Wednesday, September 21, 2011

Fee Jump for Ebay: Final Valuation Fees Jump from 5.25% to 7.9%

Just when you thought eBay and Paypal were taking about as much of Pie as they could handle, they have announced that from September 22nd they will be taking even MORE FEES.

Under the guise of removing ebay listing fees (actually this has been in place for nearly a year and is for just the first 30 items). Ebay is actually raising final valuation fees from 5.25% to 7.9%* (a huge 2.5% jump on fees).

Very disingeniously this new fee hike is being sold as a saving to listers (sellers on ebay).

Will this be the final bag to break the Camels back? Surely there will be a backlash against ebay who are already seeing there sales numbers decline as people decide it is not worth there while to list anymore on ebay.

Many People calculating this lastest fee hike are revising there ability to trade on-line, an example of a listing:

You list an item on ebay with a single picture, starting at 99c bidding, with a gallery picture for search results - the insertion fee is $1.09.

It sells for $1200. Currently the final valuation fee is $63. Total cost to sell? $64.09.

Now it's after 22nd September.... you list for FREE, but cop 7.9% on the final value - making the total cost to sell $94.80 - a 48% increase.

That's BEFORE PayPal fees, which on receiving $1200, is $29.10.

It's going to cost $124 to sell an item for $1200 to get paid by PayPal.

Can you afford to do business sales on ebay? Does this kill your profit margin?


Rewarding our valued casual sellers
You've told eBay that you love FREE insertion fees and prefer to pay your fees only once your item has sold. So, from 22 September 2011, eBay is trialing fee changes that will make it easier for casual sellers to sell with zero up-front cost.


Free to list in any format – Eligible sellers will be able to list up to 30 single quantity listings per month in any format with zero insertion fees (excludes PowerSellers, Stores and sellers registered as a business on eBay) using standard listing features in participating categories**

No up-front cost – You only pay as you sell your item

Free gallery image – Saving you $0.59

One easy final value fee – To enable eBay to offer this up front saving and simplified fee format, eBay is re-balancing and simplifying fees by slightly increasing final value fees – from 5.25% to 7.9%.

The final value fee will be capped at $49.95 for each of the first 30 listings per month.