A Seller's Take on Ebay's Decision to Cut Listing Fees but Raise the Percentage of Fees Kept for Items Sold

My Take as Well as that of the Ebay Community on Recent Changes at Ebay

Jan Corn
When I first started out on Ebay, it was an experiment. I wasn't really trying to make money but to sell some items that we had in our home and which were in great condition. They sold instantly and for more money than I would have gotten if I'd tried to put them in a garage sale.

The benefits of Ebay were obvious to me from the start. I could list items and have a window of time, from 3 to 10 days, when people could drop by 24/7 and view my items. It wasn't uncommon for people to try and offer me a Buy it Now price or try to make deals "on the side" but I didn't do this. Some other sellers did. It just wasn't within my comfort level.

Back when I joined, anyone could leave feedback for anyone else. That is how far back I go with Ebay. If I left a helpful comment on a community bulletin board there, it wasn't rare for someone to leave me a positive feedback! Of course, this also allowed for lots of retaliatory or revenge feedback, often for petty reasons. Since then, they've changed the feedback system and I'm not sure it is for the best....but this article isn't about that.

To read about the feedback changes, I'd suggest you see another AC writer's article here:

www.associatedcontent.com/article/570497/ebay_feedback_changes_.html

I'm not happy that sellers can not leave negatives for buyers, as that article states. But on to the fee changes:

Here's the info on that:
First Ebay fees change:
This article is just one of many which indicates that Ebay is going to cut listing fees between 25 and 50 percent. You can see it at pcworld.com at :
www.pcworld.com/article/id,141989-c,auctionsites/article.html

That is good news to sellers whose items don't sell. At least they don't have to pay full listing fees for those items. They'll get a price break there.

Next Ebay fees change: Ebay is going to take a higher percentage of final sales prices for items, moving from about 5.25 to 8.75 of the final sales price. On a $25 item, this means that sellers would have paid $1.43 to Ebay in "commission" to the company. Now? They'll pay closer to $2.18. Ouch!

Next Ebay fees change: Gallery photos will no longer cost anything. This should be good although it may lead to a huge influx of gallery photos for just about any item. Some sellers, including me, would think carefully about which items we listed as Gallery items.

My history with Ebay:

At one time, I was able to sell and ship 100 items a week there, making a decent income to supplement my husband's salary,. It was hard work packing all those boxes carefully and it often meant a scramble to the post office before it closed for the day. My sons and I would haul along a cart in the trunk of my car as well as the boxes, carefully labelled for customers.

It was a family business and we did pretty well. I was able to stay home and make money in sales. This was wonderful when my kids were small, allowing me to be there for them before and after school. They also learned plenty about sales, keeping track of inventory, etc.

Now? I don't sell on Ebay as much and the few items I sell have to be worth far more than the relatively inexpensive items I used to sell. Not only has this made it harder for buyers to find inexpensive items (the fees don't make it worth it for sellers to list those items) but it is much harder for sellers to make money on Ebay. The last item I sold was one that cost about $400 retail but was selling on Ebay for around $800, making it worth listing. I also sell rare items from time to time.

Ebay community reaction to the change in fees:

Anyone can log into Ebay and get a sense of the community's reaction to the fee changes. You only have to go to Ebay's site at: www.ebay.com
and then click on the word, Community (should be at top right of most computer screens) . From there, I suggest you check out the Ebay Town Square.

When I read the most recent reactions, they were predominantly negative about the new changes and I certainly understand why. Leaving a positive or negative feedback was a way for sellers to let others on Ebay know whether a buyer was trustworthy or not. Now it is Seller Beware. Doesn't it make sense that sellers should be able to let other people, both new and inexperienced sellers, know if a buyer is erratic or untrustworthy? It is also New Seller Beware because there won't be any seller feedback to let them know if they're selling to a person with a good track record or not. Any buyer could come along, bid on an auction and then refuse to pay. Ebay might as well have put out a "Welcome mat" for them!

When did the site decide to stop listening to sellers and responding to their needs? I'm left feeling baffled, betrayed and bewildered...and glad that I don't depend on the site for extra income any more.

Published by Jan Corn

I've had extensive experience with DIY and home renovation projects, particularly after buying a home that was in need of repair. As the daughter of a builder, I'd learned a few things when helping my fathe...   View profile

66 Comments

Post a Comment
  • Debbie Gavazzi 8/5/2010

    Dug way back to find this one. lol

  • Dan Higgins 8/21/2008

    You may also find www.vitubid.com as an alternative. It's a new online marketplace and the fees are extreemly low, you get a free store and you can sell digital download products. When you list an item it is automatically pinged to the RSS feeds and listed in Google Base. The site has a community area including blogs. It looks like this site is gaining momentum and maybe worth checking out.
    Thanks - Dan Higgins

  • cploonker 2/16/2008

    Here's my take on this : create ebay store using http://easystorehosting.com/esh/ebay-seller-tool.php and market using http://base.google.com

  • jcorn 2/5/2008

    Jennifer -
    I covered the fee issue because another writer handled the fee structure and I felt that writer should get credit for that so I linked to that one and went into the fee issue. One problem with the fee structure is that the smaller seller gets hit hard while Powersellers get an automatic discount on fees plus the advantage of already reduced fees on listing due to the new structure. So it won't hit them as hard.

  • Yabe 2/5/2008

    Looks like a rebuttal to your article at: http://www.associatedcontent.com/article/574681/ebay_fee_and_feedback_change_is_part.html

  • jcorn 2/4/2008

    Jennifer-
    It is the whole picture that is being taken into consideration. As a former (and now, occasional) seller there, the inability to leave feedback is going to hurt seller's profit margin. There were many buyers who would have been much quicker with their negatives if they didn't have to worry about repercussions, even though I'd done nothing wrong. Nine times out of ten, a package would be left with a neighbor or held at the post office and it took a small bit of time to track it down but many buyers would not take that time....if they didn't have to. Two-way feedback is best.
    I also think the fees are more important than people realize.

  • Jennifer Claerr 2/4/2008

    I'm a consistent seller on eBay, and I have to say, people are overreacting to the changes in fee structure. The changes do slighly increase the final value fee for items which sell below $25; however, the balance over $25 is actually lower, as are the insertion fees. Gallery is free. Before sellers would deface the site and negatively affect by simply going without gallery. The real problem here, as I see it, is the changes to feedback. Now the buyer can still leave us sellers a negative, but we can only leave them a positive. There is no way to work this to our advantage. Please sign the petition at http://www.thepetitionsite.com/1/new-feedback-policy-unfair-for-sellers. Thanks. Jennifer

  • Momie Tullottes 2/3/2008

    Wow! I sell on there every once in a while and haven't done so in a bit. I was unaware of the changes. They don't sound good at all. Thanks for the warning. I may have to be more picky about what I sell now.

  • Scott Schlimmer 1/31/2008

    I'm surprised a decent competitor to Ebay hasn't emerged. Google, care to jump in please?

  • Luke 1/31/2008

    Clarification: I meant on the side with the bidder/customer not Ebay lol

Displaying Comments
Next »

To comment, please sign in to your Yahoo! account, or sign up for a new account.