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Old 08-20-2008, 11:09 AM   #1 (permalink)
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Default Ebay lowering Fixed Price Fees

EBay lowering fixed-price sellers' listing fees: Financial News - Yahoo! Finance
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Old 08-20-2008, 11:53 AM   #2 (permalink)
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EBay said an "average" fixed-price seller that once spent $5,000 in eBay fees each year would now spend 11 percent less under the new fee system
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Old 08-20-2008, 12:27 PM   #3 (permalink)
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Quote:
Originally Posted by jacobbigshow View Post
EBay said an "average" fixed-price seller that once spent $5,000 in eBay fees each year would now spend 11 percent less under the new fee system


if you believe that i have a bridge i'd like to sell you.
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Old 08-20-2008, 12:32 PM   #4 (permalink)
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if you believe that i have a bridge i'd like to sell you.
Ok where is the bridge
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Old 08-20-2008, 01:20 PM   #5 (permalink)
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fixed-price listing fees are going down, but FVFs are going way, way up for most categories (including cards)

also no more being able to accept checks or money orders, at least not via ebay's checkout system. you'll have to accept at least one electronic payment method. and of course, although they claim electronic payments are safer, easier, faster, blah blah blah, that only applies to THEIR electronic payment system, paypal, but not google checkout or any other service they don't own.
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Old 08-20-2008, 03:56 PM   #6 (permalink)
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One postivie is that it looks like ebay will alow you to use your own merchant account through ebay checkout starting January 2009.
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Old 08-20-2008, 04:57 PM   #7 (permalink)
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"most fundamental change we've made, ever,"

No, I'd have to say that their biggest fundamental change was lowering auction fees but drastically increasing final value fees.
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Old 08-20-2008, 09:40 PM   #8 (permalink)
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Yeah if I read it correctly fixed price listings final value fees jump from 8.75% to 12% - ugh! I knew right away when I read about the lowering of listing fees to 35 cents there had to be a back end charge going up. I do a lot of fixed price listing, but this will still end up costing alot of money in the long run.

I usually try not to get too fired up over these eBay changes - but to me it's just more annoying than anything - they hype up how great every change is supposed to be for the seller when realistically every change they make benefits 2 parties: 1) Ebay 2) The buyers.

I do understand Ebay is out to make as much money as they can as a corporation - after all that's why they are in business. However if they keep pushing they are going to price the sellers right out of selling. Already looking like close to 20% coming off the top of all my sales due to listing fees, final value fees, and PayPal fees. 20 frickin' percent! It really hurts the sports card sellers, because there is such little profit margin in this industry to begin with.

I know others have quit Ebay and searched for alternatives - and I have checked other sites out - but the bottom line is still I receive the best results with Ebay - no other site offers the exposure for doing hardly any advertising. I guess that's the price to pay. I just wish they would stop with all these 20 bullet point lists every few months of how they "improved" the "Ebay experience". I just wish they'd state right after the "all fixed price listings 35 cents" that "oh by the way we are raising the final value fees" instead of trying to hide that statement.

It just seems to me they are doing way too much - going way from the keep it simple principle - Ebay used to be so great - because they kept it simple. They are overanalyzing everything now and trying to make way too many changes. I think I just got to a point of realizing everything they put into the last batch of changes.

Other things I read were doing away w/ checks and money orders - again I understand they own Paypal - they want us to use Paypal as it adds to their bottom line. But i really think they are going too far telling people how they can accept payment. And putting limits on shipping and handling in some categories? Man people need to be allowed to ask what they want to charge for S&H.

All these changes - plus I'm sure most of you are aware of what they are doing w/ companies such as Buy.com - where companies can negotiate their own deals - I don't believe Buy.com was paying listing fees - and they are listing hundreds of thousands of auctions. They are trying to do away w/ the little guys - and want all these big businesses to come in and sell - mostly w/ buy it now.

I do agree that this world is filled with more "buy it - want it now" type of buyers than people who "want to win the auction". Auctions really have outworn their welcome. It's one reason I sell mostly at fixed price - I find I make more profit that way as well. But why now charge 12% FVF for fixed price. I believe auction staying at 8.75%

It appears to me that one of the reasons they did it was to say "hey look what a great deal auctions are - they are the lowest fees". Quoting the site they say something like "auction listings are still the best deal on eBay". It's just funny that we should have to view listing an auction as a "deal".

Anyways - post got kind of long but think I raised some good points, but all these 3.25% final value fee price jumps are starting to add up to where it begs to question - is it worth even selling sports cards on eBay anymore? It's just too bad the "alternatives" are really not out there. I've checked out alot of the sports sites and haven't been too impressed.

Alright everyone - interested to get your thoughts on this stuff. A question I have for everyone is at what point will they have to start capping the "total fee package"? By this i mean listing fees, final value fees, and PayPal fees.

Right now let's say you list a fixed price auction with quantity of 10 items and sell for $10 buy it now and charge $2.50 shipping & handling. That will cost .35 cents to list. Now you sell an item - so take $1.20 for the final value fee. Up to $1.55 in fees now. You break even on the shipping as say it's just a few cards and costs $1.50 to ship USPS & then w/ delivery confirmation and bubble mailer you break even. Let's go ahead and add PayPal's take - which would be roughly 2.9% + .30 cents of your TOTAL amount you take in (yes this includes the shipping) - so ($12.50 * .029) + $0.30 = $0.66 cents PayPal fee. Ok total listing + final value + PayPal fees now = $0.35 + $1.20 + $0.66 = $2.21.

That's 22.1% right off the bottom line on one stinking fixed price auction ending at just $10 + $2.50 shipping! Let's say this was for a lot of 10 cards and the lot cost you $7.50 (75 cents a card - w/ how much boxes/cases are these days this is realistic for alot of products). You took in $10, your costs + fees was $9.71 - meaning a whopping .29 cent profit. 2.9% profit.

This is a hypothetical example, but goes to show how much the profits have been eaten up w/ these fee hikes. And the biggest hidden cost that nobody likes to talk about - all those listing fees that end w/ unsold items. I know it happens to me where sometimes I'll get 0 sales from a fixed price auction. Those listing fees have an effect on the overall bottom line.

Anyways - I believe these hikes affect alot of people, and in the coming years might price people out of selling. By the way these fee increases affect more than just the sports card sellers - they really do affect all people selling as i believe costs are going up accross the board for fixed price listings.

Let's hope eventually someone comes along to challenge eBay - it's bound to happen. Enjoy your night everyone.
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Old 08-20-2008, 10:14 PM   #9 (permalink)
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FBuy13 - Kudos on a very informative and well thought out post.

I personally think Ebay is head down the tubes because they are overmanaging their company with constant changes and annoyances. I guess those darn sportscards have been the financial scourge of Ebay over the past decade. Ebay makes their real money on gihugic volume. By reducing the number of transactions (fees, sellers leavings etc.) they will make less money in the end.
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Old 08-21-2008, 10:19 AM   #10 (permalink)
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Message from ebay.

We're taking steps to give sellers the most dynamic marketplace on the Internet: reduced upfront cost, optimized exposure, and a more consistent buyer experience to drive more sales.
Your Auction-style listings with a low start price are still the best deal on eBay -- no change in Auction-style fees!
Plus, we're introducing a new 35¢ Insertion Fee for Fixed Price listings-regardless of the asking price or number of items in the listing-with a 30-day duration and automatic renewal option at no extra cost. For some of your items, this new Fixed Price option may be a great solution.

Driving more sales with a more consistent buyer experience
We're taking other steps to ensure buyers keep coming back to eBay:


Limits on shipping and handling charges
Big seller rewards for free shipping, including free subtitle, a boost in search results, and double PowerSeller fee discounts
No more checks and money orders
New seller standards: Minimum 4.3 on all DSRs


More relevant search results to drive more sales. We're optimizing Best Match to surface the inventory most relevant to each buyer and show the best of Auction-style and Fixed Price.
Get more information about these important changes. You're also invited to participate in one of several webinars scheduled for August 20-26.
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Old 08-21-2008, 10:31 AM   #11 (permalink)
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How can they limit the Shipping and Handleing charges?

I like to list lots of things in the Singles category.

I might put a set there... So naturally shipping is going to be more.

How are they going to regulate that?
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Old 08-21-2008, 10:45 AM   #12 (permalink)
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Quote:
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How can they limit the Shipping and Handleing charges?

I like to list lots of things in the Singles category.

I might put a set there... So naturally shipping is going to be more.

How are they going to regulate that?
I hate those freaken noticies I get everytime I list something, they tell me my charges are higher then most other peoples, well I could less, I want to get paid for my handling charge. I have really down sized my business as I am selling everything I have and will only focuse on Topps Sterling and maybee Finest for now on. And are you kidding me.....12% FVF that is crazy.
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Old 08-21-2008, 11:01 AM   #13 (permalink)
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i like how ebay is pushing "free shipping". who are they kidding? free shipping means higher price of an item. this is just more money in their pocket on FVF...
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Old 08-21-2008, 11:03 AM   #14 (permalink)
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Quote:
Originally Posted by festus View Post
i like how ebay is pushing "free shipping". who are they kidding? free shipping means higher price of an item. this is just more money in their pocket on FVF...
Exactly, I can see ebay being more like half.com in a few years....and that is horrible. They charge the buyer say $4 for shipping, they give you $3 and it cost you $3.50 to ship not including the box (I am talking about books). Just let us charge how much we want for shipping, and if we charge too much we will get bad feedback, o well.
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Old 08-21-2008, 12:51 PM   #15 (permalink)
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Well, here's how I see it. Lower listing fee, raise FVF, in the end it's still more additional money added to the ebay bottom line as they'll make more on the FVF's than they'll make on the listing fees.

No checks & money orders - of course not, ebay doesn't profit from people paying the "old fashioned way". They want their greedy fat fingers into every aspect of your "selling experience". And don't get too hyped about them linking your individual merchant accounts, remember they don't think google checkout is "safe enough" to use on ebay, yet payfool is one of the worst money transfer applications ever invented. Add to that the fact that google backs all of their transactions and they actually have a better end to end rating for checkout and you see why it's banned. I see them similiarly "banning" personal merchant accounts as "unsafe" in the near future for those of us who can't negotiate our own fees.

Lastly, just wait until ebay starts posting a nice little disclaimer on the feedback page to buyers encouraging them to leave poor DSR's for sellers who charge shipping & handling. You know it's coming, it benefits them to do so. Then your DSR's go below 4.3 and poof, you're done selling. It's simple math really, ebay is trying to rid themselves of small sellers, the ones who won't be able to afford these changes. They're not in business for you and me anymore. We built their market, and now, just like everything else, big business is going to bully their way in and push the little guy out. We've created their platform, now they just have to muscle in and reap the benefit, leaving all the small time sellers who built ebay out in the cold. Welcome to basic economics folks.
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Old 08-21-2008, 02:45 PM   #16 (permalink)
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How can any little guy ever make it on ebay? ebay started out as all little guys and grew from there. I don't sell much and this makes it damn near impossible for me. Since I buy as much as I sell I know how mad I get when I want to buy a card and a guy wants to charge me $4 for shipping but now how else are you supposed to make up all the additional FVF's? I just want to sell my extras so I can buy what I need.
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Old 08-21-2008, 02:52 PM   #17 (permalink)
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Geesh thanks for closing my thread that focused on ONE ISSUE of these many new rules

how many of our veteran sellers on here are worried about their DSR come November. Mine is OK for now but if some little #@$! wants to drop us off the face of EBAY all they have to do is win a few auctions and we could be done.

Now there is an appeals process but we might have to sit on a case while EBAY thinks about it.

What's your thoughts on this rules change 4.3 or reater DSR??
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Old 08-22-2008, 09:31 PM   #18 (permalink)
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Geesh thanks for closing my thread that focused on ONE ISSUE of these many new rules

how many of our veteran sellers on here are worried about their DSR come November. Mine is OK for now but if some little #@$! wants to drop us off the face of EBAY all they have to do is win a few auctions and we could be done.

Now there is an appeals process but we might have to sit on a case while EBAY thinks about it.

What's your thoughts on this rules change 4.3 or reater DSR??
It really stinks. So if I have a few idiots who give me a 1 of some people who give me 3 or 4 during a month I can get suspended from selling. Freaken idiots, they really are going to try to kill the little man. Look at this:

In addition to shipping incentives, we're introducing limits on shipping and handling charges in one of our biggest and most competitive categories, Media (Books, DVDs & Movies, Music and Video Games).

So bascially what they are saying is ebay will now longer be an auction site, but more like buy.com or amazon.com. I really hope somebody starts a new auction site with free insertion fees for items under 99 cents and that will be the new ebay...the ebay which we will see in 5 years will be nothing like the original ebay.....sorry to say but hopefully they do not corner the market on sports cards or we will be out of business as well.
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