Tuesday, February 05, 2008

Raining Against E-bay

I just saw this notice about new fees on E-bay starting Feb 20. If you do not follow through several links from the message buried in your 'My Messages' section, you will totally miss this.

The initial message is titled: 'Important seller pricing changes' dated January 29
Inside this message, the first section says:

Reduced Listing Fees
You asked, we listened. We're reducing Insertion Fees and adjusting Final Value Fees to lower your up-front cost to sell on eBay. You wanted free Gallery, now you've got it--plus more feature discounts. In addition, Canadian dollar fees and pricing tiers will be adjusted to match US dollar fees and pricing tiers to reflect recent changes in currency exchange rates.

* Lower Insertion Fees

Now you have to next click on that link - Note it says LOWER Fees?
Then you have to look past the slight reduction in listing fees (drop of .05 for items bellow $25 start). Go down 3/4 the way down the long list of tables. You find this bombshell:

Final Value Fees for Auction-style and Fixed Price listings

Closing PriceFinal Value Fee(effective 02/20/2008)
$0.01-$25.00 5.25% of the closing value 8.75% of the closing value
$25.01 - $1,000 5.25% of the initial $25.00,
plus 3.25% of the remaining
8.75% of the initial $25.00,
plus 3.50% of the remaining


Be warned - I certainly will be cutting back on my use of E-bay.
I sent the company the following letter (as if it will do any good)

To E-bay:

I must register a protest about the HUGE increase in discount rates you have just announced. The increase from the current 5.25 to the intended 8.75 % amounts to a * 50% * increase in costs.
It is also 'dishonest' that you have buried this massive increase inside a message that says " Reduced Listing Fees
.. We're reducing Insertion Fees and adjusting Final Value Fees to lower your up-front cost to sell on eBay.
* Lower insertion fees "

You are cutting the cost of a lower starting price by a mere .05 - and then taking the much higher value extra 2.5 % on the final sales total. How on earth does that 'save' me anything?

To this point, the direct costs of the use of E-bay / Paypal was at least approximate to direct sales via a credit card merchant account. With this massive increase in your charges on commission, the cost of using your service has become too expensive.

What possible rational can be offered against a 50% increase? Given the MASSIVE profit taking by E-bay under the old price structure, nothing but pure greed can be suggested.

This increase will certainly make me STOP USING E-BAY as a marketing tool for my products

Darrell Markewitz
the Wareham Forge


One rain drop amounts to very little,
A handful of rain drops may make you damp enough to notice?
A million rain drops make a ranging flood...

1 comment:

STAG said...

EBay has its uses. Making money is not really one of them.


February 15 - May 15, 2012 : Supported by a Crafts Projects - Creation and Development Grant

COPYRIGHT NOTICE - All posted text and images @ Darrell Markewitz.
No duplication, in whole or in part, is permitted without the author's expressed written permission.
For a detailed copyright statement : go HERE