...
Message 1 of 39
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New fee structure (store subscriptions) coming March 30, 2010

Now I want to keep an open mind and hope that this new format will increase my sales...but I must maintain it certainly WILL NOT increase my profitability and scoff at the fact that eBay is trying to pull the wool over my eyes. In fact, it will cost me more than twice of what it costs now as I have to upgrade to the Premium subscription. If I stayed with the basic subscription, it would cost me nearly 4 times more to list my items than it does now. Hopefully the extra exposure (but then again everyone is going to get the extra exposure) will increase sales and hopefully the Selling Manager Pro upgrade will be worth it. For those of you already subscribed to Selling Manager Pro, the fee change may only be nominal. Another thing that I haven't looked completely into is that there are performance requirements for the Premium and Anchor stores. I am amongst the top performing sellers so it may never be an issue for me but you just never know. I would hate to have to pay 4 times more one month for my entire amount of listings because I got unlucky with a buyer.
Message 2 of 39
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New fee structure (store subscriptions) coming March 30, 2010

"The upfront cost of selling on eBay is about to be dramatically reduced with our lowest Insertion Fees ever.

I haven't received anything from eBay yet in that regard so it is difficult to comment until I see the details. I have a feeling though that it will be like last year....price increases touted as being new lower prices.
Message 3 of 39
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New fee structure (store subscriptions) coming March 30, 2010

I took a quick read through it (details show up on your seller dashboard as an informational thing about fee changes). Personally I think it will cost me less to sell more with this as it will increase my exposure for less than I am spending now (I've been ramping up my fixed price stuff at the higher prices). I'll have to upgrade to the premium store though and it looks like I'll finally have to look at checking out selling manager pro (I'm still an old time TURBOLISTER guy). Only thing I'm worried about is whether there will be so much stuff showing up in searches that it diminishes the "value" that using fixed price provides today.

Just like every year, look learn, adapt to survive!
Message 4 of 39
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New fee structure (store subscriptions) coming March 30, 2010

crafty,

As far as I can see, this is a good development.

In your case, you're looking at 15 cents a listing for full search exposure. Sellers who have been placed in search for short periods while ebay was testing this reported a surge in sales and I remember how mad sellers were when their store stuff was taken OUT of search in 2006.

I think it's a good deal and the better exposure is going to be worth the price. I've been visiting on the UK boards the past few weeks and I've heard zero complaints about the new system and they pay more than we do for listings.

ricmaric,

Only thing I'm worried about is whether there will be so much stuff showing up in searches that it diminishes the "value" that using fixed price provides today

Well, that IS going to be the question.

I pretty much expect that I'm going to dominate my sections because I have so many more variations than my competitors, but I can see where this will be a concern. We'll just have to see how it goes, I guess - no doubt we'll have to pay more attention to keywords and such.
Imagination will often carry us to worlds that never were. But without it we go nowhere. Carl Sagan
Message 5 of 39
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New fee structure (store subscriptions) coming March 30, 2010

As I said, I am keeping an open mind. I just disagree that this will make the profit margins go up for "store" sellers. Rather they will go down...but hey if it generates volume sales then it just may be worthwhile. I am also looking forward to using some of the perks of Selling Manager Pro. Less time spent on listing follow-ups is more listing time for me.

I am still going through much of the newly posted info. They have a discussion board up on the US site with the pinks answering questions today and tomorrow only.

It also looks like auction fees are going down as are the FVF for auctions so this is great news for me once I start auctioning again.

Westernstar...email me (or send me your email address) and I'll forward you the letter with all the links.
Message 6 of 39
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New fee structure (store subscriptions) coming March 30, 2010

Westernstar...email me (or send me your email address) and I'll forward you the letter with all the links.

Thanks for the offer but I found all of the information in the Announcements. I just finished reading through it all.

I think for me it will be a good thing but I can understand it will be more difficult for you when your listings have all, or mostly, been in store format. Hopefully it will turn out to be good for everyone.
Message 7 of 39
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New fee structure (store subscriptions) coming March 30, 2010

This new fee structure is so stupid !

Did not receive email from eBay Canada yet, but my .COM account already got email about free auctions under $0.99.

I cannot wait for the flood of $0.99 listings. What is stopping me (or anyone else) to post 100,000 auctions every day. I will find million $0.99 items in a flash and even if a sell-through is $0.01%, I am doing great.

It's going to be harder to be seen.

Yes, when they were testing it, they seen the surge, but they were testing it with today's fee structure, not when amount of core listings multiplies by 100x. Your fees will go down but you WILL NOT BE SEEN !
Message 8 of 39
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New fee structure (store subscriptions) coming March 30, 2010


cannot wait for the flood of $0.99 listings. What is stopping me (or anyone else) to post 100,000 auctions every day. I will find million $0.99 items in a flash and even if a sell-through is $0.01%, I am doing great.


It seems it's only free up to 100 auctions per month. I am so relieved ! Nevermind my outbreak above.
Message 9 of 39
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New fee structure (store subscriptions) coming March 30, 2010

Message 10 of 39
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New fee structure (store subscriptions) coming March 30, 2010

Sorry,

I tried to post a link but I can't seem to get it to work.
Message 11 of 39
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New fee structure (store subscriptions) coming March 30, 2010

yeah, I posted a link too in the OP and it did not work.
Message 12 of 39
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New fee structure (store subscriptions) coming March 30, 2010

momoftwingles2
Community Member
Hi Everyone,

Perhaps I'm just overtired, but when I do the math, the NEW LOWER fees are going to cost me, personally, quite a bit more than what I'm paying now.

First, let me say that I do use BT so the Selling Manager Pro is of no interest to me. I realize that I bear that expense due to my own decision so I have not included the cost of BT in any of my math.

Second, in more than a year now, I've not run one auction. I only list in store inventory format. This works for me and may not work for everyone.

When I do the math, this is what I'm finding. Please let me know if I'm calculating this correctly, because I'm having a difficult time seeing how the new pricing format will benefit me specifically. I am billed in Canadian currency.

I now subscribe to a Basic Store with .03 listing fees. I currently have 1459 listings. Basic Store Price is $16.40 per month.

CURRENT BASIC STORE:
1459 listings x .03 = $43.77 plus $16.40 (store) = $60.17

NEW BASIC STORE:
1459 listings x .20 = $291.80 plus $15.95 (store) = $307.75

NEW PREMIUM STORE:
1459 listings x .05 = $72.95 plus $49.95 (store) = $122.90

NEW ANCHOR STORE:
1459 listings x .03 = $43.77 plus $299.95 (store) = $343.72

Now, how are these new fees going to benefit me?

If I am understanding correctly, if I go with the NEW PREMIUM STORE, I will still be being slightly more than 2x a month for fees than what I pay now.

Am I missing something here?

Thank you in advance for any suggestions!
Susan
momoftwingles2
Message 13 of 39
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New fee structure (store subscriptions) coming March 30, 2010

It also looks like auction fees are going down as are the FVF for auctions so this is great news for me once I start auctioning again.

Auction listing fees went down but FVF went up. Now it will be 9% across the board.


It seems it's only free up to 100 auctions per month. I am so relieved ! Nevermind my outbreak above.

dipmicro, only 100 auctions per month but couldn't someone have 10 id's and then have 1000 auctions? I'm really on the fence about these changes..I haven't figured out if they will benefit me or not.
Message 14 of 39
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New fee structure (store subscriptions) coming March 30, 2010

I tried to post a link but I can't seem to get it to work.

You have to actually type LINK or some sort of text and highlight it before you paste the link into the ummm link thingy next to the spell check.
Message 15 of 39
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New fee structure (store subscriptions) coming March 30, 2010

momoftwingles2
Community Member
Hi Everyone,

I went to the Compare eBay Store Subscription Calculator and put in the following information: (Please note that I put in 1459 as the listings that I create monthly as they automatically renew each month. I also put in a hypothetical selling amount of $2.00 for this example. Most of the items I sell run between $1.50 to $4.99, but I usually run some big sales and items are marked down to $1.00 up to $2.00)

Enter your average monthly sales
Canadian Dollars US Dollars
What category do you primarily sell in? [ Other ]
Media
Technology
Clothing, Shoes & Accessories
Motors Parts & Accessories
Other
Auction Fixed price* (ONLY FIXED PRICE AT THIS TIME)

How many listings do you create monthly? 1459

How many items do you sell monthly? 1000

What is your average selling price? $2.00

How many pictures do you typically add per listing? 1

Discount? No discount PowerSeller discount (5%) Top-rated seller discount (20%)

I THEN CLICKED ON CALCULATE and this is the information that came up:

Store levels have different subscription and fixed price insertion fees, and the higher store levels offer lower insertion fees. This calculator helps you estimate what your monthly fees will be beginning 03/30/2010.
No store Basic Premium Anchor
Subscription fee US$0 US$15.95 US$49.95 US$299.95
Auction insertion fees US$0 US$0 US$0 US$0
Fixed price insertion fees US$730 US$292 US$73 US$44
Auction final value fees
(5% discount) US$0 US$0 US$0 US$0
Fixed price final value fees
(5% discount) US$240 US$240 US$240 US$240
eBay-hosted pictures US$0 Free Free Free
Total estimated fees US$970 US$548 US$363 US$584

Total estimated sales (based on the numbers you entered):US$2,000

TO UPDATE MY PREVIOUS POST.....As I did not add in FVF of 12%. To bring it inline with the above calculation....for my store as is (if I were open and actively selling)...

1459 listings x .03 insertion fees = $43.77
Store fee = $16.40
FVF (1000 items x $2.00) at 12% = $240.00
Total = $300.17

Am I figuring this correctly now?????

If so, it appears that my best choice would be the Premium Store with a typical increase of approximately $63.00.

I should also add that at this time I am a TRS, but I'm sure this will change soon since my store has been closed since December 1st and will remain closed until March 1st.

Your thoughts, please and thank you.

Susan
momoftwingles2
Message 16 of 39
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New fee structure (store subscriptions) coming March 30, 2010


dipmicro, only 100 auctions per month but couldn't someone have 10 id's and then have 1000 auctions? I'm really on the fence about these changes..I haven't figured out if they will benefit me or not.


Yes, that is possibility and some will probably do that but I suspect eBay may be watching for those cases.

New fees are making it easy to insert items, so we will see lot of weed. The new fees are also more favourable for bigger sellers and less favourable for people who use their $0.03 store listings for marketing.

It's adaptable.
Message 17 of 39
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New fee structure (store subscriptions) coming March 30, 2010

momoftwingles2
Community Member
It was mentioned on the US site that if a seller had a store that they would not be eligible for the 100 free auction listings each month.

Something to think about.

Susan
momoftwingles2
Message 18 of 39
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New fee structure (store subscriptions) coming March 30, 2010

"Auction listing fees went down but FVF went up. Now it will be 9% across the board."

Thanks for the correction.

Susan. Your deductions are correct and I am in the same boat as you. It's going to cost me more than double to list the same items now. The only benefit is that they will get core placement (to which we are wondering what that will mean since ALL LISTINGS will get core placement) and that I will get the Selling Manager Pro (basic selling manager was working just fine for me). So bottom line 2x plus the money for services and exposure I may not necessarily need.

The only people who are really going to benefit are those that run fixed price already and yes I am being a cynic but scoff at the fact that eBay is touting this as a great savings to me when it's really not. Whether or not it will be of benefit in terms of generating more volume/greater bottom line remains to be seen.

Here's another interesting cut and paste from the email I got:

"Start now to evaluate your current Stores inventory -- decide which listings you want to keep and explore options for the rest of your inventory. "

So basically they are saying they don't want our slow-moving, low-profit items on the site but I'm sure like me, you probably pick up quite a few extra gravy sales from customers adding them to their orders. In any case, I'm not worried about those items. We will have to subscribe to the premium store anyway so they are only going up 2 cents more for us.

Anyhow, we don't really have any choices here other than to pack up and start our own store (which we should be doing anyway in addition to ebay and which I will be devoting time to this summer). We just have to live with it and adapt.

Thankfully some of the services I've used have decreased: Free Vendio Gallery (used to cost me $9/month) and twice more photo hosting from SSB (used to cost me an extra $8/month to get that extra hosting).
Message 19 of 39
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New fee structure (store subscriptions) coming March 30, 2010

"Auction listing fees went down but FVF went up. Now it will be 9% across the board."

I have to correct myself as I didn't realize until today that auction FVF's will be different if you have a store. It will be 9% if you don't have a store but if you do have one, here are the rates:
LINK

$0.01–$50.00 8.75% of the closing value
$50.01–$1,000.00 8.75% of the initial $50.00, plus 4.0% of the remaining closing value balance ($50.01–$1,000.00)
Equal to or over $1,000.01 8.75% of the initial $50.00, plus 4.0%
of the next $50.01–$1,000.00, plus 2.0% of the remaining closing value balance ($1,000.01–closing value)
Message 20 of 39
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