Point Counterpoint: eBay Spring Fees Are an Increase / Decrease !

[pierrelebel]

Point Counterpoint: eBay Spring Fees Are an Increase

By Ina Steiner
EcommerceBytes.com
March 27, 2013  

Tom Cardaropoli of Walnuts Antiques sells antiques and collectibles on eBay in the auction format and operates the Walnutts eBay Store. He sells about 50 items/week, and his monthly sales on eBay are in the $40,000 ...

For Tom, the spring fee changes on eBay represent a big increase in his costs going forward. In today's Point Counterpoint feature, Tom takes on "Point" and explains why eBay's spring fee changes are a fee increase for sellers like him. Here's what he has to say.

As always, when changes are made to the eBay fees structure, it is extremely difficult to determine just what effect those changes will have on individual sellers. The latest Spring 2013 Updates are among the most difficult to interpret.

 For more : http://www.ecommercebytes.com/cab/abn/y13/m03/i27/s01 

Point Counterpoint: eBay Spring Fees Are a Decrease

By Ina Steiner
EcommerceBytes.com
March 27, 2013  

Today's counterpoint seller, who did not wish to share her name or eBay User ID, has been selling antiquarian and collectible books since 1999 and has nearly 5,000 feedback ratings (100% positive) with all 5-star DSR ratings. She does approximately $1,000 sales monthly and has a Basic Store.

This seller mentioned that she previously operated a brick and mortar store and said there was no comparison of costs for rent, utilities, maintenance, insurance, etc. compared to eBay's fees, though she dislikes many of eBay's policies and ethics as much as anyone else does.

In her case, eBay's fee changes will save her money. In today's Point Counterpoint feature, she takes on "Counterpoint" and explains why eBay's spring fee changes are a fee decrease for sellers like her. Here's what she has to say.

For more: http://www.ecommercebytes.com/cab/abn/y13/m03/i27/s02 

[inuk_the_polar_bear]

That is not the point. The point is to get people to sign up for stores.

[pierrelebel]

Paying monthly fees may be one of eBay's goal for the changes.

However, I do not think it will work.

I suspect most (not all) sellers currently listing more than 100 listings a month already have a store. The question is to commit to a one year package or pay more if you go month-to-month. I suspect most sellers who already had a store will take the yearly package.

Many sellers with less than $1,000 in monthly sales (and I think that is the vast majority of sellers on eBay) may find it difficult to justify paying $20 a month for a store which saves them less than $10.00 (1%) in FVF unless they are selling in the few categories offering a lower FVF structure: (4% Computers/ Tablets & Networking, Video Game Consoles; 6% Consumer Electronics and Cameras & Photos 7% Musical Instruments & Gear, Coins & Paper Money 8% Motors Parts & Accessories).

Most categories have 9% FVF for store owners compared to 10% for non-store owners.

So it is largely a number game..

On the other hand, there is no question that most sellers listing expensive items and mid-price items with a high shipping charge will experience huge percentage and dollar increases in FVF, whether they have a store or now.

Listing fees have never been that important when you list $1,000 items.  FVF on the other hand will force sellers to go elsewhere or raise their prices to cover the extra fees.

Will eBay still be the place to find "bargains" once prices go up?

[inuk_the_polar_bear]

Pierre, yer over thinking this. Make it more like a magazine subscription. Ya got the folks buying it once a month at the store. Then there are the subscribers.

I "think" they are moving to a two tier service model. Stores get one level, day to day people gte the other level.

I further "think" that the free listing promos were a way of seeing who lists, at what level, who sells, at what level. Judging by their decisions, I would postulate that store owners list and sell at a higher level than the free listers do. Who then gets the attention?

eBay seems to be dividing into the bigger sellers who get the breaks, and the casual sellers who will pay more for the privilege of casual selling.

eBay is not about bargains, it is about ROI to investors.

[tobyshitzu]

"I "think" they are moving to a two tier service model. Stores get one level, day to day people gte the other level."

They did that a long time ago when they signed up Buy with a special fee deal and all the corporate sellers that followed with huge fee discounts and dedicated account reps

The fee change now is actually lessening the difference among the small (<$million) sellers, leaving a mere 1% (or .8% trs) fvf difference in most categories between store and non store.  The store fee now is mostly just buying more listings

[inuk_the_polar_bear]

Go with what I mean, not with what I say. I meant in terms of fees and offerings. Non store owners will pay more in fees and get fewer free listings.

Put another way, store owners will pay lower fees and get more free listings.

This is the first shot. More will follow. Think of it as a rewards program.

[cartoonsinabox]

I do think its the start of increase for store owners . Its all a mirage.

[inuk_the_polar_bear]

That reminds me, gotta check the room rates at the Mirage in Las Vegas.

[bb_cool_stuff]

You must be doing well.

The last time we went we had to slum it at the Flamingo Hilton.

[thebarterersdog]

😛

[dipmicro]

Quoting Mr. Cardaropoli

We have done some significant research and found that the fee structure will result in reduced fees for only 2 groups of people - those who list large numbers of items and sell very little ... The second group who may see a slight decrease in overall fees are those who sell in the categories where the final value fees have been reduced. These include those selling in the Computers, Tablets & Networking and Video Game Consoles Categories where fees have been reduced to 4%

Ebay still pursuing hunt for more items? Because there is so much noise on the site already, I sometimes have trouble finding relevant items here sometimes.

The changes are ... meh. Will make more noise from non-selling junk items. Chinese sellers of $0.99 items will continue to thrive, if we can call selling $0.99 items with free shipping thriving. Some of you sell 5-10 items and have higher revenue than Asians with 2000 feedback per month. But you will pay 2-3 more in fees, while Asians will pay less, so Ebay is going the way of promoting mediocricity before value.

I guess that's ok. Ebay has not been special for quite some time, just another site. Ebay stock going through the roof, but so were houses in US in 2006 and today you can buy house down there for less than more expensive boots.