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EBay is about to increase its seller fees to 10%

pages.ebay.com

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Re: EBay is about to increase its seller fees to 10%

#31
eBay used to be the place where you could put all your old junk and get some nice cash for it but lately it seems to be entirely focused on resellers (stores) rather than people selling junk from their basement.

Now it's all $1.00 items with $16.00 shipping fees.

I've been using Craigslist to buy/sell. I would prefer a place that was targeted specifically at casual sellers.

Re: EBay is about to increase its seller fees to 10%

#32
post #14

Earlier quoted context omitted.

High fees are bad, but so is low sell-through. How do you drive traffic to listings?

Few ways currently, and more to come in the next few months. Basically: 1. Sharing your listing on social networks (good, not great for driving traffic). 2. Ability to list on multiple marketplaces, so you don't NEED to sell it through SellSimple - you can still list it on ebay, craigslist, etsy, etc. If it sells on one of those marketplaces, we'll auto-delete your item from SellSimple and all the other marketplaces.…

Here's an idea to really drive traffic:

Your fees are 5%, eBay users will soon be charged 13% (including PayPal fee). So give your sellers the option to list on SellSimple for a price 5% less than eBay. For example, a $100 item on eBay would sell for $95 on your site.

Then in the ebay listing description add some key phrase like "Heyy Folks Be Quick" - the buyers will quickly learn that such a phrase means "get a 5% discount by making your purchase through SellSimple".

Re: EBay is about to increase its seller fees to 10%

#33

Here's a great comparison of the old and new fee structures: http://ebaystrategies.blogs.com/ebay_strategies/2013/03/part... While it does probably amount to an increase overall, there are certainly plenty of situations where the fees will be lower. And without doubt, they are now far simpler than before, which is important. Being able to quickly determine what it will cost to sell an item on eBay may well make casua…

Unless I'm mistaken, he only compares the fees for stores. And looking at http://pages.ebay.com/help/sell/fees.html#if_fixed, it seems that for individuals, the new fixed fee of 10% is always worse for anything electronic or $100 or more.

Re: EBay is about to increase its seller fees to 10%

#34
post #9

Earlier quoted context omitted.

Why is this a good time? User acquisition in this space is expensive, and I don't think eBay raising their sell side fees makes a huge difference in bringing in consumer traffic. Sellers still have to list on eBay due to sheer volume. eBay may lose some sellers who no longer have a profitable margin, but I don't think you lose an equivalent amount of buyers in the process.

Well, that's sort of a rhetorical flourish, but I expect this to result in a fair degree of backlash. I trade synthesizers and high-ticket audio gear fairly regularly, and I feel comfortable calling myself an expert on that market. It's not a business for me, but I make my living working with pro audio so it does have a professional dimension. I think a lot about pricing strategies, and incline towards building listi…

"User acquisition of auction customers is indeed expensive, but I bet there are opportunities in peer to peer trust arrangements similar to escrow transactions."

I like where you are going with that. I can envision a marketplace that is built around consumer trust and seller expertise, I just don't think that eBay is that marketplace.

Re: EBay is about to increase its seller fees to 10%

#35

If you were looking to dirupt eBay's business model, you couldn't pick a better time. While considering a price adjustment on a high-value item I'm selling, I went to their fee calculator to explore some other price points. I was mystified to see not only the fee I expected of ~$55, but a 'New Fee' of $123. Thinking I'd made a mistake, I explored further, and noticed that as of April 16, casual sellers who don't have…

Interesting to see this move by eBay - we've found that high fees for casual sellers is a huge pain point. By focusing their fee structure towards power-sellers they also happen to be alienating a large group of casual sellers. We're trying to solve this problem (among others) with our product SellSimple. Free app, free postings, and 5% if it sells. Check it out, would love to know what you think: http://sellsimple.c…

looks like a good product, downloading now - always willing to try a sales competitor! quick typo in your App Store update description, though! separate. anyone have an easy mnemonic for that?

Re: EBay is about to increase its seller fees to 10%

#36
post #26

Wait, what? The title is completely misleading. It's not an absulute increase from 9% to 10%. The fee earlier for all the sellers was 9%, now for ebay store owners (which mind you is a lot) get rates like 4%, 6% etc based on what items they are selling. So, ebay is actually giving great price to sellers who sell at scale (now they can open an ebay store, which is definitely a good deal!). They are just trying to prom…

The fee earlier for all the sellers was 9%

This is not true. It was pretty much the same as the store owner structure with a range of fees for different categories. Don't you think that I checked my facts before posting?

You can verify this for yourself using the link below; for example, on a musical instrument selling for $1000 you save $0.50 in insertion fees but your final value goes from $63 to $100. For cameras and consumer electronics, including phones, the increase is greater, from $51.50 to $100. I trade several pieces of quality pro audio gear a year; these changes would cost me hundreds $ in either final value fees or monthly store fees.

http://pages.ebay.com/sellerinformation/news/Feecalculator.h...

Re: EBay is about to increase its seller fees to 10%

#37
They obviously don't see much value in the casual seller. Buyers have a better eBay experience when buying from an experienced seller, better descriptions, faster shipping and communication and less disputes. eBay owns a lot of other auction site properties[1]. They probably want to differentiate their brands, have eBay focus on power sellers selling new products and have their other brands focus on the casual sellers selling used products.

[1] http://en.wikipedia.org/wiki/List_of_acquisitions_by_eBay

Re: EBay is about to increase its seller fees to 10%

#38
Actually the cost to sell on ebay will be closer to 14% since paypal is practically mandatory and they take 3.3%

I wonder what they are going to do when all the bigger ticket items start disappearing from listings, except for those with $250 a year stores of course.

Re: EBay is about to increase its seller fees to 10%

#39

If you were looking to dirupt eBay's business model, you couldn't pick a better time. While considering a price adjustment on a high-value item I'm selling, I went to their fee calculator to explore some other price points. I was mystified to see not only the fee I expected of ~$55, but a 'New Fee' of $123. Thinking I'd made a mistake, I explored further, and noticed that as of April 16, casual sellers who don't have…

Interesting to see this move by eBay - we've found that high fees for casual sellers is a huge pain point. By focusing their fee structure towards power-sellers they also happen to be alienating a large group of casual sellers. We're trying to solve this problem (among others) with our product SellSimple. Free app, free postings, and 5% if it sells. Check it out, would love to know what you think: http://sellsimple.c…

Any plans for an Android implementation?

Re: EBay is about to increase its seller fees to 10%

#40

If you were looking to dirupt eBay's business model, you couldn't pick a better time. While considering a price adjustment on a high-value item I'm selling, I went to their fee calculator to explore some other price points. I was mystified to see not only the fee I expected of ~$55, but a 'New Fee' of $123. Thinking I'd made a mistake, I explored further, and noticed that as of April 16, casual sellers who don't have…

Interesting to see this move by eBay - we've found that high fees for casual sellers is a huge pain point. By focusing their fee structure towards power-sellers they also happen to be alienating a large group of casual sellers. We're trying to solve this problem (among others) with our product SellSimple. Free app, free postings, and 5% if it sells. Check it out, would love to know what you think: http://sellsimple.c…

I looked at it; very interesting.

But why does someone have to sign-in to buy? That is a major turn-off. I can't use something that people need to register an account for to buy. Just take a CC and shipping info and pass it to me.

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