eBay New Fee Structure - Get ready to make MUCH LESS on you auctions

[jtr1962]

JTR1962 - The day that a start up company accepts its first dollar of venture capital, is the day it is committed to either a) Go public b) Sell out to someone who is public. There are very few methods available to raise the cash needed to start a significant company.

As a practical matter, stocks have value related to a combination of: a) assets b) dividends c) profit d) growth e) hype. Would you invest in a company that didn't think about these things?

There's nothing wrong with the system itself. After all, it did work fine until maybe 25 years ago. That's when a lot of money started flooding the market from IRAs and the like. Investors were hyped to expect unrealistic double digit returns ALL the time. In reaction to that, companies started taking short cuts to increase the bottom line. Sure, you can temporarily boost profits by getting rid of customer service or R&D. In the long term however, you're digging the grave of your own company. The sound business practices of the past, which produced lower, but steady, returns were discarded in favor of a quick buck. It ended up being the ruination of many firms which had existed for decades. Like I said, the problem is the investors, not the system. And I really don't know if anything can be done about it, either.

 

[HarryN]

The sound business practices of the past, which produced lower, but steady, returns were discarded in favor of a quick buck. It ended up being the ruination of many firms which had existed for decades. Like I said, the problem is the investors, not the system. And I really don't know if anything can be done about it, either.

This is actually easy to fix. All that is needed is to charge the tax system to:
- 10 % sales tax on financial transactions or
- $ 10 tax or fee on every financial transaction (not consumer purchases)
- Eliminate deductions for interest over $ 1 million
- Eliminate the deductions for charity and political contributions completely

This simple change would blow out the really short term transactions and drive things toward a longer term investments.

 

[blasterman]

I guess I don't see what the fuss is all about. If you don't like Ebay's fee scheme use a different portal. While more local in nature I've had better luck with Craigslist for years. Or, specific interest forums.

IMHO, Ebay is getting too big for it's britches anyhow. If they can actually get away with the fee structure then they have too much market dominance, and sellers getting disgusting and going elsewhere is the appropriate market response.

Google execs have to be laughing their rear ends off.

 

[vestureofblood]

I too had received this message. I had not opened it, and would not have noticed that even if I had. Thanks for pointing this out. I contacted customer support to find out who is responsible for this, and who to speak with about it. The rep I spoke with gave me what he could, and said to email resolve(@)ebay.com. I did that, and I also mentioned my dislike of this "Starting March 30, 2010 selling on eBay will be a better deal than ever!"

• Either way, pay one easy Final Value Fee of 9% of the winning bid (but never more than $50)-and pay only if your item sells.

Hopefully the rep I spoke with and other getting complaints will echo it through the corporate hallways.

I guess what they are saying is not exactly a lie. It is "better than ever", they just dont say for who.

 

[Beretta1526]

Don't forget that these fees are going into effect in about two weeks.

.

 

[pfccypret]

I used to use ebay quite a bit, but in the last few years I've gotten away from it. 95% of the time I prefer new to used when looking for stuff. However, ebay is still good for hard to find or old items.

Back when I used ebay all the time, it wasn't uncommon to purchase fake or stolen stuff. Nothing worse then getting a *decent* deal (not good) on a video card, then realizing that the serial number had been altered.... hmmm.... I wonder why someone would take a dermal to a serial number plate Though I gotta say, I've had amazing luck with old video game consoles (something else I collect), I've never gotten a dud, something that is quite common in that hobby.


Anyways, I probably should be on topic, I just imagine that now people will list their products for more money and making good deals (the whole reason for using ebay) disappear.

 

[hk dave]

I am so looking forward to the day some company makes real competition for ebay. The greed has gotten way too big.

It can be done! Yahoo lost to google when nobody thought it was possible...

Someday people are going to be fed up and beat ebay! Oh God please let that day come soon!

 

[LEDobsession]

Maybe Apple or someone will come up with a similar booming success, like iBay.

 

[gadget_lover]

I should not post, but can't help it

I work for the company, so I may not be impartial. And I don't speak for eBay. And they make me say that.

I should also mention that I've not even looked at the new fee structure till this thread.

While the fees sound like they will be higher, the smaller sales (under $25) sound like they will be cheaper when you take into account the changes to insertion fees.

But that's all beside the point that I wanted to raise. That point is that the value of a product if determined by what people are willing to pay for it. I think I read in a press release that the idea was to decrease the seller's risk ( by getting rid of insertion fees) so there will be more listings, and make up for that with the final sales fee. The point is more things to sell means more sales.

Regarding the comment on 100 listings of the same item;

I found on the web ssc.channeladviser.com which discusses two things that should help. The first is "multi-sku' so the sellers can list things of different colors or size in one listing. The second is a 'fitment' catalog so that if a part or tool can be used in many different situations, it need be listed only once and the search engines will match the terms you specify even if the terms are not explicitly in the auction.

Personally, I'd like things to be cheaper too. Fedex is more than happy to deliver a $10 light overnight for $50. The local news-paper wants $15 for a 20 word ad. Starbucks wants $3.35 for my favorite drink. The state wants 9.75% of most every dollar I spend.

I'm just glad to have a job so I can pay those fees.

Daniel

 

[pfccypret]

So you are basically saying that the new ebay structure is designed to help the big sellers?

Ebay can charge as much as they want. But they won't have my business anymore.

 

[gadget_lover]

So you are basically saying that the new ebay structure is designed to help the big sellers?

Not sure which "you" was addressed, but my take is that the technical changes help sellers and buyers. If you are a buyer it's nice to see one listing for the "Hello Kitty" T-shirt you are looking for and then have the choice of size when you bid instead of 45 listings, one for each color+size combination.

The whole 'fitment' concept is also to provide easier searching for the parts you want. One listing for a Mag wheel to fit all Ford Mustangs from 1964 to 72. for instance. It will cut through the clutter, I would think.

Most of the talk I hear is about making it easier for sellers to sell and for buyers to find what they want to buy. Cutting back or eliminating insertion fees really seems to tie eBay's fortunes to the success of the buyers and sellers. But I'm just a grunt, and never sit in on board meetings. All of this is asserted in eBay press releases, I'm not revealing any insider info. See disclaimer in previous posts.


Daniel

 

[blub]

I used to sell a lot of items on ebay, won't be using it any time soon. The last thing I sold, the jerk didn't pay and I was not allowed to leave negative feedback, only positive for some reason

(new policies don't allow sellers to post neg. feedback for buyers, but buyers can leave bad feedback for sellers?!! WTF is that about?) and I was charged the fees for the item, they said I could relist it, only problem is that it was a seasonal item and I would have lost big selling it after Christmas. I really don't care for the way it's set up any more, too difficult to use with the standardized forms. Geez, by the time you get done with ebay and PayPal fees it's not even worth it. Never again.

 

[mrartillery]

Seems that they always have to destroy a good thing, but as been stated already the fees have been on the incline for quite some time now, therefore i hadnt used ebay for selling in quite some time. The last time I did i sold a bunch of junk I no longer used after cleaning out my house, I made $250 before insertion fees, final fees and paypal fees. After all those were said and done I had lost almost $40 . I said right then that ebay would be for BUYING only, for here on out for me!

 

[CaspersMom]

I just got back on ebay a few months ago for the first time in several years. I was shocked to read the new fee structure! What a disappointment.