EBay Announces Lower Final Value Fees to Combat Amazon
March 20, 2013 10:39 AM
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eBay cuts prices to woo more sellers
It appears that eBay is feeling the heat from competitors Amazon.com. Amazon has racked up a huge number of buyers and sellers thanks in part to the company's successful
service. EBay is still the most popular online auction site out there, but over the years has raised a significant amount of ire from sellers over their high fees and practices at both its auction site and its PayPal payment portal.
As a result, eBay has announced that it's lowering its fees for sellers by simplifying its final value fees with a percentage fee levied on each item sold that varies depending on product category. As it stands now these final value fees are a percentage of the items selling price. The online auction giant has also announced that some of its listing fees will also be eliminated with most changes taking effect on April 16.
"For most of our sellers the complexity of our fees were keeping them from being on eBay and preventing them from having full transparency into their profitability from selling on eBay," said Michael Jones, vice president of merchant development.
Sellers who list fewer than 12,250 items during any given month will see lower fees according to ChannelAdvisor CEO Scot Wingo.
Under eBay's new plans, sellers will get 50 free item listings per month and if the item sells, eBay will take 10% of the sale price, which still seems rather high. High-volume sellers will see new final value fees that range from 4% to 9% depending on the product category.
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3/20/2013 8:13:49 PM
I hate when companies spin things so one-sidedly. We all know that this will mean more money for eBay in the end, why people take the spin is beyond me. Looking at the current fee structure, insertion fees are minor, and 10% max with a reduction for volume will in fact help the big sellers who deal in categories that typically see a lot of volume. EXCEPT for electronics, and that's why I care - almost everything I sell on eBay falls under electronics and right now the fee is 7% up to $50, then 5% up to $1000, then 2% above that. A flat 10% is a huge increase for that category, and there are companies that specialize in electronics who have an 'eBay store' - it will hit them hard too unless their volume is high.
What this tells me is eBay in fact doesn't care about the individual seller. Just one more reason to sell electronics elsewhere.
"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner
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