eBay Pricing Change for Stores
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Post Posted: Wed Jul 19, 2006 5:53 pm 
 

I am sure the word will get out on this but in case anyone ignores their eBay mailing this is of imprtance to all who operate stores out of eBay...



http://pages.ebay.com/sell/announcement ... /fees.html


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Post Posted: Wed Jul 19, 2006 6:19 pm 
 

all up across the board...


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Post Posted: Wed Jul 19, 2006 6:25 pm 
 

ya, don't they at least usually try and give the impression that they are not just raising prices?  like lowering the insertion fee but uping their percentage of final value?  This increase is just we want more for listing and more for selling the item.  I guess Google might be threatening or something.

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Post Posted: Wed Jul 19, 2006 6:40 pm 
 

Huge increase in fees.  What a bunch of A**holes :x


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Post Posted: Wed Jul 19, 2006 6:53 pm 
 

Raise the price and lower the quality of service.

  Hmm...Sounds like a business with no competition...like the Washington State Ferries, for instance.

  Too bad there isn't another major company gearing up to take them on and backed by the single most powerful player in the industry!

  Oh, wait!  There is!   :evil:

  Isn't Google owned by MSN...as in Microsoft?  An I wrong...or maybe only half right?   :?

  Maybe Ebay/PayPal is doing this right now so that they can possibly "slash" prices in the future.  They can't be having cash problems.

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Post Posted: Wed Jul 19, 2006 7:07 pm 
 

Wow, just when I was exploring the idea of opening a store.  10% cut from final valuation is hitting half.com territory, and half.com has no insertion fee and no paypal (just automatic transfer to your bank account).  eBay may have overplayed their hand this time if Google classified ads take hold with a reliable payment system.  As for cash flow, eBay still seems to be making lots of money though the $2.4 billion for Skype had to hurt.  I still don't understand that purchase... do sellers really want buyers calling them anytime they are logged in for questions?  E-mail seems to be working just fine answering buyer queries.  That $2.4 billion was seemingly thrown away unless there's something else eBay can leverage from Skype that I'm not seeing.

  


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Post Posted: Wed Jul 19, 2006 7:46 pm 
 

MShipley88 wrote:Isn't Google owned by MSN...as in Microsoft?  An I wrong...or maybe only half right?

Separate companies; mortal enemies (especially from Microsoft's POV)

VermilionFire wrote: half.com has no insertion fee and no paypal (just automatic transfer to your bank account).

I like Half.com quite a bit, but I don't think it ever really recovered from the fiasco of 2-3 years ago when eBay announced it was permanently closing the site. The last-minute decision of "Wait! Maybe we won't close it down after all" came far too late to prevent Half from hemorrhaging thousands and thousands of users.

Since then, I've found myself having more luck with Amazon than Half when selling books, CDs and DVDs — it's not even close, really. Of course, other sellers' mileage may vary; maybe I'm the exception to the rule. And Amazon certainly has its own set of fees to deal with; there's no free lunches anywhere.

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Post Posted: Wed Jul 19, 2006 9:44 pm 
 

I'm just left feeling a bit disgusted, and a bit confused. eBay's hitting sellers where it hurts, and they're doing it because it's too popular!? Wtf kind of logic is that?

For gaming stuff, this sucks. It's a small amount of product with a limited number of people (sometimes zero!) interested in an item at any given time. That's why using Store stock is so appealing.

I guess eBay is counting on us sellers to not want to change, and just suck up the price increase. There's no way in heck I'm running 600 auctions a week.

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Post Posted: Wed Jul 19, 2006 9:48 pm 
 

Is it possible that too much inventory in too many stores is causing problems for Ebay?  Are they having to pay for something?  Is the goal, maybe, to discourage sellers from leaving products sitting in stores?

Mark  8)


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Post Posted: Wed Jul 19, 2006 10:07 pm 
 

Yeah, that's the stated goal. Because the listing fee doesn't cover the storage fee.

But, y'know, I always thought that was sorta balanced out by the much higher final value fees. Bleh.

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Post Posted: Wed Jul 19, 2006 11:33 pm 
 

GraysonAC wrote:Yeah, that's the stated goal. Because the listing fee doesn't cover the storage fee.

But, y'know, I always thought that was sorta balanced out by the much higher final value fees. Bleh.


    In retrospect, having something sitting in your store for 25 cents a year was an asskicking for Ebay (while good for store owners, no doubt).  No fees worth mentioning being generated by Ebay in the meantime.  It was a great loophole, only a matter of time until Ebay closed it.  :cry:
  However, if this is meant to gently prod store owners to put more stuff up for auction, I think they are mistaken.  In the long wrong it's still much cheaper to have something sit in your store 4 months (5 cents a month for four months is 20 cents for a $9.99 item) than to relist it for auction four months in a row (40 cents a week times 24 equals $9.60 for a $9.99 item with BIN).  Just to pull back the curtain here, I have around 1300-1400 items in my store at any one time, I calculated using this year's fees and costs it will cost me an extra $57 a month straight off the top.
  My solution?  Cut my AUCTIONS by 50 a week nets me $20 extra a week in listing fees, putting those items in my Ebay store instead will cause me to about break even. Honestly, my luck running auctions has been pretty rotten lately anyway except for the occassional item.  I'd much rather set my own price than rely on the vagaries of hoping not one but TWO separate bidders both want my particular item the same week and get into a bidding war.  More often I have been having items go for auction at a much lower price than they would have eventually brought being listed in a store (even with the higher final value fee.  So basically this just solidified a decision I had been mulling for months. Starting soon you will see very few (maybe 25-50 a week max) auctions from Badmike's Books and Games and more Ebay store listings instead.
    Ebay is falling into the same sort of trap a lot of credit card companies and others are falling into right now.  PEOPLE HAVE NO MORE MONEY!  THEY ARE RUNNING OUT OF DISCRETIONARY INCOME!  I, like many other people, am on a budget, as is my business.  When Ebay tells me I will be spending an extra $57 a month on fees, I CANNOT just suck it up....it has to come from somewhere, and I've decided it will come from Ebay itself in the form of listing less auctions.
  Of course, did anyone notice the sneaky way they announce this AFTER Ebay live? And then toss Ebay users the 20 cent auction listing fee bone for the next two days?   Pure evil genius.

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Post Posted: Thu Jul 20, 2006 12:14 am 
 

Badmike wrote:In retrospect, having something sitting in your store for 25 cents a year was an asskicking for Ebay (while good for store owners, no doubt).  No fees worth mentioning being generated by Ebay in the meantime.  It was a great loophole, only a matter of time until Ebay closed it.  :cry:


Except for the $200/year I'm paying them for my store. The store listing is about the only major reason I've even got the store. I like my branding (D.U.M.B. Games), but I'm guessing it's not a major incentive for buyers to buy from me, so with this change, I'm going to have to look long and hard about cancelling my store, and going to the 'list a fricking lot of auctions' option.

My solution?  Cut my AUCTIONS by 50 a week nets me $20 extra a week in listing fees, putting those items in my Ebay store instead will cause me to about break even.


That cuts your income as well though. (Assuming at least some of the auctions would sell :P)

I'd much rather set my own price than rely on the vagaries of hoping not one but TWO separate bidders both want my particular item the same week and get into a bidding war.


Yeah, I don't have a single auction, with just under 700 items in my store. I don't like gambling with my inventory. And having to pay the listing fee, which is substantial, for something that doesn't sell.. blech.

Of course, did anyone notice the sneaky way they announce this AFTER Ebay live? And then toss Ebay users the 20 cent auction listing fee bone for the next two days?   Pure evil genius.
Mike B.


Yeah. I was reading the $0.20 listing day email, and ignored the other email I received. Was considering going on a listing binge (for auctions, which I'm sure they intended), and then read the fee changes and just soured on it. Bleh.

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Post Posted: Thu Jul 20, 2006 5:42 pm 
 

Eh, it's not good news thats for sure, but I'll just have to push a little harder to sell a couple of more items.  I love the store concept too much to close it, and I don't do bad profitwise either.  I am going to look into doing some advertising to boost traffic, and look at doing some (more) selling on other venues, there's so many people who hate the ebay in general and I'd like to get them as my customers also.  

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Post Posted: Thu Jul 20, 2006 7:21 pm 
 

If all sellers close their stores together eBay will certainly change their price policies. It is a highway robbery.

Close your store and go to other websites (in France we have a lot of them, priceminister, aucland, etc, I think it is similar in US). This is the only solution.

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Post Posted: Thu Jul 20, 2006 8:42 pm 
 

lokiwookie wrote:If all sellers close their stores together eBay will certainly change their price policies. It is a highway robbery.

Close your store and go to other websites (in France we have a lot of them, priceminister, aucland, etc, I think it is similar in US). This is the only solution.


Yeah, there's not really any viable alternatives here. There's Amazon.com, but it doesn't provide nearly the traffic that eBay does.

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Post Posted: Thu Jul 20, 2006 8:59 pm 
 

Sorry, but I can really see eBay's point here — although, perhaps, they could have introduced a slightly smaller price bump.

Store listings currently account for 83 percent of all eBay listings, yet they represent only 9 percent of total sales. That's a lot of virtual shelf space filled with items that just sit there ... and sit there ... and sit there.

Throw in the fact that despite total sales rising 30 percent last quarter, eBay's profit actually dropped 14 percent ... and, well, is it such a huge surprise that driving sellers toward the traditional auction format is part of eBay's plan?

That's not to say I don't see some valid points from BadMike, Grayson, et. al, and I respect the fact that this announcement is a huge concern for them. I also think they will adjust and remain profitable, as they are obviously intelligent people.

I guess I'm just saying I'm not that surprised. It is eBay's sandbox, after all ...

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Post Posted: Fri Jul 21, 2006 12:44 am 
 

Xaxaxe wrote:Sorry, but I can really see eBay's point here — although, perhaps, they could have introduced a slightly smaller price bump.

Store listings currently account for 83 percent of all eBay listings, yet they represent only 9 percent of total sales. That's a lot of virtual shelf space filled with items that just sit there ... and sit there ... and sit there.

Throw in the fact that despite total sales rising 30 percent last quarter, eBay's profit actually dropped 14 percent ... and, well, is it such a huge surprise that driving sellers toward the traditional auction format is part of eBay's plan?

That's not to say I don't see some valid points from BadMike, Grayson, et. al, and I respect the fact that this announcement is a huge concern for them. I also think they will adjust and remain profitable, as they are obviously intelligent people.

I guess I'm just saying I'm not that surprised. It is eBay's sandbox, after all ...


Just one of these days, one of the MegaCorps is going to raise fees and their press release is going to be something along the lines of "Well, yeh, we wanted to make some more money."  I'd deal with that easier than the convoluted logic that sometimes is spewed out of spokesmen trying to justify more dolloars coming out of my pocket.
 What's funny, is that just a few years ago Ebay was desparate to drive sellers to open Ebay stores...undoubtedly to compete with Amazon's model at the time....and gave lots of incentives to do so.  So now they are complaining because too many people have stores with lots of inventory in them?  Well duh.  Ebay created the monster.  
  When total sales rise and profits drop, that is the evidence of something wrong with the business model (happened to Home Depot a few years ago, they have finally gotten it fixed looks like).  Corrections are expected, but from what I am reading in Wall Street Journal, it isn't all the fault of stuff sitting in Ebay stores. The market and model is changing, just like it was back in the day when Prodigy was the first big dial up internet company and then they let guys like AOL take over while they faded.  Ebay might not be going through a soft spot; this might just be a permanent correction in the marketplace.  It was inevitable that the more people who started selling stuff on ebay, the more choices buyers would have and the less actual stuff would be sold at high prices (which could be why sales are up and not profits...more stuff being sold but for less). Nowadays you are more able to get a deal on Ebay than ever, due to large competition.  Ebay may not be able to win back those giant profits in any case under any scenario.....ask AOL what happens when the model changes and you can't or won't.

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Post Posted: Fri Jul 21, 2006 11:28 am 
 

When I read that announcement on ebay, I three thoughts:

1) A lot of stores are going to remove their inventory of slow-moving items.

2) That means I have "think faster" about some items I was thinking about buying.

3) Dammit, I was trying to cut back on ebay for a few weeks to save some money for Gencon!

Dumb capitalists.  Always wrecking my half-assed plans!

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Post Posted: Fri Jul 21, 2006 12:18 pm 
 

The massive store inventory glut is, I would strongly suspect, because of the proliferation of drop-shipping wankers that are, imo, abusing the system. My 700 item inventory is considered 'medium size', but the 'large size' guys have 10,000 items. The big dropshippers push 100,000 store inventory listings.

One megastore is the equivalent of over 100 guys my size. Doing something to change the drop-ship pandemic would fix their problem, without alienating a large portion of their seller base even further.

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Post Posted: Fri Jul 21, 2006 12:31 pm 
 

GraysonAC wrote:
Yeah, there's not really any viable alternatives here. There's Amazon.com, but it doesn't provide nearly the traffic that eBay does.


Yes but if all sellers go to Amazon, buyers would go to Amazon too and same traffic will be found on Amazon (or every other websites)...
Don't close your ebay store and ebay will be winner. Of course for professional seller it is another matter but if all non-professional stop selling on ebay for 3 months, eBay will change their policies, I am pretty sure....

Anyway I will close my store and stop selling on ebay on August 20th...

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