The first of three eBay changes to selling policies for 2010 has been posted. These changes, sometimes called a bucket may well lead sellers to feel the bucket has been dropped, with a thud, on their heads.
CEO John Donahoe said one week ago “we’ve made significant changes in rebalancing front-end versus back-end fees . . . we have aligned our incentives with that of our sellers. If they don’t succeed in selling we don’t succeed in collecting fees.”
In plain English that would indicate a drop in ‘front end’ or insertion fees with a corresponding increase in ‘back end’ or final value fees. Less upfront risk for sellers. If you are fluent in BaySpeak it means no such thing.
I predicted in October an overall increase being touted as an overall decrease because one tranche lowered. My initial analysis today is that nothing in this bucket is substantially lower. How that qualifies as a fee reduction or incentive to remain on eBay is beyond my skills to explain.
Hopefully I will have spreadsheets for you tomorrow, meanwhile, quick and dirty.
Stores vs Fixed Price
eBay in both Canada and the USA are moving to a plan similar but not identical to the one trialed in the UK last year. The major difference between the plans is that monthly store fees remain the same, in the UK they increased substantially.
Current insertion Fees for US stores are as follows for a 30 day listing:
- List price less than $24.99 - $0.03
- List price between $25 to $199.99 - $0.05
- List price over $200 - $0.10
What this renders down to is:
FP30 Listings Insertion Fees
- if you list 107 fixed price items a month today, insertion fees cost $37.35
- with a basic $15.95 store subscription your insertion fees per month will decrease 10c in April
- without the store subscription your fees will increase to $53.50 which is a 43% increase.
- if you list 50 fixed price items a month today, insertion fees cost $17.50
- with a basic $15.95 store subscription your insertion fees per month will increase to $25.95 in April which is an approximately 48% increase
- without the store subscription your fees will increase to $25.00 which is a 43% increase.
Summarized: for low volume sellers Fixed price Insertion Fees increase a minimum of 43% from $0.35 to $0.50 per listing
FP 30 Listings Final Value Fees
Current FP30 Final Value Fees vary by category, this is unchanged.
- Computer increases from 6% - 3.75% - 1% to 8% - 5% - 2% these are increases of 33% - 33% - 100%
- Clothing is unchanged at 12% - 9% - 2% but major changes are promised mid year.
- Electronics increase from 8% - 4.5% - 1% to 8% - 5% - 2% these are increases of 0% - 11% - 100%
- Media is unchanged at 15% - 5% - 2%
- General Merchandise (all other categories) are unchanged at 12% - 9% - 2%
- Store Inventory Format (SIF) is gone. Today there are four price tranches, under $24.99, $ 25 - $99.99, $100 - $999.99 and over $1000. FVF are 12% - 8% - 4% and 2%
- NEW SIF will be the same as General Merchandise FP 30 with three price tranches, under $49.99 - $50 to $1000 and over $1000. FVF will be 12% - 9% - 2%. This means increases on every item over $24.99, for example a $49.99 item FVF will increase from $3.20 to $6
Auctions, if you do not have a store
Here are the decreases, sorta. Up to 100 auction listings per Non-Store Subscribing seller per month starting at $1 or below will have no Insertion Fees. If you are an occasional seller and sell things you can afford to let go for $1 you will save the 15c insertion fee. FVF go up from 8.75% to 9%, flat rate, to a maximum of $50.
- Starting bid over $1 - $9.99 insertion fees decrease 30% from 35c to 25c
- FVF increase on $9.99 item from $0.87 to $0.90 Net savings 7c
- Starting bid over $10 - $24.99 insertion fees decrease 10% from 55c to 50c
- FVF increase on $24.99 item from $2.19 to $3 Net increase 76c
- Starting bid over $25 - $49.99 insertion fees decrease 25% from $1 to 75c
- FVF increase on $49.99 item from $3.07 to $4.50. Net increase $1.18
- Starting bid over $50 - $200 insertion fees decrease 50% from $2 to $1
- FVF on $100 item increases from $4.82 to $9 Net increase $3.18 Cost of sale rises from $6.82 to $10 a 46% fee increase
- FVF on $200 item increases from $8.32 to $18 Net increase $8.68 Cost of sale rises from $10.32 to $19 an unbelievable 84% increase.
Auctions for Store Subscribers
There is a sneaky little FVF increase, the 8.75% applies to the first $50 not $24.99 and the 3.5% thereafter up to $1000 increased to 4%, this adds $6.06 to FVF on a $1000 item. Over $1000 also increased from 1.5% to 2%.
- Store subscriber (any level) starting bid under $1 insertion fees decrease 350% from 35c to 10c. FVF remain the same, net savings 25c.
- Starting bid over $1 - $9.99 insertion fees decrease 30% from 35c to 25c. FVF on 9.99 item remain the same, net savings 10c.
- Starting bid over $10 - $24.99 insertion fees decrease 10% from 55c to 50c. FVF on $24.99 item remain the same, net savings 5c.
- Starting bid over $25 - $49.99 insertion fees decrease 25% from $1 to 75c. FVF increase on $49.99 item from $3.07 to $4.37. Net increase $1.05
- Starting bid over $50 - $200 insertion fees decrease 50% from $2 to $1.
- FVF on $100 item increases from $4.82 to $6.38 net increase $0.56 Cost of sale rises from $6.82 to $7.38 an 8% fee increase.
- FVF on $200 item increases from $8.32 to $10.38, net increase $2.06. Cost of sale rises from $10.32 to $11.38 a 10% increase.
Crystal Ball Department
Auntie May thinks the reason eBay wants to merge sellers ID’s is to prevent sellers from being store subscribers on one ID and getting free auction listings as non store subscribers on another, or many others. What do you think?
Y’all come back!
This is an old post, things may have changed since it was written. Using the search box may reveal more current information.