Yesterday, eBay made its well anticipated fee structure change announcement. The news was a ‘good news / bad news’ mixed bag. First there are some fairly significant changes in the fee structure.
eBay is lowering the insertion fees (the fees they charge to list something), but they are raising the final value fees (the fees they charge when that something sells). Another fee item of interest is that they are making the “Gallery Photo” free. The Gallery photo is the thumbnail that appears in the eBay search results. In the past, this was an add-on costing 35 cents flat fee per listing.
Will you be paying more in fees now or less in fees? The answer: It depends. It will depend on a lot of variables now including your starting price, your ending price, your sell-through rate, and whether or not you used Gallery before. The AuctionBytes blog has a few calculated scenarios you can look at.
It also will depend on your level of selling and how good of a job you do at customer service. For the first time ever, eBay is offering performance-based final value fee discounts for Power Sellers. These depend on various factors including Detailed Seller Ratings (DSRs) and high volume. One of the criticisms leveled against eBay in the past has been that an eBay business has not been scalable. In other words, they have always charged the same fee structure across the board no matter whether the seller sells 100 per month or 100,000 per month. This is a step toward creating a scalable eBay marketplace for larger volume sellers. It also rewards exemplary seller performance.
In addition to the fee changes, eBay is making some fairly earth shaking changes to their feedback system. Stay tuned!