eBay Stores – Disadvantages

Yesterday, I posted about some advantages to eBay stores. Today, let’s look at the other side of that coin: some disadvantages to having an eBay store.

Higher Final Value Fees
Cost of Final Value Fees is one of biggest drawbacks to an eBay store. The Final Value fee is the cut that eBay takes from the sale after an item sells. eBay store final value fees are almost twice that of eBay’s regular listings. You can compare the two to see the differences.

Standard eBay Fees

eBay Store Fees

You will have to price your items with this extra level of fees in mind.

No Built-in Traffic
Many people mistakenly assume that an eBay store will automatically tap into eBay’s huge user base of built-in traffic. This is not true and the reason for this has to do with searches. Items listed in eBay stores do not show up in eBay searches. When a search is entered within eBay (either by keywords or by browsing categories), only the regular eBay listings show up. In some special circumstances, they do show up. But in general, you will not benefit from eBay’s built-in traffic unless you take some other actions to drive traffic to your store. The only time you will directly benefit from eBay’s built-in traffic is when users explicitly browse the eBay stores (don’t count on getting much traffic this way).

Sub Domain of eBay
You only get a sub-domain URL with an eBay store and you don’t really own the domain name. For example, if you started an eBay store called “High Flying Stunt Kits”, you would get a URL like this: stores.ebay.com/high-flying-stunt-kites. This would create a problem if you ever wanted to grow your business off eBay — you would not be able to move that domain name off eBay to another hosting provider. You would have to get a new domain name such as www.high-flying-stunt-kites.com and start over. Any inbound links you had would have to be re-established and any external sources that pointed to your eBay store would have to be changed. A way around this issue are the relatively new eBay Pro Stores; an actual hosting solution outside of eBay that is only lightly integrated with eBay.

As with anything, you’ll need to weigh the pros and cons of an eBay store. Before jumping into an eBay store for your home-based or small business, make sure it will work for you. Tomorrow, I’ll wrap up the eBay store discussion by talking about how most sellers make an eBay store work for them.