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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eBay fees on shipping
3/21/2013 9:10:41 AM
I accept that eBay charges fees for their services, both for listing an item and on the sale price. If I want to use their service I pay the fee, sort of like taking the bus. If I don't want to pay the fee there is always CL.
However, I object to eBay charging a tax (making a profit) on the shipping fees that I pay to a third party not affiliated with eBay at all. Granted there was abuse of the pricing by some sellers to reduce the fees paid to eBay. Like the old way of avoiding taxes when buying a used car, the car sold for $1 but the owner's manual cost $10K. If I have to pay the USPS $9.95 to ship something why does eBay deserve a cut of that (other than because they can)?
Between eBay and PayPal, eBay Corp. has a huge database of shipping info, zip codes, object sizes, etc. that should allow them to determine the reasonable and customary charges to ship anything from point A to point B by a variety of means (they pretty much do that now when they suggest the shipping fee when you list an item). The eBay system then should not collect fees on that portion of the final value of an item. Any shipping charges in excess of this amount could be taxed at the eBay rate to reduce abuse of the fee schedule.
Perhaps that's the answer. eBay is charging an illegal tax on shipping charges!
RE: eBay fees on shipping
3/26/2013 1:55:43 AM
too bad, fleabay just gonna said "suck on that bitttooocccchhhh"
I avoid using ebay as much as possible. their ridiculous policy just drove all the user away. It's a scam heaven and favors the buyer left & right.
*looking to sell on Amazon*
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
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