eBay Selling

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July 23, 2006

eBay Selling: eBay Store Fee Increases, Part 3

We've been talking about eBay selling with eBay stores and the uproar over the fee increases and other changes. So, how are the fees going to increase, really? We've put this in chart form to make it clearer ...


Fee Increases

 

Selling Price
New Insertion Fee
Current Insertion Fee
1 cent - $24.99
5 cents
2 cents
$25 - up
10 cents
2 cents

 

Selling Price
New Final Value Fee
Current Fee
1 cent - $25
10%
8%
$25.01 - $100
7%
5%
$100.01 - $1,000
5% (no change)
5%
$1000.01 - up
3% (no change)
3%

More on fee increases: http://pages.ebay.com/sell/announcement200607/overview/fees.html?ssPageName=CMDV:AB

 

How do these numbers compare?
Let's work out some scenarios assuming the list price and sale price are the same:

Item price: $24

Currently:
Insertion Fee (IF):
2 cents +
Final Value Fee (FVF): 1.92
Total: $1.94

Future:
IF: 5 cents + FVF: $2.40
Total: $2.45

Item price: $100

Currently:
IF: 2 cents + FVF: $5.75
Total: $5.77

Future:
IF: 10 cents + FVF: $7.75
Total: $7.85

Item price: $1000

Currently:
IF: 2 cents + FVF: $50.75
Total: $50.77

Future:
IF: 10 cents + FVF: $52.75
Total: $52.85


According to Cobb, these increases are justified. He states that store listings take more than 40 times longer to sell than core listings. What this means is that eBay's cost to host a Store Inventory listing is more than 50% higher than for a core listing. In fact, current Store Inventory insertion fees don't cover eBay's costs for hosting them, he claims.

Posted by SydneyJohnston at July 23, 2006 2:53 PM

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