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Thread: Ebay massive fee rise

  1. #1
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    Ebay massive fee rise

    Having seen the post about DSR and ebay not being complicit in it, I have been looking on the ebay site for new changes. Whilst I dont think there is much you can do about the DSR in ebay (due to the fact that you accept the conditions of the seller when bidding), their new pricing structure needs serious re-thinking.

    29 January, 2008 | 03:10PM GMT

    We wanted to inform you about new fee pricing that will reduce upfront costs when selling on eBay for all sellers and reward business sellers who have strong sales and great customer service.

    Reducing risk: up to 33% off Insertion Fees
    We’re reducing the upfront cost of listing an item by reducing Insertion Fees by up to a third.

    Instead, the majority of fees will now be payable as a Final Value Fee, only when an item sells, aligning your total fees much more closely to your selling success.

    This change will come into effect from 20th February 2008 in most categories.

    More about eBay.co.uk pricing changes
    More about eBay.ie pricing changes

    Rewarding great sellers: up to 40% off Final Value Fees
    Following your feedback, we’re delighted to introduce a new volume discount scheme, available from February.

    If you’re a high volume, business-registered seller providing a good service to your buyers, as measured by your Detailed Seller Ratings, then we’ll recognise your success by giving you a discount of up to 20% off your Final Value Fees.

    If you’re an active member of the PowerSeller programme, you can qualify for the highest volume discounts - up to 40% off your Final Value Fees.

    There will be a series of Q&A sessions on the Community boards over the coming weeks and as always we look forward to your feedback. Of course, we’ll continue to update you as these changes take effect.

    More about the eBay.co.uk discounts
    More about the eBay.ie discounts

    The scheme will replace the eBay Rewards programme, which was our first step towards rewarding high volume sellers.

    More about the closure of eBay Rewards

    Find out more about all the changes being announced today (UK sellers / Ireland sellers).

    Regards,

    eBay Europe S.à r.l
    If you have a skim read of that it looks like great news, however when you look deeper you see that it is only insertion fees that are going down. Final Value Fees (FVFs) are increasing from 5.25% to 7.5% (which is roughly 40%). Thus if you list something at a few pounds then you save 10pence (+/-5pence) in listing it. However, if it sells at £50 then instead of paying £2.23 FVF you pay £3.15, costing an extra 92pence. If your item sells for more than £50 then this difference is even worse!

    I dont know what can be done about this but personally I think it is a disgusting change, especially given how the above article gives the impression that it is a positive step!

    Last edited by explicitlyrics; 31-01-2008 at 05:13 PM.

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    Who the $%£# told you you could eat my cookies?! Oobie-'s Avatar
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    Re: Ebay massive fee rise

    Oh dear....

    More money hungry schemes.../sigh
    ¯\_(ツ)_/¯

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    Re: Ebay massive fee rise

    Yeah, there was a peice about it on yesterday's WebbAlert. It went on to mention that the feedback system would be altered. Also listings would push those with lots of negative feedback further down to give respectable sellers a higher priority. I'm not sure how the latter would work with regards to sorting a list by end date?
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    Re: Ebay massive fee rise

    Quote Originally Posted by pauldarkside View Post
    Yeah, there was a peice about it on yesterday's WebbAlert. It went on to mention that the feedback system would be altered. Also listings would push those with lots of negative feedback further down to give respectable sellers a higher priority. I'm not sure how the latter would work with regards to sorting a list by end date?
    Also not fair to genuine people starting up for the first time.

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    It's good to be bad pauldarkside's Avatar
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    Re: Ebay massive fee rise

    True, but people just starting won't have the negative feedback which would push them down the list. It's extremely rare that I'll buy from a new/unrated seller; when I joined, I bought a few items to gain feedback before attempting to sell anything.
    My only concern is should I hide my true identity? A costume maybe?

    0iD: Plus weeing in it every now & again does it good
    scaryjim: 10" is just a little large to hold comfortably in one hand, which makes it a lot harder to tap, swipe and generally interact with.

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    Re: Ebay massive fee rise

    I guess they just arn't making enough profit!

    Hate selling on ebay and I don't do it anymore.
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    HEXUS.gaming Steven W's Avatar
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    Re: Ebay massive fee rise

    The feedback scheme on ebay is all wrong as well.

    If you're buying you feel obliged to give that person good feedback because if you don't it will affect your feedback score because they're guaranteed to leave you feedback as well. If you've built a good reputation and you're a decent seller, the last thing you want is some bad feedback from an idiot just because you say his service was useless.

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    Re: Ebay massive fee rise

    I think a good way to make feedback more accurate, and make it less likely that people trade feedback, would be to have a 30 day time limit to submit feedback, and to seal the feedback until the limit is up. That way no one would be able to see what feedback the other party has given them until it is to late to submit any. It should be possible to change the feed back you give at any point up to the deadline, to allow for cheques that bounce, or goods that pass first inspectin, but then turn out to be stolen or faulty.

    There would have to be a small penalty for not giving feedback at all, and some statistical work to make sure that people who trade with each other frequently, don't give tit for tat feedback on one transaction based on the score they received on the previous transaction.

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    Re: Ebay massive fee rise

    Google should get into the online auction game. Ebay has gone really greedy, even prior the next raise, Ebay+Paypal would take off close 20% of the console's final value.
    Last edited by TooNice; 31-01-2008 at 08:33 PM. Reason: Oops, I meant consoles, not all items. But still..

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    HEXUS.gaming Steven W's Avatar
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    Re: Ebay massive fee rise

    Quote Originally Posted by TooNice View Post
    Google should get into the online auction game. Ebay has gone really greedy, even prior the next raise, Ebay+Paypal would take off close 20% of the item's final value.
    It could definitely do with some strong competition.

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    Re: Ebay massive fee rise

    I read that ebay makes up about 20% of the revenue google gets for advertising which
    is why they havent done it.

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    Senior Member chrestomanci's Avatar
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    Re: Ebay massive fee rise

    Quote Originally Posted by TooNice View Post
    Google should get into the online auction game. eBay has gone really greedy, even prior the next raise, eBay+Paypal would take off close 20% of the console's final value.
    The problem is, google makes to much money from context sensitive ads from eBay when ever you do a search to jeopardise that source of income. (e.g. When you do a google search for "widgets" you get ads down the left side telling you to get a good deal on widgets at eBay).

    Personally, I would love for google to open an auction site, appart from anything else, they would probably put more brains into it to detect and block fraudsters, hijacked accounts etc much faster. As a buyer I would happy pay a percentage fee to a better auction site if it came with guarantees that I would always be compensated for any loss, and that fraudsters would be persued through the courts. (even a percentage of very low value frauds to deter even that).

    The problem with the current eBay setup is that it is not in eBay's interest to crack down on fraud, because they make money on it. In economics this is known as Moral hazard and is considered a bad thing. For example it was a contributing factor to the Northen Rock colapse.

    Back on the persuing fraudsters angle, Back when IBM was the world's richest computer company, they had an interesting policy to stop their accounts receivable department being scammed. Like most companies, they often received small invoices for stuff, and it was not worth the staff time to investigate exactly what the debt was for, and if it was legitimate, so the invoices just got paid. The sang is, someone could easily make a tidy profit by sending out hundreds of small invoices for $10 here, $20 there. Make them look convincing and they would get paid, and slip under the radar.

    In the same way there is most likely an internal minimum at eBay's fraud investigation department. the fraudsters know what it is, and know that so long as they stay under that limit, there is very little chance of getting investigated.

    IBM's solution to the problem was to investigate all invoices pertaining to large amounts, (say over $1000), and for smaller amounts feed the amount into a formula to calculate the probability of an investigation, so $20 invoice divided by $1000 equals a 2% chance of an investigation or $950 is 95%. This means that if an invoice is just under the limit, it is almost certain to be investigated, and even the smallest invoices have some chance of being investigated. If any invoice was found to be fraudulent, then even if the amount was tiny, the fraudster would be persued to the maximum extent of the civil and criminal law. This way there is a deterrent against even the smallest scams, and the cost of investigations is kept to a reasonable amount.

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    Lightbulb Re: Ebay massive fee rise

    Quote Originally Posted by Steven W View Post
    If you're buying you feel obliged to give that person good feedback because if you don't it will affect your feedback score because they're guaranteed to leave you feedback as well. If you've built a good reputation and you're a decent seller, the last thing you want is some bad feedback from an idiot just because you say his service was useless.
    Another big change is

    They are removing the ability for sellers to leave negative or neutral feedback at all

    Madness ! Now buyers will neg with no deterrent !

    Mind you I slowed down my ebay selling, and now sell on my websites,
    google checkout has had NO FEES at all for the past few months

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    Re: Ebay massive fee rise

    Ebay obviously need the money............

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    Beard hat ftw! steve threlfall's Avatar
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    Re: Ebay massive fee rise

    Quote Originally Posted by mikerr View Post
    Another big change is

    They are removing the ability for sellers to leave negative or neutral feedback at all

    Madness ! Now buyers will neg with no deterrent !

    Mind you I slowed down my ebay selling, and now sell on my websites,
    google checkout has had NO FEES at all for the past few months


    What a joke

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    Jay
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    Re: Ebay massive fee rise

    Easy way to stop feedback being unfair is to not let you see the other persons feedback until you have left yours for them.
    □ΞVΞ□

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