eBay raises fees: Half empty or half full?

eBay raises fees: Half empty or half full?

Summary: eBay will raise its fees effective Jan. 30, but it's unclear whether this move is good or bad for the company.

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TOPICS: E-Commerce
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eBay will raise its fees effective Jan. 30, but it's unclear whether this move is good or bad for the company.

Clearly, the price increase isn't so swell for eBay's merchants. As for eBay, the fee increase shows it still has pricing power even though growth is expected to slow. The details:

Core Auction-Style and Fixed Price Listing Fees:

Insertion Fees

We're increasing the Insertion Fee for the $1.00 to $9.99 level from thirty-five cents to forty cents.

Final Value Fees

We're increasing the Final Value Fee for the $25.01 to $1,000.00 level from 3% to 3.25%.

Please note that there are no fee adjustments for eBay Stores or Store Inventory listings.

eBay Motors also has increases.

eBay claims the increases are "modest" and due to "careful analysis," but analysts are reading between the lines on what it means. Overall, it's a glass half full or half empty depending on how you view eBay. Either eBay's dominance is strong enough to push fee increases or the company is flailing trying to keep growth going. To wit:

--Jeffries analyst Youssef Squali says the fee increase is eBay's seventh in as many years. The increase means that eBay will at least hit its financial estimates. "Like every year, we expect to see some push back from power sellers and management will reach out to them by month end to address their issues. We don't expect much desertion."

--Deutsche Bank analyst Jeetil Patel says the company "continues to experience slowing growth from user activity diminishing, ad costs rising and seller economics subsequently coming under pressure." While other large Internet companies are helping customers cut costs, eBay is going in the opposite direction, argues Patel.

The big question is whether the eBay increase is viewed as inevitable or a reason to try new pastures. My guess is eBay sellers will shrug off the increase, but at some point there will be a backlash.

[poll id=33] 

Topic: E-Commerce

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15 comments
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  • I've WASTED $16

    trying to sell my [url=http://www.maxiaids.com/store/prodView.asp?idstore=2&idproduct=3902&idCategory=131&category=Ameriphone_TTY&product=Ameriphone_Q-90D_Digital_TTY/VCO]Ameriphone Q90D TTY[/url] and it's not successful. This is even though I've reduced the price, give a whole lot more specifics on features, highlighting the title with -- ugh -- to raise fees on me, etc. trying to attract buyers but what's worse? More fees!!

    I have to wait for about 180 days for eBay to cancel my account but other than that I'm leaving. :( :( :(
    Grayson Peddie
  • The Ebay Community

    I don't really understand why a company has to improve profits year after year. I think that once you pay your bills and put a few bucks in the bank for a rainy day that should be enough profit.
    What's really happening is that once a company goes public, it is held responsible to profits by it's shareholders, forget the fact that sellers profits go down, and in most cases sellers are selling less on ebay because it's just too hard to sell and make a profit.
    However the more they raise their fees, the more it will incite others to enter the online auction marketplace.
    xkmail
  • E-Bay sucks for buyers!

    It's all about the sellers! DONT BUY ON E-BAY! If you get ripped off it takes 2 months to get your money back! If you read the details, everything is about the sellers. Sellers always create fictitious logins to drive up prices. If sellers don't ship promptly or create any other issues the buyer has no recourse. I once posted a bad mark on a seller because they shipped me the wrong product and the seller BLACKMAILED me by posted a bad mark on me (AFTER I had already paid him). To this day I hold 1 bad post (out of 45) because I refused to remove my bad mark on the seller (hell, the guy was BLACKMAILING me!).

    E-Bay sucks! Amazon only for me!
    nomorems
    • E-Bay sucks for buyers!

      I totally agree. E-Bay exclusively supports the sellers and discriminates against the buyers. A seller can have tons of negative feedback and complaints lodged against them and they will continue to be allowed to sell. E-bay also tries to pursuade you from posting anything negative against sellers with their wording when you attempt to do so. On the other hand, a buyer is viewed as dispensible.

      Furthermore, E-bay is no longer a place to find bargains. The prices are often comparable to stores. Add in the S&H and you are paying more.

      Please Google, save us from this money hungry glutton and create a marketplace/auction that is seller and buyer friendly!
      only_shadows
  • eBay sucks more for sellers...

    PayPal basically bends over backwards to please buyers. Example: I sold an ATI All-in-Wonder card. The card was perfect (it was in my system) and when he won the item I took it out of my system (after 16+ years as a tech, I can remove a card...thank you very much) and carefully packaged it within the original packaging. This package was then well insulated in a shipping container and mailed to the guy. When he got it he called and said the card was physically damaged but the shipping box and manufacturer box looked fine. I spoke to PayPal and as long as he claims he didn't get what he ordered, he gets his money back. He probably broke the card himself by mistake and now I lose the money and I get a junk card back.
    Cost to the buyer $0
    Cost to the seller (me): $13.57 listing and final selling fee, $8.57 Paypal charge, $23.47 shipping, and...should I chose to replace the card...a minimum of $192.78 (cheapest I could find).

    So don't tell me that it sucks for buyers...
    ExploreMN
    • I no longer accept Pay Pal when selling

      I agree. When I sell on eBay, I refuse Pay Pal payments and only accept money orders or cashier checks. I got burned because of a shitty buyer that lied to Pay Pal.

      I sold an stainless steel Advantium microwave oven ($800)and the buyer said it arrived damaged, but refused a UPS inspector to check out the claim. The buyer disputed with Pay Pal and Pay Pal totally sided with the buyer. So I received back a damaged microwave that was obviously kicked in.

      I kept tabs on the buyer and saw that she then bid on and won a WHITE Advantium oven days later. The buyer had obviously changed their mind about their appliance colors for their kitchen remodel after buying my stainless steel appliance.

      Pay Pal sucks for sellers, but is great for buyers. Wish there was some middle ground though so I could use it for selling.

      So I could just bid on and win a PC, then strip it of the HD, memory, drives, etc, and file a dispute with Pay Pal and get my money back.

      Hmmm....I know how I'm doing my Christmas shopping this year!
      pileofmonkeycrap
      • Guess that's the price you pay to run your business on eBay.

        I acknowledge that I am not a seller, but a buyer. I have been screwed to many times by sellers so I no longer purchase anything from eBay...Amazon or retail stores are MUCH better. eBay is a rip off...apparently both for buyers and sellers. I think of eBay as a crack house for illegal sales. Die eBay, Die!
        nomorems
  • Hmmm.....

    "eBay claims the increases are "modest" and due to "careful analysis,"

    That tells me that ePrey has analyzed it's pricing structure and determined they can squeeze their customers just a bit harder without them sqeeking too much.
    BitTwiddler
  • This isn't about a fee increase

    This is about what have you done for me lately. This is about what have you done Bill Cobb for the US marketplace that you manage other than gain weight before our eyes. What have you done in the 2 years since the last auction fee increase. What have you delivered in terms of robust tools and seller protection for the very people who have paid your salary so you can live fat on the hog. You really are Big Fat Bastard from Austin Powers. You have ruined the marketplace by not hearing what has been going on and you do a disservice to the ebay membership whenever you open your trap. I'll pay more in fees just to get you away from the site. Go elsewhere and screw up another business.
    Fruit Helmet Cat
  • why is anyone surprised by the fee announcements?

    I've been eBaying for five yrs now. It has almost always been fun, and at least paid some bills. That is, until Aug 2006. The store fee increases were totally unwarranted. We've all speculated that one to pieces. So, wondering why anyone is surprised by the announcements of more fees in Jan?

    If eBay had had any sense at all, they would have waited until Jan to make the store fee changes too. That way, they would have had more people stay through the 4Q, and a lot less hostility being aimed towards them.

    Meanwhile, we closed our eBay store. I don't wish to finance 'Meg & Bill's Excellent Adventure' while struggling to pay my own normal everyday bills. Many of us felt totally violated by their actions. They are totally disregarding customer loyalty and service in the factoring of all these changes.

    May they get EVERYthing they deserve! And, remember that sellers build eBay. They can build another site just the same way - let's all find one or more that actually provides the services paid for, and listens to the ones who pay the bills....

    eBay, thanks for allowing me to have the first totally eBay-bill-free month this month! It feels really good!
    ebayedtodeath
  • this is why craigslist is better

    no fees, put your item for sale and most likely several people will be interested. Craigslist is NOT in the market to make money.
    RIAAsucks
  • eBay fees avoidance

    This is leading to eBay sellers trying to figure out more and more innovative ways of selling outside eBay.

    A friend of mine is a programmer and one of his customers had him write a program to do following :
    1) Retrieve the list of bidders and the corresponding items from his ebay id.
    2) Create a shopping cart for that user in his own store. If the user does not exist create the user.
    3) Send out email to the user with the link saying we have your products ready to ship just make the payment using the link below and the goods will ship immediately.

    Using this technique this guys is able to sell to each of his bidder instead of just the highest bidder and avoid commission on all but one buyer.
    cploonker
  • RE: eBay raises fees: Half empty or half full?

    http://forums.ebay.com/db1/thread.jspa?messageID=2008399675

    It seems that ioffer.com offers same protection as ebay and more easy
    to use user interface. As well as buyer and seller friendly community
    and free listing fee. See review at http://www.reviewcentre.com/reviews92911.html



    With buyers get smarter, they could find cheap new item at
    http://www.dealcatcher.com for desktop/notebook or http://www.onsale.com
    for apple macs. Also with fee increase and powerseller leaving,
    remaining ebayer sellers have to raise the price for the cost, that
    means ebay buyers are difficult to find cheap item.
    jessismith
  • EBay is taking advantage

    Ebay has a monopoly and they of course know this, they are simply taking advantage and raising fees at their whim because they can. But there are many other alternatives to use out there, just google it. I have axed my store and am not sure how long I will last with the account.
    ___________________________________________________________________
    Buy and sell in your country or globally with Bizglo
    Posting is free!
    www.BIZGLO.com
    julian.valencia
  • I Suggest you all to try this new ebay alternative site

    A highly recommended site is elfingo.com for online
    auctions. They are the new ebay. Many smaller sites like
    this offer buyers far better deals than ebay ever could.
    Buyser also save a ton because this site charges little or
    nothing depending on the day. One more reaso I like
    elfingo.com is because they don't take a part of the sale
    at all. No commissions or final value fees. A+++
    http://www.elfingo.com
    ebizeranil