Got Web Ideas? Fishing for the Answers?
Think Outside The Code First!
|
|
Facts, Thoughts, and Opinions About Web Development and Business Strategy
|
|
|
|
|
OutsideTheCode.com >> eBay Lowers Listing Fees.....But Not Really
|
|
Watch Out For...
|
|
Rob Taylor, Owner, TConsult, Inc. www.enginesforwebsites.com
|
|
January 31, 2008
|
| |
On the heels on CEO Meg Whitman announcing her resignation from eBay, new CEO John Donahoe wasted no time in trying to revamp eBay's image
and growth by announcing that effective February 20, 2007 eBay is lowering it's listing fees and making some services free that once costed money.
However, eBay sellers want to be aware that eBay also raised it's final value fees which means it is basically going to cost you the same amount
of money, if not more, if your item sells.
eBay lowered it's listing fees by roughly 16% and made it free to post a picture next to your item in the search results, which used to cost $0.35.
There are a few other minor perks for eBay auction sellers and store owners that will make it a little less expensive for sellers who do not sell their
items but not much cheaper, if not more expensive, for those who successfully sell their item.
eBay will be raising it's final value fees to 8.75% of the initial $25.00 value of the item ($2.18) + 3.50% of the final selling price minus the initial $25.00.
Traditionally it has been 5.25% of the initial $25.00 value of the item ($1.31) + 3.25% of the final selling price minus the initial $25.00.
Lets say you list an item on eBay with a reserve price and picture next to your item in the search results that sells for $40.00. It will cost:
- $1.00 to list it
- $1.00 for the reserve price option
- $2.80 for the finalvalue fee ($2.18 for the initial $25.00 value of the item + $0.52 for the $15.00 difference)
For a total of $4.80 to sell it. $2.00 if it does not sell
Now lets look at that same $40.00 item under the old fee system:
- $1.20 to list it
- $1.00 for the reserve price option
- $0.35 for the picture next to your item in the search results
- $2.09 for the finalvalue fee ($1.31 + $0.78)
For a total of $4.64 if it sells. $2.55 if it does not sell.
So, you save $0.20 for the insertion fee and $0.35 if you post a picture next to your item in the search results. However, if it sells you are paying an addition $0.16 than before.
By those numbers, nothing has changed. In fact, it costs more!
The only savings are if the item does not sell. By the two examples above, it will cost $0.55 less if your $40.00 item does not sell ($0.20 for the insertion fee and $0.35
for the picture).
|
|
|