Just a Few TownHall Questions I have Regarding the New eBay Changes

Posted on August 20, 2008. Filed under: eBay | Tags: , , , |

eBay recently announced changes that will be implemented in the coming months.  According to eBay, these changes will affect sellers in the following ways (copied directly from the eBay website):    

  • By lowering insertion fees to 35 cents for up to 30 days, sellers of fixed-price items can now list an item for about a penny a day. This means we’re virtually eliminating the up-front risk to list an item at fixed price on eBay – it’s the most competitive pricing we’ve ever offered sellers.
  • Changing the listing duration for fixed-price items from seven days to 30 will save sellers time and money.
  • The changes we’re making to streamline the shopping experience and improve search will speed the shopping experience for buyers, which then benefits sellers through increased traffic and volume of buying activity.
  • With the new shipping charge limits in the media category (books, video games, music, movies/DVDs), sellers will need to offer at least one shipping option within the specified limit or use the shipping calculator. In addition, we will be rewarding sellers who provide free shipping.
  • To provide a faster, more reliable checkout experience, eBay will no longer permit paper forms of payment such as checks and money orders on eBay.com. This change will benefit sellers, making payments faster and more reliable.

For detailed information about the upcoming eBay changes, you can view this eBay website:   http://thebestplacetosell.ebay.com/    

I have a number of questions and comments about these changes.  Below are just three of the questions I personally would like to have answered:      

 

1. On the website FAQ section, there is one FAQ titled “How is this being communicated to sellers and how are you helping them adapt?” The question I have, though, is what is going to be done to communicate to and educate the buyer about these new changes?  Recently, eBay made changes which removed seller’s ability to leave negative feedback and, in the process, created “buyer requirements” which sellers use to block bidders who have too many policy violations such as Unpaid Items.  However, eBay did not educate the buyer community about their responsibility to “follow any rules” and/or to pay for items they purchased and so every week sellers spend many hours communicating and educating angry eBay buyers who want to know why they they are blocked simply because they didn’t pay for items from 3 other sellers this month, for example.  When is eBay going to take responsibility for informing the buyers of something other than the fact that they can leave negative feedback for sellers now without fear of retaliation?  

 

2. On the website, eBay states the following: An average fixed price seller who previously spent $5,000 in fees per year on eBay would now spend only $4,450 – a savings of 11% or over $500. His/her upfront fees would drop from 41% of total fees to only 6%. The question I have, though, is can you provide the DETAILS of that calculation?  Specifically, in the calculation did you ASSUME that an eBay seller’s sell-thru rate was going to stay the same?  With increased listings (which, on the website, you fully acknowledge that the number of listings is expected to dramatically increase), a seller’s sell-thru rate percentage will then be expected to decrease therefore offsetting some, if not all, of the “savings” you calculated.    

 

3. For sellers of eBay motors parts & accessories or clothing / shoes, the final value fees for items above $50 is DOUBLE the cost of other categories.  What is the justification for the significant difference in final value fees for these two categories?      

 

The eBay August Town Hall audio event will be held on Friday, August 22nd, 2008 from 1:30 p.m. to 3:00 p.m. Pacific time.  

 

www.ebay.com/townhall    

 

Questions can be sent in advance to:  townhall@ebay.com   Anyone who wants to send any of my questions, please feel free to do so.  I will be crunching lots of numbers and I’ll have lots more questions and comments in the next few days about these changes.  

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3 Responses to “Just a Few TownHall Questions I have Regarding the New eBay Changes”

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The justification for the significant difference in final value fees is that soon ALL categories will be paying 15% in FVF, these are just the first.

Add to that your processing fee if you are using PayPal and a minimum of 18% of GMV goes directly to eBay. Nice work if you can get it.

eBay will be able to afford JD’s annual bonus.

posted this on Ink

well anyone with a store actually just had a huge fee increase with the new listing fee for extended fixed price

It hit me a while ago that stores will be even less visible with this new BS and without the left Navigation bar (now I know the motivation for its removal) buyers are not likely to enter our stores- so for visibility we will now have to list as 30 day fixed for 35 cents instead of the 3 cents I pay in my store.

so my insertion fees rise from 27 dollars a month for store inventory to 315 dollars. 70% reduction??? I think not

This is the biggest load of bull I’ve seen from Ebay. I sell a lot on Ebay, generally small things that I fix for $50 Buy It Now. I was paying about $1.65 for 7 days listing and now it’s only $.60. Fine, I save about a dollar, doesn’t make much difference to me honestly.

What does make a difference is that my final value for a $50 item jumped from being $3 to $7! That means I have to pay Ebay $3 more to continue to do what I have been.

Good f-in job Ebay. They suck hands down and they’re just trying to milk everyone like all these other retards.


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