Store Inventory Fees go up again.

[youreinthebook]

I have rarely before read such long-winded weasel language to explain and justify price hikes. Apparently Store Inventory items are so VIBRANT that eBay can't afford to keep them at the current rates. Huh?!?

http://www2.ebay.com/aw/core/200607.shtml#2006-07-19134256

[funkywatch_com]

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 June selling activity.

After increasing the insertion fee by 250 to 500% ?!
Gee! I really wonder how they came up with THAT number???

[sew-sisters]

If the point of the fee increase is to get rid of the dead merchandise in stores why pray tell are they increasing final value fees? Final value fees apply to sold merchandise not stuff hanging around tying up the eBay servers. Ridiculous.

Judy

[dragonimpact]

So ... lemme get this straight. Say for example my year-end goal is to have 3,500 items listed in my eBay Store. Originally the cost was $0.02 insertion fee plus $0.01 gallery fee ($0.03). Let's say all the items I list are over $25 each. So now the insertion fee is $0.10 plus $0.01 gallery fee ($0.11).

3500 items @ 3 cents = $105 / month or $1,260 / year
3500 items @ 11 cents = $385 / month or $4,620 / year

That's an increase of $280 / month or $3,360 / year.
Or, if you like percentages, 366% increase in fees.

Holy crow's feet Batman .. I'm gonna have to re-think my, as Mr. Cobb says, "selling strategy", as to whether I want to continue the store or not. I rent a small retail/office space that houses well over 3000 items and it costs me only $295 / month .. utils and everything included. It's getting cheaper to become a "brick and mortar store" than an "eBay store".

This is the wrong approach, eBay shouldn't be putting so much effort into researching ways in trying to take more money from the seller but rather find ways to increase the ebay seller sales and capitalize on the final value fees. After all, if I sold more items more frequently at a less expensive insertion rate you bet I'd be rushing to put as many items up as I possibly can as soon as I can, this increase makes me want to hold back on my year-end goal.

Alex.

[futuretech_liquidations]

eBay is getting to the point where they feel they can get away with anything and are proving it so everyday.

Higher fees, poorer service, NOW THATS THE FORUMLA FOR SUCCESS!

[youreinthebook]

I actually was starting to like Bill Cobb. He is a fairly straight talker and when he says something will be addressed, it more often than not is.

However on paragraph within his recent announcement is so ridiculously absurd that it can only have come from a typical corporate executive using psychobabble to create the illusion of saying something intelligent.

"And, when you compare our operations costs for an average Store Inventory listing and an average core listing - factoring in the duration of each - our cost to host a Store Inventory listing is more than 50% higher than for a core listing. In fact, current Store Inventory insertion fees don't cover eBay's cost of hosting them."

Yes, because heaven knows those BITS OF DATA take up SO MUCH SPACE on their servers. Please forget the fact that hard drive storage costs are at an all-time LOW. If these long-standing inventory items are seldom looked at, then it certainly can't be bandwidth that is causing all these "operating costs".

Bill should have just said "Folks, we are raising prices because we think that area was underpriced and we feel the market can bear it. We know many of you won't like it, but we need to maximize our profitability at this point when our stock value is so flat". That would have been far less insulting than the crapola about "Community", "balance" and "buying experience" that he flung today along with the bogus "statistics".

Bill, you might as well stay in your office from now on. Your credibility has just been seen with a suitcase at the airport going bye bye.

[neatstuffkp]

It is ridiculous!

2,500 listings

500 @ 5 cents = $25.00

2000 @ 10 cents = $200

2500 @ 2 cents = $50

So my store goes from $50 for listings to $250?????

FVF up to 10%

I can't talk about it all yet ... haven't totally absorbed it all.

Sounds like a 500% increase to me!

[icbinc]

I'm surprised he didn't announce an increase in the monthly fees to have a store open as well.


I'll be seriously looking at the numbers here. eBay is already one of our best paid "employees," but it may be time to do a lay-off.


Was getting so close to Platinum PS too 😞

[metaldesignz]

I have had a store for ONE month... I've noticed a decrease in some ways... It seemed MOST of my auctions always sold... I did raise my prices in my store to match our buy-it-now price, rather than the starting price...
And now I'm seeing more multiple sales, but it seems less than before...
I am thinking we'll have to close and go back to auctions too...

It's amazing that the bigger a business gets, the greedier it gets too....

[clutterking]

I guess I have to rethink what items I have instore. I have what I call "dead-weight" since it was only costing me .02/.03 cents per month. But that .10 cent insertion is going to add up!
How on earth can we make any money on anything less than 20.00?? Between the FVF and paypal, it is not worth it.
I have only been a powerseller for a few months and was so excited. Now, I will have to rethink where I sell my treasures!
MAD MAD MAD-(

[moltencore]

I for one am keeping my store. I've been listening to all the rants in the Store forum. Most of these rants are by the very people ebay is trying to weed out. There are many many sellers who have stores jammed full exclusively with BUY IT NOW items for 50 cents to a couple of bucks.
and they are the ones crying the loudest (and why wouldn't they be?)

I did a search yesterday and there were over 250,000 BUY IT NOW CDs with prices from 1 CENT to $1.99! (and they aren't all 7 day fixed listings - by a long shot)
There is no wonder the servers are clogged, and the searches don't work.
I say BRAVO to eBay for FINALLY trying to do something to get rid of this junk.

[jakeeangel]

HOLY CRAP!!!

Finally someone with a brain!!!!!

YAHOO!!!

Applause to you sir/madam!!!! I wholeheartedly agree! I was beginning to feel like the hubby and I were the only ones who felt that way.

The loud thud you heard was me picking myself up off the floor. LOL 😛

Thank you so much for saying that. You have no idea how much I appreciate it. You really don't!

---

[youreinthebook]

Ahem. The searches don't work because of constant code tinkering by their IT department, who try to kill one bug and introduce two more in their place.

Servers clogged? Suuuuuure.

eBay Kool-Aid tastes GREAT!

[jakeeangel]

You can always try Yahoo if you'd like. ;)

---

[youreinthebook]

Why would I want to do that?

[ricarmic]

Hi! I wrote a book under another store increase rant, but I'd like to add to the comment about a ton of cheap store stuff. I also agree, I don't know how much those folks make an hour but it isn't much for stuff that's selling under a dollar apiece, and it clogs the environment for decent sized lots!

In my "world" it takes about 40 minutes per item from start to finish, including pictures, listing, emails, packing, shipping, dealing with "where's my package", questions etc etc. I only list as much small (ie $10) stuff as I have because my customers tend to buy a few of the wee ones at a time and the small stuff has very good margins on it.

The only reason I run most of my auctions today is to draw people to the store.

I did some calculations with the increases and really it isn't going to change my plans much. If you want to understand why, check the other thread about the store prices.

[getgiz]

Why doesn't ebay introduce a Minimum Price for Store Items to get rid of the costly clutter?...say $5 Leave Store Fees as they are.

[tea_past_times]

In regards to the Ebay store price increases, I plan to simply do what I've always done:

In live auctions I Figure out what you want for the item say $10.00, now add the listing fees (0.35) and the final value fee(0.52)add the Paypal fee (0.75) add $1.00 for the gas you spend per item to the post office. Add $1.00 for the packing materials you use. Shipping is $6.65 small packet USA.

So I need, from the buyer $10.00 + $0.35 + 0.52 + 0.75 + 1.00 + 1.00 + 6.65 = $20.27

List the item for $11.50, charge $8.75 shipping. You will get the $10.00 you wanted free and clear. When Ebay increases fees, PASS IT ON!!

So when you list an item IN YOUR STORE just add 10% and 10 cents to what you originally wanted, and let the buyer pay more.
If everyone would do this, sales on Ebay may fall and get the company's attention. OR the market wil bear the increased costs. Either way the increases ARE NOT coming out of my piece of the pie.
Just another Lemonade salesman in a world full of Lemons!!

PHIL

[jasonsportscards]

actually i have already started to remove a number of my listings. dealing in sportscards most are cheap, but prices do go up to a hefty penny if u get some good ones. anything under a buck for me that isn't a star player will have to go. i have already removed almost a hundred items, with about the same to go, 200 items at 2cents each plus thier charges adds up, as most of those items will be there for 3-4months at a time, but they won't get that money any more. if you look around there r 10's of thousands of sellers in sportscards that sell commons for ppl to complete thier sets, that range from 5-15cents, they are dropping thiers as well at least those that i have talked to. in the end that will be a lot of money ebay will loose even with thier increase rates, as sales as a hole will decrease for many.
just my 2 thoughts
jason

[vesivus]

I find the fact that 'cheaper' items shall not be on eBay store a narrow view of the retail word (moltencore/jakeangel).

Just like a 'real' store, you need to have a variety of pricings on the shelf to appeal to a wider range of consumers -- and smaller items tend to have higher 'impulese' purchases than big-ticket items. We sell a wide variety of price ranges, from $.40 items to $50-$100 items -- and typically when a customer commits to purchasing a larger item, they look for some 'cheaper' items to throw into the package to make the s&h worthwhile.

It is a bad idea to request that the 'cheaper' items be removed from eBay... I'd say roughly 1/3-1/2 of our volume comes from such items.

John