Hi everyone, I hope your day was great. Ebay announced that they lowered their auction fees. Or did they? They seem to be making a killing off of final value fees already. So why did they raise all the final value fee percentages? Well, they lowered auction fees. There are some changes that will effect everyone. And there are some changes that will only affect a few people. Ebay has lowered their pricing because they say the competition is getting fierce with other online marketplaces. Could it have something to do with the federal reserve lowering the interest rates by over one point in less than a month? After all, even though ebay has competition, they are still king when it comes to auction marketplaces.
Ebay announced lower insertion fees and higher commission fees on auction, fixed-price and Store listings that go into effect on February 20, 2008. In addition, eBay will begin giving US and Canadian sellers up to a 15 percent discount on Final Value Fees based on Detailed Seller Ratings beginning in April 2008.
While auctions listed with a starting price of less than $1 will cost 15 cents in Insertion fees (down from the current 20 cents), eBay will no longer allow sellers to list items in fixed-price format for under $1.
At the same time, eBay is increasing Final Value Fees. Items that sell for under $25 are currently charged 5.25% of the closing value - this will be increased to 8.75%. The final value fee for items that sell for between $25.01 - $1,000 are currently 5.25% of the initial $24, plus 3.25% of the remaining closing value balance; this will change to 8.75% and 3.5%, respectively.
Final value fees for Store Inventory listings will rise from 10% to 12% for items that sell for $25 and less. For items that sell for between $25 and $1,000, the fees will be 12.00% of the initial $25.00, plus 8.00% of the remaining closing value balance.
Reserve fees will no longer be refundable if the item sells. EBay also announced that it will begin giving US and Canadian PowerSellers up to a 15 percent discount on Final Value Fees based on Detailed Seller Ratings beginning in April 2008.
There is some good news for most people. But for sellers like me, who use buy it now when they sell; we will be charged outrageous fees every time something sells. Time to recalculate your ebay fee listings. Your profit margin will be sure to drop. Just make sure you charge people accordingly on your auction listings. We can all overcome this recession together. Pinch your pennies, pay attention to detail, and we will get through this just fine.
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